According to a poll by SA's largest online search property portal, the 2010 World Cup won't boost the country¿s sagging property prices but that sexy Cape Town pads are likely to get the biggest fillip from the global event.

Johan Strydom, Managing Executive of propertygenie.co.za, South Africa's leading property listings website, said that 59% of people surveyed believed that next year's tournament would not boost property prices, while 41% of people said it would.

"The results are interesting as they reflect the current view of South Africans. But as there hasn't been a sporting event of this magnitude in SA, people may be pleasantly surprised by the positive effect it will have on our economy and hence house prices.

"Other countries that have hosted events like the Olympics and the Football World Cup have experienced strong growth in their property markets."

Strydom acknowledges that the world faces tough economic times at present but he expects the global economy to be in better shape in time for kick off.

When quizzed on the reasons why the World Cup would not spur house prices, 27% of respondents said that it was because local house prices were now too expensive, 20% said SA was not the best place to buy property while 19% of people pointed to the global credit crunch.

Eighteen percent said that the World Cup would not attract enough people to have a positive impact while 16% noted that SA¿s weak economy would nullify any boost from the World Cup.

The poll also asked people which kind of properties they thought would benefit most in price from the World Cup if any: 32% gave sexy Cape Town pads the nod, followed by beach houses countrywide (27%), lock up an go apartments countrywide (26%), wine farms (2%) and game farms (1%).

Twelve percent of people said that no properties would benefit.

Said Strydom: "People still see Cape Town as having the biggest pull for property investors and tourists alike.

"It is true that Cape Town has been very popular with overseas buyers and the World Cup will introduce a whole lot of new people to the beauty of South Africa.

"However according to recent research by property valuers Lightstone, only 0.5% of SA property is in foreign hands so much of the historical rise in prices has been driven by South Africans. And that's likely to be the case in the future too."

The propertygenie.co.za poll was carried out online and canvassed the views of 703 people countrywide.

Propertygenie.co.za has entered into a partnership with fractionalownership.co.za to provide access to the latest fractional ownership listings which will be available from the 12 December, 2008.

While it is well established overseas, fractional ownership is a relatively new concept in South Africa. Unlike timeshare, where users buy only the right to utilize a property, fractional ownership allows buyers to purchase an equity share in the property.

"We are continuously looking for ways in which to grow the propertygenie.co.za website and the partnership with fractionalownership.co.za has provided a valuable enhancement to all our web users", says Managing Executive of propertygenie.co.za, Johan Strydom.

Fractional ownership has become a very popular low cost investment vehicle for people looking to secure a holiday home, without significant capital outlay, and at the same time paying only for their usage of the property. It also potentially allows individuals to invest in a range of holiday properties for the price a single property would have cost them.

The Fractional Network will initially feature 40 fractional ownership properties and more will be added in the coming months.

The content will be powered by fractionalownership.co.za. who are experts in the business and have offered fractional ownership options since 2005.

Dirk Wilson, co-founder of fractionalownership.co.za, says; "We are obviously very pleased to have propertygenie.co.za as a partner as we able to expose a wide range of internet users to fractional ownership listings."

Through various other key propertygenie.co.za partnerships, The Fractional Ownership network will also be available on Realestateweb.co.za, ooba.co.za, SundayTimesProperty.co.za and iafrica.com.

Propertygenie.co.za recently partnered with The Sunday Times and The Times website to provide property listings content for TheTimes.co.za.

propertygenie.co.za, South Africa's largest property listings website that showcases over 174 000 properties nationwide, has partnered with The Sunday Times and The Times website to provide property listings content for TheTimes.co.za.

Johan Strydom, Managing Executive of propertygenie.co.za, said that the new deal, which kicked off on the 1st of October this year, will significantly increase traffic to the propertygenie.co.za website.

Colin Daniels, Publisher of The Times Online, believes the partnership will benefit Times Online users given the depth and range of properties listed at propertygenie.co.za

"TheTimes.co.za users now have access to the largest online selection of property listings from all of the country's leading estate agencies," says Daniels.

Strydom says; "All the property listings on propertygenie.co.za will now be exposed to The Times Property users and will benefit from the more than 400,000 unique monthly visitors the site attracts.

"More and more buyers the world over are demanding web based marketing of their properties such is the growing popularity and effectiveness of online property listings." he concludes

The number of properties listed on propertygenie.co.za has risen 52% in the past year alone.

propertygenie.co.za currently sends out over 300 000 property alerts matching the criteria selected by its homebuyer subscribers every month.

All estate agency subscribers to propertygenie.co.za automatically have their listings listed on The Times Property website at no additional charge.

ooba (formerly MortgageSA) has rebranded its insurance offerings ooba Buildings Protector and ooba Bond Protector in keeping with the company's name change earlier this year.

"We have renamed the insurance offering as a whole the 'ooba Protector Range' " said Craig Deats, Insurance Managing Executive at ooba.

ooba Buildings Protector, previously known as Buildings Insurance (BI) and ooba Bond Protector, previously Mortgage Protection Plan (MPP) are the two insurance products offered within the ooba Protector Range.

"We felt that it is important to align our products with the rebranding of the company from MortgageSA to ooba," says Deats. "The name ooba is a differentiator in an industry that has become cluttered with generic names."

The bond originator rebranded in February this year. As well as being the biggest bond origination company in South Africa ooba also offers insurance, an online property search engine and have recently introduced a credit card.

"ooba Protector Range offers both building and bond protection to cover key home owner insurance needs," says Deats.

"Due to changes in legislation, you now have freedom of choice to obtain Buildings Insurance cover from any accredited insurer," Deats points out. "The ooba Buildings Protector protects your home from costly damage that could be caused by unforeseen circumstances and gives you comprehensive cover at highly competitive rates."

The ooba Bond Protector, previously known as the MPP, is designed to provide bondholders with comprehensive cover in the event of death, disability, a dread disease or retrenchment.

Declining house prices and rapidly increasing building costs are creating a very real gap between the market value of properties and their replacement costs. Property owners need to reevaluate their buildings insurance to guarantee that they are sufficiently covered in the event of a disaster.

"Property owners need to ensure that the sum insured (replacement value) on the property is increased proportionately with current building prices," warns Craig Deats, Insurance Managing Executive at ooba. "If they are under-insured at the time of claiming, they will find that the insurer will not settle the entire claim."

While the property market has devalued in the last few months building costs, the cost of building materials and the cost of labour, have been climbing steadily. Key contributors to rising building costs are steel, cement, copper and the impact of rising oil prices.

Statistics from the Bureau for Economic Research Building Cost Index show an average building increase of 15% for 2007 with the last quarter 2007 at 16.5% and the first quarter of 2008 at 21.9%.

"There is a sharp increase in building costs mainly due to a low base rate increase in Q1 2007 and rises in input costs of builders," says Deats.

"For buildings insurance, you need enough cover to rebuild your home and replace all the fixtures and fittings within the home from scratch and the BI policy provides cover on a 'new for old' basis" says Deats.

Buildings insurance is a requirement if the property is bonded and protects the actual building structure and all the permanent fixtures and fittings, garages, swimming pool, paving and walls in the event of fire, floods, lightning and other unforeseen causes.

"The cost of building materials and the cost of building labour changes on an ongoing basis so it is necessary to reevaluate your building insurance on an annual basis to ensure that, in the event of a disaster, the full value of replacing your property is covered," notes Deats.

For an accurate replacement cost of the buildings, property owners should be requesting a replacement cost valuation from a certified valuations company. The property owner¿s insurer should be able to recommend one.

A client can speak to their Property Finance Consultant when applying for a bond and they will be able to assist them with all their building insurance needs.

"It is critical for home owners to take a look and reevaluate their buildings insurance today as there may be a significant difference between the actual replacement cost of the building and the market value of your property," concludes Deats.

It is common perception that trusts are only for the very wealthy, but many property owners could benefit from placing their property into a trust and protect one of their most valuable assets as well as future income of their family.

"While giving up ownership of your property may appear to be a scary concept a trust ensures that the property is well out of the clutches of creditors as it is the only entity that benefits from total asset protection," says Ian McDonald national manager of financial planning at ooba (formerly MortgageSA).

"The property owner can still enjoy the benefits of the property such as rental income or as a residential home but without the risk.

"Another major benefit, and one of the main reasons for setting up a trust is that the property no longer falls into your personal estate and the property is not subject to inheritance tax," states McDonald.

"The ownership and benefits are passed onto your family quickly and without complex tax issues."

In South Africa, minors are not allowed to inherit any assets therefore a trust protects your children if something should happen. The trustees will administer the assets in the trust until such time as the beneficiaries reach a certain age, in South Africa this is usually 25 years old.

It also does away with the need for an estate executor. An executor is entitled to a maximum of 3,5% plus VAT of the estate¿s value and is responsible for winding up and administration of a decreased estate, taking control of assets, settling liabilities and distributing the net assets in terms of the will.

But, trust's are not without complications and potential problems with trustees and high tax rates need to be carefully considered.

"Property owners need to be aware that they are transferring the control of the property out of their direct control," cautions McDonald. ¿The most typical problem with trusts is when the relationship between the founder and trustee goes sour, this can happen during divorce or other family disputes."

Disputes such as these can result in the beneficiaries not having access to the income or benefits.

"The founder needs to carefully choose the trustees and weigh up the chances of any disputes against the other benefits of the trust and consider carefully whether a trust is the best vehicle," says McDonald.

"Also, another potential disincentive is that the transfer duty when a trust acquires an immovable property is higher than an individual¿s rate, at a rate of 8%," states McDonald.

Since 1991 trusts are subject to taxation. Income not distributed to beneficiaries is taxed at a flat rate of 40%.

"Another potential deterrent when considering forming a trust is that they attract the highest capital gains tax," says McDonald. "50% of all profits on sale of trust assets are included in the trust's taxable income and taxed at the rate of 40%, resulting in a net capital gains tax cost of 20% of the capital gain."

Once deciding that a trust is the best vehicle for your property the founder will need to draw up a trust Deed that clearly defines the trust's objectives and beneficiaries and register it with the Master of the High Court.

"The Master will require full details, ID and banking details of the trustees and then the Master will decided whether security needs to be furnished by the trustees or not."

The trustees will only be allowed to act as trustees if authorised in writing by the Master of the High Court and the beneficiaries must be clearly outlined.

All South African property owners are entitled to place their assets in a trust ensuring the property is entirely protected from the grasp of creditors and benefiting the property owner's family in the event of their death. But, property owners need to be aware of the potential shortfalls when creating a trust which can include disagreements between the trustees and high rates of taxation.

MortgageSA, South Africa's pioneering bond originator and former winner of the non-listed company of the year, has launched its own building insurance product aimed at providing homeowners choice, and an alternative to the bank products that have traditionally been forced upon consumers.

Rhys Dyer, Executive Director at MortgageSA, says the move was facilitated by recent FAIS Ombudsman rulings and the new National Credit Act that was tabled into law in June 2006, which now allows the consumer the freedom of choice when it comes to house structure insurance.

"Buildings insurance is a compulsory condition of the granting of the home loan and homebuyers have historically been forced to swallow the bank?s prices if they wanted finance".

"But homebuyers are now no longer obliged to make use of the product prescribed to them by the bank and can therefore choose where they want to purchase buildings insurance and be free to shop around for the best value.

"This freedom of choice will give homeowners great savings, with premiums available in the open market often significantly cheaper than the rates offered by bank insurers and in many cases with more comprehensive risks covered."

Dyer also points out that being able to offer buildings insurance makes for a sound strategic fit for MortgageSA because their business model is based on removing the hassle and paperwork for consumers and streamlining all aspects of the home financing and insuring process.

"It dovetails with our home loan, mortgage protection and household insurance offerings and takes us closer to a one stop, personal finance product and advice platform.

"We hope that like the advent of bond originators, which have to date saved homeowners billions through increased competition, the introduction of free choice around buildings insurance will also result in massive savings for consumers. We estimate that the increased competition in the market will save homeowners R650 million annually in premiums.

"The cost of bricks and mortar insurance is going to be cheaper as the days of the building insurance pricing monopoly historically enjoyed by the banks are over."

Dyer says that while buildings insurance typically covers risks to the immovable structures of a residence and its domestic outbuildings, including all the fixtures, fittings and the improvements thereon, consumers should be aware that there is a lot of variability in what risks are covered.

"For example, subsidence and landslip cover is specifically covered by some insurers but often excluded on other policies. The same can be said for geyser wear and tear cover."

According to Saul Geffen, CEO of ooba, many would-be homeowners, however, will be left disappointed, as banks remain reluctant to grant the full amounts applied for. "While the granting of 100% home loans is a sign of confidence in the local property market the reality is that the implications of the National Credit Act mean that consumers still have to meet the strict affordability criteria in order to qualify."

The ooba statistics show that the proportion of consumers applying for 100% bonds has jumped to 44% of overall applications in December 2009, up from 18% three months earlier. However, the approval rate on these applications are significantly lower, and nearly half of the bank approvals on these 100% bond applications are made subject to deposits.

Despite the average Rand value per application having remained consistent between December and January, with the higher proportion of 100% LTV applications and the reluctance by banks to grant the full 100% of loan amounts applied for, there has been a 10.5% drop in the average bond size from R707 760 in December 2009 to R633 467 in January 2010. Similarly, it has also contributed to the 27.4% month on month increase in the average deposit size during January.

The oobarometer price index recorded a 4.9% year-on-year rise in the average house purchase price in January to R830 513 from R791, 552 in January 2009. "This is the eight consecutive month of year-on-year price increases, which clearly indicates that the property market is steadily recovering," says Geffen.

The average bank decline ratio showed an improvement of 2.1%. The ratio of applications declined by one lender but approved by another, reflected a month-on-month increase of 3.2% in January indicating that banks are becoming more competitive for business.

"The increased competition between banks for new customers, coupled with improved demand and rising house prices should all combine to support the continued recovery of the local property market in 2010," says Geffen.

Full oobarometer analysis:

Indicator	January 2010	January 2009	Change yr on yr (Jan 10 vs Jan 09)	December 2009	Change month on month (Jan 10 to Dec 09)
Avg purchase price	R 830,513	R 791,552	4.9%	R 870,051	-4.5%
Avg purchase price of  first time buyer	R 585,992	R 556,575	5.3%	R 596,841	-1.8%
Avg approved bond size	< p align="center">R633,467	< p align="center">R 624,624	1.4%	R 707,760	-10.5%
Avg deposit (as % of purchase price)	23.7% (R 197,046)	21.0% (R 166,928)	12.9%	18.6% (R162,291)	27.4%
Avg age of applicant	37	38	1 year younger	37	No change
Avg decline ratio	50.4%	52.5%	-2.1%	50.3%	0.1%
Ratio of applications declined by one lender but approved by another	19.8%	22.6%	-2.8% decrease	16.6%	3.2

With more than 40% of all home loan applications still being declined in December 2009, potential homeowners may still be finding it tough to obtain financing. However, the decline ratio is expected to fall as a result of the gradual improvement expected in the local property market in 2010.

Latest figures provided by ooba ¿ South Africa's leading bond origination company, show that 42% of home loan applications were ultimately rejected by banks in December 2009.

According to Rhys Dyer, Chief Operating Officer of ooba, the current decline rates are well above the effective 20% decline ratio experienced during the heady days of 2003 to 2006, a time of strong property market conditions.

"These decline rates were, however, prior to the introduction of the National Credit Act (NCA). Our view is that the introduction of the NCA has influenced decline rates on a structural basis and it is unlikely that we will see decline rates at these historic lows again. There is however significant scope for improvement from current levels with property market recovery over the short term."

Dyer says lack of affordability still remains a key reason for high decline ratios.

"Affordability under the NCA is measured by net disposable income. Consumers need to show sufficient net income after tax, living expenses and the repayment of other debt to afford the bond repayment. With many consumers having been hit hard by the economic recession, and the increases in the cost of living they simply cannot meet these criteria.

"Many consumers are also recovering from an overhang of historic debt and a high percentage still have impaired credit records," says Dyer.

Dyer says that because every bank applies different credit criteria in assessing a home loan, it is essential that consumers shop around and don't merely accept the credit decision from only one institution. Almost a fifth of ooba's home loan applications that were declined by one lender in December 2009 were accepted by another lender.

"Further to the credit criteria, there is also the issue of pricing. Pricing between banks remains a key reason to shop around. The rates being offered to the same client may vary from bank to bank.

He says that in the current environment, using a reputable bond originator is a useful way to improve the chances of a successful home loan application.

"Bond originators can assist in shopping around to the different banks and ensure that all the required information is obtained and correctly reflected before submission of the home loan. As each bank has differing requirements in terms of their application information, bond originators have developed systems to ensure that once the information is obtained from the customer it is systematically formatted to meet each bank's application formats and requirements. This saves the consumer from having to go through a separate and time consuming application process with each bank."

With the property market beginning to show signs of a recovery, it is more important than ever to ensure your home is correctly priced.

Jenny Rushin, property finance manager at ooba, SA's leading mortgage originator, said that a property listed at the right price will give sellers the greatest chance of attracting buyers.

"A lot of properties on the market have been sitting for months and may continue to sit despite the predicted recovery as the property is overvalued."

Here are ooba's 5 common valuation errors to avoid:

1: Skipping the research

Don't put your property on for what you think it is worth, what your friends think it might go for or even what prices are listed for in your area.

Instead, ensure you have an expert agent look at the recent sales of homes in your area that are similar to yours. This sort of comparative market analysis will give a much more realistic idea of what your home is worth.

An inflated price will scare away potential buyers especially in current conditions when bargains can be found.

2: Getting emotional

It's natural to become emotionally attached to your home but buyers are looking for a sound investment and likely to view your home dispassionately; they simply won¿t pay extra for your sentimental attachment.

Hard as it is, it's best to stay objective by looking at the statistics of actual comparable sales and remind yourself that you are involved in a business deal.

Remember: don¿t take low offers personally. It could be the start of a negotiation that ends in a sale.

3: Going with the first agent

Make sure you shop around for the best deal; it is always worth getting a valuation from a few different agents in your area and asking them to back up their valuations with comparable sales data.

You can also consult with a professional property evaluator who will be able to give you the fairest pricing.

4: Pricing too high from the start

Agents will tell you that the first couple of weeks on the market are your most crucial time. If your home enters the market overpriced, many buyers will overlook it from the start because it will be out of their range and savvy buyers, who have been looking around for a while, have a good sense of the suitable pricing. By the time you reduce the price to fair market value, many potential buyers will have already found something else.

Other buyers may initially be interested in your new low price, but they'll also see that your home has been sitting on the market for some time. And that could lead them to believe there is something wrong with the property or think that you must be will be desperate and willing to accept a very low offer. Conversely, beware of under pricing which will have a detrimental effect on the home owner¿s personal wealth.

5: Chasing the market

If you list your home too high to begin with, you may find yourself making incremental price drops but never quite catching up with the market. And when a home has had multiple price reductions, buyers may view it as stale.

It's best to work with your agent to re-evaluate market conditions and determine the fair market value of your home.

South African banks have loosened their lending criteria which has supported a revival in the property market and helped new buyers enter the market says South Africa¿s leading mortgage originator, ooba.

"For the last few months banks have continued to relax their lending policies, which is positive news for potential home buyers and the property market as a whole," says Saul Geffen, chief executive of ooba.

Banks, across the board, have relaxed their loan-to-value (LTV) requirements. This is a strong signal that the banks' appetite to lend has changed for the good, and that the banks' view is now for the recovery of the property market and of house prices.

Three of the four big banks are now offering 100% loans with one of them offering 95% that has opened the financing taps for homebuyers.

"This means that banks will approve the full value of the property without requiring large deposits which became the norm since last July," states Geffen. "It is also positive for home owners who have been trying to sell as improved affordability of potential buyers, boosted by improved access to credit, will support a recovery in the property market."

The latest data from the September oobarometer shows that the average deposit required is far more affordable at 12.5%. This is a significant improvement since July this year where deposits required were up to a high of 24.2%. The decrease in deposits over the last few months will reduce the barriers to entry for purchasing a property.

"Those who tried to apply for loans earlier this year and were rejected because they didn't have the required deposit should try again," suggests Geffen. "With the relaxation of lending policies there should be a much higher chance now of being approved for a loan on favourable terms."

Another positive trend for consumers is that banks have become more competitive on interest rate concessions. For the first time since early 2008 banks with generally more relaxed credit criteria are losing out to banks with better rate concessions.

"More competition amongst banks for non-bank customers means that potential home buyers who have not been approved for a loan by one bank, are likely to have success with another bank," says Geffen.

ooba has seen a 21% surge in approved bonds from August to September and expects a further 18% increase for October. If the 18% increase in October is achieved, ooba will have experienced an 84% growth in the value of approved loans since April this year.

Geffen recommends that consumers looking for the best deal on home loans should make use of a mortgage originator.

"Originators have the ability to speedily shop around for the best deal and offer independent advice, all at no cost or obligation," concludes Geffen.

In the current economic environment upgrading your property or making even a few renovations may be too expensive; for a quick, easy and cost effective alternative consider changing the lighting in your home.

"Minor touches to a home can be the difference between an ordinary house and a personalised, beautiful home," says Craig Deats, Managing Executive of the oobacard. "Lighting is one of the ways in which home owners can make a transformation without breaking the bank or having to move out of their homes for weeks on end."

ooba credit card has recently partnered with The Lighting Warehouse to give their card holders a 10% discount off lighting products, from energy saving globes to double volume crystal chandeliers.

Good lighting creates the illusion of space in smaller areas due to its reflective value.

"Dark colours absorb light and shrink already small areas," says Deats. "One light bulb hanging from the ceiling is not considered sufficient lighting; there should be multiple points of light throughout the room.

"You can use a mixture of lights such as downlighters, standing and desk lamps which will brighten up the room and bounce different waves of light off different surfaces," says Deats.

Lighting can also serve to highlight certain areas in the home such as a particular picture and remove the attention from another. A well-lit exterior is also an effective security measure as potential intruders are less likely break in if there is more chance that they can been seen clearly.

Good lighting not only has aesthetic benefits but also health benefits. Well-lit homes have been proved to physically improve people's mood as well as making them more energetic and light-hearted.

"Never watch TV or work at your computer in complete darkness," warns Deats. "Many people make the mistake of trying to create an 'atmosphere' by watching TV in complete darkness not realising the damage it is doing to their eyes."

Having illumination when watching TV or working on a computer results in less eye strain and less blinking.

Finally, Deats suggests buying low energy light bulbs which use up to 20% less energy saving on your electricity bills as well as reducing your carbon footprint.

The oobacard is exclusively available to oobabond customers. Other oobacard partners include: ADT Security, House of Paint, Pickfords Removals, SA Paving, Water Comfort, Weylandts, Glasfit, Mr Price Home, MWeb, Wonder Flooring and Natural Stone Warehouse.

Homehunters and homeowners have had a tough time of it with years of soaring property prices topped off with rapidly rising interest rates, but there is some good news that is likely to save them R140m.

The ooba credit card, the first home-improvement credit card specifically designed for homeowners, has just been launched by ooba, the country's leading mortgage originator, and coincides with its recent change of name from MortgageSA.

The card gives consumers substantial automatic discounts of up to 35% from the leading home-related retailers and service providers.

"We believe that we have launched the card at a time when South Africans are really counting every penny so we are pleased to help cut the costs of home ownership and improvement," says Saul Geffen, chief executive of ooba.

"When a customer buys a house they will go through the costly exercise of moving into the home and spending on household contents, services and improvements.

"The oobacard provides access to credit to manage the costs of moving and gives substantial savings on everything from the move to property improvements, household goods as well as vital services like security and internet connectivity," continues Geffen.

Nic Weaver, managing executive of homeowner services at ooba, said that the credit card was already proving popular.

"Our initial target for take up by ooba clients is 50 000 cards. We estimate that our customers will spend over R1 billion in the next few years at oobacard partners and save R140 million through the discounts they will receive using the oobacard.

"The oobacard gives the deepest possible discounts at the leading national retailers of home related products and services. Oobacard partners, include Mr Price Home, Weylandts, ADT Security, SA Paving, Pickfords, Glasfit, Wonder Flooring, Water Comfort, House of Paint and MWEB."

The entire discount programme is totally automated, and cardholder discounts either reflect at point-of-sale, or on the cardholder¿s statement, depending on the merchant.

In addition to the savings received through the partner discounts, ooba credit cardholders can save even more by transferring existing personal debt onto their ooba credit card at the preferential interest rate of prime less 1% for the first year on the balance transferred.

At the current prime rate, oobacard holders would only pay 14% interest rate for the first year, way below the normal rates on in excess of 20% on most credit cards.

The ooba credit card offers all the benefits of a gold credit card, as well as the additional advantage of a linked garage card.

The oobacard is issued in partnership with ABSA Bank, a member of the Barclays Group, under licence of MasterCard.

The oobacard is exclusively available to customers who have sourced their home loan finance through ooba.