After each eLan management meeting, our team leaves in a flurry (just as quickly as they arrived) with a string of properties, investments and developments to investigate. Some raise the question as to why all this activity in what is perceived to be a downturn in the market? Well, here’s how I see it…

South Africa’s current high inflation is as a result of global indexes (globally high food prices and globally high oil prices). Inflation started to escalate in mid 2006 and this was further compounded by the fact that consumers have placed themselves under huge debt due to increased interest rates and increased inflation.

We have however experienced economic cycles in the past that were far worse. Cast your mind back to the interest rates of ’97 and ’98… The big question these facts allude to is “Are we at the start or end of a downward turn in the economy?” We unanimously and firmly believe that we are at the end!

It is expected that as a result of decreased inflation, interest rates will start coming down in the first quarter of 2009 and property price growth will thus increase in the second half of 2009. The reason for perceived decreasing property prices over the past few months is that sellers have already reached breaking point and will have to start accepting prices lower than hoped. In addition, the banks will see the turning market as an opportunity to “clear their decks” before the upswing and alleviate all bad debt which has resulted in a number of auctions and sales at lower prices.

However, we must remember that the top end of the market is not affected by market pressures and those who have the money want to buy the best, which is why prices in luxury gated estates such as Blythedale Coastal Resort and Simbithi Eco-Estate have increased in value over this same cycle. Furthermore, coastline property investment is seen as an ‘international asset’. Looking ahead to 2010, if only 3% of the World Cup visitors purchased property in SA and referred a further 3%, consider the massive impact on our country through foreign investment!

So, property in South Africa in the right location is a very sound asset class in any market conditions, in particular coastal properties which are globally viewed as an international asset.

Warmest regards,

Chairman The eLan Group

John Smit’s parents purchased a unit at Savanna (up-market retirement village on Simbithi) and have now opted to remain on the family farm.

The developers have agreed to offer the same discount they offered to the Smits’ to you, our valued Investor Club members!

 

Mopani Unit 35
Purchase Price: R1 625 000
Investor Club Discounted Price: R1 511 250

Some interesting statistics from Global Migration, a company assisting in emigration to South Africa…

	On average, Global Migration deals with 60 to 80 skilled individuals and their families moving to South Africa each month.
	Since January 2006, Global Migration has relocated approximately 1500 skilled individuals / investors and their families.
	Most of the emigrants come from the UK, Germany, Holland and neighboring African Countries.
	The main reason people move to SA is that SA has a requirement for skilled workers in a number of sectors. Intra company transfers from overseas companies to SA make up a significant portion. Overall, the quality of life and cost of living is reasonable by world standards, property prices are reasonable for investors and SA as a retirement destination is growing in popularity.

The Wildlife of Somkhanda

This pristine conservation land was awarded to the Gumbi community in a successful land claim bid. Named Somkhanda, meaning ‘we will fix it’ in isiZulu, the reserve will be an opportunity to uplift the surrounding impoverished communities through tourism and skills development. Now under the facilitation of Wildlands Conservation Trust, the Gumbi’s have joined hands with the eLan Group to bring a veritable bush experience to the market. Somkhanda will be one of the largest game reserves in Zululand adjoining the beautiful Mkuze River, with links to the Nsubane Pongola Transfrontier Park.

The reserve is currently stocked with the most common of game species including giraffe, nyala, zebra, blue wildebeest, warthog, and waterbuck, with plans to introduce additional seed stock during 2008. Large predators such as the spotted hyena, leopard and wild dog have also been spotted hunting in the area.

With the help of the World Wildlife Fund (WWF), black and white rhino were introduced to the reserve during the first half of 2008 with the black rhino’s having already produced calves! The reserve is enhancing the biodiversity of the province and the country and will provide additional range expansions for animals like the black rhino and African wild dog.

The Wildlife of Simbithi

200 bird species are found on the Estate including the mighty fisheagle, black storks and a variety of owls. Mammals include mongoose, spotted genet, vervet monkeys, porcupines, scrub hares, blue and grey duiker and bushbuck. The estate is also home to two red data species, the dwarf chameleon and the shy blue duiker. 

The estate’s 20 dams provide good fishing and are stocked with grass carp and two species of tilapia, the red breasted and the Mozambique tilapia. Furthermore, there are some 7.5km of walking trails, some elevated above swamp forests.

The conservation area of the estate consists of 50ha of mosaic grasslands and 35ha of coastal forest with an additional 25ha of indigenous unfenced gardens.

Now that the first good rains have arrived, the trees are budding with new life and the grasslands have transformed into a green carpet of wildflowers, spring is truly here.

As spring matures into summer, our cattle herds are brimming with young as most of the cows have already given birth. Many of the migrant birds have started to make their appearance and earlier this month we heard the red chested cuckoo (commonly known as the piet-my-vrou). This cheeky little bird arrives in our region in the late spring and starts searching for a suitable bird’s nest in which to lay its own eggs. After it has laid its eggs, it expects the other bird to incubate, hatch and raise its young!

So if you have not visited Avenol in the Midlands, dust off your fly fishing rod, haul out the old hiking boots and head for Avenol Country Lodge. Rates are R175pppn with minimum fee of R1350 per night on week days and R2250 per night on weekends. Investor Club platinum members get a 30% discount.

In the build up to 2010 and prior to the Currie Cup match this month, eLan held a networking lunch at The Riverside Hotel. Mike Sutcliffe, eThekwini City Manager, and Julie-May Ellingson, Durban 2010, were present in addition to various associates of eLan and representatives from ABSA, FNB and Standard Bank.

Investor Club Manager