House prices in USA

Chart of the Day

For some perspective on the all-important US real estate market, today's chart illustrates the inflation-adjusted median price of a single-family home in the United States over the past 41 years. Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased -- increased. That brings us to today's chart which illustrates how the inflation-adjusted median home price is currently 38% off its 2005 peak. That's a $100,000 drop. In fact, a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value (8.5% loss). Not an impressive performance considering that more than three decades have passed. It is worth noting that the median priced home is currently in the bottom half of a price range that existed from the late 1970s into the mid-1990s

"from www.chartoftheday.com"

Electricity Price Escalations

Inflation over past 40 years

New Transfer duty rates

In respect of all offers to purchase dated on/or after the 23RD of February 2011 the transfer duty in

respect of natural persons and other entities such as companies, close corporations and

trusts will be as follows:-

Purchase price Transfer duty payable

R0 – R600,000 R0

From R600,000 – R1,000,000 3% of the purchase price from R600,000

From R1,000,000 – R1,500,000 R12 000,00 plus 5% to the purchase price from R1,000,000

From R1,500,000 – unlimited R37 000,00 plus 8% to the purchase price from R1,500,000

MAJOR CHANGE:-

Previously Companies, Close Corporations and Trusts paid an 8% flat rate of the purchase price as

transfer duty irrespective of the purchase price which made it very expensive to purchase properties

in legal entities. From the 23rd of February 2011 Companies, Close Corporations and Trusts will

pay the same transfer duty as natural persons.

USA Share price vs Earnings

Chart of the Day

Today's chart illustrates how the recent rise in earnings has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio). Generally speaking, when the PE ratio is high, stocks are considered to be expensive. When the PE ratio is low, stocks are considered to be inexpensive. From 1900 into the mid-1990s, the PE ratio tended to peak in the low to mid-20s (red line) and trough somewhere around seven (green line). Notice how investors were willing to pay much more for one dollar of earnings during the dot-com boom, the dot-com bust and financial crisis. Currently, with 94% of US corporations having reported for Q4 2010, the PE ratio stands at 17 which is a relatively low level when compared to the past two decades.

With compiments to www.chartoftheday.com

Nasionale Begroting 2011

TABEL VIR PERSOONLIKE INKOMSTEBELASTING
2011/12
Belasbare inkomste (R)	Belastingkoers
0 – 150 000	18% van elke R1
150 001 – 235 000	R27 000 + 25% van die bedrag bo R150 000
235 001 – 325 000	R48 250 + 30% van die bedrag bo R235 000
325 001 – 455 000	R75 250 + 35% van die bedrag bo 325 000
455 001 – 580 000	R120 750 + 38% van die bedrag bo R455 000
580 001	R168 250 + 40% van die bedrag bo R580 000
Kortings
Primêr	R10 755
Sekondêr	R6 012
Derde korting	R2 000

Belasting op enkelbedragvoordeel uit aftreefonds by aftrede of dood

Voorgestelde koers Belasbare enkelbedrag (R)	Belastingkoers
0 – 315 000	0% van bedrag
315 001 – 630 000	R0 + 18% van bedrag bo R315 000
630 001 – 945 000	R56 700 + 27% van bedrag bo R630 000
945 001 and above	R141 750 + 36% van bedrag bo R945 000

Kapitaalwinsbelasting

Die vrystelling van kapitaalwins word vanaf 1 Maart 2011 soos volg verhoog:

• Vir individue en spesiale trusts van R17 500 tot R20 000 jaarliks
• By dood van R120 000 tot R200 000
• By verkoop van ‘n klein onderneming wanneer ‘n persoon ouer as 55 jaar is, van R750 000 tot R900 000.

Hereregte

Die drempel vir vrystelling van hereregte word verhoog van R500 000 tot R600 000. ‘n Koers van 3% is van toepassing op die waarde van R600 001 tot R1 000 000; ‘n bedrag van R12 000 plus 5% op die waarde tussen R1 miljoen en R1,5 miljoen; en ‘n bedrag van R37 000 plus 8% op bedrae oor R1,5 miljoen.  Hierdie hersiene koersstruktuur is van toepassing op eiendomme verkry kragtens koopooreenkomste gesluit op of na 23 Februarie 2011.

Hierdie koers is van toepassing op natuurlike persone, regspersone (beslote korporasies en maatskappye) en trusts.

Beleggings seminaar

The whole 3B team attend an investment forum on 16th February in Pretoria.

Company                Speaker                   Topic

Allan Gray               Duncan Artus           Investment overview

Atlantic                    Arno Lawrenz          The outlook for interest rates in 2011

Coronation               Charles de Kock       Domestic fund positioning

Allan Gray               Richard Carter          Investing for retirement

ReCm                       Piet Viljoen              Managed funds

Foord                       Bruce Ackerman      Investment themes for intenational equities

Allan Gray               Steve Watson           Eye of the storm – is the world realy fixed?

The universal theme was that South African equities are at fair value and the international equities offer better returns.