MASTER PLAN NEEDED FOR HOUSING
Save SA from ‘housing cliff’ J
ust as the US needs “all hands on deck” to stop it sailing over the fiscal cliff, so SA needs a multifaceted effort now to solve a housing crisis that threatens to overwhelm the country. So says Rudi Botha, CEO of South Africa’s biggest mortgage originator BetterBond, who notes that of the 14,5 million households recorded in the latest census, at least half live in homes they don’t own – some in accommodation provided by their employers, some in rented homes and back-yard shacks and shockingly, more than 1,3 million in squatter camps. “No-one has actually quantified how many millions of people this involves, but clearly it is a recipe for serious political and economic instability – as evidenced by the increasing number of service delivery protests and strikes that have already so badly affected SA’s productivity levels, credit ratings and economic output this year.” All over the world, he says, it has been proven that home ownership has a stabilizing influence because it pulls people out of the poverty trap and provides the basis for individual financial security and wealth creation. “It is at the heart of a healthy community and not surprisingly, research has shown that it is also a major influence in lowering crime rates, substance abuse rates and teenage pregnancy rates. “But the reverse is also true when the ownership of even a modest home becomes increasingly beyond the reach of ordinary, hard-working families – and totally out of the question for the poor. People become hopeless and their protests at the unfairness of their situation are apt to become increasingly violet, as we are seeing all too clearly in SA.” According to Botha, the problem has become too big now to be solved by any one player in the housing scenario acting alone. “What we need is for government, the banks and the private sector to urgently agree and
get moving on a plan to get all South Africans properly housed. “The banks, for example, are being hamstrung by the imminent implementation of the Basel III banking regulations, which provide for them to hold much bigger reserves on long-term lending like home loans and will almost certainly result in them pulling back on home loans. So perhaps it is time for Treasury or the Reserve Bank to reassess those regulations now and evaluate whether they are actually appropriate for SA.” On the other hand, he says, household debt levels are undoubtedly too high – and getting higher because of the ease with which consumers can get unsecured short-term and personal loans at very high interest rates. “The banks need to reassess their role in helping to create the situation in which so many people who actually earn enough to buy their own home can’t qualify for a home loan because they have too Housing is desperately needed as a stabilising influence in South African society. PHOTO: SUPPLIED much debt already. such activity would also provide much need“Meanwhile one might well ask what has extended?” Big business and other employers could get ed employment and skills development.” happened to the “gap” housing subsidy plan Clearly there is a mountain to climb, he announced with such fanfare earlier this more involved, Botha says, by helping to eduyear? This supposedly affects a massive 20% cate employees about the dangers of short- says, and consumers themselves need to play term lending and the advantages of saving to- a role in achieving their home ownership asof South Africa’s work force. pirations, whether they provide sweat equity “Similarly, where is the R1 billion mort- wards the goal of home ownership. “And in the provision of housing for those in the construction process, perhaps, or have gage default insurance plan that has been on the cards for several years now? Will there who are poor and unemployed, government earnings from which they can save for a debe a new tax incentive for developers of af- should be actively seeking out and motivat- posit. “But all their efforts will be in vain unfordable housing in the next budget, and will ing the most capable developers and builders less everyone works together to develop a the urban development zone tax incentive be to do this at scale, on the understanding that master plan – and soon.”
BOLAND SOLD
Districtmail
HELDERBERG
10 Januarie, 2013
Rawson Group set to double their portfolio in Helderberg in 2013 T
he property management service is unique in the Rawson Property Group, with Rawson Properties Somerset West in the Western Cape being the only residential franchise in the group to have a property management division. Johann van der Merwe, Rawson Properties franchisee for Somerset West, Strand and Gordons Bay, who initiated the new division that now manages six sectional title schemes with about 1 000 units, says it has always been one of his goals to offer a complete one-stop property service, because such a service would complement his franchise’s sales and renting operations.
The Rawson Properties Somerset West property management team is headed by Chantelle Landers and Lilian Waldeck, who together have 13 years of experience in this field. “Unlike most managing agents,” says van der Merwe, “we are in the strong position of being able to offer a two-pronged model. When taking on a new property account we divide the duties between the maintenance and the management of the scheme and finance and levy collection. “The former falls under Lilian and the latter under Chantelle.” Many sectional title schemes and home owner associations, says Van der Merwe, have trustees who are inexperienced in property mat-
ters, although often very competent in other fields. As a result, he says, over a quarter of South Africa’s sectional title schemes today are allowing their members’ levy payments to fall behind, sometimes with drastic consequences for the upkeep, the provision of services and ultimately the value of the units in the scheme. When a scheme does run into financial difficulties, says Van der Merwe, it takes real effort and a great deal of skill to put it right. The rectification process can very often involve the raising of a special levy, but once a scheme has been pulled up it should not need special levies unless some unforeseen disaster occurs or unless a further upgrade is thought
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to be essential. Rawson Properties expect to take on at least two more managing agents in the coming months and to double the number of units they are handling by the end of the year. Then, Van der Merwe adds, as part of their plan to offer a one-stop service, they will also establish a commercial property management, selling and renting service. Rawson Commercial has been one of the fastest growing sectors in the Rawson Property Group over the last year and now has 21 franchises. For further information contact Johann van der Merwe on 021 851 0172 or email johann.sw@rawson.co.za
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Districtmail
SOLD HELDERBERG BOLAND
10 Januarie, 2013
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from r 1.295.000 to 1.895.000
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Districtmail
SOLD HELDERBERG BOLAND
10 Januarie, 2013
Kry jou sleutel tot die perfekte eiendom. HELDERBERG
District Mail Strand | Gordon’s Bay | Somerset West | Stellenbosch | Grabouw | Elgin
021 870 4600 021 887 2840 021 841 4282 JOU GROOTSTE EN BESTE EIENDOMSGIDS IN DIE BOLAND
What to expect from 2013 market Neville McIntyre, chairman of Aida’s parent company Jigsaw Holdings, says the expectation all over the world, and not just in SA, is that a scarcity of capital will prevail in 2013 and that there will thus be no increase in mortgage lending. “The demand for housing, on the other hand, is set to increase dramatically, and because of that we foresee that there will be a slight increase in the number of property transactions and in the number of new developments coming to the market. “There will also, of course, be strong demand for rental properties, which will be good for buy-to-let investors and prompt an increase in investment purchases.” He says large numbers of “distressed” properties still being brought to market by the banks and sold at below market value will suppress home prices in 2013 – “but at the same time these ‘bargain’ properties will sustain activity and awareness and make home ownership more accessible for quite a number of people”. McIntyre also notes that a lack of skills and capacity in government and planning departments as well as in some Deeds Office branches remain serious concerns for the real estate industry. “It causes major delays in developments, zoning approvals and transfers, and that has financial implications for everyone in the property sale chain.”
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Eikestadnuus
SOLD STELLENBOSCH BOLAND
10 Januarie, 2013
2013: The year of transformation
A
drian Goslett, CEO of RE/MAX of Southern Africa, looks at the property sector moving forward in the era of transformation during 2013. Despite the prevailing challenging economic circumstances experienced in the property market, 2012 has been a good year for RE/MAX of Southern Africa, says Adrian Goslett, CEO of RE/MAX of Southern Africa. He points out that during 2012 RE/MAX of Southern Africa has seen a marked increase in the number of property sales achieved per agent. “During the first half of this year RE/MAX of Southern Africa saw a 12% increase in sales when compared to the same period of 2011. In addition, more than 25 new franchises opened in the Southern African region - which includes South Africa, Namibia, Botswana, Swaziland, Lesotho, Mozambique, Zimbabwe, Zambia, Angola, Mauritius and the Seychelles - up to the end of October 2012. “The brand is continuing to grow its footprint that encompasses over 170 office locations and over 1800 experienced estate agents,” he says. Locally RE/MAX agents account for about 6% of total agent numbers and for approximately 15% of all sales transactions. “The average number of years of real estate experience within the RE/MAX of Southern Africa group is over 10 years, and our average agent commission earnings are up 31% in 2012, compared to the 2010 figures,” says Goslett. He notes that much like last year, 2012 can be called a success for RE/MAX of Southern Africa and its agents and it is expected that the company will continue to flout industry norms in 2013. So which factors will influence the property market and those within the industry moving forward into 2013 the most? Goslett looks at a few elements that will influence the trading environment that property professionals find themselves in: ) Access to finance: Over the past year the rand value of the gross debtors’ book for mort-
ADRIAN GOSLETT CEO of RE/MAX of Southern Africa gages has shown an increase as has the number of applicants applying for bond finance. Goslett says that this is due to the fact that South Africa’s financial institutions have marginally relaxed their lending criteria to the point where close on 51% of all home loan applications are approved. He points out that high debt-to-income ratios and a poor savings culture are the major reasons why many South African homebuyers have struggled to obtain finance. South Africa only has a domestic savings rate of around 20% of GDP, compared to other emerging markets like China which has a domestic savings rate of around 50% of GDP. “High debt and poor savings reflect negatively on affordability levels, which has held back the market and slowed down recovery. For this to change in 2013, South African con-
sumers will need to focus on clearing their debt and starting a savings programme to ensure their ability to secure home loan finance in the future,” says Goslett. He adds that due to the limited access to finance, the rental market will continue to grow rapidly, which will assist investors who have a buy-to-let portfolio. ) Deposits required: While financial institutions will continue to have a greater appetite for risk, 100% bonds will still be few and far between in 2013. Statistics suggest that over the last 12 months only four out of every 10 bonds granted are for 100% of the purchase price. This means that six out every 10 successful applicants have had to pay deposits to secure a property. The average deposit requirement for repeat buyers has risen to around 20% of the home’s purchase price, in other words, buyers are required to have a fifth of the purchase price in cash. For first-time buyers, who account for about 35% to 40% of the home loans granted each month, the average deposit required is around 12% of the purchase price. ) Transformation in the industry: A few years ago estate agent training and qualification were at the forefront of the industry and there was a stronger focus on the professionalism of the industry players with many agents achieving the necessary NQF levels required. Once again, 2013 will see the property industry transform, this time in the form of a revamped Estate Agency Affairs Board (EAAB). Goslett says that Tokyo Sexwale and the Department of Human Settlements are taking a proactive approach to resolving the issues within the industry and the EAAB with the focus on professionalism and transparency. One of the goals of the EAAB will be to ensure that the property industry is more representative of all races and genders, with an emphasis on attracting the youth into the industry. The number of estate agents in South Africa has dropped from 80 000 in 2008 to about half that figure or less as a result of the global
economic recession. Goslett notes that real estate businesses that promote and encourage transformation will continue to thrive and gain support across the South African market spectrum. RE/MAX of Southern Africa has, for a number of years, been highly rated as a BBBEE organisation. ) Technology: With the constant evolution of technological advancement, technology will continue to play a vital role in the property industry in terms of marketing strategy and interaction between real estate professionals and their clients. The trend of searching for property on line will continue to gain momentum and more and more buyers will find their dream home through on-line property search portals. ) Fair market value: In 2013, property pricing and the perceived value of property will continue to be an important factor to the success of a sale. Statistically, if a property is priced correctly it will be sold within the first four weeks of being on the market and generally it will sell at the asking price. “Although sellers are the ones that set their asking price, property pricing within a certain market is largely determined by what a buyer is willing to pay for that property,” says Goslett. According to ABSA, the first ten months of 2012 saw house prices marginally down by around 0,6% year-on-year, while the FNB house price index revealed a house price growth rate of around 6,6% in August this year. The index’s average price of homes transacted was R865 900. Goslett says that although house price growth has subsequently improved slightly, RE/MAX expects that trading conditions and the house price growth will remain relatively low during 2013 and follow a similar path to what we have seen during 2012. “With property market activity and constantly increasing, so much so that certain areas are reporting stock shortages of certain types of property, 2013 is bound to a year of change, with transformation coming to the fore of the property sector,” he concludes.
‘PGP Reality’ will enhance print media advertising In today’s competitive world of real estate, forward-thinking companies are always looking to reinvent innovative methods of marketing their products and attracting new business, says Dr Andrew Golding, CE of the Pam Golding Property group. “While it’s true that digital marketing has changed the face of real estate forever, we acknowledge the important role the print media continues to play in advertising properties for sale, and in attracting buyers and sellers. It is certainly not a case of digital versus print media – we believe there is synergy between the two, and that the use of innovative technology can further enhance our advertising in print media. As a result, we have introduced a technological innovation which will add value to the property experience for our clients,
called ‘PGP Reality’. This augmented reality technology allows us to deposit concealed digital content on our print advertising, thereby enabling readers access to additional, useful information which will add further appeal to their visual experience of our property portfolios. This can include a video of the property, 3D models, links to the property listings, agent details, share and tweet buttons and more,” says Dr Golding. To view the enhanced visuals of an AR marked page or image, download the free PGP Reality application to your mobile device via either the Google Play Store for compatible android devices, or via the Apple iStore for an iPhone or iPad. Once you’ve downloaded and opened the app, position the entire page within the camera view on your device and
the enhanced content will be displayed via your internet connection. While other international brands such as Reebok, VW, National Geographic and Hilton Hotels are already utilising augmented reality, in South Africa PGP has announced that it is the first real estate company to introduce this ground-breaking new technology. Adds Dr Golding: “This is a key marketing tool to rapidly deliver more content to today’s fast moving and tech-savvy consumers. PGP Reality will be used in our selected weekend newspaper advertising, printed marketing material and billboards. As the name indicates, the new technology really brings properties ‘to life’, particularly as videos or virtual tours of homes can be made full screen by double-tapping your screen.”
PGP Reality, a marketing tool for Pam Golding Properties
BOLAND SOLD
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Eikestadnuus
STELLENBOSCH
10 Januarie, 2013
Four biggest buyer turn-offs In a market that’s still largely geared to home buyers, it’s tough to get them to come to show days or home viewings, and tougher still to hold their interest. So says Berry Everitt, MD of the Chas Everitt International property group, who advises that sellers should thus do their utmost to avoid the following “instant turnoffs” that will often cause buyers to move on to the next property without a backward glance: ) Dirty dishes and cluttered kitchen counters. Counters crowded with the blender, coffee-maker, toaster, kettle and slow-cooker may make it appear that the kitchen lacks work and storage space. And the remains of last night’s supper congealing on plates in the sink are sure to put buyers off. ) Pets and their stuff. Nobody wants to see a dirty cat litter box next to the dining table or the dog’s chew toys scattered all over the living room, and buyers who are allergic to dogs or cats will probably walk straight back out again. Frankly, when your home is for sale, there should be no sign at all that a pet lives there. ) Dirty toilet or toilet seat. This is enough to put buyers right off even if they like the rest of your home and have begun to visualize where they would put their
SOMERSET WEST
R2 950 000
JOINT MANDATE
R 795 000
ON SHOW SOLE MANDATE
TOP QUALITY Bedrooms 3 Bathrooms 3 Garage 2
OCCUPATION 2013! WEB 270567 Bedrooms 2 Bathrooms 1 Parking 1
Top finishes with attention to detail. Stunning views over vineyards and Table Mountain. Exclusive living. [O] 021 843 3368 GERHARD 076 590 7758 On ShOW Sun 13 Jan 14h00 - 17h00
STELLENBOSCH own furniture. Buyers really don’t want to be reminded that they will be taking over a “used” bathroom, so everything in this room – including counters, mirrors, bath and basins – should be absolutely spotless before you put it on show. )Toys and baby supplies. For the most part, buyers will understand that keeping your home tidy when you have children – especially a baby – is difficult. But it’s important nevertheless to make an effort. Round up toys into a storage chest or cupboard, clean out any bins with used nappies in them and don’t leave any dirty baby bottles lying around. Buyers should never feel that the home isn’t clean or sanitary.
STELLENBOSCH
R5 700 000
WEB 278951
Very neat apartment on first floor of security complex with braai area and splash pool. Just move in! [O] 021 886 7905
DROEKS 082 685 9189
STELLENBOSCH
R2 290 000
GELEENTHEID VIR STUDENTE AKKOMODASIE UPMARKET APARTMENT Kamers 6 Badkamers 2 Parkering 2 WEB 278653 Bedrooms 2 Bathrooms 2 Parking 1
WEB 277028
Ideaal geleë op die drumpel van kampus en US groenroete op ‘n erf van 1100m² in De Weides.
North facing apartment in the centre of town, within walking distance to whatever you need.
[K] 021 886 7905 LEON 082 575 7356
[O] 021 886 7905 LEON 082 575 7356 LISBE 084 666 0011
STELLENBOSCH
R5 475 000
SOLE MANDATE
HOME FOR ALL REASONS Bedrooms 5 Bathrooms 3 Garage 2
WEB 277009
STELLENBOSCH
R4 400 000
SOLE MANDATE
MOST BEAUTIFUL VIEW Bedrooms 4 Bathrooms 3 Garage 2
WEB 263025
A quintessential family home offering great living and A sixty’s home with lots of character in the most entertainment space yet grants every family member beautiful setting next to a natural park. privacy. [O] 021 886 7905
SOPHIA 082 824 6798
WELLINGTON
R1 080 000
[O] 021 886 7905
SOPHIA 082 824 6798
WELLINGTON
R1 230 000
SOLE MANDATE
SKAARS... Kamers 2 Badkamers 2 M/Huis 1
SAFE AND SECURE TUSCAN HOME WEB 278596 WEB 279926 Bedrooms 3 Bathrooms 3 Garage 2
Ruim meenthuis in klein gewilde kompleks. Uitstekende afwerking, 2 leefareas en klein privaat tuin. [K] 021 864 2948
Spacious open plan living area and designer kitchen with granite tops. Communal swimming pool. [O] 021 864 2948
CARMEN 082 490 0994
MARISA 079 877 4177
WELLINGTON
R 750 000
SCALING DOWN Bedrooms 2 Bathrooms 1 Garage 1
PAARL
R5 600 000
IN ‘N ANDER KLAS WEB 279580 Kamers 4 Badkamers 4 M/Huis 2
WEB 280229
Open plan living area with air-con. Small garden with Droommooi huis met uitsigte wat net in boeke is! Die braai area. Garage has direct access into the house. beste van die beste. Maak ‘n afspraak vir hierdie onthaler se droom.
[O] 021 864 2948
LINDA 083 379 3769
[K] 021 872 2223
LITA 083 498 1018
12
Eikestadnuus
SOLD STELLENBOSCH BOLAND
10 Januarie, 2013
Should you buy property which has been on the market for a year? A t the height of South Africa’s property boom, houses were selling within weeks, if not days, of being listed and it was only the most problematical properties that remained unsold month after month. That’s according to Richard Gray, CEO of Harcourts Real Estate, who says the boom period of 2004 to 2008 embodied the rule of thumb that, in an ideal market, a property should take about eight weeks to sell. “There were times during these years that buyers were literally queuing for properties, and many instances in which properties sold within hours of first being advertised,” he says. “However, on the back of the financial downturn, the current market is far from balanced, as evidenced by the findings of FNB’s Estate Agent Survey for the second quarter of 2012 that houses are spending an average of almost 18 weeks on the market.” Further, he adds, there are properties that, despite repeat on-line and newspaper advertising, have been on the market for a year or more. Clarifying his use of the word “problematical”, Gray says he is referring to three specific problem areas, namely price, location and the condition of the property. “Of these, the most critical and yet easily remedied is price. If a property isn’t priced in accordance with prevailing market conditions, it won’t sell. Overpricing is one of the key reasons for prop-
erties spending months, if not years, on the market and sellers who won’t accept that pricing has to be based on what the market will pay, rather than what they want in their pockets, are likely to end up selling for a discounted price a long way down the line – if at all.” But if the price is right, he adds, then regardless of any other problems the property has, there will be a buyer for it. The second problem is area. “Location, location, location is the age-old watchword of real estate,” he emphasises. “The less desirable the location of the property, the less options the seller has. Properties in areas characterized by high crime or encroaching industrialization are likely candidates for long stays on the market, unless, of course, they are priced accordingly.” Third on his list is defects. “A defective property is going to chase buyers away,” he warns. “Most buyers want to buy a place that’s fit for them to move into and start living. “While some are prepared to do cosmetic improvements, most people don’t want to have to undertake major repairs, nor do they have to in this market, where supply far outweighs demand. That means the buying pool for these properties is extremely small, comprising only the bravest or most desperate buyers who are looking for a bargain.” Properties that, despite being advertised week in and week out, fail to sell, become stigmatized, continues Gray.
HELDERBERG
DistrictMail Strand | Gordon’s Bay | Somerset West | Stellenbosch | Grabouw | Elgin
Biggest and Best Property guide in the Boland
SOLD is die mees koste-effektiewe, hoëimpak keuse vir die bemarking van eiendom in die Boland
“Days on the market matter – it’s one of the first questions a buyer will ask an estate agent. They feel there must be something wrong with a house that’s been on the market for a long time, even if in reality it’s a quality home that was just over-priced when it was listed.” Once appointments to view dry up and buyer interest hits zero, sellers will invariably, depending on their personal and financial circumstances, either withdraw their homes from the market or re-evaluate their pricing, he says. It’s at this point that old listings have the potential to become today’s best buys, provided purchasers keep three basic tenets in mind. “Buy it if the price has been brought in line with current selling prices. Buy it if you’ve done your homework on the area so that there are no nasty surprises with regard to crime or other negatives. Buy it once you’ve done a thorough inspection of the roof, foundations, wiring and plumbing, and make sure all structural changes are on plan. “If you’re not confident enough to do your own inspection, ask your agent for the name of a professional home inspector who will advise you of the existence of any problems and give you an idea of the cost of remedying them.” Finally, says Gray, find out about all recently sold comparable listings in the neighbourhood and then work out an offer based on the average selling price less the cost of any renovations.
Michelle Marston 021 841 4285 Geraldine Menellevie of Justin Cupido 021 887 2840 Ilse Fourie 021 870 4600
RICHARD GRAY
CEO of Harcourts Real Estate