Property Professional - March/April 2014

Page 1

WILL BEE PLANS DAMAGE THE INDUSTRY? HOW TO STAND OUT IN A CROWD

LISTED RESIDENTIAL STOCK UNLOCKS INVESTMENT POTENTIAL

E-TOLLS TO CHANGE BUYING PATTERNS

MARCH / APRIL 2014



ED ITO R ’S N O TE

PUBLISHED BY THE PROPERTY ADVERTISING

EDITOR’S NOTE

JOINT VENTURE 6 Beach Road, Old Castle Brewery Woodstock 7925

This year I decided to start reading more business books. I figured it can’t hurt since continued learning is important for any business person who wants to better themselves – and we all ultimately want to do better in our careers. The thing is, in order to do better and to achieve our goals – whether it’s earning more money, creating a better work/life balance or simply refining

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what we do and doing a few things well rather than taking on too much – we have to be

CEO - PA MEDIA

prepared to work at it.

Shaun Minnie

While any self-help or business tip related book will impart good wisdom (for the most part) and give a guide on to how to achieve your goals, there is no getting around the hard work,

083 629 6081 shaun@pamedia.co.za

dedication and passion that we each have to bring to the table in order for the tips to pay off.

EDITOR

Business books can, however, also definitely help with inspiration. Reading about how people

Michelle Funke

started off with a few pennies in their pocket so to speak, made millions, lost it and then started all over again and have achieved success and managed it better this time around can only be inspirational. It makes you think: Maybe I can do it too.

011 462 8959 michellef@propertyprofessional.co.za ADVERTISING SALES

As the leading industry magazine title, Property Professional aims to assist estate agents by providing them with information on trends and news in the property world, as well as tips and advice on how to improve their business model and career in general. We could all benefit from brushing up on basic business skills and learning new ones, and so Property Professional will be

Sarah Steadman 082 334 4367 sarah.steadman@pamedia.co.za

introducing a book review section soon, which will showcase a selection of top business books.

ADVERTISING PRODUCTION & SUBSCRIPTIONS

In this issue, we also have a great selection of content to help you get started on improving those

Nikki Barnard

business skills. We take a look at top habits of successful agents and what the productivity killers are, how to make yourself memorable and stand out from your competition and give tips and advice on developing top people skills in our article on navigating the world of people. On the news and trends front, we explore the Property Transformation Charter and what

nikki@propertyprofessional.co.za ACCOUNTS & FINANCE Nicolette Lubbe 011 476 6293

it really means for the industry in our cover story, and delve into the hot topic of e-tolls and

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exactly how they are expected to influence the property market. We also cover security trends

Paarl Media

at commercial properties and look at the performance and potential of listed residential stock. Our regulars include new agent and top performing agent profiles, development updates and general industry news. We hope you enjoy this issue of Property Professional. Please remember to visit our website, www.propertyprofessional.co.za, participate in one of our online opinion polls, like us on social media and share your thoughts, views and news with us.

MICHELLE FUNKE

michellef@propertyprofessional.co.za

Disclaimer: The publisher of this magazine gives no warranties, guarantees or assurances and makes no representation regarding any goods or services advertised within this edition. © Copyright Property Advertising Joint Venture. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from the publisher. The publishers are not responsible for any unsolicited material.


CO N T EN T S

CONTENTS 04 INDUSTRY NEWS

14

14 BEE - 50% QUOTA BY 2015 20 CHANGING SECURITY TRENDS AT RETAIL PROPERTIES 24 DISTRACTIONS - THE CURSE OF THE REAL ESTATE AGENT 26 WILL E-TOLLS CHANGE PROPERTY BUYING PATTERNS? 30 LISTED RESIDENTIAL STOCK UNLOCKS INVESTMENT POTENTIAL 34 MARKET SHARE 36 HOW TO STAND OUT IN A CROWD

40 50 TOP PERFORMING AGENTS 54 FINANCE & FIGURES: HOW DO HOME LOANS MEASURE UP? 56 DEVELOPMENT UPDATE 62 TECH TOOLKIT 64 WORD ON THE STREET

40 NAVIGATING THE WORLD OF PEOPLE 46 NEW AGENTS ON THE BLOCK

56


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Page 6: I N D U S T RY N EW S

INDUSTRY NEWS SA COMMERCIAL PROPERTY REMAINS SAFE HAVEN FOR CAUTIOUS INVESTORS IN 2014

Quality commercial and industrial properties in South Africa will continue

He says that the anaemic economy will also continue to pull down rental

to boast yields comparative to most other investment classes in the near

escalations for commercial and industrial properties in the year ahead.

future, despite the market remaining as flat as it has over the past five

“Tenants are increasingly opting for shorter leases, and landlords are

years. This is according to Gerrie van Biljon, executive director at Business

struggling to attain a 10% rental increase due to tenants’ good position

Partners Limited, who says that the company, which oversees a property

to bargain – a far cry from the 9-14% increases they could apply a few

portfolio of nearly R1-billion, is optimistic about the property market as an

years back. If such weak escalations continue, they are likely to put

investment haven in 2014, despite the possible risks to the sector.

pressure on the long-term value of property.”

Van Biljon believes that the South African property market is less

Of more immediate concern for property owners is the increase in

exposed to shocks in the global economy as, for example, the stock

the cost of maintaining and managing properties, such as wages for

markets. “Any of the imminent setbacks to the global economy, such as

cleaning staff and security guards, maintenance services, municipal

the raising of the close to 0% interest rates of the developed world or

property rates and electricity charges. “These costs are difficult to

the tapering off of America’s policy of quantitative easing will reflect

control, but have a major impact on the return on investment that a

immediately in the JSE indices, but not necessarily in property values.”

property brings to a portfolio. Under such difficult circumstances, it becomes even more important for an investment property to be well

The fact that there are very few bargains to be found in South Africa’s

managed to maintain its value. Business owners and investors, who are

commercial property sector – particularly manufacturing and retail

too distracted to pay attention to their properties, are well advised to

space – despite the economy’s sluggish crawl back from the recession,

appoint professional property managers,” says van Biljon.

proves the market’s status as a solid investment in difficult times, says van Biljon. “Business owners who have been under pressure since the

The interest rate is another risk factor to consider as should it go up,

property boom, which ended in 2008, have either exited the market or

property values will stagnate as the investment becomes less affordable

now have their affairs in order. Investors also tend to hang onto their

and attractive. Van Biljon says that given the mentioned risks, thought

property investments rather than disposing of them in order to invest

should be given to buying a property with a co-investor, rather than

in low bearing return categories, and as a result few good property

through financing, in order to spread exposure to risk. “Business Partners

investment possibilities enter the market. The consequence of this is that

has co-invested in many retail and industrial complexes in addition to

capitalization rates remain virtually unchanged, meaning the price of

purchasing such property outright. In this way, we are likely to increase

commercial and industrial properties did not take a major dip, unlike the

our sizeable property portfolio in the coming year – the surest vote of

residential market where prices fell.”

confidence in the investment value of the sector.”

Van Biljon says that the exception is, however, the office space sector,

He stresses, however, that optimism for the investment value of property

which is likely to suffer from stubbornly high vacancy rates in the near

in 2014 is reserved only for good quality commercial and industrial

future as it has for the last few years. “Owners of non-premium office

stock, namely well-situated, well-managed, accessible, secure factories,

blocks are therefore unlikely to get the rental escalations for 2014 that

warehouses and shops with adequate facilities. “Prospective buyers are

they would like as the high level of vacancies places tenants in a strong

better off worrying about these factors rather than the unpredictable

negotiating position. This in turn also keeps the market values down and

ups and downs of the economy as it is difficult to time the market and

results in a less attractive option for investors. The other side of the coin

property must therefore be seen as a long-time investment,” concludes

is that there are probably a few bargains available in the office sector

van Biljon.

for investors who are willing to wait for optimal return.”


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Page 10: I N D U S T RY N EW S

INTERNATIONAL COMPANIES PREFER INDU ST R I A L S PA C E C L OS E T O O R TA MB O I NT ER NAT I O NA L A I R P ORT

Over the past decade, an increasing demand for large warehousing space

International Airport and Garden Court.“This makes Isando very convenient

among distribution and logistics companies has resulted in the establishment

for international executives who may fly in for meetings, stay over and fly

of new industrial townships next to the main arterial and secondary

out the next day. Another advantage is the area’s convenient proximity

highways between the north and eastern suburbs of Johannesburg.A further

to residential suburbs such as Bedfordview, Linksview, Kempton Park and

trend, evident since the mid 1990s, is that the South African economy has

Glen Erasmia, while it’s an easy commute from Pretoria, Centurion and

gradually been moving from a predominantly manufacturing focussed

Johannesburg’s northern suburbs.

industrial sector to one of moving manufactured goods and raw materials in, out of and through the African continent.

“It stands to reason that we are finding that increasingly, international and national companies seeking industrial and office accommodation - or a

“Coupled with this,” points out Jonathan Klimek, leasing, sales and

combination of these - are looking to be situated in close proximity not only

investment broker for JHI Properties in Johannesburg, “building costs, as well

to major highways and other transport routes such as the Gautrain Stations

as the increasing cost of proclaimed industrial land, have driven up asking

but also in the rapidly expanding commercial hub around OR Tambo

rentals for new warehousing well above asking rentals found in the older

International Airport. This is where the well-situated and easily accessible

industrial nodes, such as Isando and Spartan.

Isando area is coming to the fore, as it meets all these criteria and more,” says Klimek. “Manufacturers favour Isando due to its access to large power

“In turn, an increase in the nominal vacancy rate for Isando and Spartan

grids. An appealing and highly suitable industrial property available to rent

has kept rentals in these areas competitive in the marketplace, resulting in

is 60 Electron Avenue. Previously a sought after manufacturing facility, it

property owners making improvements to these industrial properties in order

offers 3500 Amps electricity, fire sprinkler system, good water pressure and

to retain tenants and increase returns. For example, the JSE-listed Capital

ample staff facilities, including large ablutions and a canteen area. It also

Property Fund recently redeveloped their 5 412sqm warehouse on 20

has broad frontage onto the R24 highway, making it ideal for corporate

907sqm of land into an A+ Grade logistics facility that offers 13.5m high

signage and exposure. The property consists of 24 642sqm and is marketed

eaves, FM2 flat floor, on-grade access as well as docking for reticulated

at a starting rental of R38 per square metre. Other properties where large

transport vehicles and power of 500 Amps. Situated on a well-secured

industrial space is available to let through JHI Properties include 32 Electron

corner stand with two entrances, 16 Industrie Road in Isando has been

Avenue, also at a gross rental of R38 per square metre, and a warehouse

designed to accommodate any one of an array of logistics applications. The

in Waterpas Road, comprising 8555sqm at a rental rate of R50 per square

asking rental for this brand new building is R53 per square metre.” Capital

metre and well suited to logistics companies.”

Property Fund has property holdings in and close to the primary industrial nodes in Gauteng, Cape Town and Durban.Conveniently located, Isando

Klimek also mentions office space situated close to Festival Mall that has

offers easy access to the R21, N12 and R24 and is ideally positioned

become available to let. Recently vacated by Improchem, the offices are

next to OR Tambo International Airport, within easy reach of the airport

in immaculate condition and ready for occupation. Referred to as 138

cargo terminals via back routes - should one wish to avoid the highways.

Plane Street, the property consists of 3896sqm of offices with 990sqm of

Isando itself is home to the Rhodesfield Gautrain Station, part of the rapid

warehousing for storage or manufacturing, currently marketed at a very

rail network linking Johannesburg CBD, Sandton, Rosebank, Midrand,

competitive gross rental of R60 per square metre. Says Klimek: “Being in

Centurion, Hatfield, Isando and OR Tambo International Airport.

close proximity to Festival Mall and near Kempton Park CBD and Ekurhuleni Metropolitan Municipality offices, the building has exposure to busy Plane

Says Klimek: “Isando is a growing commercial and industrial node, well

Road. It’s also in walking distance of the taxi rank and railway station,

recognised by international companies who seek the benefits of being

providing good access for staff dependent on public transport. This is a

situated close to OR Tambo International Airport, passenger rail and

good opportunity for businesses seeking office accommodation in the

major road networks such as the R21, R24 and N12. Companies such as

Kempton Park and Spartan area.”

PepsiCo, MAN Truck & Bus (SA), GUD Filters, DSM Nutritional Products South Africa, Tiger Brand and Premier Foods are just a few of the blue chip

In addition, the ex-Bridgestone office building comprising 2633sqm situated

organisations occupying large facilities in the Isando node.”

in Van Acht Street, Isando - within walking distance of the Rhodesfield Gautrain Station and Holiday Inn, close to major bus routes and key road

Hotels and conference facilities in the nearby vicinity and surrounds include

networks - is now available to let at a gross rental rate of R70 per square

the Inter Continental Hotel, Emperors Palace Hotel Casino Convention &

metre. This property has 650 Amps power, a large shade-port parking area

Entertainment Resort, City Lodge, Airport Inn & Suites, Don Johannesburg

and expansive gardens.


Page 11: I N D U S T RY N EW S

LAUNCH OF ONLINE ESTATE AGENCY EAGENT AN EXCITING DEVELOPMENT FOR SA PROPERTY MARKET

Launched in December 2013, eAgent is a low cost, full service, online

websites, including the major property portal, Property 24, strategising

web-based estate agency, which offers all the same benefits as a

other marketing methods, arranging viewing of the property by the seller

traditional real estate agent at a fraction of the cost. A new innovation

to prospective buyers, dealing with offers and concluding the final sale.

in the South African market, it promises to revolutionise the way in which homes are sold.

eAgent’s financial partners, Ooba, will prequalify and organise finance for the prospective buyers if necessary. When the contract has been

“We have seen the market crying out for a change,” says eAgent director

concluded, eAgent will arrange for its local representative to meet with

Mike Bennett, who has been in the real estate business for nearly 20

all parties and complete a final Sale Agreement. Thereafter, eAgent’s

years. “It makes sense to lower the costs of selling a property in the current

approved attorneys will see to the conveyancing and transfer of the

economic climate, and many businesses are waking up to the benefits

property and eAgent will arrange electrical, gas, water and entomologist

of operating online. By taking the business onto the Internet, eAgent

certificates.

is able to offer the same service as a traditional estate agency without the large overhead costs demanded by travelling expenses, expensive

Home sellers have waited a long time for an alternative method of selling

prominent offices and wasted advertising and is therefore able to offer the

their homes to using the real estate agent who charges between 6% and

exceptionally low commission of 2% on a sale.”

8%. eAgent offers the same service as a traditional agent at just 2% commission – a saving of up to R40 000 on a R1-million property.

The holding company and directors of eAgent are very experienced and all agents are qualified and registered with the Estate Agency Affairs

eAgent promises excellent service, good communication, comprehensive

Board and have obtained their NQFL4 and/or L5 qualifications. Each

feedback and expert negotiating skills to ensure that the highest possible

agent will function as an account manager, dealing with a small number

price for your property is obtained – all at the lowest commission. The best

of properties, enabling them to focus on giving excellent service to clients.

thing about using eAgent, though, is the fact that the account manager

One account manager will deal with the transaction from start to finish

is there every step of the way to give ongoing help and advice ensuring

ensuring continuity and a good relationship with the client.

that the all-important human element is still present in the negotiation and transaction of property with eAgent. “We realise that computers can’t

The account manager will perform all the same functions as a traditional

negotiate,” says Bennett, “and we have structured our business to ensure

real estate agent, from the valuation of the property – through a desktop

that we are only using technology to streamline the process, not to replace

electronic evaluation, which is the same procedure the banks follow to

the estate agent altogether. It’s the best of both worlds.”

determine bonds – to the listing of the property on dozens of property


Page 12: I N D U S T RY N EW S

INTEREST RATE HIKE MAY IMPACT CONFIDENCE OF THE COMMERCIAL PROPERTY SECTOR

The decision by the Monetary Policy Committee to increase interest

read together and, coupled with concern over possible further rate

rates may be unfortunate for the commercial property sector. According

hikes, could well have a dampening effect on the retail property sector.

to Robin Lockhart-Ross, head of Risk at Nedbank Corporate Property Finance, this is not so much because of its immediate or absolute

Following the retail sector has been industrial property, driven mainly

impact on the servicing of existing loans or the viability of proposed

by logistics and warehousing, which are closely linked to retail.

projects, but rather because of the effect on business confidence in the

Lagging behind it has been the office sector, whose turnaround is not

property sector, especially coming on top of the disappointing retail

going to be advanced by uncertainty over interest rates.

trade statistics for December. “From Nedbank Corporate Property Finance’s own perspective, the “The stable and low short-term interest rates we have enjoyed since

rate increase is not expected to have any material adverse impact,

mid-2012 have enabled the property industry to trade itself out of most

either on our existing loan book or on our pipeline of new deals. Our

of the difficulties encountered during the recession and to plan forward

book is in its healthiest state from a credit perspective since prior to the

with some degree of certainty and confidence,” he says.

recession, and we have a stronger pipeline of loans in pay out phase on projects in progress than for several years,” Lockhart-Ross says.

“In recent months, the long end of the interest rate spectrum has ticked upwards as the market anticipated a rate hike, but only later this year

The immediately evident impact of this rate change will be on the

or even only next year. In a sense, the short end has now narrowed

prices of listed property stocks, which are inversely correlated to

that gap earlier than expected, but the comfort taken by the market

interest rates, and which have already dropped in response to the

from the consensus view of ‘lower for longer’ will nevertheless have

announcement. “Looking beyond the commercial sector to residential

been shaken a bit,” adds Lockhart-Ross.

property, the rate increase could have more of an impact on consumers still trading out of over-indebted positions, and could thus take some

The retail sector has been the frontrunner in the property market over

of the steam out of the encouraging momentum that was becoming

the past three years, during which numerous new shopping centres

evident in residential market activity and prices in the latter half of

have been developed or commenced, so these two adverse signals

2013,” concludes Lockhart-Ross.

BIDDING IN 2014 – EXCITING AND PROGRESSIVE

Online auctioning, which started surfacing in the US around 10 years

property. “It’s difficult to beat the excitement of live auctioning! This will

ago, is slowly making its way across the shores to the African continent.

never be replaced by technology, but rather the trend leans more towards

This mode of selling goods and properties online in a live format allows

technology serving as an assistant, as there is room on the market for both

live interaction and participation. “Take eBay as an example, this online

live and digital auctions,” says van Reenen. He believes that “the Internet

auctioning site concludes more than 25 million auctions per day,” says

is providing the property market with a sound marketing tool with 80% of

Joff van Reenen, director and lead auctioneer, High Street Auctions.

enquiries being done online, and digital marketing creating awareness

“South Africa is definitely on trend, but we are still a few years away

and serving as a viable communication channel.”

from this becoming a mainstream trend locally. One of the major reasons for this is that South Africa’s infrastructure is still developing, so lines

Telephone bidding is a prevalent way of auctioning that even

sometimes just aren’t fast enough for uninterrupted communication.”

technophobes are embracing. It allows greater access to participation and eliminates challenges such as geographical and physical limitations. If one

According to the 2013 State of Broadband Report (released by the

is unable to attend, proxy can be given to a member of the auction team

UN Broadband Commission), 41% of South Africans use the Internet;

who will be physically present during the live auction and bidding on their

this is slightly above the world average of 35.7%. However, Internet

behalf. “Telephone bidding is a prevalent auctioning trend globally and

access doesn’t necessarily translate to using the Internet as a purchasing

especially prominent in South Africa. This is a very good place to start if

tool, especially if the item being purchased is a big-ticket item such as

online auctioning is too intimidating,” van Reenen concludes.


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Page 14: I N D U S T RY N EW S

SIGNIFICANT UPSWING IN OWNER-OCCUPIED COMMERCIAL PROPERTY DEALS Standard Bank, Africa’s largest lender by assets, experienced 44%

existing building, Silwanyana says that firms that are experiencing

year on year growth in owner-occupied commercial property deals

significant growth are increasingly looking at building their own

for the period 2012/2013. One of the primary reasons for this is that

bespoke premises.

more businesses have been looking to purchase buildings for their own use rather than opting to rent their business premises.

“When a business looks to build its own premises it is usually a vote of confidence in their long-term future. This is a crucial aspect for us as

Busisiwe Silwanyana, head of Business Lending at Standard Bank, says

our model is to look at the quality of the client as well as the building

the main reason for the increased owner-occupied commercial property

before extending a loan,” says Silwanyana. “It is also a potentially

deals is that businesses are seeking to shield themselves against annual

good omen for the South African economy, as it might be a leading

rental increases which typically escalate at 8% per annum on average.

indicator that confidence is building post-recession, with businesses

While the owner-occupied model does expose commercial property

looking to invest rather than sit on cash piles.”

buyers to potential interest rate increases, Silwanyana says they can hedge against this risk by opting for Standard Bank’s fixed-rate loans.

Standard Bank has also seen a considerable increase in small commercial property transactions of between R5-million and

“The advantage of going the owner-occupied route is that you are not

R10-million in non-metropolitan locations. Silwanyana says this is

at the mercy of a landlord’s annual rental increases,” says Silwanyana.

largely being driven by businessmen, legal or medical professionals

“That’s particularly relevant for businesses that have built up a

and farmers in small towns who are purchasing small retail centres in

considerable amount of goodwill with their clients due to the location of

order to diversify their income streams.

their premises. Certain landlords can use that as leverage to negotiate a far higher rent when your lease expires since they know that moving

“There’s a fairly limited commercial property stock available in

premises would erode a considerable amount of goodwill with clients

non-metro locations, so often the investors in these areas are able

or customers.”

to achieve fairly attractive rentals on a square metre basis. We are predominantly seeing this investment being channelled towards the

Commercial property loans are typically granted over periods of 10

retail space but there are some pockets of interest in industrial and

years with buyers usually financing between 70% and 75% of the

manufacturing premises as well,” says Silwanyana.

property’s value. While the majority of owner-occupied commercial property transactions are from businesses looking to purchase an

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Page 16: B EE - 50% Q U O TA B Y 2015

BEE QUOTA BY 2015 Will plans to ensure a 50% BEE estate agent contingent by 2015 irreparably damage the property industry in South Africa?


Page 17: B EE - 50% Q U O TA B Y 2015

Geffen says,

“In an ideal world thousands of agents would not have had to quit the industry in the past few years and markets would have grown. Instead we’ve lost ground; how can we, in good conscience, say to people ‘come and learn the industry but chances are a year down the line you won’t be able to earn a living’?”

The press release issued by Lew Geffen in November of 2013 raised some weighty issues regarding the Property Sector Charter Council’s plans for all realty companies. By 2015 they want at least 50% of all estate agents to meet BEE (Black Economic Empowerment) requirements. The question that is most pertinent is how exactly will this be achieved in light of the current qualification process for estate agents, and what effect will this have on the current estate agent market? With little question that transformation needs to take place, the larger issue becomes the practicalities of this plan by the Property Sector Charter Council. Lew Geffen says, “A 50% quota can’t be enforced by 2015 because the economy simply won’t allow for that number of estate agents to flood the market.” Geffen goes on to explain that with the number of estate agents already sitting at 38 000 after a dramatic decrease from 2008’s figures of 75 000, the implementation of this plan would in effect see half of the current experienced estate agent workforce retrenched for novice agents with little to no training; a situation that will all but ensure that the BEE estate agents will fail, and cause damage to the property industry. There is also the matter of the current stock levels in the South African market, with actual transactions conducted on a monthly basis nearly half of what they were in 2008, from 40 000 to 20 000; the stock that is available to be sold simply doesn’t support an increased estate agent contingent and certainly not estate agents that will be going up against agents with far more experience and training. The actual quota notwithstanding, there is also the critical question of skills and training. Linda Erasmus, CEO of Fine & Country, says, “It is


Page 18: B EE - 50% Q U O TA B Y 2015

TIMELINE OF PROPERTY SECTOR CODES JOURNEY AND MILESTONES BEGAN IN 2003-2004 not a good industry for school leavers, because while estate agents aren’t lawyers, they still deal extensively with contract law. Realty is

• Minister Stella Sigcau launched the Property Charter process

unlike any other industry, because you’d usually be given a product

– July

and you’d sell it. Realtors not only have to sell a product, but go out and find it first. There’s no basic salary; if you don’t sell, you don’t

2005

earn. It’s not an easy job.”

• Pulled all property stakeholders together • Starter discussion around the scorecard

The skills and expertise required to sell a property go above and beyond

• Initial drafting of the charter

convincing a person to part with money for a product. You need to understand the laws regarding property ownership, the transferring of

2005-2006

property, what certificates are needed and the actual contractual side of

• Further consultation

the transaction. In South Africa, in order to qualify as an estate agent,

• Setting up of steering committee team

“A new entrant to the industry is required to achieve the qualification

• Drafting of the Charter

FETC: Real Estate (NQF level 4), to complete a 12-month internship

• Signing of Charter – March 2006

under the mentorship of an experienced estate agent and to write and pass a professional designate exam (PDE) at the end of the internship.

2007

This aligns the professional education and training requirements

• All stakeholders agreed in the formation of the Property

of the real estate profession with those of the legal and accounting

professions,” according to Kevin Mullins, CEO of SA Real Estate Agency.

• Property Charter gazetted under section 12

Measuring this process to gain the necessary qualifications against the

• All stakeholders agreed on the formation of

50% BEE quota, Jan le Roux, CEO of Leapfrog Property, says, “This

target is not achievable given the number of black agents that would

• PSCC office set up

have to recruited and trained in the space of two years. Presently there

• Council and board appointed

are approximately 6 000 black estate agents out of a total of about

• Appointed CEO

Charter council and signing of the constitution

the Property Charter Council

42 000 registered agents, which means that an additional 15 000 black agents need to enter the industry (based on present numbers). In fact,

2010

there will have to be even more black recruits as the additional 15 000

• Property Charter gazetted under section 9(5)

will bring the total number of agents to about 57 000, and 50% would

• Opened for public comments and analysis period

be 28 500, that is, at least 22 000 black agents must enter the industry over the next two years. Without significant government investment in the

2011

costs of training, as well as provision of a stipend for at least six months

• Analysis of public commentary

to the new recruits (agents only earn when they sell, which takes at least four to six months for rookie agents), there is no way that the current

2012

industry players can meet the target.”

• Adjusted the targets to 6-10 year targets

While no one is arguing against transformation in every sector including

(aligning to the Codes)

• Property Sector Code gazetted under section 9(1)

the property sector, it is the rushed timeline and unrealistic demands that are meeting with strong criticism. Geffen says, “Right now there is just too much economic uncertainty in South Africa and too small a real estate market to enforce the 50% quota the Property Sector Charter Council wants. We are also hearing from several quarters that if companies don’t comply they won’t be issued with Fidelity Fund

Source: www.propertycharter.co.za


Page 19: B EE - 50% Q U O TA B Y 2015

Certificates, which effectively means that they will have to close their

the one-year internship required for them to qualify to sell properly. It

doors.” One must question who is behind the current quota and the

is common for a new entrant to not earn enough to support themselves

deadline for its implementation? How much research has gone into

for their first 18 months in the industry.” This challenge is a very real

planning the timeline and the actual transformation of the property

one in terms of the socio-economic backgrounds presented by many

sector? Despite this quota being endorsed by the major regulatory

previously disadvantaged candidates; how, in real terms, will they afford

bodies of the South African Property sector, there seems to have been

not to earn any income for 18 months while they train and learn how to

little to no discussion between the estate agencies on the ground and

become successful estate agents, especially given the sheer amount of

the people putting the legislation in place. The South African property

new estate agents that will be needed to meet the quota?

industry is worth R4.9-trillion, according to the Property Charter, and such a valuable industry needs to be protected and nurtured, legislation

Rawson also says, “Another factor that must be taken into account is

that is harmful in the long run and that doesn’t have a clearly thought out

how competitive the property market is right now. Many estate agency

implementation strategy should be viewed with caution.

franchisees and principals do not want to invest the time, money and effort required to up-skill new recruits while there are many agents (who

The current exam undertaken by estate agent hopefuls is onerous

already have the required training) who are willing to take up these

for university graduates, which doesn’t bode well for non-university

jobs. Whilst the target is admirable, realistically it cannot be met. Many

graduates who will struggle with the legal and mathematical aspects

advantaged people do not make the grade, let alone people with a

of the exam. Should the 50% quota be enforced, will the qualification

previously disadvantaged background. All of this being said, there is still

process be streamlined or even changed to accommodate all the

hope for the future. I predict that there will be a shortage of agents in

potential new estate agents? Geffen says, “It’s also worth putting more

about five years’ time, when the older generation starts to retire and this

faith in the educational capabilities of the companies themselves. It is

will, in my opinion, open up possibilities for the Property Sector Charter

in their interest to have effective and profitable agents; why not leave it

Council’s 50% goal.”

to them to teach the techniques of selling and restrict the Estate Agency Affairs Board (EAAB) exams to the necessary legal aspects?” Will this

Bryan Biehle, managing director of Huizemark, adds that with barriers

not perhaps be for the betterment of the entire industry, and streamline

to enter being too high and the cost and lengthy period of training

the qualification process? Another suggestion that has been put forward

required, the target is simply unattainable. Another important point he

is for more government or statutory body involvement in the form of

raises is the competition in actual areas - with experienced opposition

financial aid to estate agents wishing to enter the industry, or grants to

agents fighting for the same market share, how can novice agents be

help with training and skills for proactive players in the industry.

expected to succeed? The interest rate hike is going to make it all the

Bill Rawson, CEO of Rawson Property Group, says, “One of the

more difficult for experienced agents, new agents still need to adapt and

largest challenges is that remuneration in the estate agency industry is

learn unfamiliar areas, which can take a long time. Sellers ultimately

completely success based. Very few previously disadvantaged people

choose who they would like to market their properties, and will look at

are able to sustain themselves financially in the early months and during

things like experience, track records, how familiar they are with that

NUMBERS TO KNOW

2

ND

PLACE

South Africa is set to become Africa’s number two economic power this year, after Nigeria. This is because of the huge investments Nigeria received after it privatised electricity. This could boost its growth rate from the current 6% to as high as 10%. By 2020, Nigeria’s GDP is expected to be 50% higher than South Africa’s. Fin24 - Nigeria the future, SA the past - economist


Page 20: B EE - 50% Q U O TA B Y 2015

particular area, how comfortable they are with the technology needed

entrants, greater BEE involvement and participation is possible, but this

to effectively market a property in today’s climate, and this could mean

will take a bit longer,” adds Biehle.

that inexperienced agents, who have no knowledge of that area, will lose out. Becoming an estate agent is difficult for people who have come

The Property Sector Charter Council’s timeline for the proposed quota

from advantaged backgrounds; people who come from disadvantaged

of BEE estate agents is filled with potential problems for the property

backgrounds face an even more challenging set of problems, things like

industry as well as for the previously disadvantaged candidates it

technology and marketing, which are necessary for success, looking

proposes to uplift. Instead of promoting becoming an estate agent as

for stock in order to sell it, and being able to effectively market the

a potential career amongst previously disadvantaged candidates, the

property in the particular area in which it is situated. Biehle lists the main

somewhat hasty and unplanned implementation of such a plan could

challenges new agents will face in the current market:

have the opposite effect and after they fail as estate agents actually stop others from wanting to pursue a career as an estate agent. What is

1.

needed is more interaction with the statutory bodies involved and the key

Agents require extremely strong social skills, selling and marketing skills

together then a realistic and well thought out strategy can be created

and entrepreneurial flair.

that will see the BEE quota produce estate agents that are a credit to the

2.

profession and will build up the South African property industry.

players in the property industry. Perhaps if these two entities can come

The historical success rate of new agents over the last 20 years has only been about 10% persevering after two years in real estate; these are people who were trained and had selling skills. If they could not adapt to the changing market conditions, their success rate dropped and they left the industry.

3. We are just entering a cycle of increasing interest rate hikes, possibly two or three in 2014, and this will make for even tougher operating conditions.

4. Since 2008 nearly 50% of existing agents have left the industry, the number of monthly sales has also dropped significantly, leaving mostly the more experienced agents competing fiercely for a share of the market.

5. New or inexperienced agents will invariably lose out to trained, experienced agents who have a credible track record in the current market.

THE PROPERTY CHARTER IN A NUTSHELL: • Constitutes a framework and establishes the principles upon

which BBBEE will be implemented in the sector;

• Is a transformation charter as contemplated in the Broad-

Based BEE Act (No 53 of 2003) (BBBEE Act) and the

dti (Department of Trade and Industry) Codes of Good

Practice on BBBEE and lays the basis for the

development of a code of good practice for the property

sector, as envisioned in Section 9(1) of the BBBEE Act;

• Establishes targets and qualitative undertakings in respect of

each element of BBBEE; and

• Outlines processes for implementing the commitments

contained in the charter, as well as mechanisms to monitor

and report on progress.

Source: www.propertycharter.co.za

“Mentioning all the obstacles above, success in the industry is not impossible, but it certainly does take a special kind of sales person who has the tenacity and the ability to cope with the highs and lows of real estate. With the intervention and engagement of various public stakeholders and private enterprises providing financial support to new

BY ANGELIQUE REDMOND



Page 22: C H A N G I N G S E C U R I T Y T R EN D S AT R E TA I L P RO P ERT I ES

The latest trends around security at retail properties indicate the benefits of longterm intervention planning.

CHANGING SECURITY TRENDS AT RETAIL PROPERTIES


Page 23: C H A N G I N G S E C U R I T Y T R EN D S AT R E TA I L P RO P ERT I ES

Retail property owners, tenants and consumers share the year-round

“Industry players are constantly revisiting supply chain management

security risks associated with shopping centre surroundings. However, as

strategies to achieve optimum security in and around retail properties,

permanent building occupants who pay prime rentals for long property

from small convenience centres to large shopping malls,” says divisional

leases, tenants depend on stringent measures by property owners when

director Strategic Retail, Preston Gaddy of Broll Property Group. He

it comes to daily security management.

says that property managers who promote close working relationships between centre management and retailers fulfil a vital role in promoting

Trends point to new designs that facilitate greater visibility in and around

best practice to overcome constant changes in the targeting of large

malls, as well as high-tech installations of modern surveillance equipment

shopping centres.

and regularly revised activity programmes of all parties concerned. However, guidelines by the Broll Property Group suggest that the design

The process of providing a secure environment entails heavy financing

and specification of a building itself should enhance the safety of an

to facilitate safer building designs, such as parking and delivery

environment, rather than create security issues.

facilities, as well as installations of state-of-the-art technology to enable round-the-clock surveillance and patrol procedures. The latest measures

Key to the greatest security impact on malls, say the experts, is

in high risk areas have seen the joint efforts of property owners

the earliest consultation of stakeholders, with professional security

and retailers result in contributions toward start-ups of satellite SAPS

consultants involved during the initial stages of the internal design of a

facilities close to shopping malls.

shopping centre. This also applies to retrofits and refurbishments, so that centre owners and managers can revisit existing facilities, and possibly

Industry initiatives are also contributing to maintaining lower numbers of

enhance security with built-in solutions.

incidents, and are the direct result of increased communication regarding implementation of preventative measures throughout the retail sector.

This approach also allows property management companies to engage

The Consumer Goods Risk Initiative (CGRI) fulfils a major role in

with owners and committed anchor tenants, who ultimately foot the bills

reducing crime and mitigating risk in the industry. This initiative is

for good security management. Daily costs incurred by good security

managed by Leigh Brown as part of the Consumer Goods Council

measures are over and above the financing of liability coverage for

of South Africa (CGCSA), in cooperation with private security and

building occupants, who may be management, tenants, shoppers or

intelligence services, and SAPS.

informal traders. The CGRI initiative’s services to industry players include an Incident New builds and refurbished centres are increasingly being designed to

Management Database, Employers Reference Site, ID card processes

allow optimum natural light, from top levels down to basement parking

for access control and identification, Instant Alerts service, Best

spaces, which allows free movement amid brightly lit areas without

Practices for trends information, Effective Policing services and Illegal

incurring crippling energy bills. Many examples are seen countrywide

Trade Practices.

where new and refurbished malls feature an abundance of glass enclosures, from roofs to walkways, and windows in parking and

Brown says the initiative is well supported by private industry, as

storage spaces within basement areas.

engagement between private security and intelligence specialists promotes all bases to be covered through revised strategies. The

Major factors that impact shopping centre security are crime levels

staggering of closing times, particularly during high season periods, and

in nearby suburbs, internal security measures, access and egress

increased monitoring of transport activities around dedicated collection

control plus ongoing management at retail centres. As a result, the

and delivery areas are paying dividends, says Brown.

latest successes achieved are due to closer alliances between industry associations, retail players, security companies and local police and

The CGRI is funded through fees of a current membership base of about

community forums. Organised crime, particularly during high season

1 400, including major retailers such as Clicks, Massmart, Metcash,

periods when foot traffic in shopping malls may double, results in

Pick ‘n Pay, Shoprite Checkers, Spar and Woolworths, as well as

heightened exposure of banking, logistics and supply chain management

manufacturers, distributors and service providers. Another associated

service industries.

business partner is The Shopping Centre Security Initiative and the


Page 24: C H A N G I N G S E C U R I T Y T R EN D S AT R E TA I L P RO P ERT I ES

Jewellery Council, who both promote partnerships between industry role

The report showed the highest targeted provinces to be Gauteng,

players affected by crime.

with 434 incidents, followed by 145 in the Western Cape and 49 in KwaZulu-Natal. A total of 492 armed robberies accounted for the

Other industry partners include, amongst others, SAPS, Business

majority of incidents, followed by 229 home robberies and 41 cash

Against Crime, South African Bank Risk Information Centre, Security

in transit incidents. The highest hit commodity was cash, followed by

Industry Alliance, SA Institute of Security and the Petroleum Security

164 cellular stores and 42 jewellers, also disproving the incorrect

Initiative. By mobilising this initiative, the CGRI intends meaningful

public perception that jewellery stores are the highest targeted

engagement with law enforcement agencies in the identification of

commodity at shopping centres.

patterns, trends and crime prevention strategies for improved safety of retail customers. Brown says although retail crime figures collated by

By planning for and implementing modern designs and management

the council may not include all incidents, this 90% accurate indicator

strategies for modern day occurrences, any number of security risks

aids the process of monitoring shopping centre-related criminal activity.

in shopping malls can be reduced. Brightly lit areas throughout shopping malls, from delivery and parking areas in basements to

The CGCSA report for the year 2012 to 2013 saw an increase in total

entertainment halls, entrances and exits, provide for round-the-clock

incidents reported at shopping centres up from 469 to 762, which

visibility and shopper confidence.

includes robbery and cash in transit heists. Also included are followhome robberies, which usually originate from banks and ATMs that are located at malls. This occurs after the withdrawal of cash from an ATM or bank, or following the purchases of valuable items, when shoppers are marked inside a mall, and followed home and hijacked either en route or at home.

BY ANNA-MARIE SMITH


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Page 26: D I S T R AC T I O N S - T H E C U R S E O F T H E R E A L ES TAT E AG EN T

DISTRACTIONS – THE CURSE OF THE REAL ESTATE AGENT There are ways to avoid many distractions and thereby improve productivity. We take a look at how agents can best maximise their working hours in order to get the most work done every day.

Most of us have the best intentions when we

done. Noise pollution aside, agents also have

start a new year. We’re going to be more

to deal with a flood of emails, the ringing of

productive and make more money while at the

their cell phones and other disturbances that

same time creating more ‘me’ time. The big

eat away at their productivity. It may be an

question is, of course, how? How difficult is it

idea to take a long hard look at your average

to change our mindsets and learn ways that

working day and focus on areas that could be

do all of the above without having a nervous

causing problems.

breakdown in the process? One way of the easiest ways of improving productivity is by

Ask yourself what typically happens when

learning to avoid distractions.

you walk into work in the mornings? Do you go straight to your desk and start working

Unfortunately we live in a world that is full

immediately or do you, like most of us,

of distractions and blocking out things that

wander into the kitchen to get a cup of

disturb our productive lives can be difficult.

coffee and then spend the next 30 minutes

Any office has its fair share of disruptions.

or so catching up on the latest goings on

Ringing telephones, noisy, chatty colleagues,

in the office? There are a whole lot of other

you name it, they all seem to congregate

distractions waiting for us once we finally

at the place where work is supposed to get

make our way to our desks and turn on the


Page 27: D I S T R AC T I O N S - T H E C U R S E O F T H E R E A L ES TAT E AG EN T

computer. Funny emails from friends and

that those who want to reach the most people

family are often the first thing we focus on,

focus on posting at the ‘right’ time. According

then we’ll check out news sites to see what

to an article on ‘Agent Genius’ (yes, we found

is happening out there, then we get onto

this site on Facebook), they say there are

Facebook to play technological catch-up with

two types of timing you need to master – the

our friends. Before you know it, its 9am and

‘rush hours’ at the sites you use, and the time

you haven’t done a stitch of work.

at which your audience gives you the best response. This step will increase the number

Technology has completely changed the

of people who will see your updates because

face of real estate in recent years. There are

you’ll be posting at a time when most people

seemingly apps for every eventuality aimed

are online.

at making a real estate agent’s life easier. However, spending your productive hours

Interestingly, more than half of Facebook

researching the latest apps that may or may

users log in daily and according to experts,

not improve your business is, unfortunately,

some of their login patterns are predictable.

going to affect your productivity. Yes, of course

For example, people tend to log in when

there are products out there that will save you

they wake up, when they first get to work, at

time and make your business more productive;

lunch and after work. It may be an idea to

however, if you have developed a sort of app

play around and monitor when you get the

addiction and are downloading everything

best response and work this into your day.

and anything that you are probably not going

Regardless of when this occurs, try to make the

to end up using, you may have a problem.

exercise completely work related and avoid

Perhaps the time has come to weed out what

social chatter and posts as much as possible

isn’t working and sticking to apps that save

during this time.

you time and help you make more money. One popular method used to help people

Henrik Edberg, the creator and writer for the Personal Development blog, offers the following advice for those who want to up their production levels: • Do the most important task

of the day first thing in the

morning. • Use a very limited to-do list. • Keep a minimalistic workspace. • Block out the common time-

wasting sites online.

• Balance fully focused work with

fully focused rest.

• Focus more on the how-to and

not so much on the what-ifs.

• Each day ask yourself

questions that help you to focus

or refocus.

• When overwhelmed, breathe

and then say to yourself: Just

take care of today.

(Source: 23 Ways to Improve your

Let’s face it, the Internet has made addicts out

become more productive is the Pomodora

of most of us. Facebook is just one example.

Method. Italian for ‘tomato’, this system was

Facebook and Twitter have proven to be

named after a kitchen timer shaped like a

excellent tools for making new contacts or

tomato. Basically, the idea, which was first

keeping old clients in the loop. However,

mooted in the early ‘80s, involves putting the

Putting your head down and getting things

like just about everything else in life, agents

timer on for 25-minute intervals and focusing

done is going to take a great deal of time

need to find the balance between finding

on being productive during those times. The

and commitment. However, managing your

and using the right technology and actually

method advocates taking a five-minute break

time better will improve your productivity and

getting the job done. There is absolutely

in-between, before setting the timer again for

as such your success. If there simply aren’t

nothing wrong with using social media to

the next session. While this may seem like a

enough hours in the day to get the job done

grow your business; it is an excellent way to

simple exercise for many of us, it’s far harder

effectively, consider working in the evenings

get your name and product out to the masses.

than it seems and it is going to take practice

when there are fewer distractions. Show days

There is, however, a vast difference between

to perfect.

can also be the ideal time to get things done.

Productivity)

Yes, there may be the odd interruption, but

writing the odd status, sharing relevant news articles or offering tips for buyers and sellers

Unfortunately, while all of this looks great

an awful amount of work can be done by

and spending hours trawling the site to gaze

on paper, the reality of the situation is that

sitting working on a tablet or laptop instead

at your client’s family photographs or sharing

estate agents are always going to have to

of reading a book or playing on a cell phone

dozens of irrelevant posts.

put up with a fair number of distractions.

during these times.

There are phone calls to take, emails to Timing, it seems, is everything and it’s the

answer, appointments to keep and generally

same with social media. It has been estimated

mounds of paperwork cluttering our desks.

BY LEA JACOBS


Page 28: W I LL E -T O LL S C H A N G E P RO P ERT Y B U Y I N G PAT T ER N S ?

WILL E-TOLLS CHANGE PROPERTY BUYING PATTERNS?


Page 29: W I LL E -T O LL S C H A N G E P RO P ERT Y B U Y I N G PAT T ER N S ?

Will E-Tolls change property buying patterns? The e-tolling system has come into full effect in Gauteng, and while it has

marked increase, already seen in some areas, in alternative roads lead to

altered the way people travel to and from work, what impact will it have

the degradation of suburban road infrastructure, pulling down the property

on the property industry? Opinion seems fairly divided as to whether or

prices in that area and turning away potential buyers? Once quiet

not the introduction of tolling in Gauteng will change where people buy

neighbourhoods could become busy hubs of traffic, leading to an increase

property for personal and business reasons. Looking at the effects tolling

in accidents and making the neighbourhoods less attractive.

will have on the consumer it seems very likely that in the future tolling will play a role in the property industry.

The cost of e-tolling is a steep one, and with many people refusing to register and pay for e-tags, the cost will be higher. A road user with an

The e-tolling system consists of 49 electronically operated toll gantries

e-tag will pay 47c per kilometre while those without will face almost

that are spread across 185km of road on the N1, N3, N12 and R21

33% more per kilometre. So, if for a return trip from Rivonia in Sandton

freeways in the greater Johannesburg area and in the main links between

to Hatfield in Pretoria, a registered e-tag user will pay R45.42 and an

Johannesburg and Pretoria. The tolls are charged automatically without the

unregistered user will pay R60.58.

motorist having to stop and pay, instead they are paid through an e-tag system and deducted straight from the owner’s linked prepaid account or the owner is billed for the section of road they have used. People who commute from Johannesburg to Pretoria for work or vice versa will be heavily tolled. Commuting and the rising cost of fuel is already a large consideration for most consumers when they look at where to live or where to work and the added cost of e-tolling will make that choice even more pertinent. Living close to your place of work could become the standard in Gauteng for people who don’t use public transport. So will e-tolls change the pattern of buyer behaviour in the Gauteng? Steve van Wyk, managing director of Seeff in Centurion says, “I think

Adrian Goslett, CEO of RE/MAX, says,

“Homeowners in the Gauteng region will need to investigate the likely impact that e-tolling could have on their financial situation so that they can engage in proactively identifying ways to lessen the negative effects.”

they will. I believe more and more people will buy nearer to the Gautrain Stations or close to the Gautrain Bus Stations, especially if they work in Rosebank, Sandton, Pretoria or Johannesburg. Property within proximity to the Gautrain stations has already seen significant growth and with e-tolls a

Besides the impact it will have on people who commute on a regular

reality, these areas could become a hot commodity.”

basis, e-tolling will also have an impact on businesses and on consumer prices for food and other services. Retailers and supermarkets will be

According to John Roberts, CEO of the Just Property Group, a study

forced to pass on the 11% increase in transport costs to the consumer.

conducted in the US indicated that there was a significant change in road-

This will have a knock-on effect as people will have to pay more for

use habits from logistic firms once tolling mechanisms were implemented

goods and services and will be left with less money each month; potential

on major routes. Roberts says, “Where companies decided that the tolling

homeowners may be adversely affected and unable to save for a deposit

would make their business less viable, alternate routes were used, resulting

or show positive affordability ratios. Goslett says, “Most services will

in a massive increase of traffic on the back roads and ironically resulting

be affected by the system, which in turn will impact homeowners and

in greater than average congestion. The study further reported that another

consumers in some way. Furniture removal operators, for example, are

knock-on effect, the pertinent one for property owners, was an increase

charged on a volumetric basis rather than per axle, which means that, on

in traffic through residential areas. This factor directly led to a decline in

average, some of these operators can expect to pay around R75 000 per

the value of property adjacent to tolled routes. Inversely, property values

month. This cost will need to be made up somehow, which means it will be

located within convenient reach of commuter railway stations increased

transferred to homeowners who want to move house.”

and it is likely that a similar scenario may play itself out in Gauteng.”

It’s not just potential homeowners who will be looking to their bottom

With some municipal roads already in a state of slight disrepair, will the

lines when it comes to e-tolling. Companies will also be looking at the


Page 30: W I LL E -T O LL S C H A N G E P RO P ERT Y B U Y I N G PAT T ER N S ?

cost of e-tolling on their operational expenses when it comes time to renew their leases. Peter Collins, regional manager for the JHI broking division in Johannesburg, says, “Increasingly companies are looking at the total cost of occupancy over the period of a lease, including rising rates and taxes, operational expenses and utility consumption costs. These increases are passed onto tenants in terms of their lease agreements. Therefore companies are far more aware, and sensitive to exposure to these increases than ever before, due to adverse macroeconomic trading conditions. The e-tolls are yet another cost to add to this cost of occupancy as compliance-oriented companies absorb this cost on behalf of their employees. I expect that companies will consider this when relocating premises as operational efficiencies as well as medium term cost-saving are paramount in the current market.” Will e-tolling result in an increase and influx into mixed use developments like Melrose Arch in Johannesburg? The ‘live where you work and play’ slogan adopted by Melrose Arch is certainly one that will gain popularity as people look for convenience and cost savings. What could be more cost-effective than living in the same development you work in? With e-tolling still in its infancy, the effects remain to be seen, but there will be an effect, even if e-tolling becomes another factor in the decision-making process when people are looking to buy a house or where to rent property for personal or business use. Gerhard van der Linde, MD of Seeff in Pretoria East, says “Only time will tell what impact the e-tolling will have on the buying patterns in Gauteng, but the reality is that this cost will certainly have an effect on the already deeply indebted consumers – and could potentially force many middle class South Africans back into poverty. In the higher income brackets, the expected approximately R450 to R550 per month will not have the same impact as it will have on the middle class South African’s disposable income. It is unavoidable that this additional expense will have an impact on the inflation rate, as everything that is transported along tolled roads will cost more, which means increased operational costs for businesses and retailers, and in turn, for the consumer. We expect that the introduction of the toll costs will increase the number of commuters on the Gautrain, and potential buyers will certainly take this into account when they consider the areas in which they would buy properties, such as close to the bus route systems giving accessibility to the Gautrain stations.” For now e-tolling is a reality and one that those living in Gauteng must contend with. The effects on the property industry in both the residential and commercial sector remain to be seen, as well as the effects on the services linked to the property industry both directly, like furniture removal, and indirectly, like congestion and its effects on the road infrastructure, which in turn affects property prices. There can be no denying that e-tolling is set to alter the property landscape of Gauteng; whether it’s for better or worse is yet to be seen.

BY ANGELIQUE REDMOND


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Page 32: LI S T ED R ES I D EN T I A L S T O C K U N L O C K S I N V ES T M EN T P O T EN T I A L

LISTED RESIDENTIAL STOCK UNLOCKS INVESTMENT POTENTIAL


Page 33: LI S T ED R ES I D EN T I A L S T O C K U N L O C K S I N V ES T M EN T P O T EN T I A L

“For individual investors, publicly traded real estate securities generally provide reasonably low cost exposure to relatively high quality pools of real estate assets.” David Swensen - author of Unconventional Success: A Fundamental Approach to Personal Investment

The award-winning Stellendale Village development is a 22 hectare mixed-use residential suburb just off the Stellenbosch Arterial in Kuils River, Cape Town

Residential property is steadily gaining recognition as a significant

opportunities of upmarket apartment and mixed-use developments

force within the listed sector. Shareholder benefits in this investment

in central London. Shareholders in this JSE’s offshore real estate

vehicle range from accessibility and diversification to transparency

fund have cashed in on Capco’s upward growth since 2009, with

and liquidity due to regular distributions.

exceptional returns of 69% last year.

Up to early last year, this sector represented less than 2% of the

While long-term average earnings consistently outperform leading

overall JSE property index. South Africa’s earliest residential listings

benchmarks, last year’s performance from the listed property sector,

go back to the Pretoria-based family-owned businesses of Premium

with returns of 8.39% against equities on the all share index at

Properties and Octodec with managing company City Properties,

21.43%, was disappointing. The Property Index Tracker shows

which came to the market 17 years ago as specialists in the renewals

average returns over the last 10 years of cash at 8.9%, bonds at

of inner city properties.

11.2%, equity at 15.5% and property at 26.4%.

Further afield, global residential property investment funds have long

In ideal market conditions, the potential rental income from

been recognised as an alternative investment to owning title deeds

affordable housing and student accommodation, as the two dominant

of individual properties. Within the global listed property market,

components in the local residential market, is viewed as a fairly

regional composition of the US represents 30% and Europe 7%. Of

stable option for short-term earnings. From a longer term perspective,

that, residential property represents 20% of the global listed property

South Africa’s housing sector at the end of last year saw house

market, with Europe holding 1%, the US 17% and the UK 4% of this

price growth, of 7.8% for the first time since 2008, to have steadily

segment of the overall property market.

overtaken inflation at 6%. This also coincided with slowed credit growth, reduced from 6.98% in November last year to 6.14% at the

Potential rental income plays a significant role in residential

end of January.

investments across the globe. An example is the recovery of the residential property market in the UK, where a 10% rise in

While the listed residential sector remains a relatively new

house prices is boosting market sentiment. Shareholders in large

phenomenon in South Africa, those currently participating in the

capitalisation funds, such as the dual listing (JSE and London

market are recognising its potential, says Jay Padayatchi of Meago

Stock Exchange) of Capital & Counties Properties (Capco), benefit

Asset Management. Large capitalisation funds are increasingly

from future growth strategies, driven primarily by rental growth

including residential components in portfolio expansions, as seen in


Page 34: LI S T ED R ES I D EN T I A L S T O C K U N L O C K S I N V ES T M EN T P O T EN T I A L

Arrowhead’s acquisitions of the R406-million housing portfolio from

new listings. Local IPO activity last year saw eight new listings come to the

Jika Properties as well as a R150-million portfolio of student flats in

market, of which five were property funds and Attacq, whose diversified

one year. CEO Gerald Leissner referred to this strategy as Arrowhead

portfolio of assets includes developer and residential components.

becoming the first mover when listed residential property burgeons in South Africa.

Cape-based property owner and developer Visual International Holdings, whose proposed AltX listing is underway as one of the JSE’s

Quality student accommodation, which remains a scarce commodity

first listings in 2014, will offer shared ownership in the Stellendale

nationally, has recently seen Gauteng property developer Jika

Village mixed-use residential suburb for the middle income market. This

Properties embark on a massive conversion project of grain silos

22-hectare development, which will comprise 1 500 homes to middle-

into trendy shared living quarters. With a R1.4-billion rental housing

income households upon completion, will also feature a fully integrated

portfolio in excess of 3 000 units, Jika’s recent shift to the student

retirement estate.

accommodation market is set to increase its student rental portfolio following its latest acquisition of 30 additional silos in Newtown.

Group chairman Charles Robertson says: “Demand for quality housing from the growing middle income market in South Africa is strong.

Market players with small capitalisation resources opt to enter the

Our model of developing mixed-use suburbs on suitable land near

listed domain either through private or publicly raised funds on the

jobs and infrastructure meets this demand.” Robertson says Visual

JSE’s Alternative Listings Exchange (AltX) prior to achieving long-

International’s listing will provide the capital needed to pick up the pace

term goals of main board listings. Examples are property developers

of development as well as reproduce its successful model in other high

specialising in housing, such as the well-established Calgro

growth nodes around the country.

and newly listed Visual International Holdings, developer of the Stellenberg Village mixed-use residential node.

Potential market growth, which lies in the development of land, has also highlighted the significant contribution of property developers in

Growing demand for housing and rentals in the affordable and middle

international real estate markets. Major drivers of large development

income markets is seeing large retail banks partnering with reputable

projects were reported on last year by the European Public Real Estate

developers and investors. If successful, property entrepreneurs with

Association (EPRA): “Relative to the size of their property portfolios,

an appetite for raising public funds through the AltX sector are able

listed property companies in Europe devote two to three times as much

to finance new developments. This follows compliance with stringent

investment to the development of new buildings and the improvement of

listing requirements and ongoing financial management criteria as

existing buildings than the rest of the real estate industry.”

set out by the JSE. A major benefit is that short-term income earnings are reinvested as opposed to shareholder distributions of Real Estate

Renewed interest in the local residential property market is viewed as the

Investment Trust (Reit) income earnings of 75%.

long-term catalyst for potential capital growth of this sector. Investors are viewing a steady recovery of the market as the platform from which to

AltX funds enjoy an accelerated pace with which to satisfy demand

explore new development opportunities and joint ventures across public

for housing while growing market capitalisation through increased

and private industries.

investor interest. Analysts say that greater efficiency with regard statutory requirements for smaller players is boosting confidence in this sector. Less red tape for new initial public offerings (IPOs) is seeing a resurgence of

NUMBERS TO KNOW

10.5%

BY ANNA-MARIE SMITH

Total income for South Africa’s tourist accommodation industry rose by 10.5% year on year in nominal terms (current prices) in November 2013‚ Statistics SA’s tourist accommodation survey released. SACommercialprop-News - November total accommodation indicate income up 10.5%



Page 36: M A R K E T S H A R E

PROPERTY FINANCE IN SOUTH AFRICA

Property Professional speaks to some of the leading industry statistic and insight providers to find out: the market share of financial institutions per province; which province sold the most properties during 2013; as well as the value of properties sold during 2013 per province.

F IN AN CIAL IN S TIT U TIONS M A RKE T SHA RE P E R P R O V I NC E REPORTING

NATIONAL

BANK

EASTERN

FREE

CAPE

STATE

GAUTENG

KWAZULU-

LIMPOPO

MPUMALANGA

NATAL

NORTH

NORTHERN

WESTERN

WEST

CAPE

CAPE

ABSA

31%

28%

37%

29%

24%

36%

32%

38%

32%

38%

SBSA

25%

26%

21%

27%

26%

23%

24%

23%

22%

22%

FNB

17%

17%

16%

18%

17%

13%

15%

14%

15%

16%

Nedbank

16%

15%

14%

17%

16%

14%

14%

15%

9%

15%

Other

5%

6%

7%

4%

9%

12%

9%

7%

19%

3%

SAHL

5%

6%

4%

5%

6%

3%

6%

3%

2%

4%

Investec

1%

1%

0%

2%

1%

0%

0%

1%

0%

2%

M OS T PROPERTIE S SOLD DU RING 2013(TRA NSAC T I O N V O L UME)

109 359

56 099

33 289 17 446 11 777

8 425

10 812

13 478 4 089

11 854

EASTERN CAPE

FREE STATE

GAUTENG

KWAZULU-NATAL

LIMPOP0

MPUMALANGA

NORTH WEST

NORTHERN CAPE

UNKNOWN

WESTERN CAPE


Page 37: M A R K E T S H A R E

VAL UE OF PROP E RTIE S SOLD DU RING 2013 P E R P R OV I NC E (P UR C H A S E P R I C E) R49 746 990 036 R6 596 763 195 R1 838 852 779 R6 475 366 117 R5 503 956 170 R3 297 465 810 R29 581 082 308 R84 729 508 356 R5 004 940 876 R8 315 091 722 EASTERN CAPE

FREE STATE

GAUTENG

MPUMALANGA

NORTH WEST

NORTHERN CAPE

KWAZULU-NATAL UNKNOWN

LIMPOP0 WESTERN CAPE

Credit: Information supplied by Lightstone www.lightstone.co.za

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Page 38: H OW T O S TA N D O U T I N A C ROW D

HOW TO STAND OUT IN A CROWD


Page 39: H OW T O S TA N D O U T I N A C ROW D

Most of us have met people who seemingly have the Midas touch –

buy or sell property, the more people that know what you do the better.

everything they touch appears to turn to gold. Nothing seems to slow

It has been stated millions of times that word of mouth is the best form

these people down and even when the economy takes a dive and

of advertising and essentially the more you advertise yourself and your

property sales slump, there are those who emerge from the whole sorry

services via this method the more successful you will be regarding getting

saga relatively unscathed. So how do they do it? Are they just incredibly

your name out there.

lucky and simply always in the right spot at the right time? Unlikely. Were they born with the proverbial silver spoon in their mouths and

Get out and about as much as possible and become active in your local

therefore somehow have the edge on less fortunate associates?

community. Golf courses have long been the place where salespeople of all descriptions spend their free time. Is this because every single one

Possibly, although there is plenty of evidence that indicates that money

of these people has a secret desire to become another Jack Nicklaus?

does not always make money. The once incredibly wealthy Vanderbilt

Possibly, but in most cases, agents know that they are more likely to

family, for example, lost their fortune in a relativity short space of

meet successful business people on a golf course than they would down

time. When Cornelius Vanderbilt died in 1877, leaving a fortune of

at the local pub. Agents who stand out tend to spend an inordinate

approximately $3-billion dollars in today’s terms, most assumed that the

amount of time meeting new people and socialising with those in their

family was made for life. Sadly, today there is not one millionaire in the

local communities. They will often join charitable societies like The

family; in fact, one family member is said to have died penniless a mere

Round Table or Lions. In the process of giving up some of their free time

48 years after Cornelius died.

helping others, they meet large numbers of people, knowing that the camaraderie that those belonging to these organisations enjoy could

So how do some agents manage to stand out from the crowd and

lead to attracting more clients.

become remarkably successful, while others slog along barely able to make ends meet? We at Property Professional did a little research and

Looking the part always plays a huge role in success. Agents, regardless

came up with ways that will not only help you grow your business, but will

of which area they work in, should always strive to look professional.

help you to go from the mundane to the exemplary.

Would you buy a property from a person with dreadlocks whose choice of clothing included shorts and slops? Probably not. We may not all be

Talk to everyone as though they are already a client.

able to drive the latest Mercedes Benz, but we can all make the most of

While it may be said that not everyone you meet is going to use you to

what we have. First impressions are always going to count; the problem


Page 40: H OW T O S TA N D O U T I N A C ROW D

with selling real estate is that agents meet potential clients all the time –

are moving to a new area, often have no idea how to get the necessary

in the darndest of places. While it may be impossible to look the part all

things done. The agent who offers guidance as to how and where to

of the time, sounding professional regardless of the situation is a must

have the electrical and water connections turned on, helps arrange for

for those who want to stand out. While dancing on a bar counter after

a cleaning service to clean the home before occupation and generally

having consumed a bottle of tequila may seem like fun, it is going to

makes themself available to help the buyer as much as possible is not

impact on what those watching from the sidelines are thinking. Experts

only probably going to have a client for life, but will pick up business

often comment that people make judgements about each other within

from referrals.

the first minute that they meet – unfortunately they also say that bad impressions tend to stick, regardless of how a person conducts themself

Top agents don’t sit on their laurels once they have made it into the big

in future meetings.

time, but constantly seek new ways of improving their business. They don’t take things for granted either, they regard each new deal as a new

People who want to make a longstanding impression should realise that

opportunity to create more business and strive to make each client as

the world does not revolve around them. Spending an hour discussing

happy as possible. No one said it was going to be easy, in fact, if you

real estate opportunities without letting the other party get a word in

look at how hard these agents work, it becomes apparent that there is

edgeways could backfire. They recommend that agents should look

far more than selling property than simply being in the right place at the

for common ground, share stories of common interest and while it

right time, having the gift of the gab or mingling with the right people in

is perfectly acceptable to talk about yourself and what you do, this

the right places. Yes, it may have built their success, but like everything

shouldn’t be the main topic of conversation.

else in life, there are always new ways to grow.

People tend to be drawn to positive people. While it can be assumed

Barack Obama stated in a speech in 2009: “That’s what building a

that no one is suggesting that agents should bound through the door

body of work is all about. It’s about the daily labour, the many individual

singing ‘We are the Champions’ at every opportunity, keeping your own

acts, the choices large and small that add up over time, over a lifetime to

problems out of the equation appears to be a must for those who want to

a lasting legacy. It’s not being satisfied with the latest achievement, the

really shine. On that note, however, experts have often said that showing

latest gold star, because one thing I know about a body of work is that it

empathy to a client will boost any business relationship.

is never finished. It’s cumulative. It deepens and expands with each day you give your best. You many have setbacks and you may have failures,

Solving clients’ problems can take you from zero to hero in minutes.

but you’re not done. You haven’t even started.”

It has often been said that good agents don’t stop working once a property has been sold. They remain in contact with the client and if necessary help them with the small details associated with a move, long after the sales contract has been signed. Clients, particularly those who

BY LEA JACOBS


MAKING A TRUST’S PROPERTY SALE OR PURCHASE HASSLE FREE Many South Africans invest property in trusts and sale agreements involving the transfer of a property to or from a trust are commonplace. Also routine are the judgments delivered by our courts dealing with the many instances where such agreements are declared void due to parties’ failure to comply with specific legislative provisions that pertain to trust transactions. In the below, we explain the most important concepts to remember in this regard: BUYING IN A TRUST

TRUST SELLING PROPERTY

When a Trust purchases property, it must be ‘in existence’, meaning it has been registered by the Master of the High Court and that Letters of Authority have been issued to trustees. It follows that one cannot purchase a property as “trustee for a Trust to be formed”, unlike the position with companies where the Companies Act makes provision to sign as purchaser on behalf of a company still to be formed.

In this instance it is again imperative that all the trustees sign the agreement (or otherwise so many as the trust deed specifically requires), or appoint one of them by prior written resolution to do so on their behalf. The transaction must be allowed by the trust deed, whether it is a sale or purchase.

The trustees must all sign the sale agreement (unless the trust deed prescribes otherwise) or must appoint one trustee, by passing a written resolution, to sign it on their behalf. In the latter instance, the resolution must be signed before the nominated trustee signs the sale agreement. Trustees of course act in terms of the provisions of the trust deed itself. Therefore a trust deed must allow for the trustees to enter into such a transaction, otherwise it is not do-able.

If the trust deed specifies that there must at all times be no less than a certain amount of trustees, and if the death or resignation of one results in the number of trustees falling below this number, then a new trustee must be appointed and amended Letters of Authority obtained. Failure to do so renders transactions entered into by the trustees invalid!

Many more questions may arise in this regard. Contact us at info@stbb.co.za to assist you in processing your transaction.

st

more than ju

BIG OR SMALL, WE CARE WITH THE PAPERWORK.

Our ability to add value is an art form that has taken years of experience to perfect. At STBB we build long lasting relationships and give you hands-on-advice to make sure things go according to plan.

www.stbb.co.za Cape Town 021 406 9100 | Claremont 021 673 4700 | Fish Hoek 021 784 1580 | Table View 021 521 4000 | Tygervalley 021 943 3800 Somerset Mall 021 850 6400 | Illovo 011 219 6200 | Centurion 012 001 1546 | Bedfordview 011 453 0577 COMMERCIAL LAW | CONVEYANCING | EMPLOYMENT LAW | ESTATES | FAMILY LAW | LITIGATION | PERSONAL INJURIES & 3 RD PARTY CLAIMS


Page 42: N AV I G AT I N G T H E WO R LD O F P E O P LE

NAVIGATING THE WORLD OF PEOPLE: SET THE RIGHT TONE FROM THE GET-GO


Page 43: N AV I G AT I N G T H E WO R LD O F P E O P LE


Page 44: N AV I G AT I N G T H E WO R LD O F P E O P LE

Whether you are an estate agent, a CEO or a business owner, you will

are also extremely important. In some cultures, for example, to disagree

deal with members of the public on an almost daily basis. What you

with someone is rude, so people will tend to just agree with you –

may not know is that it takes on average under a minute for someone to

agents need to realise this.”

create an impression of who you are, and if it’s a negative impression, then you have an uphill battle before you have even uttered a word of business to them. People skills are absolutely vital in today’s fast paced

S T EP S YO U C A N TA KE T O I MP R OV E YOUR PE O P LE S K I LLS :

business environment, and armed with the right people skills your business will improve.

Communication – speak clearly, this first step is the most vital one. Aside from speaking directly to the person and not mumbling or speaking too

So what is the first step when you are looking at improving your people

softly, you can be clear and concise when you talk. The verbal cues I

skills? What I find most useful is identifying areas where I can improve,

spoke about can be removed; once you are aware of them, you need to

whether it be my attire or posture or even how I address people. Speak

think about what you are going to say before you say it. By consciously

to people who know you, but are not in your family or friend group, ask

planning what to say, you will find the subconscious verbal cues will

them what they thought of you the first time they met you. If you ask them

fade away.

for an honest evaluation, you may be surprised by their answers. If you want to know how you come across to people when you talk to them,

Keep your tone moderate and your voice steady when you are talking.

record yourself in a presentation and then sit back and listen. The very

While it’s fine to show emotion and excitement, if you show too much,

first time I did this I was astounded by how many times I said “umm”,

you could come across as loud and over dramatic. In the property

or “you know what I mean”. These are subconscious verbal cues; you

industry, people buy houses, but they buy them from people they trust

do them without even realising it. Contrary to popular belief, you can

and connect with. Be sincere when you are talking to someone; there is

change this.

nothing worse than fake sincerity, people can spot it a mile away and it will put off even the most willing buyer.

Bill Rawson, chairman of Rawson Properties, says, “Understanding people is very important and will certainly up your sales, especially

Be complimentary, but not overtly so; you can often gauge how a person

if you recognise that not everyone uses email and responds to text

would like to interact with you just by looking at their body language.

messages. Many people like to sit and discuss things face to face and

Take your mode of conversation from them, are they jokers, serious, witty

judge character – they want to see if you are compatible to do business

or friendly? Introduce yourself and see how they introduce themselves,

with. Estate agents not only have to sell properties to potential buyers,

how much talking do they want to do? And never ever talk about the

but they also need to sell themselves to sellers in order to secure a

weather unless they bring it up; talking about the weather signals the

chance at selling their property, and this requires them to gain the

death of a conversation not the beginning of an open dialogue.

seller’s trust. People read each other and form an opinion of one another in such a brief amount of time, and it is for this reason that agents need

Having worked for years in the service industry I have learnt how

to have a very open and welcoming demeanour. You may be a very

to read people a mile away. I can tell if they want me to ask them

trustworthy person but if you don’t project this, then people may have

questions or just get on with what needs to be done. This is one of the

difficulty in forming an accurate opinion of you. Personal skills in culture

most important social skills you can garner. If you are talking and they


Page 45: N AV I G AT I N G T H E WO R LD O F P E O P LE

cut you off or answer your questions in single words, yes or no, then

while someone who is unkempt and dressed in tatty clothing you may

they don’t want to chit-chat. If they answer your questions and ask you

glance at, but they don’t really register as important enough to warrant

some of their own, then they want to engage with you.

a second look. In a business where you deal with the public, you should always dress to impress; you want to exude confidence and show that you are in charge, and the way you do that is with your wardrobe.

Gerhard van der Linde, MD of Seeff, Pretoria East, says,

“People won’t do business with you if they don’t trust you and like you. The only way that you will get them to trust and like you is to prove that you care about their needs and their wants. The above quote is often used in our office when agents are trained. In essence it boils down to the fact that unless you have the personal skills of how to deal with your clients, you will be highly unlikely to succeed. A successful property consultant will firstly possess the ability to ask the right questions, and patiently listen to the responses until he or she is sure that the needs of a client are fully understood.”

P ER S O NA L S PA C E I come from a very touchy-feely family, but some of my closest friends are simply not what I like to call ‘touchers’. They do not like their personal space invaded and I respect that. When you deal with members of the public, they will normally set the boundaries; when you walk up to them, they will either put out their hand for you to shake or open their arms for an embrace. I like to hang back and see how the person I am meeting would like to greet. When we are sitting down or in the meeting, if they lean away at any stage, then I know I am in their personal space and make a mental note to be wary of how close I get to them. If you make someone uncomfortable with your proximity, the last thing on their mind is going to be business.

T H E FI NER D ETA I L S The finer details of people skills are how you deal with people. When other people are talking, be attentive, listen, don’t fidget and never interrupt someone. Wait until they have finished before talking. If too many of your stories start with the word ‘I’, be careful of looking like a ‘me, me me’ person. A big part of people skills is listening and giving others the chance to talk, asking questions and showing you care about what they have to say. Also keep things professional, don’t divulge personal stories or slip into slang. How you interact with them in your first meeting will set the tone for the rest of your interactions and how they view you. The same goes for both telephonic and electronic communication, be polite and professional. Punctuality is also a must; if you say you will meet someone at 10am, be there at 9.45; by showing up when you say you will, you build

D RES S IN G TO IMP RE SS How you dress can say a lot about you. Essentially, the clothes you wear make a statement to the world. They tell people how you see yourself. Do you pitch up to a client in a slightly wrinkled shirt, with scuffed shoes? Or do you dress in a more casual but smart manner, making sure that whatever you are wearing is clean, wrinkle free and without any rips or holes? It may seem small, but a person who has rips

trust that your word can be counted on. There is no one size fits all when dealing with people, everyone has a different way they like to be treated, spoken to and dealt with. By putting your best foot forward and observing the little clues they are giving, you will learn how to deal with anyone. And once you have mastered that skill, there is no one you can’t deal with professionally, and your sales will soar!

in their clothes comes across as slapdash and lazy. The popular saying is ‘don’t judge a book by its cover’, but everyone does. When you see a smart, well-dressed person, you look at them, you take a second look,

BY ANGELIQUE REDMOND


WHO ARE THE BUYERS AND SELLERS?

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Page 48: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

PROPERTY PROFESSIONAL

NEW AGENTS ON THE BLOCK

“If it’s going to be, it’s up to me!” I can’t remember who said that, but it’s certainly true about being in this profession! However, it is also what I find the most challenging aspect of the

ADELLE MORRISSEY TRIA REAL ES TAT E B L O EM F O N T EI N

profession. I have come to realise that if you do not have very clear boundary lines in place, you lose focus on maintaining a balance between your personal time and your work time. I started to run my life like one big project plan: Time, Quality and Budget! WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

ESTATE AGENT/BROKER AND WHY?

It all started with a game of Monopoly and a challenge! After

Having character is essential for being a trusted agent. Period. You

15 years in the corporate world I realised that I often referred to

deal with people’s most valuable assets - their home, their family,

“working smarter not harder” in my own presentations, however,

their emotions and their future (and even sometimes past mistakes!).

I was always working harder and longer and not necessarily

It is therefore mission critical that you act with integrity and when

realising the rewards.

you do make a mistake that you own up to it.

I started working with a financial coach who taught me many things

WHAT ARE SOME OF YOUR CAREER GOALS?

about building wealth and the importance of understanding a property portfolio.

My immediate career goal is to complete my NQF4. Attending the training courses presented by Joel Harris and Richard Wright has

The penny dropped and I realised I had been so focused on

been invaluable.

building a career as opposed to building wealth - a lesson I will hopefully be able to teach my children at a much younger age.

The team at our Northcliff office is incredibly supportive. They possess a wealth of knowledge and they are always ready to share

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST

with a rookie like me. My inspiration for 2014 comes from one of

CHALLENGING ASPECTS OF THE JOB?

our most respected leaders: “It always seems impossible, until it is done” - Nelson Mandela.

I enjoy the creative freedom and entrepreneurial spirit of being an agent.


Page 49: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

is the same! The most challenging aspect is the disappointment (for buyers, sellers and agent) when a deal falls through.

ULRICH SIRGEL PA M G O LD I N G P RO P ERT I ES N O RT H C LI F F

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? A friend introduced me to property a few years ago. I developed an absolute passion for property and my clients. I’m an entrepreneur at heart and property gave me the opportunity to start my own real estate business and to live my passion.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? • Being able to read your clients is very important. Each client is

different and each client has different expectations. You have

to be able to identify your clients’ needs and expectations and

you have to be ready to act quickly.

• Professionalism and integrity is key. • Hard work – nothing will fall in your lap. You have to work hard

to realise your dreams.

• Be resilient. If you fall, get back up and try harder!

Recover quickly.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB?

WHAT ARE SOME OF YOUR CAREER GOALS?

The most enjoyable would be the variety of people I come into

I would like Tria Real Estate to be the agency of choice in

contact with. I love the unpredictability and the fact that not one day

Bloemfontein.

negotiations and pleasing each and every single client, finding time in a busy day and the amount of competition. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT

SHELLEY OLIVIER S EEF F R I C H A R D S BAY

ESTATE AGENT/BROKER AND WHY? I would say strength. As a broker you need to be stronger, smarter and faster than your competition. Strength to be able to handle the pressure of day-to-day clients and obstacles. Knowledge to get through any situation. Negotiation skills: in this industry you

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

negotiate with each person, the tenant, the landlord and your manager - the negotiations are ongoing. You need to have an

Property is the most rewarding career, knowledge wise and

outgoing personality that sets you apart from your competition,

business wise. From a young age I had already decided that no

making sure you are always remembered, and first on each

other career would personally bring joy to me.

landlord’s list and first recommended by each tenant.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST

WHAT ARE SOME OF YOUR CAREER GOALS?

CHALLENGING ASPECTS OF THE JOB? The most enjoyable aspect of doing real estate is connecting with different people every day, bringing them joy, comfort and peace. Without fail the excitement of day-to-day work and the challenges each day brings drives you to do better than the previous day. The most challenging aspect would be finding the stock, the

To achieve the biggest rental portfolio in the Richards Bay area as an agent, to be the most well-known agent and to have the most professional reputation in real estate. I would like to see my name in every paper, in every advert, in every conversation. My biggest career goal is to be the best in SA!


Page 50: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

It becomes a space that our clients use to live out their dreams and matching those requirements in enabling our clients’ pursuits in this regard can be both rewarding and also very challenging. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

ROSS LEVIN

AGENT/BROKER AND WHY?

S EEF F V & A WAT ER F RO N T

Our job is to bring both seller and buyer together in what needs to be a happy ‘marriage’ to enable a seamless transfer of the property from one person to another. In today’s market an agent has to be able to be

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

trusted along with having the skills to ‘engineer’ the deal to ensure that all parties involved have their needs addressed.

I was born into a property family and from a young age used to watch my father in awe as he would sell the ‘dream’ of his

WHAT ARE SOME OF YOUR CAREER GOALS?

developments to his clients, and at the tender age of 14 I was involved in my first sale. I became hooked on my love of all things

Architecture, design and planning are ultimately judged on the success

relating to property. I have a passion for architecture and in

of how the spaces and buildings are lived in or used by their tenants

particular architectural solutions in the creation of sustainable and

and residents. As a developer and now an estate agent, I always

thought through developments.

understood that we were salesmen first and foremost; without clients who share in your dream you cannot have a successful development.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST

I am passionate about the lifestyle offerings in my areas (the V&A

CHALLENGING ASPECTS OF THE JOB?

Waterfront) that I sell in and have been involved in the creation of areas such as Mouille Point which is now called the Platinum Mile, and

The job is not just about selling a commodity, it tends to be the

I look forward to continuing to share my dreams with my clients in the

buyer’s primary investment and most often their home as well.

pursuit of theirs.

and superior work ethic, you can realise fantastic rewards. The most challenging aspect is to develop an effective marketing strategy and to manage my time effectively. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

ERNA VAN VUUREN

AGENT/BROKER AND WHY?

TRIA REAL ES TAT E

• Honesty – requires that you are upfront and transparent in all

that you do.

• Passion – it draws people to you as they sense the excitement in you. WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

• Risk-taking – step out in faith and embrace risk, better yet,

calculated risk.

A career in property gave me the opportunity to determine my own

• Tenacity – be bold, brash and thick-skinned. Pack it up and

goals and my own success. I prefer to be my own boss and to work

independently. I like to set my own work schedules, develop my

• Compassion – be creative, inspirational, sensitive, endearing

own marketing methods and to maintain my own client base.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST

WHAT ARE SOME OF YOUR CAREER GOALS?

move on! and responsive. Clients want to know that they are important to you.

CHALLENGING ASPECTS OF THE JOB? To keep my high level of service consistent and to maintain the The most enjoyable aspect is the fact that there are no limits for

excellent relationships I have with my clients. I would like to

growth. If you couple good business skills with a good attitude

continuously improve my personal best.


Viewing real estate from another angle

“It’s not sometimes about the people, it’s always about the people”

This is the foundation of our attitude at Leapfrog Property Group and to make sure we attract and keep the right people, we offer our agents and franchisees the following services and benefits: Wealth creation though share ownership Recruitment incentives Ongoing inhouse training and development Customised property marketing programme Cutting edge technology National referral system with over 50 offices Ongoing franchisee support Franchise opportunities available in prime areas

To find out more about franchise opportunities or to join South Africa's only truly agent focused property group, where actions speak louder than words, contact:

Move on Move up

Gerhard van Rensburg 082 375 9343 Valerie Kritzinger 082 568 7060 Tel 021 671 4880 info@leapfrog.co.za www.leapfrog.co.za


Page 52: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

PROPERTY PROFESSIONAL

TOP PERFORMING AGENTS

MADELEINE BURGER LE A P F RO G C EN T U R I O N

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

referrals. Networking with other agents also ensures that buyers and sellers are referred to one another.

In the real estate industry we just don’t have enough time to learn by trial and error. I network with the top performing agents to benefit

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?

from their knowledge and expertise. Always dress appropriately!

PLEASE TELL US ABOUT IT.

When selling farms, a formal suit may not be the best option. Likewise, jeans and takkies will not work in the top end security

The first property I sold was a property in Cape Town. The elderly

estate where I sell.

couple who owned the house wanted to sell, but their live-in son did not share their feelings. This was a very difficult situation and

One needs to be respectful of clients’ expectations. I’m involved with

because it was a sole mandate I had to work very closely with the

a lot of community affairs and I built a lot of business through that.

family. The son made it clear that neither myself, nor my buyers,

In the estate where I sell, there are almost 140 estate agents and I

were welcome. Luckily, in the end, it all worked out well and they

therefore try to be creative and think outside the box!

felt content that the new owner would look after the property in the same way they did.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

The biggest challenge is to stay positive and most of all to be prepared for the extreme cases of highs and lows we as agents

Have a business plan and stay focused on it. You need an

experience on a daily basis. When a sale falls through, keep your

immediate plan, a five-year plan and a retirement plan. Most people

chin up and never stop believing in yourself!

don’t have the patience to work out a plan. A marketing plan is also very important. Advertising is expensive and a marketing plan

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD

will assist an agent in using the correct media in order to be top

HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?

of mind with sellers and buyers. When people think of real estate, they should think of you! Constantly remember that this is a personal,

Referrals are vital for growing your business and definitely the

demanding industry with clients that need the best service all the time.

best business tool any agent can use. I strive to give my clients the

Give clients your best and they will in return always seek you as their

best service, value and information, which in turn results in many

preferred estate agent.


Page 53: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

professional the client will think you are. One can also give presentations to sellers and show property options to buyers during the listing and qualifying process, thus saving time and reassuring clients that they are in capable hands. Surfing the Internet is a

SHEENA MARÉ

popular means for clients to search for property, so you need to be easily accessible to them, which is seamless if you have the

LEW G EF F EN S O T H EB Y ’ S I N T ER N AT I O N A L R E A LT Y KNYSNA

connectivity and this indispensable tool – a laptop or notebook! A good camera and a smartphone are also essential. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

PLEASE TELL US ABOUT IT.

1. Specialise – become THE specialist in the area and allow

The first property I sold was a little Victorian cottage on Leisure

people to be aware of it through newsletters or articles in the

Island. It took 10 months before I made my first sale and it was

local newspaper, etc. Involve yourself in the community.

to a friend who I was wanting to involve in my business through

2. Put your clients’ interests before your own – care about their

‘staging’ some of my homes for sale, never thinking she would

be my first buyer. Years later, when she decided to demolish the

needs. This brings repeat business and referrals.

3. Communicate frequently, effectively and in a friendly, easy

cottage to build her dream home, I bought some of the old doors

manner. In addition to face-to-face communication, I also am

and window frames from her and renovated an old shed on our

consistent in writing and delivering a ‘Talk @ Leisure’ newsletter,

farm, converting it into a small Karoo cottage. Wanting to own a

sending emails and delivering drops around the island at

farm was the reason I initially entered the industry, and in doing so,

Easter, spring and Christmas.

I discovered my passion for people and property. So as long as we own the farm, I have a constant reminder of where it all started!

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT

TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY? Goal setting – this amazing habit brings the universe into play when one visualises and internalises one’s goals – that is, what you would

Focus, strategise and specialise. Selling property is not a part time

like to achieve. The universe works miraculously to bring these

job, you have to give it your complete attention. Work hard, but

goals/aspirations to you and make them a reality.

more importantly work smart. Set goals and direct your energies most effectively by strategising how to reach your desired outcome

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS

and aim for the stars. Specialise in an area or a segment of the

SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?

market. Trying to get acquainted with all the suburbs in your town spreads your energies too thinly. Become an area/sectional title/

Agents need to be IT literate and have a laptop with Internet

commercial property specialist, make yourself visible on For Sale/

connectivity at all times. Communication is vital and the

Sold boards, send drops and in-write articles for the local press,

sooner questions are answered and information given the more

positioning yourself as the expert. Hard work pays dividends.

The South African property sector is worth a whopping R4.9 trillion according to a new NUMBERS TO KNOW

R4.9-TRILLION

study undertaken to discover the size of the country’s property sector. Only around 1% of land in South Africa is urban and residential, according to the research. Over 73% of land in South Africa is natural pasture. Around 12% of land is agricultural, and about the same portion comprises nature conservations and reserves. SACommercialprop-News - South Africa’s property sector worth a whopping R4.9-trillion


Page 54: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Excellent customer service, quality photographs and making use

THEO VOLSCHENK EN G EL & VÖ LK ER S P O T C H EF S T RO O M

of technology such as websites and social media to feature your properties. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

Definitely. It was an unforgettable feeling bringing together my first seller and a buyer, and seeing that they were both happy and

I would not say that they are secrets, however hard work,

enthusiastic about either their new dream home or the choice they

professionalism and people skills will always guarantee success.

made to sell their property and take the next step.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT

TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

That disappointment is part of a property sales advisor’s existence

Work hard, believe in yourself and trust in God. It is also

and that persistence is a key factor in the success or failure of your

important to never forget who you really are no matter how

career. You need to be able to get back up after a sale has fallen

successful you become.

through and remain as positive as you were before it happened.

SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? A smartphone/tablet/laptop and good knowledge of technology not only enables you to access information quickly and reliably, but also enables you to inform potential clients virtually immediately.

MARTIN HOUGH LE A P F RO G TA B LEV I EW

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. Barely a month into the business I sold my first property in a complex that was not popular. The purchaser was the daughter

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

of an experienced agent from another area, and the deal was concluded on the bonnet of my vehicle outside a drive-through

1. Health

McDonalds. The property was about to go in Property in Possession

2. Ethics/visibility

and the deal was shared with two very experienced agents from

3. Perseverance/patience

RE/MAX, being multi-listed. This was indeed a very challenging deal, but from there it got better all the time, and I’ve been in the

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR

industry for 14 years now.

TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT Never trust any verbal agreements/undertakings; put everything

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

relating to a contract in writing. Real estate is a full time occupation, requiring a lot of dedication WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS

and personal input.


Page 55: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

Lightstone, the Internet and social media, and I am proud to say that my company has taken the edge in all of these items with a new website and accompanying tools, which will be launched in August.

ANTOINETTE SWANEPOEL EN G EL & VÖ LK ER S H A RT B EES P O O RT DA M

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. I started in the real estate industry in 2003 with no sales background. I received two weeks of intensive training and signed my first deal on the very first property I took clients to view, on the

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

bonnet of my car. I was trained to be prepared and to always have the offer to purchase ready, which I did. You never know when an

There are four: Ensure you have the stock, be disciplined,

opportunity might arise.

professional and always be top of mind. WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? This is the most amazing career opportunity for someone who has I was fortunate to have received very good support and training

initiative, is self-disciplined and dedicated. During your first two

when I started out. Throughout my career, the two most important

years, make sure you get the majority market share in your area,

words that I have learned are ‘stock’ and ‘discipline’.

and thereafter work even harder to maintain that share and build on your success. Do not give up when the market turns, remain positive

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS

and you will succeed. Always remember to ‘get back to basics’.

SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? A good sense of humour and an iPad. Being able to put your clients at ease and make the whole buying and selling experience

KIMBERLY DODS

a fun one.

PA M G O LD I N G P RO P ERT I ES H Y D E PA R K

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. A friend asked me to sit a show day for her. I didn’t really want

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

to sell houses, but agreed. I sold the house that day and earned some commission and made it my mission to change the market’s

1. Work smart/network, network, network

perception of estate agents.

2. Balance yourself between work/sport/play 3. Patience, perseverance, never give up

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? Never to be desperate to do a deal. Accept the wins and the losses gracefully.

Find the best in the business. Work for them, for free if need be. Learn from them and hang onto every word they say. Knowledge is king.


Page 56: F I N A N C E A N D F I G U R ES

HOW DO HOME LOANS MEASURE UP?

Property Professional gathered information from some of the country’s leading mortgage originators to provide insight into what the average bond approval percentage was in 2012 vs. 2013 and what the average deposit amount was. In addition, we found out what the average home loan value as well as age of home loan applicants were in 2013. We compare statistics between 2012 and 2013 as well as January to December 2013:

2 01 2 V S . 2 01 3 B OND A P P ROVA L P E RCE NTA GE

AV ER A G E D EP OS I T A MOUNT S UB MI T T ED P E R BO N D

The average approval rate in

Average deposit in

2012

2013

2012

2013

and in

70%

and in

74.21%

R128 981

(ooba)

(ooba)

The average approval rate in

2012

The average approval rate in

2013

2012

2013

and in

69.68%

and in

76.46%

R177 330

(Betterbond) AV ERAG E AG E OF HOM E LOA N A P P LICA NT S IN 2 013

37

years

R133 439

(ooba and Betterbond)

R184 042

(Betterbond) AV ER A G E H O ME L O A N VA L UE FOR 2013

R777 883

R777 217

(ooba)

(Betterbond) ** Information supplied by ooba and Betterbond


Still using a highlighter and bank statements to puzzle out which tenants have paid and which ones’ cheques are ‘in the mail’?

PayProp provides its clients with a state-of-the-art audited trust account platform that smoothly integrates banking, accounting and property management.

To find out how PayProp can help you run a safer and more efficient rental portfolio, visit www.payprop.co.za or call 087 820 7368.


Page 58: D EV EL O P M EN T U P DAT E

DEVELOPMENT UPDATE

PHASE ONE OF R1.3-BILLION SOMERSET WEST PROPERTY DEVELOPMENT SELLS OUT IN SIX WEEKS The first phase of The Summer Club, a R1.3-billion secure eco and

has chosen to dedicate 40% of the estate’s 42ha footprint to open,

lifestyle estate in Somerset West, has sold out within just six weeks of

recreational and green space for its residents. The green belt system

launching at prices between R650 000 and R1.3-million. Construction

includes 15ha of landscaped parks, gardens and a natural forest with

has commenced and occupation of the first 114 apartments is expected

hiking trails and cycling tracks, and a 6ha dam ideal for fishing, rowing,

at the end of 2014.

canoeing and windsurfing. The three-storey building designed by awardwinning architects Schabort Associates features ground floor apartments

The estate enjoys an ideal location within Somerset West, being within

with spacious gardens whilst all the first and second floor apartments are

proximity to all essential amenities. Vergelegen Medi Clinic as well

cleverly designed with balconies.

as other leading medical practices are located within proximity to the estate. In addition, a Curro Castle Nursery School and a convenience

The safety and security elements of the estate are enhanced by state-of-

shopping centre, forming part of the greater Summer Club development

the-art features including biometric fingerprint access control, a high-

precinct, is also in the planning.

spec electrified perimeter fence, high-definition perimeter surveillance cameras, 24-hour guarding and patrols, and a rapid internal response

In keeping with the greenery of the Somerset West region, the developer

system. The next phase is in the planning and will be launched soon.


9168

MAKE

Chapter 8

Chapter 8

Home loan8 Chapter application Homeprocess loan

HOME LOANS IN SIX SIMPLE STEPS Home loan application process

application process

HAPPEN

Chapter 8 Chapter 8

Home loan Home loan application process application process

STEP 1 APPLY FOR YOUR HOME LOAN

STEP 5 BOND REGISTRATION

Chapter 8

STEP 6 HOME OWNERSHIP

Home loan application process STEP 2

GET A BOND APPROVAL

STEP 3 VALUATION OF YOUR DREAM HOME

STEP 4 LOAN IS APPROVED

Go to nedbank.co.za/homeloans for all you need to know, from the loan application to moving in. Whether you are a first-time buyer or not, we’ll make finding your home sweet home quick and easy with the Nedbank Home Buyer’s Guide. For the full guide and video visit nedbank.co.za/homeloans. nedbank.co.za

Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).


Page 60: D EV EL O P M EN T U P DAT E

DIPULA ACQUIRES R316-MILLION EAST LONDON GILLWELL TAXI

on any unlet space. As part of the transaction, Isibonelo and Eris will

RETAIL PARK DEVELOPMENT

develop the centre and will also undertake its management for its first two years from opening.

Dipula Income Fund recently announced that it has agreed to acquire the Gillwell Taxi Retail Park development in the East London CBD, situated in

Dipula is a JSE-listed SA REIT (Real Estate Investment Trust) with one of

the Buffalo City Metropolitan Municipality of the Eastern Cape province.

the highest BEE ratings in the sector. Dipula’s asset base comprises a growing portfolio of 181 commercial properties valued in excess of

The development gained planning permission in December 2013 and

R4-billion spanning some 577 340m² of gross lettable area.

this transaction will become effective after the centre’s construction is complete, in the first half of 2015. Dipula agreed to purchase the

Its portfolio is geographically diverse across all of South Africa’s

21 521m² three-level shopping centre development from developers

provinces, with more than 70% concentrated in South Africa’s most

Isibonelo Property Services and Eris Property Group. It has also agreed

economically productive province of Gauteng. Dipula’s portfolio inclines

to give Isibonelo the option to acquire a stake in this retail centre.

towards retail property at more than 50% by rentable area of its portfolio, which also includes office and industrial property assets. South

Izak Petersen, CEO of Dipula says: “The property meets Dipula’s strategy

African retail property has outperformed all other property subsectors in

of acquiring larger, quality retail assets in targeted areas and improves

recent years and this has served Dipula well.

the overall quality of our portfolio.” “Besides meeting our growth strategy, the acquisition also increases our He adds: “The Gillwell Taxi Retail Park development is a well-located

exposure to the growth opportunities from commuter retail in one of the

retail site in the retail hub of East London’s CBD. For Dipula, it represents

busiest CBD’s in South Africa,” says Petersen.

sustainable income growth underpinned by major national retailers.” Dipula is finalising the acquisition’s financial effects and, until these are Leases are being finalised with the centre’s anchor retailers Game and

announced, it has advised Dipula-linked unitholders to exercise caution

Shoprite. The transaction is subject to various conditions, including 80%

when dealing in its linked units.

of the development’s retail space being pre-let and rental guarantees


• •

YOUR NEIGHBOURHOOD EXPERTS


Page 62: D EV EL O P M EN T U P DAT E

the village strip, which offers a wide selection of pubs and restaurants in a safe and secure environment, thanks to the local UIP (Urban Improvement Precinct), which is responsible for a clean, green and secure Umhlanga. “Visible evidence of Umhlanga’s popularity was seen this last holiday season, which extended to almost two months, when record numbers of visitors enjoyed all that the village and Gateway Theatre of Shopping have to offer,” says Schenk. “Interestingly, 70% of Beacon Rock phase one is owned by investors who are earning an unprecedented 8% rental yield on the apartments against an average for the area of 4-5%. Add to this a healthy capital increase and you have a formula for an excellent long-term investment.” BEACON ROCK NOW SELLING FINAL PHASE OF APARTMENTS

The developers have assigned to Pam Golding Properties Umhlanga the sole mandate to handle the sale of the final phase of 44 apartments.

Already an icon standing proud at the entrance to Umhlanga on

These units offer configurations of one-, two- and three-bedroom options,

the KwaZulu-Natal north coast, the first phase of the Beacon Rock

along with large luxury duplex and penthouse apartments - several of

development has been completed, with the last few owners of apartments

which open onto lush, private gardens. In addition, ample, secure on

having recently taken occupation. Elwyn Schenk, Pam Golding Properties

site, undercover parking is provided for each unit.

area principal in Umhlanga and Umdloti, says a number of residential units in phase one remain available for purchase, while excellent rental

The price of the units in phase two are as follows: One-bedroom

yields are already being achieved for existing owners.

units of 59m² are R1.575-million, two-bedroom units of 126m² are R2.95-million, three-bedroom units of 134m² are R3.5-million, three-

Says Schenk: “Beacon Rock has already earned a reputation as one

bedroom duplex units of 178m² are R4.3-million and three-bedroom

of the foremost buildings in Umhlanga. Commercial occupiers include

penthouses of 206m² are R5-million.

BMW/Mini and Daytona Group, which underline the upmarket and select image of the complex. Mo’s Noodles restaurant and a Vida e

Adds Schenk: “Umhlanga Rocks village is experiencing a resurgence,

Caffè complete the picture of an elegant, vibrant and successful precinct.

with many of its shopping centres and restaurants having been

The latest addition to the building is a trendy new S.W.E.A.T.1000 gym

upgraded. Already home to two five-star hotels, the area is increasingly

(Specialised Weight Endurance Aerobic Training), which is taking off in

sought after by upcountry visitors as an easily accessible and safe

South Africa.”

destination for both permanent and holiday living.”

He says sought after features of the block include its prime position,

For further information contact Pam Golding Properties Umhlanga on

being a few minutes’ walk to Umhlanga’s appealing main beaches and

031 561 5300 or email umhlangarocks@pamgolding.co.za.


Page 63: D EV EL O P M EN T U P DAT E

says Paul Lapham, CEO of Citiq, a Gauteng-based property investment and management company. According to official data, about half of undergraduate students drop out of university without completing their degrees. This high dropout rate is attributed to lack of academic support and family pressure as well as inadequate assistance. “We realised that if we could provide everything a student would need for a study-friendly and comfortable environment, we might be able to make a difference to their academic success,” Lapham says. All the basics have been covered – from study rooms, free Wi-Fi and lounges to communal kitchens and bathrooms on every floor. In addition, a gym, table tennis facilities and snooker room form part of the recreation spaces. On the rooftop, with spectacular views of the city, a section has been AstroTurfed, making it an ideal place for socialising. This project is testament to what can be achieved when focusing on renewable and energy efficient architecture. The grain silos had long stood abandoned, and this project involved repurposing them into student accommodation which is well located for students attending the surrounding universities. “Vacant land in city centres is hard to come by, and repurposing the silos into student accommodation not only provides convenient and well-situated accommodation, but also contributes to urban regeneration and making Newtown a vibey and happening place, “Lapham says. CITIQ’S NEWTOWN SILOS OPEN FOR BUSINESS

“Apart from the contemporary design and the reuse of the existing silo structure, the apartments have energy efficient features such as hot water

The conversion of the former grain silos in Newtown, Johannesburg

from heat pumps, motion sensor lighting, double-glazing on windows

into trendy student accommodation is now completed. Known as the

and external doors, energy efficient lighting and water pipe insulation.

Mill Junction, it will be home to 400 students from the University of

These initiatives have cut power consumption on the project to 50% of

Johannesburg and the University of the Witwatersrand as well as other

that used by a conventional building, and will have long-term savings for

colleges in Johannesburg.

the students living there.”

Over the past 12 months, the construction site has been clearly visible

Silo conversions have been undertaken around the world, including

from the highway, and has generated equal amounts of interest and

the Biscuit Mill development in Cape Town. Apartments, hotels, student

criticism. The development includes both the former grain silos with 10

residences and even single home dwellings have been built out of

floors of accommodation, as well as four additional stories, which have

converted silos that once accommodated anything from grain to

been built using shipping containers.

nuclear missiles.

“Now complete, the 14-storey building towers over Newtown and is

In addition, shipping containers are being used worldwide for holiday

proof of what can be achieved through creative design and leading

homes, cafes and restaurants, schools, offices, shopping malls and even

edge architecture. We challenged our design team to be creative and

skyscrapers. They have also proved popular due to their flexibility and

innovative with the space, and they have surpassed all expectations,”

affordability and the need to find uses for recycled containers.


Page 64: T E C H T O O LK I T

TECH TOOLKIT iFusion AVA I L A B LE F RO M : $149.95 (looks like you are going to have to

get it online for now)

L OV E I T: Talk hands-free on your iPhone through a high quality

speakerphone with the AltiGen iFusion SmartStation docking station. The iFusion lets you use your iPhone as a businessgrade speakerphone, along with the convenience of ergonomic handset, charging and syncing capabilities. It also integrates seamlessly with a variety of iPhone

voice-enabled applications such as Siri, FaceTime, Skype, AltiGen’s

and 4s, which makes things a bit tricky if you have already upgraded or

MaxMobile, Cisco Mobile and Avaya one-X Mobile, thereby taking

plan to in the near future.

advantage of the capabilities of many popular iPhone accessories in a single device.

I N A N U T S H ELL : It is a clever and useful device, however it

needs to move with the times and be synced with the latest iPhones on N O S O M U C H : It is only compatible with the iPhone 3G, 3Gs, 4

the market.

colour brightness and 2 400 lumens of white brightness. View precise detail with an incredible contrast ratio up to 600 000:1. A state-of-theart Fujinon lens ensures stunning picture uniformity, while THX display certification and ISF certification offer the most advanced video quality. The Pro Cinema 6030UB also offers an efficient set-up with the widest lens shift available and a full suite of intuitive features. N O T S O M U C H : When the bulb eventually dies, replacing it costs

just about the same as a brand new projector. In ECO mode the bulb lasts up to 5 000 hours and 4 000 hours on normal mode.

Epson PowerLite Pro Cinema 6030UB 3LCD Projector

I N A N U T S H ELL : Brilliant image quality requires high colour

brightness and this is where the Epson 3LCD projectors are top of their AVA I L A B LE F RO M : Around R34 653

game. The PowerLite Pro Cinema 6030UB uses 3LCD, 3-chip technology for brilliant images with true-to-life colour, making this projector one of

L OV E I T: The ultimate home cinema experience — immerse yourself

the best.

6030UB. Images are always rich and brilliant with 2 400 lumens of

** All prices are approximate.

in stunning 2D and 3D images, in full HD 1080p, with the Pro Cinema


Page 65: T E C H T O O LK I T

RED-E PowerBank

Tech Trade-In at DionWired

AVA I L A B LE F RO M : R299 to R699 L OV E I T: Without a doubt, on everyone’s list of worst moments

AVA I L A B LE F RO M : No cost, just a little bit of effort

is when your phone or USB compatible device’s battery dies in the

L OV E I T: Nobody leaves their old car in a garage to rust,

No one finds that situation pleasant, especially in this day and

sold or traded in against new ones. However, while 16 million

purposes. With the RED-E PowerBank you can scrap that experience

or abandons it on a rubbish dump. Instead, used vehicles are mobile phones are sold in South Africa each year, old ones usually find their way into drawers or are tossed into dustbins. That’s why DionWired is offering customers an opportunity to ‘trade in’ their used cellular phones, tablets, iPods and notebooks in exchange for vouchers that can be spent in store. The new service, known as Tech Trade-In, is available in all DionWired stores. It is backed by local telecommunications company Pure Distribution, the United Kingdom’s fastest growing recycling company, and powered by Redeem: A solution developed to facilitate the service. DionWired now makes it easy and affordable for its customers to trade up to the latest models, or simply use the trade-in value to buy

middle of an important call, email, or even worse, an emergency. age when you use your smart phone for personal and business from your list. The mobile charger comes in three editions, each with a USB adapter cable and four adapters: 1. RED-E Standard Edition U01 2 600mAh PowerBank - power capacity allows one to two full charges of standard mobile handsets. It takes three to four hours to fully recharge. 2. RED-E Superior Edition U15 4 500mAh PowerBank - houses a Micro-SD card slot reader that allows you access to your Micro-SD card while you are recharging your PowerBank. This Powerbank takes four to five hours to fully recharge.

something new.

3. RED-E Premium Edition U11 6 000mAh PowerBank - allows you

N O S O M U C H : We are going to have and wait and see

to get the most for one device and has a four LED power indicator

how generously our trade-ins will be rewarded.

I N A N U T S H ELL : Up until now, trading in used devices

hasn’t been an option that was readily available to South

African customers. The result is that e-waste - discarded cell phones, computers, tablets, printers, appliances and other ‘white’ electronic goods – is becoming a massive problem in South Africa. For those wanting to buy state-of-the art devices, a trade-in can also assist with meeting the costs involved with buying a new phone or open the way to more premium upgrades and better options.

to charge three devices simultaneously but also gives you the option that helps to identify the remaining charge. The Premium takes six to seven hours to recharge. N O S O M U C H : Nothing - we have all needed one at some point. I N A N U T S H ELL : With different sizes and strengths to best fit

individual needs, these versatile PowerBank chargers have been

designed to suit different lifestyles and are portable enough to be carried in your pocket, handbag or laptop bag and are priced well.


Page 66: WO R D O N T H E S T R EE T

WORD ON THE STREET “Our own approach should be to have a high level of self-belief in what we have done to manage our own fiscal policies and concentrate on implementing the programmes we have to get higher levels of growth and employment in South Africa, and we will survive this crisis as we have survived others.” Pravin Gordhan, Finance Minister (SABC News: ‘SA will weather current economic crisis: Gordhan’)

“Consumers will have to be very careful of how they apply their money. Although consumers will receive their salary increases in the beginning of the year it will not last the whole year and prices will keep on increasing throughout the year.” Richard Downing, SA Chamber of Commerce and Industry Economist (SABC News: ‘AA warns of petrol price hike’)

“Local authorities with competitive rates, lower utility costs and incentives for property developers and owners will fair substantially better in attracting private sector investment.”

“Looking beyond the commercial sector to residential property, the rate increase could have more of an impact on consumers still trading out of over-indebted positions, and could thus take some of the steam out of the encouraging momentum that was becoming evident in residential market activity and prices in the latter half of 2013.” Robin Lockhart-Ross, Head of Risk at

Neil Gopal, SAPOA CEO

Nedbank Corporate Property Finance

(SACommercialprop-News: ‘SAPOA warns of Office Market

(SACommercialprop-News: ‘Interest Rate Increase

under strain’)

may deter Commercial Property Sector upturn’


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