I REFUSE TO SELL YOUR HOME! ESTATE AGENCY ECONOMY:
ESTATE AGENT CHALLENGES
IS IT TIME TO DIVERSIFY OR FACE DWINDLING PROFITS?
SOUTH AFRICA’S INDUSTRIAL SECTOR:
SHOWING RESILIENCE IN TOUGH CONDITIONS
INTRODUCING PP HAPPENINGS -
STOP CRIMINALS IN THEIR TRACKS
NEWS AND POLL RESULTS
INDUSTRY-RELATED CRIMINAL ACTIVITY GETS INVESTIGATED
SEP TEMBER/OCTOBER 2014
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ED I T O R ’ S N O T E
EDITOR’S NOTE
PUBLISHED BY PA MEDIA, THE CREATIVE GROUP 6 Beach Road, Old Castle Brewery Woodstock 7925
Professionals across all industries face certain challenges in their daily work environment. While interacting with people is a core job function, the challenge lies in the fact that people are diverse and each individual brings their own complications to the party.
021 447 7130 www.facebook.com/PropertyProfessional https://twitter.com/Property_Prof
In the July/August issue of Property Professional, we gleaned some insight from estate agencies into the three top challenges that the modern agent faces. None of them were really
PA MEDIA CEO
00452 BETTERBOND - REWARDS APP - EAR PIECES RP.indd 1
people related; however, the social media platform of Facebook inspired a story along
a similar vein for this issue: The challenges faced by agents when dealing with clients who are disrespectful, difficult and/or just plain rude.
Shaun Minnie
083 629 6081 shaun.minnie@thecreativegroup.info
Dealing with clients who overprice their homes, the public’s negative perception of estate
EDITOR
agents in general, negotiating commission and keeping all the concerned parties happy
Michelle Funke
throughout the transaction process are just some of the points touched on in this article.
011 462 8959
Crime is another hot topic in our September/October issue; again, a story inspired by social media networks. Agents banding together to stop the devious pursuits of ‘Steve the Shopper’ is a case in point, demonstrating how agents working together and crime prevention social media initiatives can be of help.
michellef@propertyprofessional.co.za ADVERTISING SALES Sarah Steadman 082 334 4367
Speaking of media, property listing portals are very much an integral part of an estate
sarah.steadman@thecreativegroup.info
agent’s marketing arsenal. Property Professional takes a look at South Africa’s most popular ADVERTISING PRODUCTION & SUBSCRIPTIONS
options in this issue. While by all accounts it seems the market has stabilised to some degree, consumers and businesses are still feeling a bit of a financial pinch. It’s time to diversify or face dwindling profits, and we give you some great pointers in our feature on page 18. In this issue, we also take a look at industrial property trends, the impact of the construction sector and infrastructure development on commercial property as well as where the housing gaps in our current market space are.
Nikki Barnard nikki@propertyprofessional.co.za ACCOUNTS & FINANCE Nicolette Lubbe 011 476 6293 PRINTING Paarl Media
We have all the regular news, stats, new and top agent profiles and gadget reviews between these pages, and hope you enjoy paging through this edition. Remember to subscribe to our electronic newsletter, visit our website, www.propertyprofessional.co.za, 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.
2014/08/1
CO N T EN T S
CONTENTS
10
04 PROPERTY PROFESSIONAL HAPPENINGS 06 REBOSA PROPERTY PORTALS 10 INDUSTRY NEWS 14 ESTATE AGENT CHALLENGES 18 TIME TO DIVERSIFY
22
22 INDUSTRIAL PROPERTY RESILIENCE 26 MARKET SHARE 28 THE POWER OF PROPERTY PORTALS 34 STOP CRIMINALS IN THEIR TRACKS 38 FINANCE & FIGURES 40 DEVELOPMENT IMPACTS THE REAL ESTATE INDUSTRY
42 WHERE ARE THE HOUSING GAPS IN SOUTH AFRICA? 46 NEW AGENTS ON THE BLOCK 50 TOP PERFORMING AGENTS 56 TECH TOOLKIT 58 DEVELOPMENT UPDATE 64 WORD ON THE STREET
42
Something GREAT Just Got Better!
Top Somerset West agency joins Chas Everitt International... Leading Somerset West property specialist Rose McFall has decided to convert her multi-million rand agency to the Chas Everitt International brand with immediate effect. McFall, who has carved out a substantial market share in Somerset West as an independent, says she chose to join Chas Everitt International after receiving franchise offers from several property groups. She has managed her own agency for the past nine years after learning the ropes in the local office of another national group, where she consistently achieved top agent status. "I started receiving offers from various franchise groups after I was named top agent for the Western Cape in 2005 but - against all advice - I decided to open an independent estate agency. And I have had a wonderful run, starting with just two agents and building up the business to the current staff complement of 19, as well as buying my own office building. I have a highly professional team of agents and for them to achieve sales worth a total of R10m on any given day is not uncommon."
CHOOSE A BRAND THAT GIVES YOU OPTIONS
Rose McFall says, she was swayed by a renewed offer from Chas Everitt International recently and that her decision was based on the wider exposure that clients’ properties will receive as part of the group, which has outstanding marketing platforms as well as an excellent referral system that will boost buyer enquiries from all over the world.“Being part of a national group will also open doors to opportunities such as new development projects that we have recently added to our portfolio and can now showcase worldwide." She adds that the Chas Everitt International emphasis on personal service was also a big factor in her decision. "Although it is a group with a formidable presence in the local as well as international market, people don't get lost in a corporate maze. It is a perfect fit with my own family-oriented approach to business - my staff and I start every workday in a family atmosphere by having breakfast together, a tradition we will uphold." McFall will celebrate her switch to Chas Everitt International on 1 September, nine years to the day she opened her independent office. "We have always celebrated Spring Day as a reminder of our first steps as an independent agency but this year we will celebrate it as an especially bright new beginning."
CALL GERHARD KOTZÈ • 011 801 2500 • 082 447 5698 • gerhard.kote@everitt.co.za
WWW.CHASEVERITT.CO.ZA
WHEREEVERITT IS - ITS SOLD
Page 8: P RO P ERT Y P RO F ES S I O N A L H A P P EN I N G S
P R O P E RT Y P RO F ES S I O N A L HAPPENINGS Alan Levy Attorneys Notaries Conveyancers moved to new premises on 26 June 2014 The new office is situated at 26 Plantation Road, The Gardens, Norwood. Built in 1961, the building was originally used as a primary residence and has now been renovated for office use. The new office has been designed to meet the business needs, enabling increasingly efficient operations.
1. Rhys Dyer, Careen Mckinon, Marius Crook 2. Manja Kritzinger, Hetta van Niekerk, Charlene Serfontein, Nicolene le Roux, Arnold Bester, Careen Liebenberg, Tanya Dennet, Brenda Kirsten, Ashleigh Fraser 3. Back, Andre Kritzinger,Philip Crous, Leendert Hols, Jan Fourie, Rob Norval, Jacques Botha, Front, Henry Hall, Jenny Scgael, Manja Kritzinger, Leon Fourie
Realtors International’s annual Award Ceremony Realtors International, a coalition of well-established local estate
1
2
agencies mainly in the Western Cape and Cape Town area, recently held its annual Award Ceremony. The event was not only to award the real estate agents who exceeded their sales targets and contributed to the group’s success, but also to thank and treat all the support and administrative staff. The function took
3
place at Eureka, Durbanville.
POLL RESULTS
We recently conducted an opinion poll on our
Be sure to participate in our next poll
website and through our social media channels.
on our website or through our social
WE ASKED:
A s a p r o pe r t y pr of essiona l, d o y o u t hink t h e pr oposed Rental Housing A mendmen t B ill is good f or t h e indust r y?
media channels: Which property advertising medium
100% of respondents think the bill is good for the industry
works most effectively i.e. gives the most leads? A Online property portals B Newspaper adverts C Magazine adverts in
property-specific titles D Direct marketing to your database
STRIKING THE PERFECT BALANCE SALES FRANCHISE Looking to take your existing agency to the next level of growth and production? Convert to Chas Everitt and experience the power of having cutting edge technology, advanced on-line marketing strategies and top quality training.
Are you looking to take your career to the next level without taking on overheads? The Notebook model allows you to run your own business under our banner with minimal capital outlay whilst enjoying the benefits of our powerful brand offering.
NOTEBOOK©LICENSE
RENTALS FRANCHISE Experience our state-of-the-art EverRent© Trust and Rental Management Software Suite. Our business model allows you to grow your rental portfolio whilst creating more efficiencies and optimising resources to be more profitable.
Tired of being treated as just another number and not an individual? Join the Chas Everitt family and let us show you why agents love working under our banner. Our system and training were developed around agent needs.
PROPERTY CONSULTANT
National Exposure
Excellent Training
Family Values
Quality Marketing
Business Growth
CRM
Strong SA Brand
Top Technology
CHOOSE A BRAND THAT GIVES YOU OPTIONS CALL GERHARD KOTZÉ 011 801 2500 • 082 447 5698 gerhard.kotze@everitt.co.za
Page 10: P RO P ERT Y P O RTA L S I N S A
PROPERTY PORTALS IN SOUTH AFRICA Could we be heading the same way as overseas portals?
The UK and Australia don’t have any industry controlled portals. Instead
USA and New Zealand, industry controlled portals have shown that they
their portals are owned by larger companies or are listed entities, and,
are able to keep fees in check. The question that arises from this is where
as such, the sole purpose of these portals is profit. But this profit comes
does South Africa stand? Will we ultimately be faced with a situation
at the expense of the real estate agents who have no choice but to pay
similar to the UK and Australia where two dominant portals are able to
high fees to list their property or risk losing out to competitors. Yet in the
set the fees and agents will have no choice but to pay?
Page 11: P RO P ERT Y P O RTA L S I N S A
THE BATTLE OF PRINT VS. DIGITAl
that may be set to change as an agent owned property portal is in the
In days past, people checked the glossies and classifieds to find the
owned and signed up 3000 agents in the first five months. What it is
homes they wanted; newspapers had entire sections devoted only to
looking to do is take away business from its two rival giants, by making
property. But with the rise of digital, this is now all available on the
agents sign a contract stating they will use only one other portal. Agents
web, with thousands of properties listed on a single property portal.
will have to decide between Zoopla and Righmove and these two
According to Market Insight, the total UK classified property advertising
mammoth portals will therefore lose some of their stranglehold on the
spend was £389-million. In 2012 this comprised a 45% and 55% split
industry. In Australia the fees are even higher. Realestate.com.au has
between digital and print advertising, respectively. When digital started
different models of payment: $130 for a featured listing, $525 for a
to eclipse print media, it was expected that costs would decrease, but
highlighted listing and a premier listing which costs $2 790. They have
this is far from the reality. Enders analysis estimates that in the UK, digital
also introduced a new market based fee which has estate agents up in
pipeline for the UK. Called OnTheMarket, this portal is wholly agent
advertising will comprise £234-million, while print will
arms over how much they will pay to market homes in
comprise £193-million.
premier areas. Glenn Batten, General Manager at First
THE ADVANTAGE OF GOING ONLINE So why is digital advertising so expensive? Could it be that property portals have gained dominance and are now able to set their price for advertising with estate agents having no choice but to pay or lose ground to their competitors? Two US real estate property portals that started off in 2005/2006 are now valued at $5.3-billion, (Zillow) and $3-billion dollars, (Trulia). The driving force for most property portals is to get a bigger piece of the advertising spend of real estate agents in that country. The reach and uptake of digital advertising has become so high that it has allowed
THE REACH AND UPTAKE OF DIGITAL ADVERTISING HAS BECOME SO HIGH THAT IT HAS ALLOWED PROPERTY PORTALS TO DOMINATE THE PROPERTY SEARCH SECTOR FOR REAL ESTATE
property portals to dominate the property search sector for real estate. And many of these property
National Real Estate in Nerang said: “Realestate.com. au is proudly trumpeting that the prices are now market based as though this is somehow going to make agents feel better. They even provide the requisite scenario where an agent will save money on this new plan. I believe that like most prices changes before it, 10% 15% of agents will see some sort of modest reduction in their monthly spend. About 30% - 40% will receive a small to medium increase only but about 45% - 60% will attract significant rises in their total spend with the portal, if they continue to sell the same level of add on products.” The situation in New Zealand is a far healthier one. Thanks to a boycott over prices charged by the largest property portal in New Zealand, Trade Me, Realestate.
portals are publicly listed companies with one singular goal in sight:
co.nz was able to become the largest property portal in New Zealand
profit - whether it’s at the expense of the customer or the estate agent.
and is now a major force to be reckoned with. They are also industry controlled, with estate agents holding 50% shares and major real estate
WE TAKE A LOOK AT WHO THE DOMINANT PROPERTY
PORTALS ARE OVERSEAS: FOREIGN PROPERTY PORTALS
companies holding the other 50%. TradeMe has just recently revised their prices in an effort to win back estate agents and reclaim the footing they have lost by having fees nearly double to those of Realestate.co.nz.
Looking firstly at the UK and Australia, the dominant property portals are Zoopla, Rightmove, (UK) and Realestate.com.au, (Australia). Zoopla and Rightmove are both public companies traded on the stock market
WHERE DOES SOUTH AFRICA STAND?
and they charge high fees to estate agents who use their portals: Zoopla
It’s frightening to see how easy it is to create a portal that can simply
averages £301, while Rightmove averages £607. The reason they can
charge what they like because they have no competition. The question
charge such exorbitant fees? Easy, there isn’t any competition. Although
is will this happen in South Africa? If you are an estate agent in South
Page 12: P RO P ERT Y P O RTA L S I N S A
Africa, then you use one of two portals: Private Property or Property 24. The one is controlled by a major conglomeration and the other by an international equity fund. Neither are controlled nor owned by the industry as a whole. As such, they can pitch their fees as high as they like and agents have no choice but to pay. The alternative is to risk losing business as competitors gain a stronger foothold as they use one of the two dominant portals in South Africa. THE MERGE OF US PROPERTY PORTALS What’s even more alarming is what has just happened in the US. Zillow and Trulia are the two largest property portals in the US. Zillow has 77 million unique users per month while Trulia has about 47 million. Zillow has just announced its intention to buy Trulia, a merger that will
WHAT’S TO STOP THEM FROM ERADICATING THE NEED FOR ESTATE AGENTS IN THE FUTURE AND SIMPLY TAKING OVER THE SALE AND MARKETING OF HOUSES FROM PRIVATE SELLERS?
be completed in 2015 and will see the two largest property portals combined. This merger will make these two companies the largest force
Looking at how property portals have gained absolute dominance in
in online real estate. Zillow-Trulia will now control inventory, pricing,
countries abroad, the question remains: will we see this model applied
merchandising and the customer relationship. While consumers are not
in South Africa? The answer is absolutely yes. Currently the key players
yet buying homes online, this could very well change in the future and
in South African property portals are Property 24, with the backing of
with dominant portals controlling the market it’s understandable that
Naspers, who reported a R62.7 billion profit for 2013, and Private
estate agents are concerned about their future and what role they will
Property owned largely by a major international equity fund. While
play. The other downside to such total domination is of course pricing,
other property portals exist ( iolproperty.co.za is a solid third ), none
although realtor.com, which is owned by the agents, has been effective
have the clout or numbers that these two property portals currently have.
in keep pricing in the US far more favourable than is the case in the UK
If looking at trends abroad are anything to go by, the bottom line is that
and Australia. But the newly formed Zillow-Trulia will be the clear market
without a portal that is industry controlled, these two property portals
leader and estate agents may have no choice but to pay up, and will
could very well become the next Zillow-Trulia, Rightmove or Realestate.
also be at the mercy of whatever changes Zillow-Trulia implement to
com.au, leaving estate agents at their mercy.
existing agent and customer relations. THE FUTURE OF REAL ESTATE AGENTS
THE WAY FORWARD The problem and the solution are very simple. Overseas property portals
Could estate agents simply become obsolete in the future? This is
have shown what happens when you have a few property portals who
certainly a fear worth noting, as property portals gain more and more
totally dominate the market: you effectively allow them to set the price
dominance and allow estate agents as well as private sellers to list
and the conditions for digital advertising. Looking at what has happened
houses. By doing this they are potentially changing the future of the
in the US, the dangers in allowing this to happen are very clear. In
property industry. What’s to stop them from eradicating the need for
order to ensure that prices are reasonable and fair and that estate
estate agents in the future and simply taking over the sale and marketing
agents remain a necessary part of the real estate process will require the
of houses from private sellers? Without competition, there really is
industry organising themselves quickly and effectively.
nothing stopping them and as large portals grow in dominance, estate agents should be worried about who will control the property market in
Jan le Roux
the future. This was the Private Property model until quite recently.
CE Rebosa
YES WE CAN! Together we can achieve what individually we cannot.
Together we can: - Try to prevent that shortcomings in the current Act are not repeated in the Property Practitioners Bill. - Interact with the EAAB to facilitate the issue of fidelity fund certificates timeously & fast. - Interact with all stakeholders in the real estate industry to ensure that our industry is vibrant, growing and prosperous for all.
Please contact us if you have any questions/suggestions. visit www.rebosa.co.za for more details
Jan le Roux - CE Rebosa
To be effective we need the vast majority of business owners to be members - JOIN! Join by visiting www.rebosa.co.za – fees are affordable, only R20 plus VAT per registered estate agent in your office per month.
Page 14: I N D U S T RY N EW S
INDUSTRY NEWS CAPE QUARTER TO SAVE THROUGH GREEN ENERGY REDUCTIONS fresh fruit juices – both of which introduce new national tenants to the mix. Vida e and Cold Press join national names like Spar, Spar Tops, Deloitte’s, Lindt and Pernod Ricard, together with a host of specialised retail offerings at the Cape Quarter. “Going forward we will be engaging with architects to strategically create ways of improving foot flow through the centre,” says Edwards. “The findings and successes from Cape Quarter will be rolled out to other buildings within the Tower Property Fund portfolio. A retrofit of 382 Jan Smuts Drive will The Cape Quarter, the flagship property
Spire Property Management, and is virtually
begin in July, initially with the upgrading of the
within the Tower Property Fund portfolio, has
fully let. Amongst the new tenants, the Cape
façade of the building as well as the atriums.”
recently undergone a lighting retrofit as part
Quarter now has a Vida e Caffé, which
of a greening transformation planned for
opened its doors in May and has been
Tower Property Fund had their financial year-
the centre. This retrofit is expected to see an
extremely busy in the short time since then,
end in May and full results will be released in
impressive R1-million per annum saving in
as well as a Cold Press, opened under the
July. For more information on Tower Property
energy costs for the property. Other initiatives
Vida e umbrella, which serves cold-pressed
Fund contact 021 685 4020.
soon to be rolled out are the installation of a Power Factor Correction Unit — a device that regulates large spikes in usage - as well as the installation of solar energy. “The Cape Quarter has also been registered as a pilot project for the Green Building Council of South Africa’s new Existing Building Performance Rating Tool,” explains Marc Edwards, CEO of Tower Property Fund. “This will allow us to establish a benchmark to see how the Cape Quarter compares to similar centres in terms of energy use and will allow a transparent means of measuring energy for tenants.” The centre in general has experienced a marked improvement since being purchased by Tower Property Fund and managed by
Page 15: I N D U S T RY N EW S
LANDLORDS WILL NEED MORE HELP AS RENTAL LAW CHANGES Some amendments to the Rental Housing Act that are about to be passed by Parliament will make it all the more necessary for residential landlords to seek professional help to manage their properties. That’s the word from Andrew Schaefer, MD of Trafalgar, who says the amendments will mean, for example, that every property lease has to be in writing and has to be correctly drafted to comply with certain statutory requirements as regards landlord and tenant rights and responsibilities. “This alone is a major departure from the current Act, which states that a lease only needs to be in writing if the tenant requires it and has led to many thousands of tenants and landlords, especially in informal housing settlements, living without any sort of legal document stipulating what their respective rights and responsibilities may be. However, most landlords do not have the know-how to draft a fully compliant lease themselves — nor the time to handle the many other administrative tasks imposed by the
Andrew Schaefer, MD of Trafalgar
Rental Housing Act. size; to keep the property in a state of good
many more landlords and tenants access to
“These include the issuing of detailed receipts
repair and, where possible, “to facilitate
impartial advice and assistance when it comes
for every payment made by the tenant,
the provision of utilities to the property”.
to resolving disputes.”
the management of tenants’ deposits and
Schaefer says this clause is obviously intended
provision of proof of the interest earned
to prevent people from letting backyard
This is in line, Schaefer says, with the
on these deposits as well as receipts for
structures that violate most building and
Department of Human Settlements’ stated
damages repaired, and the organisation and
planning regulations, “but it also applies
objectives in introducing the new legislation,
documentation of inspections every time a
to landlords in the formal sector and holds
which is to create a “fair and equitable”
tenant moves in or out.” He says that in order
the potential for serious disputes if their
rental housing landscape for an estimated
to comply with the amendments, landlords will
tenants and properties are not regularly
2.5 million to 3 million South African
need help from professional rental property
monitored and inspected by professional
households that rent their primary
managers with access to standardised
rental property managers”.
accommodation and their landlords.
systems and, if necessary, advice from
And speaking of disputes, he says, one
“But as much as we applaud this objective,
specialist attorneys.
excellent aspect of the new law is that it will
the fact remains that increased regulation of
make it mandatory for every local authority
the rental property market will result in an
The Rental Housing Amendment Bill, which
to establish a rental housing information
increased administrative and managerial
is due to be enacted later this year, will also
office, and for every province to establish a
burden that will largely fall on landlords,
make it mandatory for landlords to provide
Rental Housing Tribunal, as opposed to the
and that many more of them are likely to fall
tenants and their households with safe,
current arrangement where this function is
foul of the law as a result unless they engage
weatherproof accommodation of adequate
left to the provinces to decide. “This will give
professional assistance.”
documentation, automated administration
Page 16: I N D U S T RY N EW S
RED-I AND PROPERTYENGINE JOIN FORCES TO LEAD THE WAY IN ONLINE LISTINGS Property development listings need to have as
RED-i is a rich source of content on various
developments, potential buyers have a better
much information as possible in one place,
residential projects. “Collaboration between the
idea of what is on offer and the developer has
and what often happens is that the majority
companies was obvious,” says Comley.
a better mechanism to showcase the project.”
advertised online, are listed as a single
Why would the different listing be important,
“In our recent marketing efforts we’ve talked a
residential listing.
most would ask? A single residential listing
lot about this new way of listing developments
is one unit in a development, but generally
and why our clients should be publishing
This is not ideal, says Simon Comley, director
developments have more than one option from
their developments on it. Developers tend to
of PropertyEngine, because it is not usually
which to choose. The problem here is that the
understand the importance of this but agencies
possible to fit the entire development’s
house hunter will not know that. The house
don’t often grasp why. The reason tends to be
information or units available in that type of
hunter might find a listing for a two-bedroom
the same; most estate agencies (at least the big
listing, nor will it do the development justice. To
unit, but is looking for a three-bedroom unit
ones) already have a feed to Property24, often
this end, a service agreement has been entered
— and will not know what that development
through their own proprietary software or via
into between PropertyEngine and Property24,
has on offer unless he or she goes back to the
PropControl. They often use this feed to publish
whereby PropertyEngine feeds development
search and goes through all the other listings
an example unit for a development onto the
information into Property24’s development-
in that area, which is very time consuming.
site and so they feel like they already have a
specific listing section, which is wholly unique
The New Development Listing solves this
presence there,” says Comley.
to PropertyEngine at this point, says Comley.
problem by providing all the plans and
of homes available in developments, when
information in one place.
But there is often more to a development than just the houses available for sale within it. Some
RED-i (Real Estate Development Interactive) and PropertyEngine, in turn, have entered
“The attention, therefore, is being focused
developments are like whole new cities with
into a separate collaboration agreement
on the buyers’ and developers’ needs,”
gyms, hospitals and even top schools. The New
allowing their development information,
says Andrew Kumm, a director at RED-i.
Development Listing gives the house hunter a list
via PropertyEngine, to be published on
“With PropertyEngine now feeding both
of facilities available on that development, so
Property24. As a leader in development
the Property24 and HelloHouse listing
they will be more aware of what’s on offer
sales information and management systems,
platforms with pertinent information on new
and if it’s suitable.
From left to right: Deon Basson (RED-i managing director), Simon Comley (PropertyEngine founder and director) and Andrew Kumm (New Business Development director at RED-i)
And last but not least, says Comley, is that developments are selling new houses and not previously owned ones (resales will, in all likelihood, come later), so the New Development Listing gives the user the ability to hone in on the categories they need. “The New Development Listing space on the portals has improved dramatically, and I would encourage the marketing teams and selling agents of new developments to consider the needs of both the buyers and sellers (developers) when listing. The technology is there and should be utilised in the interests of all stakeholders,” says Kumm. For further information contact Andrew Kumm on 082 870 4346 or email andrew@red-i.co.za.
SALE AGREEMENTS WHY ATTENTION TO DETAIL IS CRUCIAL In property sale transactions, whether commercial or residential, property purchasers often opt to buy in a company rather than in their personal capacities. Whichever way one goes about it, it is strongly recommended that you consult with your conveyancer before signing the agreement, to avoid the pitfalls that often arise. In this regard it is important to give due consideration not only to the decision to buy in an entity, but also to clearly reflect the purchasing entity in the sale agreement. In the June 2013 judgment in Osborne v West Dunes Properties 167 (Pty) Ltd, a R 17 million sale fell through because the purchaser did not clearly indicate whether he was purchasing the property in the name of an existing company he
owned or in the name of a shelf company that he intended to purchase for this purpose. The Court found that the statutory requirement that the agreement must be ‘signed by’ the parties, was accordingly not met as the signature of the purchaser that appeared in the agreement seemed to indicate that the purchaser was the existing company and not the shelf company (which was the intended purchaser). The signature was therefore not that of the true purchaser and rendered the written agreement invalid. Speak to a property law expert for guidance in all your property matters. Contact us at www.stbb.co.za
st ju n a h t e r o m
LIFT OFF 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.
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Page 18: ES TAT E AG EN T C H A LLEN G ES
I REFUSE TO SELL YOUR HOME! ... AND OTHER STORIES
Page 19: ES TAT E AG EN T C H A LLEN G ES
A recent post on Facebook highlighted an interesting challenge that
Keller Williams Realty said they wouldn’t deal with every seller who
most agents face in their careers. And while the message was seemingly
approached them. “I have a policy of not taking on homes I know don’t
endorsed by fellow agents who had befriended this person, the post was
stand a chance of selling because of their price,” says Pashley. “I firmly
torn apart by those not involved in the real estate sector. The statement
believe that having a property on the market at an extremely inflated
that caused certain people to become hot under the collar involved an
price and for a long period of time damages its saleability, especially
agent who had told a seller that he refused to deal with him. By the
when the seller gets to the stage that they really need it sold. It doesn’t
sounds of things, the ‘know-it-all’ had pushed this particular agent to the
help the seller or the agent to market a home with an extremely inflated
absolute limit and instead of losing it completely, the agent had chosen
price tag. If a property is on the market for months on end, the buyer’s
to simply walk away. The post attracted some 275 comments and,
perception is that there is something wrong with the home and they will
judging by the tone, several of the posters were ready to lynch the agent
then very often make an offer well below true market value. So, yes, I
for pointing out that he didn’t want to deal with an unreasonable seller.
have on many occasions had to walk away from a listing due to price. Alternatively, I advise the seller that they are better off
In the last edition we asked various industry leaders what they perceived to be the most challenging aspect of working in real estate. We received some pretty terrific answers but, interestingly, no one touched on the challenges faced by agents when dealing with clients who are disrespectful, difficult and/or just plain rude. It got us thinking...what sort of challenges does the average agent have to contend with and how do they overcome these challenges? We chatted to three top agents to get their take on things and, while they tended to agree on the
not selling until the market appreciates enough to meet
“I HAVE A POLICY OF NOT TAKING ON HOMES I KNOW DON’T STAND A CHANCE OF SELLING BECAUSE OF THEIR PRICE,” SAYS PASHLEY.
challenges they faced, how they dealt with these
the value they want for their property.” Coetzer has a similar view, saying that he had refused to take on a mandate on many occasions. “A major problem area in the industry involves agents who accept an overpriced mandate. This, in my view, just feeds an unrealistic expectation. Very few agents are able to offer proper price counselling, and accepting a mandate on an overpriced property simply leads to a frustrated seller. This causes serious damage to the reputation of both the agent and that of the industry as a whole.”
challenges differed from agent to agent. When asked if he had ever walked away from a buyer, Pashley stated: When asked if she had ever refused to market a home, Donna Sipman,
“Although it is extremely rare, it has happened. Generally, though, it
a RE/MAX Masters sales associate, replied: “No, never. It is important
only happens when I find that the buyer is not in a position to purchase
for me to build strong relationships with my sellers. Gaining an
and simply likes looking at houses. When these situations occur, it is not
understanding of what is important to them enables me to keep these
only a waste of an agent’s time, but is also unfair on sellers who are
interests front of mind.” When asked if she had ever refused to deal with
extremely house-proud and often spend much time preparing their homes
a particular buyer, she answered that although she had never walked
for each viewing.”
away from a buyer, she had been frustrated by buyers who were keen to purchase a home, but who, when the offer was put in, realised they
Coetzer said that he, too, would stop working with a buyer if that buyer
couldn’t afford it and the bank declined the bond.
was expecting to purchase a home at an unrealistic price. He raised a good point when he noted that he would much rather walk away from
However, both Michael Pashley from Harcourts and Marco Coetzer from
a buyer than let the buyer down later.
Page 20: ES TAT E AG EN T C H A LLEN G ES
THE BIGGEST CHALLENGE While difficult customers are always going to be a problem, when asked what they regarded as their biggest challenge, agents had bigger fish to fry. “Overpricing is certainly the biggest challenge when dealing with sellers,” says Coetzer. “As an estate agent my job is to give the seller sufficient validated facts about current market conditions, recently sold properties similar to his in his area, accommodation price and condition, as well as about similar properties currently on the market. Then, based on the above, the challenge is to price the property competitively in order to reach the seller’s goal to have the property sold aligned to his time frame and reason for selling.” Sipman believes that the most challenging part of her job is dealing with the public’s negative perception of estate agents in general, and negotiating commission. “The only way to deal with these challenges is to constantly prove to my clients, both sellers and buyers, that I keep my promises by acting professionally and maintaining a consistently high standard of service. It stands to reason that sellers are more likely to give bigger commissions if they are impressed with their agent.” Pashley, on the other hand, says his main challenge is keeping all the concerned parties happy throughout the transaction process. “The buyer has one view on what should happen and the seller has another. To keep everyone happy and reasonable can be a massive challenge when clients have such definite views. I must say that the majority of my clients are very reasonable and have been an absolute pleasure to deal with. However, sometimes we do face difficult clients who insist on everything being done their way. That can be a challenge if they are being unfair.” It seems that agents do have to prove themselves to a client base that doesn’t necessarily hold them or their profession in very high esteem. Overpricing is - and possibly always will be — a major issue, as is trying to keep everyone happy during the entire sales process. However, what is reassuring is that not only do these agents recognise the
“AS AN ESTATE AGENT MY JOB IS TO GIVE THE SELLER SUFFICIENT VALIDATED FACTS ABOUT CURRENT MARKET CONDITIONS, RECENTLY SOLD PROPERTIES SIMILAR TO HIS IN HIS AREA, ACCOMMODATION PRICE AND CONDITION, AS WELL AS ABOUT SIMILAR PROPERTIES CURRENTLY ON THE MARKET. THEN, BASED ON THE ABOVE, THE CHALLENGE IS TO PRICE THE PROPERTY COMPETITIVELY IN ORDER TO REACH THE SELLER’S GOAL TO HAVE THE PROPERTY SOLD ALIGNED TO HIS TIME FRAME AND REASON FOR SELLING.”
challenges they face, they go all out to deal with them in a professional manner. Although there are some in the public arena who will argue that selling a property is child’s play, the simple truth is that it isn’t and it takes a truly committed property professional to not only get the job done, but to do it to the best of their ability — every time.
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Page 22: T I M E T O D I V ER S I F Y
IS IT TIME TO DIVERSIFY OR FACE DWINDLING PROFITS?
Page 23: T I M E T O D I V ER S I F Y
The current economy in South Africa faces slow growth and the knock-on
invest in your people. Focus on continual skills development, as well
effect of this is the banks’ stricter lending policy towards potential buyers
as a total customer centric experience for the consumers. Eighty six
looking for their dream home. What does this mean for estate agents and
percent of consumers say that they will do business with the specific
agencies? It means that if you want to do more than just survive in the
same agents once the transaction is concluded, but only 28% actually
current economy, you need to diversify and ensure that whatever you do,
do. This is where agents need to have a long-term relationship with their
you do it expertly. There are a host of buyers’ needs that you can diversify
past clients, so as to build rapport and be relevant to such an extent that
to meet and in the process ensure your company thrives.
the agent will be the obvious choice when that specific consumer wants to use the services of a real estate agent again.” In any business, you
Gill Marcus, governor of the Reserve Bank, released a statement in May
are only as good as your reputation, and leaving customers happy will
2014 stating: “The Bank’s economic growth forecast for 2014 has been
make you an obvious choice when they buy or sell another property. The
revised down significantly to 2.1%, and the first quarter growth outcome
other positive is the word of mouth effect. All the advertising in the world
is anticipated to be the lowest quarterly growth rate since the recession
cannot make up for word of mouth; people trust those closest to them
in 2009. Although growth in the second quarter is expected to improve
and when you get a good recommendation from family or friends on
somewhat, the risks to the 2014 growth forecast are strongly on the
which company to use, generally that’s the one you will use.
downside, with developments in the mining sector an ongoing cause for
Imagine how word of mouth can increase your business with just a
concern. The demand side of the economy is also weakening: Household
few people telling their friends and family and so on, and best of
consumption expenditure growth continues to moderate amid slower
all, it’s completely free.
credit extension to households, high levels of consumer debt levels
“You can create a business that is recession proof by adding to the services you already offer.”
and moderate job growth.” While the interest rate has remained unchanged for now, the reality is that people face higher costs, and with levels of debt in South Africa remaining high, banks are tightening lending criteria and without home loans few people can afford to invest in the property market. Where does this leave the property market? While there has been an improvement, conditions still remain challenging to estate agents and agencies alike. Dr Andrew Golding, chief executive officer of Pam Golding Property Group, says: “The backdrop of the current South African economy is the
Another way you can create a business that is recession proof is
fact that the market fell precipitously in 2007 and there has only been a
by adding to the services you already offer. Asrin’s commercial
gradual recovery, probably only to some 50% of the 2006 highs.” The
director, Shiraaz Hassan, says: “Examples of this would be long-
first question you need to ask yourself as an estate agent or property
term rentals and short-term rental administration as well as training
professional is: Can I afford not to diversify my business to increase profit?
and registering as auctioneers. There seems to be an opportunity within
Diversifying is no longer just an option, it is a necessity in a market in
this sphere at present.” Michael Bauer, general manager of IHFM
which it is becoming harder to see the same profits as years past.
property management company, takes this one step further: “You can offer more services that are all property related that feed into each
S O W H E R E DO YOU START ?
division. For example, a sales division might create landlords, which would then create the need for a rental division to manage the rental properties. There could also be a holiday/short-term letting division,
“The key focus is to invest in your people. Focus on continual skills development, as well as a total customer centric experience for the consumers. “
which offers comprehensive holiday services. If you are selling sectional title properties, it makes sense to have a property management service to offer the bodies corporate of the schemes sold. Then you could have your own bond origination division as this then keeps the application of bonds and following up of finance in-house.” By keeping all the services that go along with purchasing, selling and letting property in-house, you are offering your clients a one-stop property shop, you can increase your actual revenue through the additional services and you leave clients satisfied as they don’t need to go through two or three companies to buy,
Well, if you are an estate agency owner, the first place you need to
sell or rent property. This also becomes a key selling point to attract new
start is with your staff. Jeanne van Jaarsveldt, Institute of Estate Agents
business to your company; why go anywhere else when your company
of South Africa (IEASA) national president, says: “The key focus is to
can meet all their needs?
Page 24: T I M E T O D I V ER S I F Y
“If you choose to do only one or two things, then you need to do them exceptionally. This also extends to the customer service you offer. One simple way to improve on what you are already doing could just be extending your area of buying and selling. “
G ET YO UR DIGITAL G AME FAC E ON
“Society is moving more towards online presence and this allows agencies to reach a broader client base and market. “
Diversification is not the answer for everyone and if you feel that it’s not
In a modern society, people are going more and more digital. While
the answer for you, then take a look at your core services. How can you
the actual process of buying or selling will always involve people, when
improve them? If you choose to do only one or two things, then you need
it comes to an initial search, people are no longer using traditional
to do them exceptionally. This also extends to the customer service you
methods. Social media and digital technology have forever changed the
offer. One simple way to improve on what you are already doing could
way we live, the way we shop, the way we choose where we want to
just be extending your area of buying and selling. Look at which areas
live and how we find the perfect home. Bryan Biehler, managing director
will bring in more revenue and will add that extra something to your
of Huizemark, says: “Society is moving more towards online presence
company. Callie Roberts, director of the Property Podium, says: “Be in
and this allows agencies to reach a broader client base and market.
a position where one agent can sell a cheap house and/or an expensive
Clients can access more properties and services from the comfort of their
one. Link areas and markets to protect against highs and lows in the
own homes, they can be more selective, save themselves time and apply
various markets.”
for specific products online or from their mobile phones, for example, bond calculators, bond finance, advice on buying and selling, etc.”
“In a stringent economic climate, it’s about offering value to people looking to use your company. What do you offer that other companies don’t? How can you make their experience the best one in property?”
Before people even decide which property company to use, they will do research online. If someone recommends your company, most people will take a look at your company website and decide from there whether they will use you or not. You cannot afford not to have a strong digital presence and a website that will give a potential client the best user experience possible. Jeanne van Jaarsveld says: “Consumers are more and more inclined to research their requirements online before even talking to an estate agent. The usage of technology like iPad applications has become imperative for agents to remain competitive and relevant. Those who do not have access to these types of technology will find it more and more difficult to remain in real estate.” There is no denying that times are a bit tough, and this is not likely to change anytime in the near future. But it’s far from doom and gloom; there are many ways to increase your current business and make sure
If you don’t want to add extra services to your company, why not partner
that as an estate agent or agency you don’t just do better, but thrive.
with a company that already offers those services and can give clients
Take a thorough look at your business and your staff; sometimes all it
you refer to them a preferential rate? The more you give to your clients,
takes is a few simple steps or new services to ensure your company
the more you stand out from other companies in the same sector. In a
comes out on top and your estate agents bring in more clients.
stringent economic climate, it’s about offering value to people looking to use your company. What do you offer that other companies don’t? How can you make their experience the best one in property?
BY ANGELIQUE REDMOND
OVER THE PAST 30 YEARS WE’VE MADE OUR HOME IN NEIGHBOURHOODS ACROSS SOUTH AFRICA.
WANT IN?
WHY JOIN US? •
Our in-house training academy offers comprehensive and ongoing training that ensures that our agents are successful from day one.
•
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•
Our Rawson Referrals Department manages referrals of property leads between Rawson agents throughout South Africa, allowing for additional income potential.
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Page 26: I N D U S T R I A L P RO P ERT Y R ES I LI EN C E
SOUTH AFRICA’S INDUSTRIAL SECTOR SHOWING RESILIENCE IN TOUGH CONDITIONS
New developing trends and expansion in South Africa’s commercial market during 2013 compared favourably with global performances The 20.9% investor returns on light manufacturing/low grade industrial property during 2013 were highlighted in the Investment Property Databank (IPD) 2013 report released earlier this year. Named as the best money-spinner for local investors, this segment also outperformed super regional shopping centres larger than 100 000m² with returns of 19.4%, and inner city offices at 12.7%. Total returns of 15.3% on retail, office and industrial that reached a sixyear high of 15.3% were based on the report results of 60% of a sample of 1 354 professionally managed investment properties worth R213billion. South Africa was shown as the most lucrative commercial property investment destination among 16 countries whose 2013 results were released simultaneously. The main reason behind these impressive performances, according to local analysts, is the asset management skills of South Africa’s commercial property owners. Executive director of IPD SA Stan Garrun commented on the sector’s impressive performance: “Property fundamentals continue to demonstrate the sector’s advantages, providing investors with consistently robust and diversified returns. Active asset management and a singular focus on sustainable net income growth have once again shone a light on South African property.” Local financiers view the positive returns for investors as an indication of the professional nature with which the local property industry is managed. The sector’s response to market demands, where exceptional innovation and entrepreneurship creates a competitive edge, has long been a trademark of this sector. Trends are pointing to more quality properties being developed in convenient locations, where customised offerings
Page 28: I N D U S T R I A L P RO P ERT Y R ES I LI EN C E
enhance service levels. Once cemented in, long-term commitments
The registration last year of the non-profit entity, the Cornubia Industrial
provide greater ease of inflationary adjustments, where good
and Business Management Association (CIBEMA), will serve to take
maintenance and upkeep improves capital growth on properties.
responsibility of the management and maintenance of public and visible private spaces. The safety and security of this environment is set to
The latest trend of multipurpose developments with combinations of
enhance the overall values of properties in the estate. It is also
industrial and office space creates a varied tenant base, says Ken
a prerequisite for owners and buyers to become members of CIBEMA,
Reynolds of Nedbank Corporate Property Finance Gauteng. He says:
which will be liable for levies payable to the association.
“An increasing number of developers are exploring multipurpose developments, as the trend creates new business hubs that prove popular
This business and industrial development also intends to integrate
and convenient for South Africans and continue to drive the economy.”
disparate communities and add greater value and opportunities for local residents in the area. The long-term aim is for the development of
A typical example of this trend is the multibillion rand mixed-use Route
a flagship residential project with a total of 24 000 homes, of which
21 Corporate Park that is one of Irene’s biggest mixed-use developments
15 000 are proposed for subsidised housing development by the
with an industrial component. With a varied tenant mix, it offers secure
municipality in partnership with the province, with the balance planned
access to a high-tech business park with A-grade offices, industrial and
for residents in the affordable housing income groups.
warehousing space, and a small retail element. Affordability of constantly increasing utility costs is also seeing green Another trend seeing increased demand for sustainable building and development is large companies which invest heavily in the delivery of high end quality specifications in central locations, as seen at Improvon’s R192-million Gosforth Business Park. This project, says Reynolds, offers ideal exposure just off the N3 highway that aims to raise the standards of all the other business parks and estates developed along this route from Johannesburg to Pretoria. Imrovon Group’s Jorge da Costa says that although the industrial market is still experiencing significant vacancy rates, demand for optimally located and affordable industrial space is high, while a lot of the remaining vacancies are limited to older, lower quality or specification stock.
landlords attracting more quality tenants. The
“AN INCREASING NUMBER OF DEVELOPERS ARE EXPLORING MULTIPURPOSE DEVELOPMENTS, AS THE TREND CREATES NEW BUSINESS HUBS THAT PROVE POPULAR AND CONVENIENT FOR SOUTH AFRICANS AND CONTINUE TO DRIVE THE ECONOMY.”
inhibiting cost of water and electricity is motivating greater all-round environmental awareness in an industry whose operational habits have historically been subject to wide criticism. Limited budgets within small property companies and private landlords is driving leasing agents and developers toward costreducing measures, to optimise their tenant base from the earliest stages. Long-term savings of reduced energy bills are seeing more developers installing energy-saving mechanisms from the outset, while owners of older buildings are increasingly retrofitting and upgrading to harvest daylight and rainwater. Foreign investors are not deterred by the initial capital outlay required for
Increased demand for large scale mixed-use development is behind the multibillion rand Cornubia Industrial and
double glazing installations, which has long been considered an excessive luxury by local developers.
Business Estate development in KwaZulu-Natal. This central location, in a strategic position just 15km from the new King Shaka International
Top performing leasing agents are well accustomed to catering for
Airport, is less than 5km from Umhlanga’s Town Centre and Gateway
the changing needs of large tenants and property owners by way of
precincts and is conveniently accessible from the N2 freeway,
custom solutions, says Clive Williamson of Broll Properties Gauteng.
M41 and R102.
This is illustrated by growing demand for practical yet vitally important operational solutions within the logistics industry. Top end multipurpose
Cornubia is planned as an environment-friendly and eco-sensitively
storage and warehousing facilities within close proximity to airports and
designed development that makes provision for light industrial use,
harbours are required to offer generous warehouse stacking heights
including warehousing, distribution, service-oriented business and
and convenient access points.
offices. According to Tongaat Hulett Developments, occupants will benefit from safety and security, traffic accessibility, environmental
Positive change and steady growth within the country’s industrial sector
sustainability, attractive landscaped public spaces and close proximity
offers sound local and foreign investment opportunities.
to labour opportunities north of Durban. A large portion of the business estate comprises a landscaped and rehabilitated wetland and open space system.
BY ANNA-MARIE SMITH
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Page 30: M A R K E T S H A R E
PROPERTY FINANCE IN SOUTH AFRICA
A PROFILE OF THE PEOPLE LIVING IN THESE AREAS
Property Professional speaks to one of the leading industry statistic and insight providers to compare property finance in South Africa from the beginning of 2014 to date. These statistics include the wealthiest
CLIFTON
BISHOPSCOURT
WITTEBOOMEN
STEENBERG GOLF ESTATE
CONSTANTIA
WATERFRONT
LLANDUDNO
WESTCLIFF
SWAANSWYK ROAD
HAWAAN FOREST ESTATE
BLAIR ATHOLL
DUNKELD
CONSTANTIA HEIGHTS
residential areas in South Africa, the average house values in these areas, and a profile of the people living in these areas.
255
507
NUMBER OF PROPERTIES
WHICH ARE THE WEALTHIEST RESIDENTIAL AREAS IN SOUTH AFRICA AND WHAT ARE THE AVERAGE HOUSE VALUES IN THESE AREAS?
612
235
125
313
132
114
236
266
300 245
R
R14 000 000
236
POPULATION
565
766
565 564 198
1879
718 438 150
R
R12 000 000
560
1765
R
R10 000 000 R8 000 000
1564
1442
NUMBER OF MALES
107
129 412
354
1064 817
69
212
81 226
862
680
752
90
353
285
272
Credit: Information supplied by Lightstone, www.lightstone.co.za
903
763
812
279 108 365
KZN
293
WESTERN CAPE
NUMBER OF FEMALES
290
GAUTENG
HAWAAN FORREST ESTATE
WESTCLIFF
BLAIR ATHOL
R0
DUNKELD
R2 000 000
SWAANSWYK ROAD WATERFRONT WITTEBOOMEN CONSTANTIA BISHOPSCOURT CONSTANTIA HEIGHTS LLANDUDNO STEENBERG GOLF ESTATE CLIFTON
R4 000 000
274
R6 000 000
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Page 32: THE POWER OF PROPERTY PORTALS
THE POWER OF PROPERTY PORTALS
What portals are out there and how do I choose the best for my business? Property portals are a vital part of any marketing strategy for an estate
more visitors for that time of year than any previous since its launch.
agency. But, as with any marketing strategy, it will cost you money.
The leads it generated were also up by a similar amount.
Property portals are fast becoming one of the highest priced but essential means of advertising property. So how do you pick the right portal
The real reason for the growth is the launch of its new site earlier this
for your business needs as well as your budget? We have gathered
year. The company went back to basics and redesigned the site with
information from the top property portals currently on offer to make
a single goal in mind: To make it easy for buyers to find their ideal
your decision a little easier:
homes as quickly as possible. Everything else was stripped out, making
IOL
the experience for the user simple and streamlined. With the purchase of INM by the Sekunjalo Consortium, its Internet strategy has changed dramatically and online is now seen as a major priority. Grant Leigh, general manager of IOL, has no doubt that the company will greatly benefit from this new focus. On the company’s future outlook, Leigh says: “We are a fully selfsustaining organisation and our growth is and always has been organic, that is, any profit we make is reinvested in the business. This approach is unusual for large property portals where a very large upfront investment and marketing push followed by a period of consolidation is the norm. The organic approach meant we were relatively quiet for the first couple of years, but we’re past the hard part and we’ve
www.iolproperty.co.za
ended up with a solid business that is now growing fast and has great prospects. So the future is bright.”
IOLProperty is a joint venture between Independent News and Media (INM) (60%) and an estate agents’ consortium (40%). The recent
They are in the process of expanding their estate agent product offering
purchase of the shareholding by the estate agents’ consortium is
to help estate agents better market their listings, and the new set of
intended to be an open initiative by the industry, so any estate agent
products, for example videos/virtual tours launched in July, aims to do
can buy shares from the above-mentioned 40%.
just this. As the digital age gains more and more traction in the property industry, it becomes more important to craft a digital plan to suit core
Of the top three portals, IOL is the youngest, having launched in January
customers. The new products are part of a broader revision in client
2009. It has hundreds of thousands of visitors each month, but traffic-
strategy. Visit www.iolproperty.co.za and take a look at the property
wise the most notable aspect is the growth rate. Last month IOL had 20%
portal and rates.
Page 33: THE POWER OF PROPERTY PORTALS
PRIVATE PROPERTY respectively. Private Property’s CEO Justin Clarke says: “These are extremely challenging awards to win. We are proud that the IMA recognises our high standards of planning, execution and overall professionalism. We have all of South Africa’s best properties in one place for buyers and renters to peruse. Estate agents, banks, developers and landlords all list with us to give our browsers the widest variety of properties to be found on any South African portal.” In January 2014, Private Property delivered more than a million quality
www.privateproperty.co.za
leads to its advertisers and it hosts around a million page impressions daily. Bray says that the website’s design — both visual and its underlying code – is significant in that it presents a market-leading
Private Property has also upped the ante with a new look for its property
innovation in the South African online property market — the interface is
portal, taking into consideration that mobile devices are being used
00452intuitive BETTERBOND - REWARDS APP -As EAR RP2.indd 1 user-based interactive, and inspirational. if PIECES an award and a
more and more every day. In fact, says Simon Bray, Private Property’s
mobile version of the property portal weren’t impressive enough, the
COO, research shows that mobile property searches increased by 120%
company also has an app for the Private Property Portal. Released on 1
in the past year. “People are spending more time on their tablets and
June 2013, this second version of Private Property’s iPad app sat at the
smartphones instead of laptop computers, especially when researching
top position of the South African app store’s free ‘general’ category
property. In particular, late afternoons and evenings are seeing
within a few days.
a marked increase in mobile traffic.” The app allows house-hunters to find their next ‘pad’ via a text, locationAccordingly, Private Property has released a responsive version of its
based or suburb navigation search. The team designed the app to
website. Says Bray: “We decided to step up to the challenge and
enable browsers to access their favourite tools from anywhere in the app
deliver the best property browsing experience available in South Africa.
using the nifty all-new slide menu. Bray says that the technical design
Never before has a property website been optimised like this for
gives browsers easy access to Private Property’s estate agents and
mobile devices.”
landlords by means of an in-app feature that not only provides contact details and allows direct messaging, but also enables browsers to easily
Essentially, the platform utilises Private Property’s migration onto the
search for an area’s top agents with the ‘Find Agents’ feature.
Microsoft Azure cloud platform – an industry first in South Africa – to enable a seamless user experience, no matter the device being used.
Bray says: “I am delighted to see the response. With distinct design
Now, when a browser navigates to www.privateproperty.co.za the
changes to an interface that is familiar to many users, there is bound to
website recognises the device’s type and screen size, and responds by
be a period of adjustment, but our objective in every area has been to
giving the best possible version of the site for that device – whether it is
improve the overall user experience. We want buyers, sellers, renters
mobile or not. Features unique to mobile devices, such as touch-screen
and agents to be engaged and enabled.” He also points out that users
and swiping functionality, are built in while information-rich features
have quick access to their most recent searches directly off the app’s
like geo-location search (which enables a browser to press one button
home page. “You should be inspired when looking for your next home
and find properties in the vicinity) are also inherent. Image-rich results
and so we’ve found ways to make the whole process easier. Whether
enhance the personalised experience; and aspects like changing the
you’re planning to buy or rent, the Private Property iPad app will inspire
resolution and repositioning buttons happen automatically to generate
your search and ensure that you find the home of your dreams.”
custom experiences across all devices. All of this ensures that no matter
An android app with equal functionality is soon to be released. All of
the size of the device your customer is viewing on, they will get the best
Private Property’s listings are detailed and up-to-date with comprehensive
user experience.
photo galleries, and most have walk-through videos and 360° virtual tours – features that are supported on the app. The iPad app is free
The Private Property portal also received an International Media Award
to download and use. Simply search for it in the app store. Log on to
(IMA) in the ‘Lifestyle’ category recently with a score of 478 out of
www.privateproperty.co.za to browse the completely redesigned and
a possible 500, with content and functionality scoring 99% and 98%
re-engineered site.
2014/08/1
Page 34: THE POWER OF PROPERTY PORTALS
PROPERTY 24 “It’s imperative to us that our customers’ listings reach homebuyers anywhere they may be thinking about buying property,” says Farinha, “which is why, given the immense growth in mobile traffic over the last 18 months, we have an unfaltering focus on mobile technology.” In addition to a tailored mobile site, Property24 is the only portal that offers mobile apps for all leading mobile operating systems, including Android, iPhone, iPad and Blackberry. A week post-launch, their new iPad app shot to number one in the South African iStore ‘Lifestyle’ category and number five overall. Property24 believes that when it comes to choosing which portals to advertise with, it is essential to know that you are spending your marketing budget effectively. Their dedication to offering value is evident
www.property24.com
in their unique ‘Lead Guarantee’, which means that if customers don’t
“Online technology plays a crucial role in real estate marketing, which
by up to 78%.
get the leads they are promised, Property24 reduces its listing fee
is why we have invested enormously in developing a digital advertising platform for the industry that pairs high performance with cost
Property24’s Standard Listing Package includes unlimited for-sale listings
efficiency,” says JP Farinha, CEO of Property24. “We believe in offering
on Property24.com, a free listing on its Partner Network, the Property24
the industry genuine value and return on investment, and we ensure this
‘Lead Guarantee’ (a reduction in your monthly fee if you receive fewer
by reducing our listing fees for any agency if we’re not delivering the
than 30 leads per month), and free listing and agency management
leads that we promise. We strive to be the most cost-effective source of
software, PropCtrl. To find out more, go to www.property24.com or
buyer leads in the industry and our competitive packages give agencies
email sales@property24.com.
of all sizes the opportunity to make the most of buyers looking for property online.” According to independent digital measurement platform, SimilarWeb. com, Property24.com is the largest of South Africa’s property portals. With consistent investment in television advertising, a large focus has been to build a strong brand in the consumer’s mind when it comes to buying property. The results of this are evident in the company’s numbers, with over 80% of Property24.com’s audience looking to buy property, rather than rent, according to SimilarWeb.com. Property24 also enjoys an unrivalled position in both paid and organic search traffic on Google, ensuring that it engages with potential property buyers at their first point of interest. In addition to its focus on attracting quality for-sale leads from its own platform, Property24’s impressive partner network adds extra value to its real estate customers by publishing its listings on News24, MWEB, Mail & Guardian, SA Hometraders, SA Rental and an additional 36 regional sites.
“ONLINE TECHNOLOGY PLAYS A CRUCIAL ROLE IN REAL ESTATE MARKETING, WHICH IS WHY WE HAVE INVESTED ENORMOUSLY IN DEVELOPING A DIGITAL ADVERTISING PLATFORM FOR THE INDUSTRY THAT PAIRS HIGH PERFORMANCE WITH COST EFFICIENCY,” JP FARINHA, CEO OF PROPERTY24
Page 35: THE POWER OF PROPERTY PORTALS
PROPERTY JUNCTION
“We believe estate agents are actually suffering from ‘lead fatigue’ in that they are having to follow up on more leads than they can handle in a day, with a large majority of these leads amounting to nothing more than speculative interest from an individual who is not ready to transact. This results in genuine buyers and sellers being overlooked by agents as they are too busy dealing with the high volume of unqualified leads they receive,” says Asher. “Unfortunately, this in turn reflects negatively on the estate agency and unfortunately most are still not fully aware of this.” What makes Property Junction different portals is that 00452 BETTERBOND - REWARDS APP from - EAR other PIECES RP3.indd 1 it features properties advertised each week from all of the group’s print publications. This ensures that the focus for the visitor remains on properties that are actively on the market with all old properties automatically removed.
www.propertyjunction.co.za
Where to next for Property Junction? “As far as technology is concerned,
PA Media, the largest publisher of property advertising in South Africa,
our plans for the near future include an updated website that will allow for
with regional publications in all major metros under the Property Junction
a device agnostic browser experience for our visitors. We are also placing
brand, formed a joint venture with the Times Media Group in 2011 and
emphasis on providing digital marketing opportunities for our estate
released propertyjunction.co.za as part of the suite of Junction sites along
agency clients that will increase their effectiveness in the communities they
with careerjunction.co.za and autojunction.co.za.
serve by establishing a local digital presence. We firmly believe that
it is a known fact that mobile search volume is fast overtaking desktop, so
the industry will benefit further by taking a more active role in the area Although still considered the new kid on the block as far as property
in which they operate. We are therefore in the process of rolling out a
listing portals are concerned, PA Media has, in the three short years since
business model that sees ownership of our portal’s presence at community
launching, managed to position the portal as a firm favourite among its
level transferred to the agents within that community. We already have
estate agent clients. Backed by the property industry, which advertises in
a very successful model in our print business so it makes perfect sense to
PA Media’s print publications, the portal has focused on the integration
align the online business accordingly.”
of print and online advertising to ensure that the property buyer or seller experiences a seamless transition from browsing for properties in
Visit www.propertyjunction.co.za or for more information or contact
the print publications to finding the properties online where they are
Dave Asher on 021 447 7130 or dave@junction.co.za.
able to access more information and enquire with the relative agents marketing the property.
With so many portals out there to choose from, it is important to think of who you are targeting and which portal best suits your clients’ and your
This has helped to shape the company’s strategy as far as how it
business’s needs. Every portal has its strong points and it is an industry that
approaches the market. Dave Asher, executive manager of Property
is growing fast and constantly changing to be better, making sure that the
Junction, says: “It is a known fact that there are only approximately
property industry is one of the leaders in using digital technology to meet
15 000 property transactions monthly in South Africa, with the majority
clients’ needs. If you haven’t thought about using a property portal yet, IOL,
of these properties advertised in our publications and simultaneously on
Private Property, Property 24 and Property Junction are setting the bar high
our website. This means we are attracting the buyers and sellers who are
when it comes to property portals and will more than meet your needs.
actively participating in a transactional environment at any given time, be it buying or selling a property, thus ensuring that we only generate quality leads for our clients.
BY ANGELIQUE REDMOND
2014/08
Page 38: STOP CRIMINALS IN THEIR TRACKS
STOP CRIMINALS IN THEIR TRACKS
A social media site is going all out to ensure that agents are aware of industry-related criminal activity in areas across the country
Page 39: STOP CRIMINALS IN THEIR TRACKS
The fact that agents allow strangers into their cars and invite groups of
Kyalami Estates, Centurion and other upmarket areas,” says Stella van
unknown people to visit houses on show are just two reasons why the
Niekerk, office manager for the ChernoDavis Properties group, who
job could be classified as risky. The murder of a Ballito estate agent in
manages the site.
2007 highlighted just how vulnerable agents can be as they go about their day-to-day activities. In this tragic case, agent Lynne Hume had been
“I’d received an email about this thief who liked to go ‘shopping’ with
asked to visit a luxurious unit in an upmarket estate to meet with the tenant,
his accomplice at show houses. Although he always used the same email
Muziwendoda Kunene, to discuss problems with the rental property. The
address, his cell number often changed. I brought this to the attention
next day, her body was found in her burnt out vehicle in the Free State.
of André Snyman, the founder of eblockwatch, and estate agents on eblockwatch groups, and we started gathering as much information
While this case may be extreme, there is little doubt that given the crime
as we could about this man.”
rate in this country, agents have a whole lot more to worry about than earning their commission, and although many have changed the way in
It appeared that ‘Steve’ had been quite a busy chap, and posts from
which they work, criminals always seem to be one step ahead.
agents and agencies around the Gauteng area highlighting his modus operandi started to appear on the site right from the start.
Unfortunately, estate agents are more vulnerable than ever and are being forced to take more and more precautions in order to prevent themselves – and in some cases, their clients – from becoming yet another sorry crime statistic. One of the latest initiatives aimed at helping real estate agents fight crime involves a Facebook page called ‘Estate Agents on eblockwatch’. The site is restricted to agents and is a platform on which they can share their stories of criminal activity in the areas in which they operate. We
“I’D RECEIVED AN EMAIL ABOUT THIS THIEF WHO LIKED TO GO ‘SHOPPING’ WITH HIS ACCOMPLICE AT SHOW HOUSES.”
are not talking about general crime here, we are talking about exposing those who specifically target estate agents
The information was handed over to the authorities, who then published an article accompanied by a picture in a well-known newspaper. ‘Steve’ was arrested at the Silver Lakes Estate by two alert security guards who recognised his picture, but unfortunately he was released due to lack of evidence. Three days later he was rearrested at Midstream Estates and now faces a number of charges. While it may be impossible to know how long ‘Steve’ had been operating, one thing is abundantly clear – he was caught very soon after his antics were exposed on social media. This clearly indicates just how powerful a site like
and the properties they are selling. The page was launched in April this
Facebook can be, and given the number of agents operating in the field,
year and within two weeks, 147 agents had already joined. To date, the
how effective banding together to fight crime is.
site has been responsible for bringing at least one criminal to book. There are many ‘Steves’ around and agents who are forewarned to be on Nicknamed ‘Steve the Shopper’, this devious man would surf the Internet
the lookout for a particular individual or who are aware of new ways in
property pages looking for homes to target. He generally selected
which criminals are operating will inevitability stay one step ahead and
upmarket homes and would make an appointment to view with an agent.
will be better equipped to deal with the problem.
Once there, he would often use a friend to distract the agent while he wandered from room to room, taking photographs and opening cupboard
The fact that the page remains accessible only to agents is vital as it stops
doors and dressing table drawers, helping himself to anything of value.
conmen and other criminals from perhaps using the information posted
He was so brazen that there were times when he would go back to a
there for nefarious purposes. The benefits of joining the page speak for
room, telling the agent he wanted another photograph before stealing
themselves and, obviously, the more agents who join and report crimes,
yet more items.
the better. Crime has no borders and the beauty of social media is that it allows agents from all over the country to report any illegal goings-on.
“When we were initially alerted to ’Steve’ and his activities, he was
While there are some who believe that it’s only important to report crimes
targeting Fourways Gardens, Broadacres, Mondeor, Little Falls, Bassonia,
on pages linked to their own area, van Niekerk points out that she had
Page 40: STOP CRIMINALS IN THEIR TRACKS
been informed of cases in Ballito in KwaZulu-Natal and Hartbeespoort
needs assistance. We have also established an estate agent’s WhatsApp
Dam in North West, which bore a striking resemblance to ‘Steve the
group to alert agents who are on show or taking buyers to private
Shopper’s’ modus operandi.
viewings what they need to be on the lookout for,” says van Niekerk.
Van Niekerk notes that it is imperative for agents to band together in order
“Messages are sent with vehicle details including registration plate number
to share information. “It is very important for us to protect our reputations
(if available), how many occupants, modus operandi and sometimes if
and to inform each other of potential criminal behaviour affecting our
the perpetrator/s have been caught on CCTV at entrances to estates or in
industry. We need to take a stand against crime. I was held up at gunpoint
homes, those pictures will be issued to the agents to assist in getting more
at a show day in November 2005 and I had no support or assistance in
information. We encourage all estate agents to become part of this very
finding those responsible. I have decided to take a stand and request my
effective group.”
colleagues in the industry to join me in making a difference. The bigger the team of agents involved, the more information about incidents and
The Facebook site makes for some interesting reading. Erring tenants,
culprits will be shared. André will immediately be informed and we will
‘heavy breathers’ on the phone and a particularly nasty incident involving
gather as much information as possible and hand it over to the authorities.
a person who gained entry to a home by pretending to be an agent and
We have dedicated officials in the group who will react when an agent
who then assaulted and robbed the homeowner have been reported. Another case reported involves a man who makes appointments to view empty rental properties then ties the rental agent up before making off with
TIPS FOR DETERRING CRIMINALS •
Encourage sellers not to leave anything tempting lying around.
•
When possible, let the security guard at the gate know that you are sitting at a show day.
•
Walk through the property before the start of the show day and lock away valuables that may have been left out in the open. Don’t forget to put them back once your show day has finished.
•
If you have information about criminals in the area who should not be allowed into the property, share as many details as possible, including the make of car and registration number.
•
Ensure that buyers’ information is well documented on arrival, including names, cell phone numbers and email addresses.
•
Ask a security guard or friend to take pictures of potential buyers’ cars and licence discs on arrival if there is no CCTV camera at the main gate of the complex.
•
Agents should consider connecting their phones to the eblockwatch CommUnity panic button.
•
Don’t leave the security gates open if you are sitting at a show day.
•
Keep pepper spray handy at all times and make sure that it is easily accessible.
•
When showing a vacant property or a stand, sit outside the property in your car and let viewers go through and then come back and ask you questions. By doing this, you will be able to get away if the situation turns sour.
handbags, cell phones and jewellery. While it goes without saying that not every criminal will be caught, the fact that this information is being shared and agents alerted to these activities will allow the agent to protect both himself and his clients. Let’s be honest here, it’s not only about protecting agents – homeowners are not going to look kindly on any agent who allows a thief into their homes during a show day. Agents’ reputations are at stake here and it is in the best interests of all concerned for agents to be aware of any dodgy goings-on in a particular area. “The impression the seller is left with when their valuables go missing is very negative,” says van Niekerk. “In my opinion, the agent and the seller are both to blame. The agent needs to advise the seller to lock valuables away and the seller needs to do their part by being sensible as well.” Although agents have been warning clients to lock valuables away for years, sellers do slip up. We are all human and although a seller may have every intention of not leaving valuables lying around, it is still their home and old habits die hard. Van Niekerk adds that agents need to remember that a criminal is only a successful criminal if he can get away with the crime. Use your imagination to make this difficult for them, not necessarily by using physical force, but by gathering as much information and evidence as possible. Sellers are understandably becoming more reluctant to put their homes on show. However, it stands to reason that a seller will feel more comfortable
Page 41: STOP CRIMINALS IN THEIR TRACKS
dealing with an agent who is watching their back by having as many safeguards in place as possible. “As agents, we act on behalf of sellers and buyers. In order to gain the confidence of sellers, it may be a good idea for the agent to advise the seller that he is part of the eblockwatch community support programme. Point out that buyers will be monitored – if possible, on registration – by having their pictures taken for security purposes. This last point could prove contentious, but as much as we don’t want to intimidate buyers, the safety of sellers, their property and their valuables are our first priority. Of course, criminals are going to become more inventive and, as such, agents have to become more proactive about security.
“IN MY OPINION, THE AGENT AND THE SELLER ARE BOTH TO BLAME. THE AGENT NEEDS TO ADVISE THE SELLER TO LOCK VALUABLES AWAY AND THE SELLER NEEDS TO DO THEIR PART BY BEING SENSIBLE AS WELL.”
Communication and teamwork is the name of the game and all agents are urged to keep abreast of the latest trending criminal activities and report any criminal behaviour that comes to their attention. For further information go to http://www.eblockwatch.co.za/
BY LEA JACOBS
Page 42: F I N A N C E & F I G U R ES
HOW DO HOME LOANS MEASURE UP?
Property Professional gathered information from mortgage originator, ooba, which gives insight into bonds and buyers comparing figures from the
SECOND QUARTER OF 2013 TO THE SAME PERIOD THIS YEAR:
U –J R P :A 2 R RT E A QU
3 1 20
N
20
13
AVG DEPOSIT (AS % OF PURCHASE PRICE)
AVG APPROVED BOND SIZE
6% 15. 487) 42 (R1
AVG PURCHASE PRICE OF FIRST-TIME BUYER
R
AVG PURCHASE PRICE
R68 R91
2
6 771
02
.2 2 1 -
324
3 . 6 +
89 40
1 + 8.
%
R
0 + 4. 0 R95
7 R73 507
768
5 820
89
7% 13. 918) 29 (R1
75.
26. 47.
2%
- 4.8
4%
3 + 0.
37
70.
- 1.2 0 27. 46.
%
7%
4%
%
EFFECTIVE APPROVAL RATIO
2% RATIO OF APPLICATIONS DECLINED BY ONE LENDER BUT APPROVED BY ANOTHER
37
AVG INITIAL DECLINE RATIO (FIRST BANK DECLINE)
AVG AGE OF APPLICANT
Q
R UA
TER
U –J R AP 2:
N
20
14
4 1 20
Page 44: D EV EL O P M EN T I M PAC T S T H E R E A L ES TAT E I N D U S T RY
DEVELOPMENT IMPACTS THE REAL ESTATE INDUSTRY
It is an exciting time for the real estate sector as private capital is in huge demand for development and investment, yet competition for prime assets is intense Emerging market reports place a strong emphasis on the forces behind
demographic trends to result in a greater need for new and different
potentially prosperous real estate industries. Investors lured by sound
real estate by 2020 and beyond. Massive growth by 2025 will see
economic fundamentals require cohesion between public and private
over 60% of all construction activity around the globe taking place in
capital expenditure to drive growth in private industries, such as
emerging markets — up from just 35% in 2005. Between now and 2025,
construction and development.
the construction sector is expected to benefit from sub-Saharan Africa becoming the second fastest-growing region, behind emerging Asia.
The PricewaterhouseCoopers (PwC) Real Estate 2020 Building the Future
Potential growth in Nigeria alone is forecast to have catered for almost
report sheds new light on the impact of ongoing infrastructure in developing
20 million new homes by then, compared to 2012.
countries. The construction industry’s role to facilitate the constantly changing needs of owners and tenants is emphasised. Far-reaching effects
The positive impact of infrastructure — of roads, public transport and
of well executed state budgets for infrastructure improvements that correlate
electrification - on employment, housing, education and medical facilities,
with population growth, and not necessarily new building projects only,
such as the acceleration of all round economic productivity and long-term
become more visible.
growth for investors, cannot be underestimated. The role of construction companies, who compete at global standards in their bids to participate in
PwC forecasts shifts in population growth, as well as changing
cross-border electrification, road, telecommunications and water projects,
Page 45: D EV EL O P M EN T I M PAC T S T H E R E A L ES TAT E I N D U S T RY
is also emphasised in the paraphrased and acknowledged McKinsey
of global consulting engineering firm Aurecon at the Ekurhuleni OR
Global Institute (MGI) Infrastructure Practice 2013 report.
Tambo Aerotropolis in Gauteng. This multi-disciplinary consortium offers industry advantages of previous planning and infrastructure projects in the
Win-win benefits of the improved socio-economic circumstances of potential
Ekurhuleni area.
property owners and tenants to real estate markets in emerging economies are clearly defined in this report. Studies have shown, for example, how
Long-term planning objectives relate to the economic benefits derived
a 9% increase in female employment followed the electrification of a
from the integration of manufacturing and residential areas within close
specific South African rural region. This simple yet necessary solution
proximity of the airport. Development criteria include questions regarding
allowed local women to explore microenterprise by leaving their houses
the adequate addressing of the city’s socio-economic upliftment. Land
to earn an income. However, both local and foreign direct investment
use issues and transport facilities have to facilitate maximum efficiency of
that would facilitate construction and development of this magnitude relies
both the people and freight in the region. Future growth is predicted to
on sound government policies that prioritise sustainable planning and
ensure the economic wellbeing of Gauteng and Ekurhuleni’s businesses
implementation.
and community, from the smallest informal trader to large multinational companies. The impact of predicted CO 2 emissions on the environment
Investor confidence was reflected in South Africa’s post recession real
formed part of the planning criteria of this project.
estate market in 2013. Expansion and new development brought cross-sector profits, backed by risk-averse investors. Current and future
The emphasis on large-scale mixed-use development is highlighting
investors, however, are increasingly facing up to
impacts on other sectors of the commercial real estate
challenging trading conditions. The financing of large
market, such as the global phenomenon of cutting edge
construction projects take place amid a cutting edge environment and uncertainty. In the words of Frank Berkeley, managing executive at Nedbank Corporate Property Finance (NCPF), who continues to finance massive projects: “In spite of our fragile economy facing further setbacks, the 2014 fortunes of the South African property market inextricably lies on the country’s economic performance and other markets.” Fears of a lacklustre investment environment due to delayed infrastructure projects are substantiated by the
A FAST DIMINISHING NEED FOR OFFICE SPACE OVER THE NEXT FEW YEARS IS EXPECTED TO SEE LESS OFFICE DEVELOPMENT, ACCORDING TO THE PWC REPORT.
construction and development industries. Future growth is inhibited by slow transformation, limited state funding
technology on the office sector. A fast diminishing need for office space over the next few years is expected to see less office development, according to the PwC report. As telecommuting increases and office culture becomes more accepting of video conferencing rather than meetings, and as digital files replace paper, more time will be spent working from satellite and home offices. “These trends are likely to alter real estate economics more than is currently anticipated,” says Nedbank’s Berkeley. He has expressed particular concern about the potential for office vacancies to increase notably in the coming
and regulatory hurdles. Local operators now have access to alternative
years. “This is on the back of the ongoing consolidation trend that is
options in resource-rich sub-Saharan African regions, where investment
seeing increasing numbers of large organisations constructing their own
opportunities beckon within the fast-growing power generation and
centralised buildings into which they are relocating many of their staff that
oil and gas industries.
were previously housed in leased offices.”
Local civil engineering companies, such as Murray & Roberts, which is
The construction industry also benefits from institutional backing of product-
increasingly focusing on non-core assets, are exploring contracts beyond
specific requirements of prime tenants within the vehicle manufacturing
borders. Company chairman Henry Laas says infrastructure build is
industry. Job creation and economic productivity are long-term benefits
fundamental to economic growth, and that the private sector is leading the
facilitated by NCPF’s financing of the refurbishment of the R230-million
way in infrastructure spending, with little public sector expenditure on big
motor vehicle manufacturing facility and joint venture of Iveco South Africa
construction projects.
and Larimar Group in Rosslyn, Pretoria.
On the upside, however, is the growing trend of the aerotropolis mixed-
Industry opinion is that South Africa’s real estate business is set to benefit
use concept, now becoming a mainstream concept in aviation planning.
from the construction industry’s focus on local knowledge, specialist
Global developments of this expanse and capital investment have brought
expertise and good government relations.
substantial economic and social benefits to airport owners as well as local businesses and communities. The first development of its kind in South Africa is taking place through the consortium-led development
BY ANNA-MARIE SMITH
Page 46: W H ER E A R E T H E H O U S I N G G A P S I N S O U T H A F R I CA ?
WHERE ARE THE HOUSING GAPS IN SOUTH AFRICA? There were roughly 52.98 million people living in South Africa according to estimates by the South African government mid-year in 2013. And that equates to a lot of people with different housing needs, from students and first-time buyers to people who cannot afford housing and gap housing. Looking at the different housing sectors in the real estate industry, where is there a demand that is not currently being met?
Page 47: W H ER E A R E T H E H O U S I N G G A P S I N S O U T H A F R I CA ?
S T U D EN T H O U S I N G
A N EW C L A S S O F P RO P ERT Y B U Y ER S
While many universities offer accommodation to new and existing
Looking at housing in South Africa and the millions of people the
students, this is often based on need and there is normally more need
property industry currently serves, there is one subset that remains a grey
than actual housing. Dr Andrew Golding, chief executive officer of Pam
area – those who have property, but don’t have actual ownership proof.
Golding properties, says: “Universities and technikons, i.e. tertiary
Seeff chairman Samuel Seeff says: “One of the remaining problem
institutions, are growing their numbers of students exponentially and, as
areas is that many owners of homes in the historical townships still do
a consequence, accommodation for these students is under pressure. It is
not have title deeds. This is something that needs to be addressed.
no coincidence that university towns, such as Stellenbosch for example,
Obviously, there needs to be some proof provided of such ownership,
are some of the best performers in the South African residential property
but it is vital that, if proven, these owners are given title deeds.” By
market. And with the number of students set to rise yearly and new
obtaining title deeds these homeowners would then be able to enter the
universities being built, this need for student housing will continue.”
property market and start transacting. This could act as a springboard, allowing more people to enter the property market; these
But is it worth investing in student housing? Could this be why there is such a need for this particular type of housing? Michael Bauer, general manager of IHFM property management company, says: “There will always be a need for student housing. While universities such as UCT are active and aggressive in finding their own buildings to use as student accommodation, they are trying to find their own land to develop and their limitations are the funding, procurement and investor base for this. There is, therefore, a shortage in all the provinces in South Africa. The problem from an investor point of view with regards to student accommodation is that it becomes a purpose-bound building. The layout needs to be different from the traditional apartment
homeowners could sell their property to people who
“ONE OF THE REMAINING PROBLEM AREAS IS THAT MANY OWNERS OF HOMES IN THE HISTORICAL TOWNSHIPS STILL DO NOT HAVE TITLE DEEDS”
cannot afford high property prices and then buy better homes, creating a whole new class of property buyers and sellers. L OW I N CO M E H O U S I N G Renney Plitt, managing director of Afcho, says: “Most sectors of the housing market are being addressed where it make sense for the private sector to develop and invest. This applies to both sale and rental developments across all spheres, including retirement, gap and students. This would apply for earnings levels from about R6 000 upward in rental and about R8 000
block as single bedroom/bachelor units are required.
in sales. The problem we face is a desperate shortage of
There are companies specialising in this type of
housing in the levels below that. The financial models
accommodation, where they convert older buildings into student rooms
don’t work for the private sector or their bank funders, and council in
and run the rental pool and manage the building. They would have a
particular and government have failed in this area of housing provision.
lease agreement with the universities and manage the rentals. The returns
This is exacerbated by high council service charges that negatively
on these units are very good, but the obligations on the leases here are
impact on affordability.”
much more than normal renting, such as higher security, high speed Internet connections, contract cleaning, etc. Investors in this type of
This sector of the population remains hugely underserved and is one
accommodation are usually getting 8% to 9% return.” While returns may
of the largest in South Africa. There are millions of people who live in
not be as high as in other areas of housing, with such a desperate need
townships or illegally built structures on land because they simply cannot
for accommodation, this is one sector of the property market that sees
afford housing, or live in dilapidated buildings as they cannot afford
steady returns as there will always be a need for this type of housing.
high rents. While the government has, up to a point, attempted to cater
Page 48: W H ER E A R E T H E H O U S I N G G A P S I N S O U T H A F R I CA ?
“IN THE LOWER AND LOWER-MIDDLE INCOME BRACKETS, THIS IS WHERE THERE IS LACK OF SUPPLY, AND THIS NEEDS TO BE ADDRESSED SOON. THIS IS POSSIBLY THE NEXT MAJOR PROBLEM THAT GOVERNMENT NEEDS TO ADDRESS AS PROVIDING RETIREMENT HOUSING IS NOT ENOUGH. “ for these individuals, it has largely failed to supply adequate housing
communities for the elderly, which provide care and expertise. Bryan
to the majority.
Biehler, managing director of Huizemark, says: “There is a serious demand for retirement housing in Gauteng as many homeowners are
Asrin’s commercial director, Shiraaz Hassan, says: “A critical problem
60+ and the demands of standard residential housing are becoming
remains access to finance; the lending criteria is still too tight and
more onerous, such as security, maintenance and medical facilities.
while now is an opportune time to buy, this is simply not happening
The costs keep rising, whereas generally in schemes, the costs come
in many instances as buyers are unable to access finance. Another
down as they are shared by many.”
problem relates to the deposit requirements for first-time buyers. What often happens is that in an attempt to secure their own home, first-time buyers will take out a personal loan to finance their deposit at a higher
LI F ES T Y LE ES TAT ES A N D T H E L O C K U P A N D G O
interest rate than the bond rate; something that just serves to put people
This still remains the most sought after property in real estate. With crime
further into debt. The sector could be improved with active participation
still a major issue for many South Africans, gated communities and lock
from government into public/private partnerships, making more
up and go structures remain the most popular and in need. Bryan Biehler
land available within high demand nodes, expediting the rezoning
says: “High density and communal housing where the focus is on a lock
and plan approval process with local authorities, and simplifying the
up and go lifestyle, focusing on security, low maintenance and easy
application process in terms of state housing subsidies. The private
access to transport routes and places of work, is one of the most popular
sector has the technical expertise to deliver affordable housing
in South Africa. People want to live, work and play close to their place
projects, however it would require the assistance of government in terms
of residence. Traffic flows, time travelling and costs are becoming bigger
of funding or considering development proposals where government
influencers of buying motivation, which will see this type of housing in
realises the land price upon completion of the development.”
demand.” Perhaps there is an opportunity to see more group housing complexes being built that would not only service the need for lock up
R E T I R EM EN T H O U S I N G
and go properties, but could also be used for affordable housing and
Retirement housing is another sector that urgently needs to be addressed.
together to create multipurpose housing complexes that cater to a variety
The number of elderly far outranks the amount of housing provided
of needs in the housing market.
student housing. This is where developers and investors need to work
for them. Michael Bauer says: “In the lower and lower-middle income brackets, this is where there is lack of supply, and this needs to be
The gaps in the housing market are quite clear; there is a need and
addressed soon. This is possibly the next major problem that government
demand for student housing, which will always be there and will only
needs to address as providing retirement housing is not enough. There
continue to grow, and there needs to be more involvement from the
has to be the follow-up care, food, nursing and communal facilities
government to ease the demand for low income housing, which is
available. As the economy continues apace and the next generation
critical. Retirement housing has seen an increase in demand and this is
comes through, there will be a serious need for decent retirement homes
an opportunity for investors, along with group housing complexes that
at the prices that lower income earners can afford. The majority of these
would service a variety of the housing market. With the demand set
people move in with their children.”
to grow, there are exciting and interesting opportunities available for savvy developers.
Retirement housing, much like student housing, is not as simple as buying and selling, and requires more in-depth knowledge, but one model that seems to perform very well is retirement villages, much like gated
BY ANGELIQUE REDMOND
Spice Island for MortgageMax Champions
In August, the DoubleTree at Hilton Zanzibar welcomed the MortgageMax Top Achievers. Standard Bank once again sponsored the awards trip where the top national performers were treated to sunny, warm, sunbathing weather, island style beach braai’s, dhows’ sailing across crystal clear water and swimming with dolphins. To further add spice to the weekend, the Standard Bank and MortgageMax Management team recognised their Business Partners’ achievements with a fun filled “Black and White” Awards Evening. “Congratulations to all of our winning business partners! We thank you for your continuous support in making MortgageMax the number 1 Independent Origination company in South Africa”, says Jors van Niekerk, CEO MortgageMax.
For the 10th year in a row End User Finance – Coenraad Legassick – was crowned Champion of Champions, receiving top honours as the National Independent Originator and Regional winner Pretoria.
Sanette Payne from Payneless Bonds was awarded Top National Independent Broker.
MortgageMax New Comer of the Year award went to Ivy and Fanie Dahms.
Top Regional Winner KwaZulu Natal: MortgageMax Durban Property Finance – Dinesh Chetty.
Top Regional Winner Cape Town - MortgageMax Commercial Mortgage Company - Marius Vivier and Hugo Vermeulen.
Top Regional Winner Johannesburg - MortgageMax Exclusive Home Loans – Graham Moodie.
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
PROPERTY PROFESSIONAL
NEW AGENTS ON THE BLOCK The most enjoyable and challenging aspects of my job coincide with one another. A property is fixed – it is the constant factor. The challenge is the variable, ultimately the buyer and seller. It is absolutely enjoyable dealing with each unique personality, need and realistic view, and challenging matching these unique personalities with each individual deal.
BRYAN GINSBURG S EEF F, C I T Y B OW L
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? The ability to listen and learn. Listening to the ever-changing property environment is paramount and consistently educating myself is important
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
to ensure that I am able to enter a negotiation with solid tools and
I have always viewed the industry as a challenging one. Each situation
powerful knowledge.
and circumstance with each and every deal or client is unique, and the challenge of coordinating all these aspects, namely the understanding and
WHAT ARE SOME OF YOUR CAREER GOALS?
implementation of socio-economics, is of major interest to me
To become the top of my game in a partnership with a strong brand, ensuring that I am the first port of contact for my buyers and sellers by
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
providing a differentiated service of integrity, market knowledge and
CHALLENGING ASPECTS OF THE JOB?
seamless service.
people on a daily basis, but the most rewarding aspect of the job is most
ALTEN VERMAAK S EEF F, S T R A N D
certainly facilitating an agreement between buyers and sellers. The most challenging aspect for me personally is trying to educate sellers to market their properties at a realistic price that can compete in the marketplace. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
AGENT/BROKER AND WHY?
After running the family business for a couple of years, the inevitable
In my opinion, the most important characteristics that an agent should
happened; we sold. So there I was, left in the ‘wilderness’ somewhat
possess are honesty and integrity. My reason for this is that every client,
and not knowing where to from there. My father, who had always had a
whether buying or selling, has the right to be informed of current market
love for the property industry, made the suggestion: Why not become a
conditions in an open and honest manner, so that they themselves can
property professional? Not knowing what to expect, I decided to give it
make informed decisions relating to the buying or selling of the property.
a go, and today I can confidently say that it was the best decision I have ever made.
WHAT ARE SOME OF YOUR CAREER GOALS? My short-term goals are definitely to improve my market share in the
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
Strand as well as to become a household name in the area. My long-term
CHALLENGING ASPECTS OF THE JOB?
goal is to become a principal of either my own company or a franchise
I definitely do enjoy the aspect of meeting and working with different
owner of a successful real estate company.
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Page 52: 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
CHALLENGING ASPECTS OF THE JOB? It’s very satisfying finding your client the perfect property. The most enjoyable part of my work is when you have placed a large tenant in a
NICOL VAN WYK
prominent location and drive past afterwards knowing that you played
J H I P RO P ERT I ES, W ES T ER N CA P E
perhaps for the paperwork. I prefer being out seeing clients and putting
a part in their success. There isn’t much I don’t like about my job, except deals together. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
AGENT/BROKER AND WHY?
My father has many friends involved in the property industry and it
You need to be optimistic about every deal you negotiate. Never give up,
definitely intrigued me. I had a discussion with a close family friend,
keep trying until the deal is concluded. You also need to be proactive and
Maureen Nel, who suggested that I should get involved in the property
professional to be successful. Never get despondent, just keep working
industry and recommended commercial property. She even helped me by
hard and smart – and success will follow you.
arranging an interview with JHI Properties and I was lucky enough to be appointed to the position. This is a great opportunity and I will forever be
WHAT ARE SOME OF YOUR CAREER GOALS?
thankful to her as well as my father.
I want to make a huge success of my life. I want to do everything to the best of my ability. Always strive for better. And, currently, to become the
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
best broker in the country.
property market and how it changes and what influences it. Challenges: Dealing with difficult clients. Banks’ difficult lending criteria, leading to many unsuccessful bond applications. Attaining sole mandates in a seller’s market where there is very little stock.
DANNI COLEMAN
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY?
S EEF F, R A N D B U RG
Someone with great people skills and a heart for helping people find and sell their homes, which I believe is quite a personal affair and requires a
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
certain kind of sensitivity. The agent needs to able to self-motivate and be
I began as a PA to an agent and soon developed a keen interest in the
optimistic in difficult times. Being proactive is a must!
industry. I enjoy working with people. Also, I require an occupation that is flexible in terms of time on account of me being a single mom to a
WHAT ARE SOME OF YOUR CAREER GOALS?
special needs son.
I aim to create a reputation for myself as being successful in my area as well as professional and trustworthy. Through achieving this, my business
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
will grow as referrals come back to me time and again. My attitude is
CHALLENGING ASPECTS OF THE JOB?
not to chase the money, but rather to chase success and have the wealth
Enjoyable: Connecting with people. Training sessions involving different
follow automatically from there. That way, you remain focused on the
professionals linked to the industry, such as economists. Understanding the
people you serve, which is what being an agent is about.
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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
PROPERTY PROFESSIONAL
TOP PERFORMING AGENTS
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
TANYA JOUBERT
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
S O T H EB Y ’ S I N T ER N AT I O N A L R E A LT Y, C LI F T O N
information. Having facts and figures at your fingertips is vital for
Whatever technology enables you to keep up to date with usable success. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
PLEASE TELL US ABOUT IT
1. Decide what you what to achieve and why.
My first buyer was from out of town and wanted to meet some
2. Make a definite plan to get there.
Capetonians, so I arranged a summer soirée at a friend’s house and
3. Work hard to build relationships with people who can help you reach
the buyer end up purchasing that property.
your goals. WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
Focus on one area and ‘own’ it. Know it backwards, forwards and
The fact that you have to work crazy hours. Real estate is a 24/7 job
sideways, and as your reputation grows you will become the agent
and you have to be willing to share your time with clients at all hours.
of choice in that area.
The most vital tool an estate agent can have in today’s market is knowledge – about interest rates and home loans, market trends, area demographics and pricing, for example, and the more specific, the better.
MARVELOUS MAHLANGU C H A S EV ER I T T I N T ER N AT I O N A L , G LEN V I S TA
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. The first property I sold was in Naturena Ext 15. I listed it at R295 000 in February 2005 and about three weeks later I received an offer of R270 000, which the seller accepted. I remember being very nervous during the offer presentation, but, fortunately, I had asked one of my senior colleagues to go with me and after the seller accepted, the feeling was
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
electric. I didn’t even think about how much I was going to make, I just
My top secrets for success are passion, dedication and commitment.
wanted to get the deal through as soon as possible. I also knew then that this was the industry I wanted to be in, and after I sold two homes the
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
next month, I never looked back!
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? I wish I had known from the start that one should invest some of each
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
commission payout and save because in this industry we have no salaries
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY? My advice is to stick to the basics, be consistent, don’t try to take
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
shortcuts, acquire more knowledge about the market and be
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
passionate about what you do.
Be more savvy when buying a home
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Page 56: 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
ADRIAN MAUERBERGER S EEF F AT L A N T I C S E A B OA R D
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Very high levels of education, statistical and market knowledge, legal competence and a marketing background – more and more buyers and sellers are far more sophisticated and require more and more profound market knowledge.
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? 1. Live and play in the area in which you sell.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
2. Remain honest and true to yourself, maintain integrity and
PLEASE TELL US ABOUT IT.
professionalism.
Each sale comes with a story – selling some of today’s most sought after
3. A high level of know-how and education are vital – this is no longer a
developments and second hand real estate comes with thousands of
‘divorced housewife’s’ game.
stories – I wouldn’t want to isolate one as the others might be jealous.
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
Your biggest stumbling block and challenge is not your buyers and
It is not easy! If it were easy, then everyone would do it. Develop
sellers, but rather the incompetent competitive agents.
the passion, live the experience and dream the success!
either afford it or not. Get your timing right.”
MARITA MEYER J H I P RO P ERT I ES, P R E T O R I A , G AU T EN G
(And all the rest that goes with it!) WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? The proper use of technology – applying tools and systems to your advantage by keeping in constant communication with your clients, and
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
keeping them in the loop at all times. It allows you to enjoy the benefit
1. Lateral thinking. Continuously applying your mind to solving the
of 24+ hours a day.
property ‘puzzles’ presented to you – finding the pieces, matching them and completing the bigger picture.
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.
2. Being prepared. Taking time to know your stock, knowing your market
The first property I sold was part of a difficult, drawn-out divorce
and being out there where the clients can find you. Then act on it.
settlement. I had to ask my buyer, a well-known businessman, if the
3. I always remember that I am the facilitator only – it is not my property,
difference in his offered price versus the asking price would really affect
nor my money, I cannot force a lease or a sale; and today’s buyer is
him in the long run. He raised his offer and it was accepted, although
tomorrow’s seller, so I do my job with this in mind, as if I am looking
the transfer took longer than a year to register. I was often asked if I was
into a mirror.
tempted to take an advance against my commission – I never did, and it set the standard and mindset for future business dealings.
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
I actually received the very best advice from my husband: “Timing is
A SUCCESS IN THEIR CAREER IN PROPERTY?
everything. A person either wants a property or not; that person can
Find your own style, and develop it into a sought after, unique product.
Page 58: 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
the day. Not so long ago, estate agents were perceived to be bored housewives or retired men, and I could never relate or identify with those
LYNN PINN PA M G O LD I N G P RO P ERT I ES AT L A N T I C S E A B OA R D
analogies as to me it has always been about integrity to myself and the company I represent! WHAT IS THE MOST VITAL TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Up to date intel on sales and pricing so that you can estimate values as accurately as possible and guide your clients accordingly. In sectional title
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
sales, it is imperative to have sectional title plans, body corporate and
1. Real estate is not a job, it is a way of life, and one is simply never off
house rules and minutes of all the body corporate meetings so that you are
duty. Other peoples’ leisure time is an estate agent’s workday, and you are
able to inform buyers accordingly.
always on call, even on the ‘high’ holidays. 2. There is no guaranteed remuneration, so you need a high level of self-
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.
motivation and true passion to make it happen. One has to creative and
My first property was a sale on Sea Point beachfront. It was on show
innovative in order to fulfil the clients’ needs.
and at 5pm I was walking out of the apartment when a couple arrived,
3. The professional estate agent requires:
apologised for being late and asked if I minded opening for them. We sat
• A thorough knowledge of your farming area, an understanding of your
for about an hour and chatted. I called the seller to ask if I could offer them
market profile and the dynamics of buyers and sellers in the area and a
a drink and if we could sit on the balcony and enjoy the view. The next
good network.
day I went to see them at their home in Camps Bay, took the offer and
• Always be forthright and honest. Never be afraid to say: “I don’t know,
successfully concluded the deal. I was hooked.
but I will come back to you.” WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN
A SUCCESS IN THEIR CAREER IN PROPERTY?
YOU FIRST STARTED OUT IN PROPERTY AND WHY?
The industry has become highly regulated and there is a huge emphasis
I have always have had an ethical and internal ethos towards any job
on education. The EAAB (our regulatory body) has deemed it necessary to
that I have tackled. So, from the very beginning of my estate agent career,
increase the levels of entry into the industry, so to those who would like to
my responsibilities were very vivid in my mind, in that I start my working
become agents, I suggest you find a position as an intern with a reputable
day early (early bird catches the worm) and work methodically through
company that offers good training – and be prepared to work hard.
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? I wish someone had told me to start work as an estate agent much sooner.
ANMAR MARAIS C H A S EV ER I T T I N T ER N AT I O N A L , K LEI N M O N D
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Your cell phone because you simply must be available to clients all the time. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. Yes I do because I was so nervous, but it all worked out with happiness
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
all round. I became friends with the buyers and their little girl wants to be
The main secret is to stick to the basics, again and again. Next, it is vital
an estate agent, just like me!
to love your job because your enthusiasm will rub off on people, and finally, you must be involved in your community.
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
Work, work and more work, love people and be absolutely trustworthy.
Page 56: T E C H T O O LK I T
TECH TOOLKIT BetterRewards App AVAILABLE FROM:
FEATURES OF THE APP INCLUDE:
Free – you just need some data for downloading
• Easy view of points balance and tier status • Live view of OTP points statement
LOVE IT: The BetterRewards App from BetterBond
• Check your BetterRewards MasterCard balance
provides easy access to rewards and benefits for
• Use the BetterBond Calculator Suite
BetterRewards members. Members can log in using
• Redeem points for rewards
their same credentials as on the web portal and can clearly view their points balance and tier status. The
NO SO MUCH: The BetterRewards App is not
app features estate agent tools in the form of savings
compatible with BlackBerry, however it is compatible
calculators, quick calculators and affordability calculators
with Android and Apple.
to assist you on the go. The BetterRewards App allows easy redemption of points for rewards, access to the
IN A NUTSHELL: If you are a BetterBond member and
concierge service via a one-press Call Me button that
have an Android or Apple smart device, then this app
provides a call back as well as the ability to view Master
has great features and benefits which may be very useful.
Card balances and OTP statements. The BetterRewards App also provides an in app messaging service to notify users of card loads and redemption of points.
Espresso, Wake up with Sound AVA I L A B LE F RO M : R399 L OV E I T: This powerful little Bluetooth speaker packs quite a punch. Available in
Fotor Photo Editor App AVAILABLE FROM: Free –
you just need some data for downloading
five fun, bold colours, Espresso is the perfect accessory to any smartphone, tablet, MP3, PC or Mac with Bluetooth capabilities. The speakers are cordless and have
LOVE IT: It has been voted
a range of up to 10 metres from any Bluetooth connection, allowing you to stream
as one of the top three photo
music wirelessly and listen to loud, clear, acoustics on the go. This is really music
editing apps for Android and
with a difference and can be attached to bags, keys or pretty much anything.
can take a dull photo and
The Espresso has a four-hour rechargeable battery, giving the listener the freedom
make it look professional
to enjoy their favourite tunes for hours on end.
without needing any photo editing skills at all. The app comes with an all-in-one camera with six different camera modes,
N O T S O M U C H : You might have
to check who is around you before
powerful editing tools, FX effects (filters) for different looks, collage options as well as fonts and stickers.
you start blasting your jams around town – it may be slightly offensive to some. I N A N U T S H ELL : It is a fun and
NOT SO MUCH: It might be a bit too basic for some, in which
case a more complex editing app/programme should be used. IN A NUTSHELL: It is so easy to use that anyone can now
powerful little speaker that is great
transform ordinary photos into professional pics on the go.
for all those who just can’t go without
Fotor is no Photoshop, but it’s simple, fun and works well for
their music.
basic image editing.
Page 57: T E C H T O O LK I T
Logitech Ultrathin Keyboard Cover for iPad mini AVA I L A B LE F RO M : R1 247 L OV E I T: For those on the go, the Apple iPad mini is one of the most useful
gadgets you could have. The easy-to-use, lightweight tablet is making waves in the business world and very few are without one. However, typing long emails can be rather laborious and is trickier on the mini than on the larger iPads – enter the Logitech Ultrathin Keyboard specific for the iPad mini. Not only are you able to enjoy a comfortable typing experience, but the keyboard also protects your iPad mini’s screen. At 208g, the Ultrathin Keyboard mini weighs almost a third less than the iPad mini and is available in black or white. This Bluetooth wireless keyboard features EasyType keys for a fast and comfortable typing experience. N O T S O M U C H : The keyboard only serves as protection for the iPad’s screen
and it doesn’t protect the back of the iPad.
I N A N U T S H ELL : Logitech’s Ultrathin Keyboard Cover is possibly the best
keyboard accessory for the iPad mini. If portability and functionality are your game, then this light, efficient and attractive keyboard will become your new best friend. Just make sure you carry a separate protective case. All prices are approximate.
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Page 62: D EV EL O P M EN T U P DAT E
DEVELOPMENT UPDATE RAPID SALES AT NEW FLORIDA HILLS DEVELOPMENT
Flora Clinic), excellent retail outlets (including a massive Hyperama), golf
TW Property’s new 58-unit 535 On Snowdon sectional title development
courses, gyms and quick and easy access to the Johannesburg ring road.
in Florida Hills, Johannesburg has seen an exceptionally fast take-up by buyers. The development, which has been marketed by the Rawson
“Coming on top of a year in which the Rawson Property Group’s Northcliff
Property Group’s Northcliff franchise, is currently 70% sold out. These very
franchise has increased its turnover on the same period last year by 25%,
satisfactory sales have been achieved in only six weeks – and the Rawson
this franchise has shown, yet again, how well suited it is to the average
Northcliff team now expects to be fully sold out by the end of next month.
buyer in Northcliff, Florida Hills and the surrounding areas,” says van der Merwe.
535 On Snowdon consists of four free-standing blocks, all three storeys high, with 180 degree views across the attractive Highveld countryside
Not surprisingly, she says, a fairly high percentage of the buyers are
interspersed with small koppies.
investors who recognise that they will probably be able to achieve monthly rentals of anything from R5 500 to R9 000 on these units when they are
On offer are one-bedroom units selling from R495 000; two-bedroom, one-bathroom units selling from R820 000; and two-bedroom, twobathroom units selling from R895 000. The most expensive unit costs R1 025 000.
handed over from April and May 2015.
V&A COMMITS ADDITIONAL R1.5-BILLION TO SILO DISTRICT DEVELOPMENT The final phase of the V&A Waterfront’s Silo district is on track for an
“However you measure it,” says Petronella van der Merwe, the Rawson
early 2017 completion at a substantial investment of R1.5-billion. The
Northcliff team’s residential manager: “these units represent quite
district is already home to multiple award winning No.1 and No.2 Silo
exceptional value. Floor areas vary from 41.5m² to 72.85m² and the
developments, and is the location of the Zeitz Museum of Contemporary
finishes and fittings are all of a very high quality: Granite countertops,
Art Africa (Zeitz MOCAA) currently being developed in the Grain
Bosch stoves and extractor fans in the kitchen, modern tiles and cupboards
Silo complex. This will bring the total investment by V&A Waterfront
with a choice of two colour options, Hansgrohe bathroom fittings, ceiling
shareholders, Growthpoint and the Government Employees Pension Fund,
fans and built-in braais on the patios. The complex will have wireless
managed by the Public Investment Corporation (PIC), to over R2.5-billion.
Internet availability, a Mircom security system and prepaid electricity meters in every unit.
Four new developments will introduce over 35 000m² of mixed use, sustainable developments including new corporate offices, a residential
Also attractive to buyers, says van der Merwe, is the fact that the area
development, a Virgin Active Classic Health Club and a mid-range
has good primary and secondary schools, medical facilities (notably Life
internationally branded hotel, plus over 1 050 additional parking bays. When completed, approximately 2 500 people will work at the Silo district daily. In a 2012 economic impact study that is currently being updated, the expected nominal contribution to GDP from future developments is R28-billion by 2023. V&A Waterfront CEO David Green says: “With approximately 30% or 180 000m² of the V&A Waterfront property available for development, the Silo district is our current area of short-term development focus. Development at the V&A is market led, in response to a demand we have seen for bespoke commercial offices and urban residential with harbour and mountain views. The intention is to create a vibrant and mixed use sustainable district with sustainability credentials that will offer business opportunities, accommodation, lifestyle options and eateries.’’ The Silo district developments will be focused around the Zeitz MOCAA
535 On Snowdon
that sits at the heart of this district and the surrounding new central pedestrian plaza – Silo Square – providing a gathering place for
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Page 64: D EV EL O P M EN T U P DAT E
V&A Waterfront’s Silo district
aims to achieve a Green Star rating from the GBCSA. SAPOA recently named No.1 Silo, corporate head office of Allan Gray, as the overall winner at the prestigious South African Property Owners Association (SAPOA) Innovative Excellence in Property Development Awards 2014. It furthermore received SAPOA’s Overall Green and Best Corporate Office Development Award. No.1 Silo also ranks as the only South African building to receive a 6-Star ‘As Built’ GBCSA rating, which signifies ‘World Leadership’ in sustainable development. No.5 Silo is due for completion by mid-2016, followed by the residential development, No.3 Silo, in late 2016. A 220-key 8 000m² international, mid-market hotel announced earlier this year will be housed in No.6 Silo and will open in early 2017. The operator for this hotel is expected to be announced in the upcoming months. To accommodate the anticipated increased traffic into the Silo district, enabling works are under way to widen South Arm Road, and an extension of the basement parking area will add an additional 1 050 new
locals and international visitors alike. The district will also build upon
bays to the super basement, bringing the total number of bays to 2 750.
the sustainable pedigree of No.1 and No.2 Silo with all developments
The basement extension is scheduled to be complete by late 2015. Use
targeting a rating from the Green Building Council South Africa (GBCSA).
of the MyCiTi service is supported and encouraged with the Silo bus stop already operational.
This includes working with the GBCSA to develop a new mixed use tool of the 2 750 parking bay super basement that will house the district sea
STRONG DEMAND FOR STUDENT APARTMENTS IN POTCHEFSTROOM CONTINUES
water cooling plant and a number of other district services, including
As the first town within the former Republic of Transvaal, Potchefstroom
sprinkler tanks, back-up generators and diesel storage, potable water and
in the North West province lays claim to many firsts. It is said to be the
gas. The ability of the V&A to provide district wide services, including the
first town to offer its residents Afrikaans- and English-medium churches,
high speed fibre network being rolled out across the entire V&A, enables
it apparently had the first printing press, the first experimental farm and,
the developments and tenants to unlock real sustainable operational
interestingly, was the place where the first qualified teacher set up school.
that will be a first for South Africa. The new developments will sit on top
savings, which will ensure that the Silo district will be at the forefront of 21st century development.
AN OVERVIEW OF THE UPCOMING DEVELOPMENTS
The city’s reputation as an educational environment has remained intact over the years, and today Potchefstroom is home to a number of tertiary education institutions, schools as well as numerous research bureaus and
No.3 Silo will offer approximately 10 000m² of residential space in the
training centres. Potchefstroom is well known for its North-West University
form of approximately 75 luxury one- to four-bedroom apartments, all
(NWU) Campus, which has a history dating back more than a century
offering the same environmentally sustainable benefits as No.2 Silo. In
and a long-standing track record for delivering high quality graduates and
addition to receiving a 4-Star Green Rating from the GBCSA in 2013,
conducting pioneering research.
No.2 Silo has just been ranked as the best residential development in the country by the South African Property Owners Association (SAPOA). The
Furthermore, Potchefstroom is known as the North West province’s ‘Home
new No.3 Silo has similar aims and will seek to redefine luxury.
of Sport’ and serves as the provincial headquarters for many sports associations. The town has also become a favourite training spot for both
In a first for the V&A Waterfront and the Western Cape, No.4 Silo
local and international athletes due to its altitude and relatively clean air
will offer a state-of-the-art 4 000m² Virgin Active Health Club due for
as there is no industry nearby.
completion by early 2016. No.5 Silo will offer 13 500m² of multitenanted office space, and, like all the Silo developments,
Chris Renecle, MD of Renprop, says that the university had more than
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Page 66: D EV EL O P M EN T U P DAT E
20 000 students registered to study on campus during 2014. Currently,
Developments – will be launching The Hub Campus – Potch, a two-storey
around 75% of students are undergraduate students, meaning they will
apartment building with 200 apartments, in two phases. This comes on the
more than likely study at the university for a number of years to come.
back of the success of the Ivy League sectional title development that caters
NWU’s Potchefstroom Campus only has approximately 5 000 beds to
to students wanting to be within walking distance of the university, which
accommodate students within the university residences.
has an exceptionally high rental demand, and which is now fully tenanted.
“The need for student apartments in Potchefstroom will continue to grow,”
Situated just 950m from the NWU’s Potchefstroom Campus, the
says Renecle. “The intake of students at the NWU Potchefstroom Campus
townhouses at The Hub Campus – Potch have been designed with funky
has escalated by 14% over the past five years, at around 5% per year on
interiors that include desks for workstations in the bedrooms. These
average. Student apartments have not increased proportionately to student
sectional title units are available in either one-bedroom, one-bathroom or
growth, despite some private sectional title apartment offerings for students
two-bedroom, one-bathroom configurations. Ranging in size from around
to rent.”
38m² to 53m², prices for these townhouses start from R559 000.
In addition, Renecle points out that application documentation for residence
As security is always top of mind, the apartments at The Hub Campus –
accommodation needs to be completed six months before the start of
Potch are protected with a number of 24-hour security systems, including
the academic year. Applicants are selected based on academic results,
electric fencing, security guards who patrol the property as well as off-site
participation in culture, sport and/or leadership and availability of space.
surveillance and strict access control measures. Communal facilities include a student centre with entertainment facilities
A shortage of student apartments seems to be an issue on a national
including a sports lounge and Wi-Fi access. Residents will also have
scale. Less than 10% of first-year students can be accommodated at their
access to laundromat facilities adjacent to the student centre, with 24-hour
universities, while overall there seems to be a shortage of more than 200
access to washing machines and tumble dryers as well as an external
000 university beds throughout the country, excluding private tertiary
drying yard. Occupation is estimated for the end of 2015 in time for the
institutions. This is according to reports earlier this year based on the
2016 academic year.
Department of Higher Education’s Ministerial Review of South African University accommodation.
“The Hub Campus – Potch presents a phenomenal opportunity for investors wanting to add to their buy-to-let portfolios, or for parents wanting to
In order to cater to the growing demand for student apartments in
secure accommodation for their children. The strong rental demand is set
Potchefstroom, Renprop – in a joint venture with Probuild and True North
to continue as student numbers grow,” Renecle concludes.
The Hub Campus – Potch
9168
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Page 64: WO R D O N T H E S T R EE T
WORD ON THE STREET
“We would like to reiterate that monetary policy should not be seen as the growth engine of the economy. The sources of the below par growth performance are largely outside the realms of monetary policy.” Gill Marcus, South African Reserve Bank (Sarb) governor (Fin24: ‘Sarb hikes repo rate’)
“Surprisingly, residential property is proving to be a better investment choice than commercial property. This is due to the fact that the cost associated with owning residential property is less than commercial property.” Gary Palmer, CEO of Paragon Lending Solutions
“City Power welcomes the decision by the regulator to approve all the tariff increase applications submitted by the utility. These tariff increases strike the balance between raising the required capital to improve infrastructure to ensure a steady and uninterrupted supply of electricity, and the economic realities faced by hard-pressed consumers.”
“We have identified infrastructure development, industrialisation and manufacturing as new game changers. This will be in addition to mining, agriculture and tourism. We have therefore set ourselves an economic growth target of 5% by 2019, and I have no doubt that working together with our social partners, we can achieve this target.”
Sicelo Xulu, City Power MD (SA Commercial Prop News:
Limpopo Premier, Stanley Mathabath, delivering his State of the Province Address (SA
‘City Power electricity tariffs to rise 7%’)
NUMBERS TO KNOW
456%
(Fin24: ‘Rates dent commercial property demand’)
Commercial Prop News: ‘Limpopo Premier aims to grow the provincial economy by 5%’)
According to the latest house price index by the UK Economist magazine, South African residential property is in high demand, with markets outperforming other global markets by attaining 456% growth in house prices over the last 13 years. Fin24 - Rates dent commercial property demand