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ACCELERATED GROWTH AT V&A WATERFRONT FAULTY AUDIT REPORTS COULD CREATE A CRISIS WHAT FIRST TIME BUYERS REALLY WANT
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MAY/JUNE 2014
To give our clients all they want, we give our agents all they need.
In our fast paced world we constantly strive to make things a little easier. That’s why we ensure our agents are equipped with the latest digital tools so that they can deliver a convenient and pleasurable real estate experience to our clients. These include our Property Search App, our Augmented Reality app, our dedicated Mobi-site and our On Show mobi-site. In addition our bespoke CRM system, Alchemy, and associated app, Showcase, provide our agents with instant access to properties and information to help them do what they do best: meet our client property needs simply and effectively. If you would like to be a part of the Pam Golding Property Group and do what you do best, we would love to hear from you: headoffice@pamgolding.co.za
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ED ITO R ’S N O TE
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EDITOR’S NOTE
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It seems that there is always a lot going on in the property industry, whether in boom times or quieter periods. This year is no different. We are nearing the end of the first half of the year and still, at the time of going to print, there is an issue with Fidelity Fund Certificates (FFC) not being issued.
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CEO - PA MEDIA 00295 BETTERBOND DREAMS LOTTERY TEASER CAMPAIGN - EAR PIECES RP.indd While estate agents are going about their daily business of selling homes, it appears as if Shaun Minnie they are doing so illegally. This is due to no fault of their own, but is rather due to the issue that an estimated half of the required Fidelity Fund Certificates for 2014 have not been issued yet, almost six months into the year. The Estate Agency Affairs Board (EAAB) seems to
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be staying mum on the issue, which is unsurprising but very frustrating. While The Property
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Professional once again failed to elicit a response from the Board, we spoke to other industry
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bodies that understand the importance of communication and take a look at what is going on with the FFC issue and what is being done to solve the situation.
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The lack of communication by the EAAB with the industry it serves and the publications that
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asking them to respond to us when we send them queries for comment, and to allow us to help them communicate their issues and requirements with agents through this publication and establish a relationship with The Property Professional that will ultimately benefit the industry as a whole.
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South Africa (REASA) joint venture. The Property Professional also profiles first time buyers
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and their property needs and takes a closer look at how managing agents should deal with
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delinquent tenants.Commercial property ventures in key nodes seem to be flying. In this issue, we explore the planned expansion of the V&A Waterfront in Cape Town and take a look at
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the Eastern Cape investors who are embracing economic development opportunities.
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We also have all the usual regular features, including new agents on the block and top performing agent profiles, as well as news, statistics and market trends. We hope you enjoy turning the pages of this issue. Watch out for our regular electronic newsletters and remember to visit our website, www.propertyprofessional.co.za, like us on social media and share your thoughts, views and news with us.
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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.
3
2014/04/14
CO N T EN T S
CONTENTS 04 INDUSTRY NEWS
12
12 ONLINE LISTING PORTALS FOR ESTATE AGENTS 18 THE REAL ESTATE INDUSTRY - HEADING TOWARDS A CRISIS 22 FINANCE & FIGURES: HOW DO HOME LOANS MEASURE UP? 24 ACCELERATED GROWTH AT THE V&A CONTRIBUTES TO NATIONAL GDP
24
28 DEALING WITH DELINQUENT TENANTS... IS EVICTION THE ONLY ANSWER? 34 EASTERN CAPE INVESTORS EMBRACE ECONOMIC DEVELOPMENT OPPORTUNITIES 40 FIRST TIME BUYERS 44 MARKET SHARE
46 TOP PERFORMING AGENTS 52 NEW AGENTS ON THE BLOCK 56 TECH TOOLKIT 58 DEVELOPMENT UPDATE 64 WORD ON THE STREET
34
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Page 6: I N D U S T RY N EW S
INDUSTRY NEWS IFRS FOUNDATION AND IVSC CO-ORDINATE ON FAIR VALUE
The International Financial Reporting Standards (IFRS) Foundation and
area with wide reaching implications. We have already undertaken
the International Valuation Standards Council (IVSC) have announced
important work in this area, but in order to ensure that fair value is
a joint statement of protocols for co-operation on international financial
measured consistently we recognise the need to interact and exchange
reporting standards and international valuation standards.
information with independent bodies, such as the IVSC, which share with us an interest in this area. The statement of protocols announced today
Both the IVSC and the IFRS Foundations have a shared interest in the
represents a positive step towards achieving this enhanced level of co-
consistent measurement of fair value for financial reporting. Certain
operation within the financial reporting community.”
standards issued by the International Accounting Standards Board (IASB) use fair value as a measurement basis. The IASB has also published IFRS
Sir David Tweedie, chairman of the International Valuation Standards
13 Fair Value Measurement, which sets out the principles for measuring
Council, says, “Strengthening the financial system requires the
fair value when it is required to be used in other financial reporting
elimination of any significant differences in the way that fair value is
standards. The IVSC has standards and guidance on fair value and other
understood, and consequently reported, between different sectors and
valuation measurement and facilitates collaboration and co-operation
markets. Close collaboration with bodies such as the IFRS Foundation
among its member organisations to help ensure consistent application.
will help to continue to improve standards and increase transparency, consistency and confidence in financial reporting. We look forward to
The aim of the agreement is to ensure that both organisations are able
working together.”
to co-operate effectively in this important area with each organisation continuing to assume sole responsibility for their standards.
Kenneth Creighton, RICS (Royal Institution of Chartered Surveyors) director of Professional Standards says, “RICS welcomes these joint
The statement of protocols:
protocols between the IVSC and IFRS Foundations. The benefits of IFRS
• Captures and recognises the nature of the present and continuing
and IVSC will be enhanced by making the direct connection between
co-operation between the IVSC and the IFRS Foundation in
them. Just as both the accounting and valuation professions need quality
developing standards and guidance on fair value measurement that
international standards, we need to ensure those same standards are
will support financial statements prepared in accordance with IFRS.
appropriately connected and working in harmony. For this same reason
• Identifies areas of mutually supportive work that each institution will
RICS is working with peers in the property profession to create and
implement International Property Measurement Standards (IPMS). We
use its best endeavours to undertake.
• Provides for continued future co-operation between the IVSC, the
need to ensure consistent measurement, so we can value consistently,
so we can consistently report financial information. RICS applauds the
IASB and the IFRS Foundation.
IVSC and the IFRS Foundations for making this important and positive Michel Prada, chairman of the IFRS Foundation Trustees, comments,
agreement.”
“Fair value for the purposes of financial reporting is a challenging
NUMBERS TO KNOW Numbers to know is a feature that catalogues the most notable, quirky and surprising statistics in South Africa. See this issue’s countdown…
R500-MILLION Gauteng motorists have racked up more than half a billion rand in overdue fees since the province’s e-tolling system started on December 3 last year, according to Transport Minister Dipuo Peters. Less than 10% of this has been paid. ioL Motoring – Overdue e-toll fees amount to R500m
Page 7: I N D U S T RY N EW S
FEBRUARY STATISTICS FROM OOBA SHOW CONTINUED GROWTH
The latest statistics from ooba indicate that property prices continue
“All of these metrics show continued positive growth in the property
to show positive growth. ooba’s average purchase price recorded for
market, as the result of a combination of lender and buyer confidence,”
February was R958 048 – a healthy 5.4% year-on-year increase and a
says Rhys Dyer, ooba CEO.
month-on-month increase of 0.2%. The initial bank decline ratio at 45.3% is up year-on-year by 1.7% and The average approved bond size was also 3.7% higher year-on-year
up month-on-month by 0.6%. On the other hand, the ratio of applications
and 1.2% higher month-on-month at R811 299. The average purchase
declined by one lender, granted by another at 29.9%, shows a year-on-
price for first-time buyers also showed positive year-on-year growth
year increase of 1.2%. Taken together, these metrics amount to ooba’s
of 4.2% to R728 125. The average approved bond size for first-time
trailing effective approval rate for February sitting at 73%.
buyers was R656 321, which is 2% higher year-on-year. In February, 52% of ooba’s total bond applications were from first-time buyers.
“This shows that ooba is securing approvals for more than seven out of 10 of the home loans that it processes,” says Dyer. “It highlights the
The average deposit recorded by ooba in February was R146 749 or
benefits that ooba offers homebuyers by being able to submit their home
15.3% of the purchase price. This represents a decrease of 5.6% month-
loan applications to multiple lenders, thus ensuring a significantly better
on-month, indicating a greater willingness from lenders to lend at higher
chance of competitive approval.”
loan to value.
MORE DEMAND, MORE BONDS AND THE MARKET KEEPS ON GROWING
The average home purchase price showed a year-on-year increase of
R18-billion worth were applications that were ‘rescued’ because we
11.6% at end-February, and now stands at R882 000, according to
were able to submit and motivate them to multiple lenders.”
the latest statistics from BetterBond. The average bond amount approved showed a year-on-year increase These figures also show substantial year-on-year increases in both the
of 4% at the end of February to R740 000, with the average
number and value of home loan approvals, with BetterBond achieving
percentage of purchase price required as a deposit staying virtually
a massive 12.6% increase in its home loan approval ratio to 76.6%.
static at just under 19%, says Rademeyer.
“We secured more than 52 000 home loan approvals with a total
And there is still strong activity in the first-time buyers’ sector, he notes,
value of R38.3-billion in the 12 months to end-February, compared to
although the percentage of applications being made by such buyers
49 000 approvals valued at R34.5-billion in the previous 12 months,”
has declined, year-on-year, from 53% of the total to 48%, “Probably in
says group CEO Shaun Rademeyer. “This shows continued healthy
response to a drop in the number of 100% (full purchase price) home
growth in the residential property market, with prices rising in response
loans being granted and the simultaneous substantial increase (7.7%)
to higher demand from prospective buyers as well as the higher rate
in the percentage of buyers being asked to pay a deposit of at least
of bond approvals, which enable more of those purchasers to actually
10% of the purchase price.”
buy the homes they want.” The average deposit required of first-time buyers over the past 12 This positive trend is underlined, he says, by the fact that the initial
months has, in fact, been 10.6% of the purchase price, while the
decline ratio for home loan applications made through BetterBond has
average home purchase price in this sector of the market has risen
dropped by almost 19% in the past 12 months, while both the number
8.4% to R628 000, thanks mostly to the fact that new development is
and value of ‘rescued’ applications (those declined by one bank but
still lagging demand.
approved by another) have risen substantially. “Indeed, of the R38.2billion worth of applications approved in the past 12 months, some
Page 8: I N D U S T RY N EW S
SOUTH AFRICA VULNERABLE TO FOREIGN CAPITAL FLOW REVERSALS
The International Monetary Fund (IMF) report on South Africa, released
The catalyst for the reversal in capital flows has been the ‘tapering’ of
in October 2013, discussed the country’s prevailing economic situation
quantitative easing (QE) in the US. It is now widely anticipated that QE
and its future prospects. Although the report’s findings were wide
will be concluded by the end of the year and that interest rates in the
ranging, an observation of particular relevance to South Africa and
first world will begin to rise in 2015. In this environment, South Africa’s
our current investment climate was the IMF’s concern relating to our
ability to attract foreign capital is likely to remain under pressure,
vulnerability to foreign capital flow reversals.
suggesting that bond yields will continue to rise and that the exchange rate will remain weak.
The concern stems primarily from three interrelated issues: 1. South Africa’s high current account deficit: The report highlights that
With volatility set to continue in local markets, the importance of
at 6.8% of GDP South Africa has one of the highest current account
diversification when constructing an investment portfolio is highlighted.
deficits amongst all emerging markets.
Diversification across investment types and across economies helps
2. A risky funding mix: To a large extent, the current account deficit
increase certainty of outcome, as the impact of unexpected market events
has been funded by foreign portfolio inflows which are notoriously
is reduced. In addition to diversification benefits, first world markets
fickle in nature. Foreign ownership of South African listed
are currently offering investors good value. Based on current valuations
equities and government bonds currently stands at 34% and
it is possible to invest in some of the largest and most recognisable
36% respectively. Given the capricious nature of this type of
companies in the world on dividend yields in the region of a healthy
investment, inflows can swiftly switch to outflows.
3-4%. With economic growth prospects steadily improving in these
3. The liquidity of the country’s financial markets: South Africa has the
regions and taking into consideration the rand’s vulnerability to a
slowdown in foreign capital inflows, the investment case for offshore
biggest and most liquid stock exchange in Africa.
equities remains compelling. Retired investors are likely to benefit from Consequently, if foreigner investors decide to sell South African bonds
higher bond and property yields in the future, however, while bond and
and equities, this process can take place quickly, leaving the country
property yields are rising, investors will experience capital loss and
short of the capital required to maintain its current level of expenditure.
hence should avoid these asset classes. Investors will be best served
Since the beginning of 2014 this risk has turned into a reality,
by investing in companies that are able to grow their earnings and
exposing South Africa’s economic vulnerabilities. For the year to
dividends in challenging economic conditions. For retired investors
date, foreigners have sold approximately R27-billion’s worth of
holding a portion of their investments in cash, they are likely to benefit
South African government bonds, resulting in higher yields and a
from rising interest rates in South Africa.
depreciating currency.
PROPSYS SOLUTIONS ACQUIRES NICOR IT CONSULTING AS PART OF GROWTH STRATEGY PropSys Solutions, a leading property management software
suite of products with a richness of features that will now differentiate
organisation, has acquired Nicor IT Consulting. Marius Vermeulen,
the company even further from their closest competitors. The total
ProSys Solutions CEO, says that the acquisition of Nicor IT Consulting, a
staff complement of PropSys Solutions is now 26 individuals based in
company with 37 years’ experience, was fundamental to the company’s
Johannesburg and Durban. “The joint experience of the two companies
growth strategy and offering in this constantly evolving industry.
and best-in-market property management software solutions enable us to provide leading-edge service as well as anticipate our clients’ demands
PropSys Solutions was established in 2003 and delivers a unique
and requirements,” says Vermeulen.
combination of quality software systems and support service solutions to a variety of customers. “As we enter this new phase, we will be
The merger was effective from 1 March 2014 and Vermeulen is
branching out across the industry, continuing to provide a superior
confident that PropSys Solutions’ stable operating environment together
service as well as state-of-the-art systems and programmes to our
with the combined industry experience of the two units will further set the
clients,” he says. With over 21 years’ experience in the property market,
company apart.
Vermeulen is certain that PropSys Solutions provides an unrivalled
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Page 10: I N D U S T RY N EW S
SOUTH AFRICA VULNERABLE TO FOREIGN CAPITAL FLOW REVERSALS
The International Monetary Fund (IMF) report on South Africa, released
The catalyst for the reversal in capital flows has been the ‘tapering’ of
in October 2013, discussed the country’s prevailing economic situation
quantitative easing (QE) in the US. It is now widely anticipated that QE
and its future prospects. Although the report’s findings were wide
will be concluded by the end of the year and that interest rates in the
ranging, an observation of particular relevance to South Africa and
first world will begin to rise in 2015. In this environment, South Africa’s
our current investment climate was the IMF’s concern relating to our
ability to attract foreign capital is likely to remain under pressure,
vulnerability to foreign capital flow reversals.
suggesting that bond yields will continue to rise and that the exchange rate will remain weak.
The concern stems primarily from three interrelated issues: 1. South Africa’s high current account deficit: The report highlights that
With volatility set to continue in local markets, the importance of
at 6.8% of GDP South Africa has one of the highest current account
diversification when constructing an investment portfolio is highlighted.
deficits amongst all emerging markets.
Diversification across investment types and across economies helps
2. A risky funding mix: To a large extent, the current account deficit
increase certainty of outcome, as the impact of unexpected market events
has been funded by foreign portfolio inflows which are notoriously
is reduced.
fickle in nature. Foreign ownership of South African listed
equities and government bonds currently stands at 34% and
In addition to diversification benefits, first world markets are currently
36% respectively. Given the capricious nature of this type of
offering investors good value. Based on current valuations it is possible
investment, inflows can swiftly switch to outflows.
to invest in some of the largest and most recognisable companies in the
3. The liquidity of the country’s financial markets: South Africa has the
world on dividend yields in the region of a healthy 3-4%. With economic
growth prospects steadily improving in these regions and taking into
biggest and most liquid stock exchange in Africa.
consideration the rand’s vulnerability to a slowdown in foreign capital Consequently, if foreigner investors decide to sell South African bonds
inflows, the investment case for offshore equities remains compelling.
and equities, this process can take place quickly, leaving the country short of the capital required to maintain its current level of expenditure.
Retired investors are likely to benefit from higher bond and property yields in the future however, while bond and property yields are rising,
Since the beginning of 2014 this risk has turned into a reality,
investors will experience capital loss and hence should avoid these asset
exposing South Africa’s economic vulnerabilities. For the year to
classes. Investors will be best served by investing in companies that are
date, foreigners have sold approximately R27-billion’s worth of
able to grow their earnings and dividends in challenging economic
South African government bonds, resulting in higher yields and a
conditions. For retired investors holding a portion of their investments in
depreciating currency.
cash, they are likely to benefit from rising interest rates in South Africa.
RICS CALLS FOR ACTION IN PROMOTING THE BENEFITS OF STRATEGIC FACILITIES MANAGEMENT TO BUSINESS
Facilities managers share a global need to prove the value of Facilities
This is due, in part, to facilities managers being denied access to
Management (FM) to board level directors, a new global RICS (Royal
board level. The research found these barriers, which prevent the
Institution of Chartered Surveyors) report reveals.
practitioners from “acting more strategically”, are consistent across both geographies and industry sectors. Authored by Occupiers Journal
Launched recently (29 January 2014) in Washington DC, the ‘Raising
Ltd, the report builds on findings from RICS’ 2012 research, ‘Raising
the Bar: City Roundtables Research Report (Phase II)’ calls for innovative
the Bar: Enhancing the Strategic Role of Facilities Management (Phase
new dimensions of measurement to prove FM’s effectiveness and its
I)’, which provided robust evidence for high performing organisations
impact on productivity and profitability. This will give facilities managers
to introduce FM as a strategic management discipline. The research
the tools they need to engage with business leaders around the world,
also provided recommendations to support leading FM practitioners in
who are currently too often divorced from and disinterested in FM.
becoming more strategic.
IMPORTANT CONSIDERATIONS FOR A PROPERTY SELLER There are always a myriad questions that arise when a property is sold, from the side of both sellers and purchasers. The conveyancing procedure can be very daunting for parties, with costs and processes in the transfer of a property often being misunderstood. Here we address some of the most common questions to assist you in your transaction. MY PROPERTY IS BONDED. SHOULD I SUPPLY CANCELLATION NOTICE TO THE BANK? Yes. A property cannot be transferred without cancellation of the existing bond and banks require at least 90 days notice of a seller’s intention to cancel his bond. A seller should therefore, as soon as possible, hand a bond cancellation notification to the nearest branch of his bank and retain a copy thereof, dated and stamped by the bank, to give to the conveyancer that attends to the property transfer. WHAT HAPPENS IF I DO NOT GIVE THE BANK A FULL 90 DAY NOTICE? Banks will charge you a penalty interest for early termination, which is usually equal to the daily rate of interest for the number of days of short notice. WHO PAYS THE ADVANCE RATES REQUESTED BY COUNCIL FOR ISSUING THE REQUIRED CLEARANCE? The seller is obliged to pay the advance amount, usually 120 days future rates and consumables. The seller must also settle all
outstanding amounts. The relevant figures are obtained by the conveyancer and the seller must pay the required funds to the conveyancer immediately when requested. Failure to do so will delay the transaction. WHO PAYS THE CONVEYANCING AND OTHER COSTS? Purchasers are liable for both the transferring and the bond attorney’s fees. These are separate transactions. Purchasers are furthermore liable to pay the transfer duty, required by SARS, upfront in cash as this is needed to apply for the transfer duty clearance. Without this, the transaction cannot be lodged in the deeds office. Purchasers must also remember that in sectional title transfers additional costs may be payable in respect of any parking bay, garage or other use area, these often requiring separate registration of notarial cession agreements. Sellers pay the agent’s commission, the municipal rates and the cancellation fees of the attorney appointed by the existing bondholder to registering the bond cancellation. For assistance in your transaction, contact us at www.stbb.co.za
st
more than ju
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.
www.stbb.co.za Cape Town 021 406 9100 | Claremont 021 673 4700 | Fish Hoek 021 784 1580 | Table View 021 521 4000 | Tygervalley 021 943 3800 Somerset Mall 021 850 6400 | Illovo 011 219 6200 | Centurion 012 001 1546 | Bedfordview 011 453 0577 COMMERCIAL LAW | CONVEYANCING | EMPLOYMENT LAW | ESTATES | FAMILY LAW | LITIGATION | PERSONAL INJURIES & 3 RD PARTY CLAIMS
Page 12: I N D U S T RY N EW S
The latest report considers previous recommendations and surveyed
Based on the findings of the research, RICS will also:
FM professionals across six continents and 12 economically
• Work alongside FM leadership groups, from end user and service
different cities, including London, New York, Hong Kong, Sydney
provider perspectives, to construct a maturity model that will identify
and São Paolo, where they identified ‘A Dozen Challenges’ to the
the building blocks necessary to achieve FM market maturity.
profession answered by ‘A Dozen Recommendations’ to the
• Build the perception of the FM brand in order to attract high calibre
FM market.
newcomers into the profession.
• Continue to develop qualified facilities managers, building in the Johnny Dunford, global commercial property director at RICS, says,
“After staff, property is the biggest expenditure of most businesses,
• Develop and advocate a more ‘balanced scorecard’ for addressing
proven ability to ‘think and act’ strategically.
hence the importance of integrating FM within the overall business
the effectiveness of FM.
strategy. This research proves that there can often be too many layers between senior FM staff and the CEO. Change cannot be
The report also offers the author’s own interpretations and
made until FM is taken seriously at board level and to achieve this
recommendations for FM moving forward. Paul Carder, managing
the industry must raise its profile with business leaders. As a global
director at Occupiers Journal Ltd, says, “Practitioners and businesses
body acting at all levels of the industry, RICS is uniquely placed in
are telling us that the time has come for facilities management to
leading the professionalisation of FM. Based on recommendations
embrace a strategic approach. Today, for instance, the average head
within the report, we will work with business leaders to raise the
of facilities spends over 50% of his or her time on day-to-day issues
profile of FM by defining professional standards and clarifying FM’s
and less than 21% of their time on strategy and planning. This needs to
role in helping make organisations more effective.”
change for FM to fully realise its potential.”
PRIVATE PROPERTY WEBSITE WINS INTERNATIONAL AWARDS
For the year 2013 Private Property received an Outstanding
functionality of the site.COO Simon Bray says that the website’s design
Achievement Award in the ‘Real Estate’ category, with an overall score
– both visual and its underlying code – is significant in that it presents a
of 95%. The portal also received the accolade in the ‘Lifestyle’ category
market-leading innovation in the South African online property market.
recently with a score of 478 out of a possible 500, with content and
The interface is interactive, intuitive and inspirational.
functionality scoring 99% and 98% respectively. In 2013, in a first for the South African property industry, the company Private Property’s CEO Justin Clarke says, “These are extremely
migrated to Microsoft’s Azure cloud platform to deliver a seamless,
challenging awards to win. We are proud that the IMA awards
responsive version of its website. Says Bray, “We believe that we deliver
recognise our high standards of planning, execution and overall
the best property browsing experience available in South Africa, for both
professionalism. We have all of South Africa’s best property in one place
desktop and mobile devices.”
for buyers and renters to peruse. Private sellers, estate agents, banks, developers and landlords all list with us to give our browsers the widest
Never before has a property website been optimised like this for mobile
variety of properties to be found on any South African portal.”
devices. Now, when a browser navigates to www.privateproperty.co.za, the website recognises the device’s type and screen size, and responds
In January 2014, Private Property delivered more than a million quality
by giving the best possible version of the site for that device – whether it
leads to its advertisers, and this can definitely be attributed to the new
is mobile or not.
NUMBERS TO KNOW
R5-MILLION
Murder-accused paralympian Oscar Pistorius has to sell his house in the Silver Woods Country Estate in order to fund his legal costs. In his affidavit submitted to the court during his bail application last year, Pistorius said his Silver Woods house was valued at about R5 million. ioL News - Oscar to sell house to pay for trial
Page 13: I N D U S T RY N EW S
CAPE TOWN INDUSTRIAL PROPERTY VACANCIES CONTINUE TO REDUCE The amount of vacant industrial premises to rent in
“This is due to a number of recent (second half of
Cape Town has steadily been reducing for the last
2013) larger lettings as well as a number of new
24 months. This is according to Tony Bales of Epping
vacancies of smaller spaces,” advises Bales. “The
Property, industrial property specialists who track the
total space available to rent in Epping has decreased
level of vacant space available for tenants to rent in the
steadily for the last eight quarters and it is an
greater Cape Town area.
interesting fact that there are not too many larger
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spaces left to rent in Epping.” The company’s latest Epping Industrial Property Index has been released for the fourth quarter of 2013 (Q4).
“This shortage of larger, more modern premises has
“As Epping is the most central and largest industrial
prompted various landlords and developers to initiate
area in Cape Town, its statistics can be regarded
projects to cater for this market and these statistics show
as a proxy for the rest of Cape Town,” says Bales.
the continuing confidence medium and large businesses
According to the Epping Industrial Property Index, the
have in Epping – both as property owners and property
average size premises available to rent in Epping has
users. Epping continues to offer good all-round value
decreased significantly from 2 330m² to 1 650m²,
to owners and tenants, both financially and in terms of
and the average (weighted) asking rental has risen to
location,” concludes Bales.
R37.15/m².
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www.leapfrog.co.za
The latest available statistics from the Department of NUMBERS TO KNOW
12 428 069
Basic Education show that in 2012 South Africa had 12 428 069 pupils and students enrolled in public and independent schools. Of the total enrolled learners, 11 923 674 (96%) were in public schools and 504 395 (4%) were in independent schools. SouthAfrican.info – Education in South Africa
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Page 15: O N LI N E LI S T I N G P O RTA L S F O R ES TAT E AG EN T S
ONLINE LISTING PORTALS FOR ESTATE AGENTS ALWAY S K N OW YOU R OP TIONS
The joint venture which saw Korbitec, Property 24 and
if they had “successfully registered a minimum of 50
the Real Estate Agencies of South Africa (REASA) unite
property sales per month for at least three of the past
to create a joint opportunity for Korbitec and Property
six months and that they have earned commission from
24 to become the leading property portal and for
these sales, which was later reduced to 25.” Leading
estate agents to list online, has been terminated. This
industry brands were instrumental in formulating the
has left many estate agents worried about the future
agreement. However, the independent agencies in
and what prices they will be expected to pay now that
South Africa were unaware of the fact that they would
Korbitec and Property 24 have gained dominance in
effectively be subsidising the bigger brand offices
the industry. What other options are out there?
through a percentage of their subscription paid back
5%
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to the brands as a rebate. It is hard to say whether The first question one must ask is: Was the joint venture
industry was led to believe that Property 24/Korbitec
that saw Naspers-owned Korbitec and Property 24
could effectively have collected the fees due for the
create a joint venture with estate agents, on a success-
revenue model to work. Industry was convinced by the
based-fee (SBF) model, fair? Was the model simply a
Property 24/Korbitec stable that they had the ability
means to an end or a genuine bid to move property
to report on and collect fees due on sales in South
online? The venture undertaking clearly states that the,
Africa. Their reasoning was that they controlled and
“business scope of the joint venture will be to build
dominated the software that would allow them to have
a customer base of estate agencies/ groups who
access to this information. Why then did the model not
subscribe to the SBF model and make use of some or
work? They were clearly not able to successfully collect
all of the services.” Services that are paid for by the
the fees and agents were unable to meet the minimum
users and paid to the joint venture which then splits
requirements and this saw the model terminated.
them 70% - 30% between Korbitec and the group representative ( estate agency) with an additional 10%
So why was it so successful? The revenue model
reverting back to Korbitec as a collection fee. But only
proposed that an agency would have access to
bigger agencies could effectively participate in the
a software solution and exposure on the property
profit sharing; the contract states that an agency could
portal, Property 24, for free, paying only a nominal
only become part of the shareholder scheme above
fee per successful sale, this being a turnover-based-
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Page 16: O N LI N E LI S T I N G P O RTA L S F O R ES TAT E AG EN T S
fee model. The majority of the estate industry seized the opportunity
Another issue that was originally raised and never went further after
and gave Property 24 the valuable agency stock they needed. So who
the deal was first put on the market was that of anti-competitiveness.
benefitted most from this venture? Bigger agencies or smaller agencies?
Could the fact that Naspers owns Multichoice, Korbitec and Property
While the pricing was particularly beneficial to the smaller agencies as
24 be construed as anti-competitive in the property industry? One could
it was based on their sales and no or few sales meant they paid less for
certainly arrive at that opinion if one thinks of preferred advertising rates
marketing, the smaller agencies were locked out of the rebates offered to
being provided to Property 24 and Korbitec to grow their market share
their bigger counterparts. The bigger offices were paid rebates back pro
through aggressive television campaigning on Naspers networks. Also,
rata based on the sales they did as a percentage of their shareholding
not charging a ‘fair’ rate for a service compared to competitors, that
in the joint venture. Smaller agencies paid less and larger agencies
then prejudices the competition, can be construed as anti-competitive.
received some of the money they had paid back through the rebate
While the legality of the venture is not in question and legally the venture
scheme, so both parties benefitted.
was not in any way anti-competitive, there are a lot of estate agents that question how fair the media giant’s practice is and how much healthy
Now two years down the line Korbitec has terminated this agreement,
competition it supports. Korbitec has used the success of the Property 24
due to a clause contained in the original agreement that stated that 40%
site as a lever to ensure that all customers move to their software. This
of the smaller agencies had to succeed. If Property 24/Korbitec were
is dangerous because once you are locked into a software, it is very
so confident that collection would not be a problem, why then have this
difficult to move away. Having alternative software options in the market
clause and why has nobody questioned their ability to deliver on this
is vitally important. If need be, industry must capture to each of the
promise? A very good question, indeed, considering the termination of
portals independently. A better option is that you use a software solution
the agreement and the fact that all agents will now have to pay to list,
that has feeds into the portals.
with a substantial increase in the rates in August. So why did no one question their ability to deliver on this? It would seem that the benefits and
Estate agents should be wary of any technology that, in essence,
the package offered on the joint venture were so good that most agents
dominates the market and excludes anyone who doesn’t wish to use
overlooked any suspicions they had and used this method of online listing.
it. Instead, estate agents should be looking at developing their own
Page 17: O N LI N E LI S T I N G P O RTA L S F O R ES TAT E AG EN T S
methods of online listing, rather than relying on
Another option available is the Estate Agent Portal
one method. Jan le Roux, CEO of Leapfrog, says,
Company, which has purchased 40% of the shares in
“Property24 did and are still promoting the exclusive
iolproperty.co.za and is in the process of purchasing
use of Prop Control and is enforcing same by not
a further 10%; these shares will be made available
allowing data feed from, for example, Fusion. One
to all practising estate agents on a national basis.
can assume that this was partly due to the importance
The creation of this alternative portal was in a large
of the so-called ‘seven sisters’ (property control allowed
respect due to the fears of dominance of one portal
the agency to list property for sale and to rent and then
and what that would mean for estate agents who
electronically send the listings to Property 24 as well as
would have no other option but to pay the new fees.
their preferred service providers, like attorneys, beetle certificates, electrical compliance, bridging finance and origination. These service providers would then need to pay Korbitec to receive the instructions. This was called the ‘seven sisters’). With all the fears that agents should have about dominance by one portal in the market, to allow dominance by one software package is equally threatening. Fusion is a much more modern package and is not only available to all agents but it also belongs to estate agents. All agents subscribing to Fusion become equal shareholders in the process. I therefore cannot agree more that agents should be aware of this and actually invest in their own future in this regard. This is not only an essential strategic investment but would also give agents access to the best that is available in the market at the moment.” While portals are vital for success you should never be dependent on one single portal for the success of your business; agents must ensure that they trust the portal they deal with. Portals are businesses that fulfil a vital role in the real estate chain and are specialists in their field of expertise. It is fair to assume that the move
“WITH THE INDUSTRY’S SUPPORT WHICH WAS OBTAINED BECAUSE OF THE REASA TRANSACTION AND WITH THE MARKETING SPENT, PROPERTY24 TODAY IS A HUGELY SUCCESSFUL PORTAL AND IS ALREADY A MARKET LEADER IN SOUTH AFRICA WITH ALL THE DANGERS THAT IT ENTAILS. AGENTS SHOULD ENSURE THAT THEY KEEP BUILDING AND IMPROVING ON THEIR OWN WEBSITES BUT ALSO TO SUPPORT THE OTHER PROPERTY PORTALS THAT ARE ALSO VERY SUCCESSFUL. ESTATE AGENTS HAVE OBTAINED A 40% SHAREHOLDING IN IOLPROPERTY.CO.ZA WHICH BODES WELL FOR THE FUTURE.”
from print media to online media will bring about reduced costs in marketing. So, good competition from portals and tough negotiations with your trusted portal of choice is vital.
Le Roux says, “With the industry’s support, which was obtained because of the REASA transaction, and with
With an increase in rates from Property 24 and
the marketing spent, Property 24 today is a hugely
Korbitec, estate agents need to look at their options
successful portal and is already a market leader
and ensure they are utilising all methods effectively.
in South Africa with all the dangers that it entails.
There are other options available, one of which is
Agents should ensure that they keep building and
Private Property and its portal. Each portal has its own
improving on their own websites but also to support
merits but this could come down to the price agents
the other property portals that are also very successful.
are prepared to pay to use their services.
Estate agents have obtained a 40% shareholding in
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Page 18: O N LI N E LI S T I N G P O RTA L S F O R ES TAT E AG EN T S
iolproperty.co.za, which bodes well for the future.” John Roberts of Just Property says, “Unfortunately most of the major players agreed to the proposal and joint venture with Korbitec, which has effectively
OPEN LETTER TO MR CHAPLONG
been instrumental in driving sufficient listings to their portal to elevate it from a poor second to the number one portal from a listings and lead perspective. Once Property 24 makes its intentions clear as to what the new pricing module will be, we will have a clearer picture of what industry stand to do. Do we boycott Property 24 and stop feeding listings or negotiate a better deal on behalf of industry? No one knows. Justin Clarke, CEO of Private Property, believes the collapse of the REASA agreement was inevitable. “No portal, regardless of its financial backing, can continue to market as aggressively as Property 24 without a sustainable revenue model. There are some clever guys in the Naspers stable but simple maths will show that the REASA agreement was not viable from day one. The question remains: Was REASA a tactical move to get industry on board, or did someone make a serious error of judgement? We anticipated the collapse of the success-based fee, and refocused our efforts on leading the market in innovation and providing real value to our customers. Competition in the portal space now is especially healthy for industry but there is no doubt Naspers will be looking to get some return on the massive investment that has been made in
Dear Mr Chaplog I’m writing to you on behalf our readers who are estate agents. These individuals are at the mercy of the Estate Agency Affairs Board (EAAB) for the issuing of Fidelity Fund certificates. Large numbers of estate agents are extremely frustrated by the lack of communication displayed by your organisation. Telephone calls often go unanswered, emails are not responded to and messages to return calls are ignored. If this weren’t bad enough, it is virtually impossible for The Property Professional magazine to clarify issues in order to write well-balanced articles that portray both sides of the story as regardless of what is asked, the correspondence remains unacknowledged and the questions unanswered. At the time of writing, there are thousands of agents who have not been issued with valid Fidelity Fund certificates – a terrifying thought given that it is illegal for agents to sell property if they are
Korbitec and Property 24.”
not in possession of this important document. We regard this matter
JP Farinha, CEO of Property24, replied, saying only: “Despite the
on behalf of our readers, the EAAB seemingly brushed aside the
many inaccuracies contained in the article, we are grateful for the opportunity to reply and we do take respectful notice of the opinions expressed therein. REASA was a first attempt by Korbitec and Real Estate South Africa to support the industry’s transition into the digital era on an inclusive and arm’s length commercial basis. Korbitec will continue in its endeavours to provide all stakeholders in the real estate industry with world-class products and services that represent a fair
in a most serious light and yet despite attempts to illicit a response need to respond and ignored the correspondence completely. Communication is key in any modern democracy and relatively small problems can easily become major crises if those who are employed to govern an industry fail to talk directly to the people affected. While it could be argued that the Board has no direct sanction to answering questions from the media, you have to bear in mind
exchange of value.”
that you could be alienating your members by acting this way. A
As an estate agent it is always a good idea to keep your options
offers you the ideal opportunity to communicate en masse with your
open and investigate what other portals are available and what best suits your needs, whether you are a one-man show or a large franchised company. With costs in South Africa continuing to rise, there is an urgent need for good competition in portals to ensure that there are competitive options for estate agents of all varieties. And with the current status quo set to change, there is no better time than right now to investigate the other options available, be it Private Property, Fusion, IOL or Property 24.
dedicated publication such as The Property Professional magazine members and, of course, obviates unnecessary individual queries being raised if you show yourself to be accessible by providing relevant, important information in a timely manner. Please bear in mind that the purpose of the exercise is to inform, educate and enlighten estate agents, not to criticise the Board per se. We are not the only ones to have concerns. When asked if REBOSA believed that communication between the Board and agents could be improved, the head of the organisation, Jan Le Roux, responded:
BY COLLEEN MAY
Page 19: O P EN LE T T ER T O T H E E A A B
“The EAAB has regular roadshows and utilises
person for one area and phone another dedicated
that to a big extent to communicate. The problem
person for another. This is clearly not how the
is that not all agents attend. Some communication
private sector works, where the client is the most
is done through Agent – again not all agents
important and one contact point in a business
receive nor read the publication. The EAAB
will ensure, as far as possible, that the clients’
has or should have the email addresses of all
needs are met. In this case, it works differently
estate agents and electronic communication is
and not too well at the moment. Should all these
the most effective and economic. We think short
dedicated people be accessible to estate agents
emails with to-the-point messages/instructions/
and should estate agents really know which one to
updates to all individual estate agents would be
contact, this may improve, but we do believe some
the most effective and immediate. To the best of
troubleshooting will always be necessary.”
our knowledge this does not happen, but I can’t imagine any reason why not.”
We understand that while, in the case of the issuing of Fidelity Fund certificates, it is easy for agents to
When asked the same question, Jeanne van
point fingers and hold the Board responsible when
Jaarsveldt from the Institute of Estate Agents said:
the agents themselves have not complied with the necessary requirements. However, from what has
“Many principal owners have resolved to physically
been conveyed to us by numerous agents is that
going to the EAAB offices in Sandton to resolve any
no one at the Board has contacted the agency
problems (for example) the issuing of their 2014
concerned to inform them that there is a problem.
FFCs. It seems the process at the EAAB office is
Surely it is the responsibility of the Board to inform
relatively streamlined, but we find that principals
those affected either directly or via the media that
who do not have the luxury of being in the Gauteng
there are issues that need to be resolved before a
area find it more difficult to resolve issues.”
Fidelity Fund certificate can be issued?
This has undoubtedly led to many agents feeling
We have publicly asked for better communication
totally helpless.
between the Board and the media at various EAAB
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roadshows. Despite receiving assurances that the Mr Le Roux notes that estate agents are incredibly
Board wants to keep the lines of communication
frustrated – maybe not so much with communication
open, we have yet to experience the benefit of such
in general as with responses from the EAAB to
a promise in everyday practice.
emails or answering of telephone calls. We would like to hear your opinion on all of the “As we understand it the EAAB is doing its level
above and are hoping for a response that will
best to computerise everything and they have in the
open future lines of communication about this
process compartmentalised the entire operation.
important matter.
This means that there are specific people dealing only with specific issues. No estate agent is in
Yours sincerely
a position to phone one person at the EAAB to
The Editorial Team
address a variety of issues and this has probably
The Property Professional magazine
not been communicated well. It seems that their planning is that one should phone one dedicated
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Page 20: T H E R E A L ES TAT E I N D U S T RY - H E A D I N G T OWA R D S A C R I S I S ?
THE REAL ESTATE INDUSTRY - HEADING TOWARDS A CRISIS? IF THE N UMBERS A RE TO B E B E LIE VE D, A P P ROX I MAT ELY H A L F OF S OUT H AF RICA’S REAL ESTAT E A GE NCIE S A RE OP E RATING W I T H OUT A FI D EL I T Y F UN D C ERTIF IC AT E .
Page 21: T H E R E A L ES TAT E I N D U S T RY - H E A D I N G T OWA R D S A C R I S I S ?
There is a major crisis brewing in the real estate industry and strangely
through absolutely no fault of their own, have not received the doc-
enough, very little, if anything, is being said about it in the mainstream
umentation needed to practise as an estate agent.
media. No matter which way you twist or turn it, the fact that thousands upon thousands of Fidelity Fund Certificates (FFCs) have not been issued to
REBOSA and the Institute of Estate Agents have become involved and
estate agencies is of huge concern. What is more concerning, however, is
are going all out to ensure that the situation is resolved as quickly and as
the total lack of communication from the Estate Agency Affairs Board
painlessly as possible. However, agents on the ground who wish to
(EAAB). It appears that very few of those directly affected have been able
remain anonymous believe that the situation is very serious and that the
to find answers as to why their FFCs have not been approved.
EAAB should never have allowed things to deteriorate to this level. They add that once the Board had realised that there was a problem, it
Property Professional magazine tried to elicit a response from the Board
should not only have contacted the agencies concerned, but should also
but, despite a request for confirmation of receipt from both the CEO and
have put together a staff contingent dedicated to sorting out the issues as
his PA, as well as a lengthy deadline in which to re-spond, once again
quickly as possible.
we were met with a deafening silence. While this article will be focusing on the FFC issue, it is worth noting that we have penned an open letter
One would think that given the seriousness of the situation, the Board
to the EAAB discussing its total lack of communication, both with agents
would have gone all out to ensure that those affected were notified and
and the media. This will hopefully help open the lines of communication
directed as to how to fix the problem. However, it appears that very little
once more.
was done until the matter became critical and REBOSA and the Institute became involved. Agents maintain that their efforts to find out why their
It has been estimated that approximately half of the required FFCs are
FFCs have not been issued have been frustrated by EAAB staff members
currently outstanding for 2014. As if that wasn’t bad enough, it has
who don’t appear to understand the gravity of the situation and who
come to light that many agents have been waiting since 2012 to receive
have neither the knowledge nor power to resolve the matter.
their FFCs. Although the issue is quite complex, it does appear that the main problem lies with the audit reports. While it is a given that some
Of course there are always two sides to a story and, to be fair to the
agencies have not submitted an audit to the Board, many have and,
Board, there are agents who have blatantly ignored the requirements,
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perhaps assuming that the Board will overlook their transgressions.
obvious that the matter needs to be addressed urgently and safeguards
However, there are also many cases where the auditors employed have
put in place to ensure that something like this never happens again.
made mistakes. The apathy currently being displayed by the EAAB is never going to be T H ER E A R E N U M ERO U S EXA M P LES O F W H Y T H E
acceptable. The lack of response to a magazine that speaks directly to
T H ES E I N C LU D E :
the crisis and does it understand the devastating impact this situation
• Failure to submit an audit report.
are yes, it is and yes, it does, the total lack of communication makes
• Principals who failed to submit audit reports for both their trust and
it appear otherwise and this is something that needs to be addressed
urgently.
B OA R D CA N N O T C U R R EN T LY I S S U E A N F F C A N D
business accounts.
estate agents begs the questions, is the Board remotely concerned by could have on the property industry as a whole? Even if the answers
• Late submission of audit reports. • The audit reports were submitted in the wrong format.
Perhaps it’s not surprising that agents are unwilling to go on record - given
• Audit reports that were compiled by an accounting officer and not a
the numbers, it is evident that many estate agents are currently operating
illegally. You have to feel sorry for those who, through no fault of their
registered auditor.
• Correct audit reports sent, but mislaid by the Board.
own, now find themselves facing an uphill battle to secure the right to operate as an estate agent. Those who are willing to speak out tell stories
American author Ben Bova once stated, “Red tape has killed more
of being sent from pillar to post at the EAAB, and of inexperienced staff
people than bullets...”. It may be a harsh statement, but not having an
who have no idea how to resolve the issue. However, the biggest and
FFC could have a calamitous effect on agents and agencies across the
most frustrating thing of all is the total lack of communication between the
country, and people’s livelihoods are at stake. Agencies generally
Board and agents and principals. Surely the time has come for the EAAB
employ more than a couple of agents, and they also have admin staff to
to consider employing competent people to help resolve this issue? What
consider. These people have families to support, school fees to pay and
is the point of having a hotline when the person on the other end of the
mortgages to service. The sheer number of outstanding certificates is
phone has no idea what you are talking about and cannot offer the
pretty hair-raising on its own, but when one considers the number of
necessary solutions.
people who will be directly affected by the lack of an FFC, the situation becomes terrifying. While no one is suggesting that the EAAB overlook
The good news is that all is not lost and both REBOSA and the Institute of
agents and agencies who blatantly disregard the rules, it is pretty
Estate Agents are not only aware of the problem, but are actively
Page 23: T H E R E A L ES TAT E I N D U S T RY - H E A D I N G T OWA R D S A C R I S I S ?
“We think the communication could be better but any lack thereof is probably caused by the backlog that has now occurred. In any big organisation one does have the problem that if things start piling up, everything suffers in the process, communication being one of them.”
working towards a resolution. According to recently appointed head,
Jeanne van Jaarsveldt, chairman of the Institute of Estate Agents, says
Jan Le Roux, REBOSA is actively communicating with the Board, and has
that the institute’s offices have noticed an increase in the number of
held several meetings. “We have managed to negotiate the placement of
agents looking for assistance regarding the non-issue of Fidelity Fund
two REBOSA staff members in the offices of the EAAB. Their sole
Certificates.
responsibility will be the rendering of assistance to REBOSA members who are experiencing delays in receiving their FFCs. These staff
While Van Jaarsveldt agrees with Le Roux, he notes that the EAAB gave
members have been available from 17 March and all REBOSA members
principals ample time to get their financial ducks and new audit
have been advised to direct their queries to rebosa@eaab.co.za and to
requirements in a row. “It has become evident that most of the problems
myself to ensure effective assistance.”
are due to principals ignoring the new requirements outright or not communicating the requirements to their auditors.”
He adds that, given the above, it is apparent that the Board is taking the matter very seriously and to the best of REBOSA’s knowledge, is
Regardless of who is to blame, it is evident that the situation needs to be
doing what it can to address the issue. When asked about the lack of
resolved as quickly as possible. Van Jaarsveldt highlights this when he
communication, Le Roux said: “We think the communication could be
says: “The situation could snowball if the matter is not resolved. We are
better but any lack thereof is probably caused by the backlog that has
four months away from the deadline for the 2013/14 audit reports.
now occurred. In any big organisation one does have the problem that
Given that some agencies are still struggling with problems from the
if things start piling up, everything suffers in the process, communication
2012/13 financial year, this could result in some agencies operating for
being one of them.”
two years without a valid FFC. The institute strongly advises that members who are experiencing problems contact our offices in order for
He also raises a very good point when he notes that the problem could
us to help resolve these.”
have been less severe had every principal responded in a timely manner to the new requirements that demanded that principals provide financial
What is abundantly clear is that the problem is not going to fix itself and
statements over and above the normal trust account audit certificates.
perhaps by joining forces we can help to resolve this crisis before it
This should have been communicated to auditors long before the figures
becomes a national tragedy.
were required by the EAAB in order to facilitate a smooth transition. He does, however, believe that a better result could have been achieved if the EAAB had implemented the new requirements gradually or had made extra staff available during the implementation process.
BY LEA JACOBS
Page 24: F I N A N C E A N D F I G U R ES
HOW DO HOME LOANS MEASURE UP?
The Property Professional gathered information from Shaun Rademeyer, CEO of BetterBond, one of the country’s leading mortgage originators, to provide some insight into the bond reapplication time period, as well as which financial institutions grant the most home loans and finally, the percentage of home loans granted with interest rates at prime, above prime and below prime. We compare statistics over the past 12 months.
A FT E R A BO ND A P P L I C AT I ON HA S B E E N D ENI ED , W H AT I S T H E AVE RA GE TI ME P ER I OD B EFOR E T H E CLIE NT A PP L I ES A G A I N?
W H I C H T OP T H R EE F I N A N CI A L I NS T I T UT I O NS G R A N T TH E M O S T H O ME L O A NS ? Top three granting banks currently are:
There is no specific time frame as to when a client can reapply for bond finance – this would all depend on the circumstances of the decline. Certain circumstances allow clients to reapply only days later as clients were only required to reduce some monthly debt, pay off retail accounts etc. However those clients that have defaults and judgments with dishonours on their banking accounts could more than likely only reapply months later.
THE PERCEN TAG E OF HOM E LOA NS GRA NT E D WI T H I NT ER ES T R AT ES ; AT P R I ME, A B O V E P R I ME A ND B EL O W P R I M E
IN THE
12 MONTHS TO END-JANUARY 2014
28%
at prime, (which was
8.5%
during that period),
14%
below prime and
58%
above prime.
** ** Information supplied by Betterbond
Page 26: ACC ELER AT ED G ROW T H AT T H E V & A CO N T R I B U T ES T O N AT I O N A L G D P
ACCELERATED GROWTH AT THE V&A CONTRIBUTES TO NATIONAL GDP
An artist’s impression of the MOCAA Museum and Craft Market
Page 27: ACC ELER AT ED G ROW T H AT T H E V & A CO N T R I B U T ES T O N AT I O N A L G D P
Estienne de Klerk, CEO Growthpoint Properties Ltd
David Green, CEO V&A Waterfront Company
Continued development at Cape Town’s V&A Waterfront is impacting
Commercial property players say potential investors are lured by
positively on the national economy. The Victoria and Alfred Waterfront,
sustainable property solutions where both long- and short-term returns
which enjoys global rankings as a unique geographical setting and
are enhanced through good planning and management practices, as
landmark, is increasingly providing investors with the much desired
well as top local and international hotel and retail brands. Long-term
commodity of work, live and play.
planning strategies over a 15-year period have seen the allocation of 400 000m² of the available 600 000m² for various projects, of which
A recent economic impact study conducted by the City of Cape Town
several initiatives to date have delivered improved trading density and
reflects that growth in investment and consumer offerings at the V&A
foot count.
Waterfront is benefiting the city, the province and the country. The study showed that an approximate contribution to the national economy of
Growthpoint Properties’ chief executive officer, Estienne de Klerk,
R198-billion has been made by the V&A over the last 10 years. New
says the V&A has spent extensive resources and time in planning and
developments, such as the Victoria Wharf extension initiated in 2013,
implementing the systematic and efficient expansion of the Victoria
are set to contribute a cumulative R188-billion to nominal GDP by 2023.
Wharf shopping centre and the broader precinct. He says in-depth
The creation of direct and indirect job opportunities brings the number
research, which has allowed tailoring of the tenant profile and mix
of employees accommodated at the V&A to a total of 47 000. In 2013
to address shoppers’ requirements, is set to benefit local and foreign
alone, the V&A contributed R28.9-billion to the local economy of
retailers in offering more representation all round.
Cape Town. V&A chief executive officer David Green says,: “Our overall retail From a national and global tourism perspective, research shows that
strategy has seen a great deal of attention given to refreshing the retail
26% of total tourist time spent in the Western Cape occurs at the V&A.
experience and maximising on the interest expressed by new local
As a historic landmark, it has gained recognition as the most visited and
and international retailers.” De Klerk says new expansion and renewal
prominent property in the mother city due to an estimated 24 million
projects include the successful R35-million redevelopment of the Food
visitors per annum passing through this property stretching across 123
Court and amphitheatre initiated in 2011.
hectares from Granger Bay toward the Foreshore.
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on attracting the business travel market, while remaining an attractive and affordable offering to the local or foreign tourist. Green says significant growth of international Free Independent Traveller (FIT) online bookings has been seen as international travellers seek familiar internationally branded hotels to benefit from loyalty programmes. “Cape Town is currently underrepresented in this category of hotel, and if we look at the past 18 months, this segment has shown the strongest recovery and growth.” CEO of Pam Golding Hospitality Joop Demes says, “The V&A and Growthpoint’s development of a three-star hotel as opposed to yet another five-star hotel is spot on.” He says a recent room inventory study for the City of Cape Town considering additional rooms led to cautious optimism that performances over the past 12 months show enough evidence to provide scope for 1 500 new rooms across different segments of the hotel sector. Demes says, “While five-star hotels are leading increased performances from year to year, there is a gap in the market for three-star hotel An artist’s impression of the MOCAA Museum and Craft Market
accommodation within close proximity of the Waterfront.“ Other outside influences impacting on long-term planning and investment
Then there is the R140-million retail expansion project of the Victoria
at the V&A precinct include the expansion of the Cape Town International
Wharf planned for completion in 2014, which has improved retail trade
Convention Centre (CTICC), which is currently underway. Green says
performance over the nine-month construction period and increased visitor
increased conferences and events at the CTICC are beneficial for the local
numbers to the centre over the same period. Faced with growing demand
economy and will have a significant knock-on benefit to retailers, restaurant
for retail space from local and international retailers, the Waterfront has
owners and leisure tenants. He says the range of offerings, 11 hotels and its
through innovation achieved densification rather than increasing the retail
close proximity makes the V&A Waterfront a convenient and secure location
actual footprint while maintaining day-to-day trade without disruption. He
and compelling proposition hard to come by anywhere else in the world.
says development work in this case was necessary to increase the gross lettable area and improve visitor access and overall convenience.
Another factor to consider is the Western Cape government’s intention of selling off neighbouring city land, such as four sites including a nursing
Green says the benefits of the yearlong redevelopment and refurbishment
home at Somerset Hospital for housing development. Green says, “The
projects have paid off in strong trading, plus increased visitor numbers
V&A Waterfront sees this as an opportunity to participate in the process of
across the business. The V&A Waterfront continued its 2013 double digit
securing development rights, and this particular site is a logical extension in
retail trade sales growth with a reported 20.6% increase in December.
its adjacency to the Waterfront. Any housing development on our doorstep
This included 29 straight months of consistent growth since August 2011,
gives residents access to the facilities the V&A Waterfront offers.”
and 2013 was concluded with an impressive 19.8% year-on-year growth. Annual visitor numbers measured at Victoria Wharf Shopping Centre have
Growthpoint’s long-term strategy, says De Klerk, is, “To attract more
increased by 7%, and saw a peak of 175 000 visitors per day on 31
permanent residents in to the V&A to work, live and play.” He says the
December 2013.
current residential offering caters for affluent investors, which often results in unoccupied units, and that there is a feasible rental market at lower cost.
He says other recently announced projects include the R50-million
This new offering will not compete with the existing V&A Marina Residential
redevelopment of craft offerings at the Blue Shed. “Enterprise development
development, which will continue to function as a stand-alone exclusive
is enormously important to us, not simply because we want to see small
residential precinct.
businesses grow, but also because we have a vested interest in their success.” The V&A is also committing R500-million to the establishment of
Long-term investment growth at the V&A Waterfront poses future economic
the Zeitz Museum of Contemporary Art Africa (Zeitz MOCAA) in honour
benefits to stakeholders and consumers across all levels.
of the renowned Zeitz Collection. Zeitz MOCAA is a new not-for-profit institution to be housed in the historic Grain Silo at the V&A Waterfront. Also on the cards for the precinct is the addition of a three-star hotel, which De Klerk says as a mid-market, internationally branded hotel will be focused
BY ANNA-MARIE SMITH
RealNet Top 10
RIDING
the wave of SU C CES S
are all, however, market leaders “inThey their own environments – which just
goes to show how versatile the RealNet franchise system is and how it can help anyone in any market to become successful.
”
T
he RealNet top achieving franchisees of 2013 recently enjoyed a luxury cruise to the Portuguese Islands to celebrate their success.
The real estate “stars” who were invited to go on the trip aboard the MSC Opera included Nelis Bezuidenhout, owner of the RealNet Wapadglen franchise in Pretoria; RealNet Randburg owner Rob Allan; RealNet Midrand Estates co-owners Ananda du Plessis and Lynette Gregorowski; RealNet Krugersdorp co-owners Gerrit and Francis Alberts and RealNet Kungwini owner Koos Pretorius. However, there was also a strong non-Gauteng contingent, including Astrid Smith de Gruchy, owner of the RealNet Select franchise in Cape Town; Shawn Pieterse, owner of RealNet Stellenbosch and Juan Botha, owner of RealNet Nelspruit, as well as RealNet Bloemfontein co-owners Johann du Plessis and Eugénie Kempff and RealNet Polokwane owner Maryna van der Merwe.
“In short,” says RealNet MD Jan Davel, “they were about as diverse a group of people as one would expect to find in South Africa – and the areas and communities they serve are just as varied. Astrid’s franchise serves mainly Mitchell’s Plain, for example, where the average home price is R400 000 to R450 000, while the average price in Midrand Estates where Ananda and Lynette work is well over R3m. “And some franchises are very focused while others are more general. Nelis focuses only on townhouse sales in the eastern suburbs of Pretoria, for example, while Juan and Koos and Maryna cover the whole property spectrum from rental homes and apartments for first-time buyers to upmarket mansions on exclusive estates. “They are all, however, market leaders in their own environments – which just goes to show how versatile the RealNet franchise
system is and how it can help anyone in any market to become successful.” Indeed, he says, the group’s franchisees as a whole achieved a 16,5% jump in registered turnover in the 2014 financial year compared to the previous year, on the back of an 11,3% jump in registered sales. “This put turnover 66,5% ahead of where it was in February 2009, which was the bottom point of the recession – and more importantly was the second-best result achieved since the group signed up its first franchisees 13 years ago. “We at RealNet Holdings are obviously very proud of this, but also very grateful to everyone who worked so hard and diligently to make it happen, and delighted at how much our ‘best of the best’ enjoyed their cruise.”
We make it happen!
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Dealing with delinquent tenants… Is eviction the only answer? In the current economic climate, people are struggling now more than ever to make ends meet on a monthly basis, and that normally leads to tenants defaulting on their monthly rental payments. What actions can you take to ensure this doesn’t happen and what is the legal process for tenant eviction in light of the Consumer Protection Act (CPA)? When it comes to renting out a property to a tenant, the first line of defence is the initial screening process. Grant Rea, a rental specialist at RE/MAX Living, says, “The initial screening process should include meeting a tenant face to face when the property is shown initially as well as collecting the essential personal information from a prospective tenant.” As a managing or rental agent, the vetting process is crucial. Gail Cawood, rental manager for Knight Frank, says, “The advice given to all rental or managing agents is to avoid the risk of bad payers and do a thorough check on the tenant before signing a lease with a new tenant. The application form should be as detailed as possible and the application process should include a complete credit check (which is sometimes problematic with younger people as they do not have much of a credit record), three months’ bank statements so that it can be seen how they conduct their account, a current salary advice slip and full employee details, including landline telephone numbers and the company name to check that they are fully employed with the company and for how long, credit references and references from previous landlords. A ‘gut’ feel will also help gauge whether the tenant is someone who is trustworthy and will look after the home as his own. As we know, nothing is foolproof, but following as many steps as possible in choosing the right tenant will help avoid having to deal with a delinquent tenant later.” But even with extensive vetting, tenants still default on their rental payments either through financial difficulties, job loss or extenuating circumstances. What options are there when a tenant defaults?
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“THE FIRST POINT TO BE GRASPED IS THAT IF YOU HAVE A GOOD OR EVEN A REASONABLY GOOD TENANT, IT USUALLY PAYS TO HOLD ONTO HIM RATHER THAN TO RISK LOOKING AROUND FOR A REPLACEMENT THAT MAY NOT BE AS RELIABLE OR AS SATISFACTORY.”
CO M M U N I CAT I O N I S V I TA L
Rawson, “but again it is worth stressing that if the tenant has proved responsible to that point it is usually worth helping him through a difficult
Often in a circumstance where the tenant has not paid rent, they face
patch.” It might also pay to go the whole hog, says Rawson, and to
an embarrassing situation and may try and avoid contact with you.
draw up a new lease with the tenant where an initially significantly lower
Before resorting to legal proceedings you can institute communication
rent is compensated for by an obligatory higher rate paid six months or
with them and see if the situation can be resolved. Rea says, “The most
a year later.”
important aspect of dealing with a defaulting tenant is not to let a day go by without taking action. Many tenants will abuse the grace shown
“Alternatively,” says Rawson, “the tenant in financial trouble should
by agents and stretch the situation as far as possible. It is important to
consider asking if he can sublet the unit or simply find another tenant
get things in writing and send registered letters or emails with ‘read
to take over his lease. A big advantage of this system is that it can save
receipts’. Remember to quote elements of the lease and state amounts
the landlord paying any extra agency commission and it enables the
owed with original documents indicating utility amounts outstanding. If
tenant to retain control of potential visiting times, thereby preserving
adequate records are kept and you act decisively, there is no need to
his privacy.”
lose sleep over a delinquent tenant.” Not all situations can be solved through communication and you may Sometimes the situation can be salvaged and Bill Rawson, chairman of the
encounter a tenant who refuses to communicate and continues to
Rawson Property Group, says, “The first point to be grasped is that if you
default on rental payments; this is where legal action is needed. This
have a good or even a reasonably good tenant, it usually pays to hold
is also where the Consumer Protection Act comes into play. All too
onto him rather than to risk looking around for a replacement that may not
often tenants think they have greater powers and can behave as they
be as reliable or as satisfactory. You have, therefore, to get across to your
please as they are protected by the Act, but this is simply not true.
struggling tenant that although he may now be in difficulties, disaster is not
Wayne Albutt, Western Cape regional sales manager for Rawson,
inevitable provided he plays open cards with you.”
says, “Tenants have sometimes picked up the idea that they are now in a laissez-faire, free-for-all situation and that they can behave in a
If, for example, says Rawson, the tenant has lost his job or suddenly
thoroughly irresponsible and illegal manner. The reality, however, is
faces huge medical expenses and simply cannot pay his rent, he must tell
that in property rental matters the Rental Housing Act of 1999 is still
this to the agent or landlord immediately. Then the wise landlord/agent
paramount and is in almost no way superseded by the CPA. Landlords
will try and arrange for a one- or two-month – or possibly even longer –
and tenants should take the time to Google this act, download it and
rent moratorium, in many cases linking this to an agreement whereby the
study it. It is only 14 pages long and is exceptionally clearly written
tenant pays the sums back in extra rent if and when his circumstances
and easily understood. Its great advantage is that it is fair to both
improve. “Obviously this can simply compound the problem,” says
landlords and tenants.”
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Just a few of the salient points in the Act of which those involved in
frequently misunderstood and a good rental agent, if properly trained,
rental property should be aware, says Albutt, are that:
will quietly and patiently work through these clauses with the tenant and the landlord at the start of every lease.
If a lease expires and the agent agrees to the tenant staying on without signing a new lease, either party (landlord or tenant) is by law entitled to give just one month’s notice of lease cancellation from then on. It is, however, advisable to sign a new lease because under the CPA the tenant has the right to cancel the lease at any time subject to giving 20 business days’ written notice. This does not apply to certain juristic parties, but be warned, if the cancellation right is exercised, the CPA also stipulates that the landlord is entitled to a ‘reasonable’ cancellation fee and this could be as high as three months’ rental. However, if the tenant is replaced quickly, the cancellation would in
W H AT I S T H E LE G A L EV I C T I O N P RO C ES S ? JP Ricketts, Seeff rental manager, says, “Payment of rent is due on or before the date specified in the lease agreement, usually the 1st of each month. A tenant may only be evicted once a breach in lease has occurred that has not been remedied, and then only through obtaining a court order. One has to send a Letter of Demand to the tenant, informing them of the relevant breach in lease and giving
most cases be far lower.
them 20 business days’ notice to remedy the breach. This could
It should also be clearly understood that the Rental Housing Act gives
received by the end of this 20 business-day period, i.e. the breach
landlords and agents ample power over tenants who default on their rental payments. Among the public, says Albutt, it is now a common misconception that the Consumer Protection Act will make life for defaulters easier – but this is not so. “Section 4 (5) (c), of the RHA, actually stipulates that the landlord/ agent has the right to cancel the lease the moment a rent is paid late. This could mean that if it is not paid on the stipulated date, the very next day the landlord/agent is entitled to cancel the lease and if the tenant is then tardy about leaving, the landlord can apply for an eviction order. In some cases, the lease may provide softer terms and conditions, which would take precedence over the Act, but this should never be assumed until the facts have been checked out,” says Albutt. There are certain other clauses in the Rental Housing Act which are
theoretically be on the second day of the month. If no payment is has not been remedied, a letter cancelling the lease is sent, giving the tenants notice to vacate. The tenant could then also be listed with a credit bureau. Should the tenant not vacate the premises after cancellation of lease, an eviction order would have to be sought and due process followed. The proper legal channels have to be followed and the services of a lawyer specialising in the field of evictions should be sought.” Martin Oostehuizen from Oostehuizen & Co outlines the eviction process for managing agents. The managing agent must have the written authority of the landlord to act in such a matter. The process is different if the property is urban or rural, but presuming it is urban, it involves the following:
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Notice to tenant to vacate – minimum one calendar month notice. If the tenant fails to vacate, he/she becomes an illegal occupier.
Ex parte application to court for service directive (how the main application must be delivered to the occupier) – no notice required, but dependent on court availability.
Application to court for an order to vacate, supported by affidavit of the landlord or his representative – minimum five working days’ notice.
NOW IT DE P E NDS O N T H E R ES P O NS E O F T H E O C C UP I ER , I F A NY.
If the occupier opposes the application, he/she has to give
If no response, the court can, after another five working days’
notice of such opposition within the five working days allocated.
notice to the occupier, give an order to vacate, failing which the occupier will be evicted – normally the court allows reasonable time for the occupier to find alternative accommodation.
The occupier must then file an opposing affidavit within 10 working days of his/her notice of opposition. Thereafter the applicant may within five working days apply The applicant may then file a replying affidavit within 10 working days of the opposing affidavit.
The court may postpone the matter in order to deliberate.
Once the court has made a decision, the court will make an order.
for a court date – which will be allocated as soon as possible depending on the availability of court dates.
On the hearing date, each party has the opportunity to address the court. This process is regulated by the court rules.
The applicant, if he/she is the successful party in eviction matters, very seldom gets a cost order against the respondent.
The process above may be protracted by postponements on the request
and can lead to criminal cases. The best way to deal with a delinquent
of either party, at the court’s discretion. It can become a lengthy and
tenant who refuses to communicate or be part of a solution is to follow
frustrating process, depending on the nature and vigour of the opposition.
the letter of the law. Communication is key and can often be used as a
It is therefore imperative that the application must be done correctly first
solution. Evictions are a lengthy and costly procedure and can in some
time around.
instances take up to three months. If, however, communication fails, then the best method of eviction is to follow the due legal process and to
It is very important to note that the provisions of the Prevention of Illegal
institute proceedings straight away to avoid rental arrears building up.
Eviction Act need to be complied with. Actions such as changing the locks, interrupting services and threatening action and forcible eviction without a court order are unlawful, and will result in a delay in the eviction process
BY COLLEEN MAY
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Page 36: E A S T ER N CA P E I N V ES T O R S EM B R AC E E CO N O M I C D EV EL O P M EN T O P P O RT U N I T I ES
EASTERN CAPE INVESTORS EMBRACE ECONOMIC DEVELOPMENT OPPORTUNITIES
Developer Billion Group’s BT Ngebs Mall – regional shopping centre in Mthatha, Eastern Cape
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Increased investment into the Eastern Cape is seeing more retail solutions
While all centres larger than 25 000sqm experienced a rebound in foot
being developed as banks and the property industry are joining forces
traffic since the recession of 2009, current levels of foot traffic per m²
in answering consumer demand. New shopping malls cater to the needs
are still significantly off the highs of 2004 when real economic growth
of residents gravitating toward employment opportunities in large cities,
was above 4%. Consumer spending per head for all centres larger than
such as East London and Port Elizabeth, and in further outlying towns, as
25 000m2 currently averages R160 per visit. Super regional centres
well as those close to the Lesotho border and former Transkei towns of
average R225 per visit, while regional and small regional malls average
Mththa and Tsolo.
R172 and R136 per visit respectively.
Consumer spending on the rise is also seen in a rebound in national
Consumer driven demand in the Eastern Cape is behind significant retail
foot traffic since the 2009 recession, as reported at all shopping centres
property deals financed by Nedbank Corporate Property since June
larger than 25 000m² in the SAPOA Retail Trends Report March 2014.
last year. Most recent projects include a R17-million loan to developer
When considering that average consumer price inflation was at 5.7%
Vargalor for the Kamma Crossing convenience shopping centre in Port
during the same period, the increase of 5.2% in annualised trading
Elizabeth, where Shoprite and Clicks have been secured as anchor
density (sales per square metre) represents marginal negative growth in
tenants. Regional executive for Nedbank Corporate Property Finance
real terms (inflation adjusted).
Cape Richard Thomas says the decision to finance this project was based on the Shoprite Checkers Group recognising a gap in the market
As top performers in this sector, super regional centres continued a
in this particular area and securing the land on behalf of the developer.
stable trading history, driven by nodal dominance and a large variety of categories of consumer retail products and tenants. Following closely on
Financing of another substantial retail project of R1.1-billion by Nedbank
their heels were community centres (from 12 000-25 000sqm) delivering
in March this year will see the Billion Group developing the BT Ngebs
a solid performance. A major influencing factor, according to SAPOA, is
Mall in Mthatha. As a regional mall, this retail facility also marks the
reduced disposable income and high fuel prices, motivating consumers
Billion Group’s third regional shopping mall development since last year,
to shop closer to home and where parking is freely available.
and the largest of its kind both in the city and the region. The mall will cater to consumer needs of approximately 390 000 existing households
Also recorded from 2003 to 2013 are the significant increases in
in an area with a current retail undersupply of 477 341m2. Consumer
shopping activity during the peak shopping month of December. Super
spending at regional shopping malls (measuring 50 000-100 000m2)
regional centres showed a 24% increase in trading, with small regional
is reported by SAPOA to have shown increased trade in December
centres following closely at 20.9% and regional centres at 20.6%.
averaging 20.6% over 10 years, which compares favourably with small regional malls at 20.9% and super regional malls at 24%.
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Convenience shopping: Kamma Crossing in Lorraine, Port Elizabeth by developer Vargalor
Also underway is the R1.721-billion development project of the
Anchor tenants Pick n Pay, Checkers, Woolworths, Game, Foschini
87 500m² Bay West Mall super regional shopping mall in Port
and Truworths are expected to attract the most foot traffic into the mall.
Elizabeth, which marks the largest ever Nedbank finance deal and joint
He says tenants will benefit from energy and cost saving installations
venture between South African property giants Billion Group and Abacus
introduced by architects DHK, who have incorporated current best
Asset Management. This facility will be built in an area earmarked as a
practices by maximising the use of natural light while limiting the heat
vital development node within the city’s 2020 growth plan.
load on the centre. Plans include rain water harvesting for irrigation purposes and targeted energy saving for lighting, heating, ventilation
Ken Reynolds, regional executive of Nedbank Corporate Property
and air conditioning. Solar energy will be used to power Baywest
Finance, says the Bay West Mall finance agreement is the largest
City precinct security devices as well as precinct security, while solar
property development sum ever agreed to by the bank and will fund
powered street lights will be installed in some parking areas.
the first phase of the Bay West Mall, which is central to the greater 300 hectare Bay West City Precinct development.
Another essential element to upward growth for owners and retailers at new shopping malls, particularly in outlying areas, is an uptick in
These developments are also serving the need for industry
reputable property management companies expanding their services to
transformation. Economic development and social upliftment in the
the Eastern Cape. As one of the country’s largest property managers, JHI
region through relationship building between stakeholders is key to
Properties has expanded its footprint in this region by establishing offices
securing sustainability, says Sisa Ngebulana, CEO of Billion Group.
in Port Elizabeth and Mthatha. The company manages sizeable retail
“There is still significant scope in South Africa for growth in black-owned
and office portfolios on behalf of property funds such as Arrowhead,
property development and investment companies, but this much needed
Capital, Fortress, Resilient, Vukile, Dipula, Matlotlo, Khula, Intaba
growth will only be fully facilitated through forward thinking partnerships
Investments and Nvest Properties. Amanda De Lange, portfolio manager
such as the one Billion Group enjoys with Nedbank Corporate Property
of JHI Properties, says JHI East London manages City Centre and Circus
Finance,” says Ngebulana.
Triangle Shopping Centre in Mthatha, Ziyabuya Shopping Centre in Port Elizabeth, Equinox Mall in Jeffreys Bay, Market Square in Grahamstown
Baywest managing director Gavin Blows says construction of Baywest
plus Queenstown Mall and People’s Place in Queenstown.
Mall started in June last year and is set for completion in March 2015 when it will cater to more than 800 000 monthly shoppers. Blows says
A significant impact on the local economy of the Eastern Cape due to
Abacus Asset Management and Billion Group, together with the Nelson
direct and indirect job creation as the result of sustainable development,
Mandela Bay Municipality, are addressing the need for improved public
new retail opportunities and management services coming to this region
transport to the mall and the inclusion of the mall on the city’s Integrated
is set to continue.
Public Transport System route. He says a R300-million road network is being developed around the mall, where on and off ramps to the N2 freeway next to the mall are being equipped with public transport lanes.
BY ANNA-MARIE SMITH
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Page 42: F I R S T-T I M E B U Y ER S
FIRST-TIME BUYERS WHO ARE THEY AND WHAT DO THEY WANT?
Page 43: F I R S T-T I M E B U Y ER S
With the positive news on the decrease in taxes, 2014 could very well
Security is a big issue in South Africa and a major factor in any
see more first-time buyers entering the property market. So, who are the
homeowner’s decision when buying property and more so for young
first-time buyers and younger buyers and what is it that they are looking
professionals, who may not keep office hours and have an active social
for in a property?
life. They want to feel safe in their homes and leaving their homes, which is why a lock-up-and-go has such a massive appeal.
There are about 28.4 million consumers who are ready to buy property; they are young professionals who have been renting property for the
The average age of the younger buyers at Bardale Village is between
last few years and are now eyeing the property market and looking to
24 and 35, says Michael Bauer, managing director of the estate agency
buy. According to the FNB property barometer, first-time buyer activity
IHPC, the company responsible for the sales and marketing at Bardale.
represented around 23% of the total buying activity in both 2011 and
The majority of buyers here, he says, are looking for affordability and
2012, which is a significant increase from the 15% in 2008. Current
value for money. “There seems to be a trend to go for both lifestyle
economic conditions are lending themselves to
choices and a home – both are equally important
property investment and this could see first-time
to young buyers,” he says. “In one particular
buying rise above 23% this year. W H AT D O T H E Y WA N T ? The general consensus seems to be that most first-time buyers want a lock-up-and-go, either a small townhouse or a sectional title unit. Michael Cohen from Leapfrog says, “The younger buyers are looking for a cheaper monthly upkeep, that is, more sectional title properties with reasonable levies in new developments. They also want to
“THERE SEEMS TO BE A TREND TO GO FOR BOTH LIFESTYLE CHOICES AND A HOME – BOTH ARE EQUALLY IMPORTANT TO YOUNG BUYERS.”
case, a couple (both work for large corporate companies) bought a starter home with one bedroom at Bardale Village, and recently decided they wanted to upgrade to the biggest unit in the same development. The interesting thing here is that they have decided to have one child only, and so have made the decision to buy a two bedroom home as they will not need a larger one,” he says. “It seems buyers will look carefully at their family decisions before purchasing a home.” When categorising younger buyers, each category has
be able to lock up and go and like the security of
different needs: Singles will likely want a lock-up-
complexes and estates.”
and-go apartment that is low maintenance, close to nightlife spots and within walking distance of
This is echoed in the data from Lightstone on first-time buyers in 2013,
shops, restaurants and bars, according to Bauer. As they get older they
which saw 12 622 estates purchased by first-time buyers at an average
might start planning for a family and the lifestyle choices change – then
price of R1 228 095 by people of an average age of 35, and 31 752
they might consider moving towards larger units with more bedrooms
sectional title units at an average price of R732 649 by people of an
and closer to amenities such as schools, shopping centres, sports
average age of 34.
facilities and public transport.
So why the trend towards smaller homes and estates? Cohen says,
The trend of smaller properties has only increased in the last few years
“The trend towards smaller land size properties is probably due to the
and it would appear first-time buyers are very economically aware of
drastic increases with Eskom and the jump in municipal values and
what it costs to maintain a property. “Younger buyers who are single or
therefore rates and taxes. There is less monthly upkeep on a sectional
with partners like lifestyle environments, lock-up-and-go places with gyms,
title/apartment as opposed to a house. The trend towards estates and
restaurants and convenience stores nearby. Secure parking and 24-hour
complexes is also for security reasons.”
concierges at the upper end of the market are popular. The fewer the
Page 44: F I R S T-T I M E B U Y ER S
“HOMES WITH SMALLER LIVING SPACES HAVE BECOME MORE POPULAR BECAUSE THEY ARE MUCH MORE MANAGEABLE FOR YOUNGER BUYERS AND MORE EFFICIENT.”
amenities, the lower the price. I think this is a trend everywhere. Younger
(according to figures from SAPTG). Although the average age is 37, the
people have limited finances, want low maintenance and good security
ability for younger buyers to access credit is becoming easier now than
and buy with practical considerations foremost. They want fulfilment of
in the years of 2010, 2011 and 2012, with banks easing up slightly
the best lifestyle they can afford, appropriate features specific to their
on their loan to value and lending criteria.” In the areas in which Knight
stage of life, security and emotional compatibility,” says Laurie Wener,
Frank SA predominantly works, the southern suburbs of Cape Town,
managing director of Pam Golding Properties in the Western Cape.
Atlantic Seaboard and Hout Bay, she said, it has become difficult for first-time buyers to access affordable properties. “This has contributed to
Annien Borg, managing director of Pam Golding Properties in the Boland
the revival of areas like Woodstock and Observatory, where developers
and Overberg regions, agrees, “Younger buyers are buying properties
have been able to access old buildings and land to convert to lifestyle-
across the board, not as much mixed use in the country towns as they would
orientated developments, which have well designed units, and have
in urban areas. Price range is usually under the R2-million mark and the age
amenities such as gymnasia, swimming pools and clubhouses,” says
group ranges from 25 to 35. The size of the plot and house can be smaller
Steward. It would appear that in addition to smaller units, the amenities
but they want something in a good condition to keep maintenance costs as
that are provided are a driving force behind the decision of where and
low as possible. People in the age group 30 to 35 usually start to look for
what to buy. Young professionals are more likely to buy a sectional title
something a bit bigger than a two bedroom apartment as they start moving
unit or apartment in a complex that has added amenities such as pools,
towards getting married or start to think of having a family and therefore
gyms and features that speak to their lifestyle choices.
want to be close to schools and other amenities.” Another thing first-time buyers are looking for is flexible space; they want W H AT O T H ER F E AT U R ES A R E F I R S T-T I M E A N D
to be able to have an extra room for an office now and a baby room
YO U N G ER B U Y ER S L O O K I N G F O R ?
for the future. Adrian Goslett, chief executive officer of RE/MAX, says,
“According to the last oobarometer report on first-time home buyers (in
they are much more manageable for younger buyers and more efficient.”
November 2013), the average age of first-time bond applicants is 37,
He adds, “Whether it is for a home office or gym, a games room or
which seems quite high,” says Lanice Steward, managing director of
just an extra room, buyers want an additional space that they can use
Knight Frank Residential SA, “whereas in 2005 the average age was 31
flexibly, both now and later when their circumstances or needs evolve.”
“Homes with smaller living spaces have become more popular because
Page 45: F I R S T-T I M E B U Y ER S
H OW M U C H D O ES CO S T M AT T ER ?
when choosing a home. Seeff says, “Given the rise in traffic volumes and travel costs, residing closer to business areas and major arterials or
When it comes down to the rands and cents, how much does the cost
a good transport network has become an important driver of housing
matter to first-time buyers? According to Samuel Seeff, chairman of Seeff,
demand, especially with younger buyers. The ability to walk or cycle,
this matters quite a lot, “With the sluggish economy and growing cost
for example, is a real drawcard, as seen in the Cape Town CBD area.”
of living, youngsters especially are battling to make ends meet. Most
Couple rising petrol prices with e-tolling and location has become an
young people tend to rent for at least five years before they have the
important consideration for first-time buyers. Michael Cohen adds, “In
funds available to buy. The transaction costs alone are quite a burden
my experience people want security, good resale value, street appeal,
for buyers and while banks are sometimes amenable to 100% bonds,
low maintenance and close proximity to their workplace, especially now
chances are that they need to have cash funds available to contribute a
with e-tolls in place.”
deposit of at least 10% of the purchase price.” First-time buyers in 2014 are young professionals aged between 28 The total cash amount needed on a bond of R800 000 can amount to
and 36 and they know what they want. They want smaller, flexible
around R120 000 (R80 000 deposit and about R40 000 for bond and
homes that suit their lifestyles and are close to their places of work. They
transfer costs) and they will need to have this ready before they can
want secure homes that they can lock up and leave when need be. This
buy. Another problem facing first-time buyers is the ability to get finance.
generation of buyers is the most technologically advanced generation yet
The banks still have stringent lending criteria, and with the shift to self-
and, with the Internet at their disposal, they know what they want and
employment and small businesses, first-time buyers in this sector of the
how to get it.
economy will find it tough to secure the proper finance needed to buy. T R A N S P O RT First-time buyers are also looking at how many miles they are racking up driving to their place of employment every day. And, with petrol prices at never-seen-before highs, the ‘where’ is as important as the ‘what’
BY COLLEEN MAY
Page 46: M A R K E T S H A R E
PROPERTY FINANCE IN SOUTH AFRICA
Property Professional speaks to some of the leading industry statistic and insight providers to find out the highest areas in each province according to period of ownership, the highest municipal ranked areas in each province (freehold properties), as well as areas that are currently experiencing the highest property transactions according to volume.
THE HIG HES T ARE A S IN E A CH P ROVINCE A CCOR D I NG T O P ER I O D OF OW NER S H I P
23.2
NOBLE PARK: WESTERN CAPE
22.5
EUREKAVILLE:NORTHERN CAPE
22.8
NOOR PARK:NORTH WEST
24.8
SULPHERSPRING SH AH
25.3
KIRKVORSCHFONTEIN:LIMPOPO
32.1
BLOEDRIVIER:KWAZULU-NATAL
24.1
ENNERDALE EXT 6:GAUTENG
20.8
OPKOMS:FREE STATE
27.8
CENTERTON:EASTERN CAPE
P ER I O D OF OW NER S H I P YEA R S
Credit: Information supplied by Lightstone www.lightstone.co.za
AREAS THAT ARE CU RRE NTLY E XP E RIE NCING T HE H I G H ES T P R OP ERT Y T R A NS A C T I O NS (A C C O R D I NG T O V O L UME ) T R A NS FER V OL UME FR OM 2010 MITCHEL L S P LA IN: WE STE RN CA P E
925
K ATHU: N ORT HE RN CA P E
825
WATERVAL E A ST: NORTH WE ST
602
K L ARIN ET EXT 6: M P U M A LA NGA TZAN EEN EXT 13: LIM P OP O
270 97
UMHL AN G A ROCKS: KWA ZU LU -NATA L
248
PROTEA G L E N E XT 26: GA U T E NG
1887 680
V IRG IN IA EXT 14: FRE E STAT E K IN G WIL L IA M ’S T OWN: E A STE RN CA P E
127
Credit: Information supplied by Knowledge Factory www.knowledgefactory.co.za
Page 47: M A R K E T S H A R E
THE HIG HES T MU NICIPA L RA NKE D A RE A S IN E A CH P R O V I NC E (FR EEH OL D P R OP ERT I ES )
BITOU: WESTERN CAPE R2 084 879
KOUGA: EASTERN CAPE R1 042 827
8%
21%
10%
MANGAUNG:FREE STATE R694 698
CITY OF JOHANNESBURG: GAUTENG R1 147 491
8%
KWADUKUZA: KWAZULU-NATAL
11%
R1 186 333
MARULENG: LIMPOPO
11%
R1 076 228
7% 12%
12%
MBOMBELA: MPUMALANGA R790 688
LOCAL MUNICIPALITY OF MADIBENG NORTH WEST R1 021 894
GA-SEGONYANA: NORTHERN CAPE R774 781
Credit: Information supplied by Lightstone www.lightstone.co.za
The department of public works spends over R3-billion/year leasing office space NUMBERS TO KNOW
R3-BILLION
in privately owned buildings on behalf of national government departments. The Department of Public Works (DPW) and National Treasury won’t give figures on how much government is losing on leases; some officials believe the cost could be cut by 50% with better management. SACommercialprop-News - S.Africa Government conned by Private Office Rentals
Page 48: 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
and before you walk out of the front door the property has gone viral. A knowledge of Facebook, Pinterest and LinkedIn is super important as especially young professionals are starting to use these systems more and
PETRA VAN ASCH AND PATRICIA LERM LE A P F RO G M ELK B O S S T R A N D
more to gather information. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. Petra: Yes, I was in the industry for two weeks, did my first show house, a client walked in and said, “I want to make an offer!” I thought my colleagues were pulling a stunt on me, but this turned out to be a genuine client. I phoned my principal as I became so nervous and she
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
completed the offer… and we sold the property.
1. Honesty, integrity and creating trust.
Patricia: Yes, I sold my first property before becoming an agent!
2. Treating clients the way we would like to be serviced if we were
I informed my neighbour of the price I paid for my duplex on Atlantic
buying or selling a property ourselves.
Beach Estate. He insisted that if I got him the same, he would pay me
3. Having a passion for the industry.
R50 000 in fees. Well, I managed to sell his property to a good friend of mine the very next day... for more than my neighbour expected. This was
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD
the icebreaker for me to join the industry and I have never looked back.
YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? That this industry can take over your life as it is not a 9am till 5pm job.
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
Your family should be prepared for the fact that when you come home in
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
the evening, the phone could ring again and off you have to go to take an
Attend training sessions that are being given either by the company you
offer. For both of our families this was a strange way of working when we
work for or the transferring attorneys. It is important to stay informed and
started our property careers, but by now, after 10 years, they understand
current about the industry and gather your certificates for your Portfolio
the industry and are fully supporting us.
of Evidence. Get to know your area and rather concentrate on a specific area than try to sell all over the place – become the area specialist.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
Know your stock, create trust, have integrity!
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? A smartphone, a tablet and a strong website. For both buyers, sellers and agents having the Internet at your disposal is becoming a vital tool in
Patricia’s LinkedIn: https://www.linkedin.com/profile/
the property industry. When signing up a mandate, by using your tablet
view?id=9036339&trk=nav_responsive_tab_profile_pic
you can capture pictures, load all details of the property on your system
Petra’s LinkedIn: http://lnkd.in/dGmCDRv
The average nominal value of homes in January in each category was: NUMBERS TO KNOW
R764 000 – R1 710 000
- Small homes (80m² – 140m²): R764 000 - Medium-sized homes (141m² – 220 m²): R1 104 000 - Large homes (221m² – 400m²): R1 710 000 Fin24 – House price growth still in single digits
Page 49: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? I wish someone had told me that the real estate industry is a 24/7 job. I am not shy to work hard, however there is a misconception out there
ELAINE CHETTY S EEF F R I C H A R D S BAY
that being a real estate agent is a part-time job. I joined thinking I will have loads of time to spend with my family and friends after signing up deals in this ‘part-time’ job – and I was rudely awakened. I soon found out that this is far from the truth. I cannot afford to switch off
00295 BETTERBOND DREAMS LOTTERY TEASER CAMPAIGN - EAR PIECES RP.indd 1
completely, and fortunately I enjoy the buzz.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
1. Goal setting – Having a clear goal clears up the ‘fog’ and allows
A reputable CRM software. This makes dealing with clients easier as
you to concentrate on those activities that get you closer to
you have the software to prompt you daily. Keeping clients happy
your goal.
takes you a long way in this industry, so it is vital that one always
2. Time management – We all have 24 hours in a day. It’s up to us to
stays in touch with clients.
make the most of the available working hours. Planning my day the
night before gives me a sense of accomplishment and also a head
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
start in the morning. Obviously we encounter issues each hour
PLEASE TELL US ABOUT IT.
that we need to prioritise, so it can become easy to lose track
Yes. I signed the client up on the bonnet of my car at 7pm after a
of time in a day. I tend to focus on my productivity so I delegate
viewing. They liked the property so I didn’t want to lose the opportunity. I
where I can and have a to-do list next to my workstation.
still smile when thinking about that moment.
3. Speed – In our industry, you need to have a finger on the pulse
mentality. You cannot drift along as you will certainly be
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT
chewed up and spat out given the nature of our competitive
MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
industry. Clients pay top commissions and expect top service,
Delight your clients as you will eventually learn that your repeat clients
so I tend to focus on knowing more than my competitors on legal,
and networks will keep you in this industry. This is not a sprint, so spend
industry and local matters, and I pass this on to my clients
extra time on building relationships with your clients.
with speed. In this technologically advanced world in which
we live, clients expect instant gratification, so if you are ‘slow’ to
assist or give feedback, you are perceived as someone who
renders bad service.
Facebook: https://www.facebook.com/elaine.chetty.16
The department of public works spends over R3bn/year leasing office space in privately NUMBERS TO KNOW
R3-BILLION
owned buildings on behalf of national government departments. The Department of Public Works (DPW) and National Treasury won’t give figures on how much government is losing on leases; some officials believe the cost could be cut by 50% with better management. SACommercialprop-News - S.Africa Government conned by Private Office Rentals
2014/04/14
Page 50: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S
WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? I came into this business fully knowing that I would make a success of it and knew that to do that I would need to work really hard and make use of every opportunity.
JACKIE DE WAAL
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
EN G EL & VÖ LK ER S K A LK BAY
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? No app or marketing tool can ever take the place of a good agent’s ability to match the right house with the right person. Second to that in today’s market a good Internet presence is essential.
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? Hard work, a love and passion for what I do and my faith.
WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?
DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD?
I would say work hard but have balance. It is important to remember that
PLEASE TELL US ABOUT IT. Indeed, it was a property that was on the market for over a year. I had just joined the industry and a couple from overseas walked into our office. After thoroughly assessing their needs, I did my research to find the property that I thought most suited them and contacted the owners
you will go through dry spells where you don’t sell anything, but as long as you keep doing the basics the sales will start coming in again. Lastly and most importantly, never compromise your ethics and listen more than you speak.
to ask for permission to assist with the marketing. I took the couple out,
LinkedIn: http://www.linkedin.com/profile/ view?id=74671822&locale
they fell in love with it and bought it the very next day!
=en_US&trk=tyah2&trkInfo=tarId%3A1395991112979%2Ctas%3Ajack ie%20dew%2Cidx%3A1-1-1
known that sooner, I would have done canvassing in order to get more houses to sell! WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
MARIA ALEXANDRE LE A P F RO G M I LN ERT O N
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Access to CMA and the Internet; it makes our life so much easier! DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. The first property I ever sold was a free-standing house in Ritchie Street at the University Estate in Cape Town. I presented the offer with my
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? I believe in being honest, professional and having perseverance. WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? Someone once told me that “when there is one house for sale on a road, there will be another one or two in the same road!” If I had
principal, Mr Camara. When we left the house, he said that I explained it too well. WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS IN THEIR CAREER IN PROPERTY? You need to attend training, be committed, punctual and do follow ups. Never let people down.
Between R3 billion and R4 billion is to be invested in the Victoria & Alfred Waterfront NUMBERS TO KNOW
R4-BILLION
in Cape Town over the next three to four years, much of it in residential apartments. The investment will be made by property company Growthpoint and the Public Investment Corporation (PIC), which jointly acquired the Waterfront in June 2011 for R9.7 billion. ioL Business Report - Investment of up to R4bn for Waterfront
Page 51: 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
is no longer a salary at the end of every month and this can be daunting.
DIANA HAVARD R E / M AX H ELD ER B ERG
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? 1. Sincere relationships with my clients and the fact that I am always prepared to go the extra mile for them. This has resulted in a substantial database of people who regularly refer their friends and family to me. I offer consistent, professional service and I work with integrity. 2. Knowledge is key to success and I make sure I go to all the training available to keep up with all aspects of real estate and have an in-depth knowledge of all the properties available, what they offer and their prices.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? A vital tool in the business is a laptop or tablet; it is wonderful to be able to do professional presentations. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. The first property that I sold was an enormous home to clients that had just sold their wine farm. It was terrifying because I was really afraid of making a terrible mistake. I knew that my knowledge was limited. WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT BETTERBOND DREAMS LOTTERY TEASER CAMPAIGN - EAR PIECES RP.indd MAKING00295 A SUCCESS IN THEIR CAREER IN PROPERTY?
My advice to new agents is to work with integrity, sincerity and honesty even if it means losing a sale. Know your stock and never stop learning.
3. Time management. WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? I wish someone had taught me the importance of budgeting because there
Facebook: https://www.facebook.com/di.havard
1. Smartphones and laptops have changed the way real estate does business. We are more effective and can get information to clients a lot faster. 2. Knowing your ‘farm area’, having accurate facts about your
MELISSA THEART PA M G O LD I N G P RO P ERT I ES S O U T H ER N S U B U R B S, CA P E T OW N
product and having passion and integrity. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. I remember the first property I ever sold back in 2004, I was so excited about it. It was listed with another agency but we worked in a system that we could take our buyers through and the commission would be
WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?
split. In concluding this transaction I learnt that good negotiations skills
Dedication, commitment and relationships – you need to go out of your
are key. And knowing your values.
way to make an impression. 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?
Be prepared to work hard, be passionate. Stick to the basics all the time.
Personal sacrifices need to be made to give the best possible service to
Get to know your farming area, be active in that community and you will
your clients, but it is worth it in the end. Always stick to the basics.
be rewarded. Always work with honesty and integrity.
WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD
LinkedIn: http://lnkd.in/d95wdQa Twitter: https://twitter.com/meltheart
HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?
Facebook: https://www.facebook.com/melissa.theart
2
2014/04/14
BetterBond
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PROPERTY PROFESSIONAL
NEW AGENTS ON THE BLOCK complexities of a real estate transaction concluded and leave all the parties pleased and content with the end results and especially the service I provided.
EUGÉNIE KEMPFF R E A LN E T PA A R L
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? Surely one of the greatest characteristics of a top achieving real estate professional is perseverance or ‘staying power’. This gives rise to consistent hard work, self-discipline and self-motivation. Also essential are the ability to really listen to the needs of a client, the ability to respond quickly and the ability to make maximum use of all the
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
technology at hand today to deliver great service and stay in touch with
People with their diverse lifestyles and architecture and interior design
the supporters of your business.
preferences have always interested and intrigued me. But I’m also an entrepreneur at heart so becoming a real estate professional seemed like
WHAT ARE SOME OF YOUR CAREER GOALS?
the most obvious choice. What is more, working in real estate creates
My heart’s desire and dream goal is to intertwine my career activities
a very real opportunity to change people’s lives and make their dreams
and the beautiful picturesque surroundings of the Western Cape to
come true.
such an extent that every day feels like a working holiday. I also want to be part of some of the biggest real estate transactions in the Paarl,
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
Wellington and Franschhoek areas.
CHALLENGING ASPECTS OF THE JOB? One of the most rewarding aspects of the career is to have all the
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? Explaining the whole process to clients who are purchasing their first home and keeping in touch with clients by giving feedback on how the
TARCI SEFARA H A RCO U RT S AC H I EV ER S, R U S T EN B U RG
deal is progressing is very satisfying. It can be a challenge to satisfy and meet clients’ expectations. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? Professionalism is key and wearing the Harcourts uniform is a great way of projecting a professional image from the word go.
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? I started a small business selling hair pieces and doing manicures and
WHAT ARE SOME OF YOUR CAREER GOALS?
pedicures. Agents from a real estate agency became regular customers
My goal is to become a top-selling agent, not only within Harcourts
and I was later approached by their principal who offered me an
Achievers but in South Africa.
opportunity to become an agent. He said he saw potential, passion and sound business principles. I decided to give it a go because my inner voice told me that I could do it!
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WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? I like the constant change in environment and scenery. I love not having to sit behind a desk all day plugging away at a computer. If you do not
SEAN TRIETSCH R E / M AX L A K ES, S ED G EF I ELD
get out there, I believe you will not be successful. The balance between desk work, foot work and all other aspects to me is challenging but also enjoyable and invigorating. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? I think the most important part of the career is being able to communicate
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
correctly with people. Strong problem solving skills are good to have and I
After working for many years in the hospitality industry (and still...), I
do think experience in different fields in life helps a lot.
became very competent at working with all sorts of different people in all sorts of different situations. I have very strong logistical and problem
WHAT ARE SOME OF YOUR CAREER GOALS?
solving skills. I have always been a numbers orientated person and
I would like to make an above average living first and foremost. In a
very competitive. I loved the idea of property after being introduced to
small town or even in a larger city focusing on a smaller area I would
it by my father-in-law and when you put all these together, I thought that
like to be known as the person to go to with respect to real estate i.e. the
property would be a wise choice.
experienced expert.
it’s certainly true about being in this profession! However, it is also what I find the most challenging aspect of the profession. I have come to realise if you do not have very clear boundary lines in place, you lose focus on maintaining a balance between your personal time and your
ADELLE MORRISSEY PA M G O LD I N G P RO P ERT I ES N O RT H C LI F F
work time. I have come to running my life like one big project plan: time, quality and budget! WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? Having character is essential for being a trusted agent. Period. You deal with people’s most valuable assets - their home, their family, their
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
emotions and their future (and even sometimes past mistakes!). It is
It all started with a game of Monopoly and a challenge! After 15
therefore mission critical that you act with integrity and when you do
years in the corporate world I realised that I often referred to “working
make a mistake that you own up to it.
smarter not harder” in my own presentations, however, I was always working harder and longer and not necessarily realising the rewards.
WHAT ARE SOME OF YOUR CAREER GOALS?
I started working with a financial coach who taught me many things
My immediate career goal is to complete my NQF4. Attending the
about building wealth and the importance of understanding a property
training courses presented by Joel Harris and Richard Wright has been
portfolio. The penny dropped and I realised I have been so focused on
invaluable.The team at our Northcliff office is incredibly supportive. They
building a career as oppose to building wealth.
possess a wealth of knowledge and they are always ready to share with a rookie like me. My inspiration for 2014 comes from one of our most
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST
respected leaders: “It always seems impossible.., until it is done.”
CHALLENGING ASPECTS OF THE JOB?
N Mandela
I enjoy the creative freedom and entrepreneurial spirit of being an agent. “If it’s going to be, it’s up to me!” I can’t remember who said that, but
Page 56: 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
There are a few challenges in this industry, like finding good stock at the right price and ensuring feedback to both the seller and prospective purchasers. I enjoy challenging myself to reach my personal goals and helping people find and purchase their dream home.
BETTIE MARTIZ
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY?
R E / M AX I N S I G H T, J EF F R E Y S BAY
In my opinion, a good agent must have excellent communication skills, have an open and friendly personality and to be able to listen and interpret the needs of clients.
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
WHAT ARE SOME OF YOUR CAREER GOALS?
I started in this career path as I saw an opportunity to be a success
My career goal is to be the agent that everyone knows and the agent
in this industry. I love to work with people, which makes this industry
that everyone wants to call.
perfect for me. Facebook: https://www.facebook.com/bettiemaritz WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB?
WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? The most enjoyable and at the same time the most challenging for me is working with people and meeting their demands. It is very important to me that once a client has worked with both Seeff and myself that they
HOFNI SCHOEMAN
will remember us and want to work with us again in the future.
S EEF F C I T Y B OW L
WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? You have to listen well. The initial client brief is the most important and you need to ensure that you know exactly what the client is looking
WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?
for and/or wants. This will avoid delays and irritations. Honesty and
I have always loved property; everything about it, the design, interior,
integrity are vital; sometimes it is best to walk away.
furniture and gardens. I also love working with people and the fact that there is no ceiling on how much one can earn. The harder you work and
WHAT ARE SOME OF YOUR CAREER GOALS?
more successful you become, the bigger the pay cheque!
To be the best in whatever I do. To make an impact.
Residential rentals increased in every major city in SA, but dipped well NUMBERS TO KNOW
8.01%
below the standard 10% annual escalations of the past, according to the latest Trafalgar Residential Rental Index. With an overall rental index increase of 8.01% for the year, the index shows growth for flats nationally. Fin24 - Rental increases under pressure
Move on Move up
www.leapfrog.co.za Corne Marais
Sonwabiso & Wezzy Peter
Vincent de Lucia
Making it happen - Three new franchises open their doors Leapfrog Property Group is branching out with three new franchises opening their doors at the beginning of 2014. Running an estate agency takes a special brand of entrepreneur – someone like Corne Marais, Sonwabiso and Wezzy Peter or Vincent De Lucia – who has not only the drive, but the experience needed to make a name for themselves in a highly competitive market. A New Agency’s in Town Buyers and sellers in Mpumalanga will soon benefit from the expert service provided by Leapfrog Malalane, under the management of Corne Marais. “We’ll be covering Malalane, Marloth Park and Komatipoort as well as the large previous disadvantaged area of the Nkomazi Trust. I know the region well and believe it’s the perfect place to introduce the Leapfrog brand”, says Marais. Marais believes that his passion for property developed while playing (and winning at) Monopoly as a child. It wasn’t until he sold his first distressed property in 1998 that the bug really bit though. “Sure it is about selling property, but actually it is people who are our business...the dynamics and often complicated human and emotional factors related to the property industry, keeps the challenges exciting and the reward high”. “I couldn’t agree more with Corne”, says Bruce Swain, MD of Leapfrog Property Group, “people are at the very core of our business and we’re very excited to have a man of Corne’s experience and ability on board”. Sizzling in Soweto Things are heating up in Soweto under the leadership of Sonwabiso and Wezzy Peter; “We aim to achieve a 10% market share by 2015”, says Sonwabiso, “by clearly establishing ourselves as the go-to experts regarding property matters”. The duo believes that Leapfrog’s vision and support system made the group the logical partner in terms of accomplishing these goals. Swain supports the plan one hundred percent; “As an agency we’ve always placed strong emphasis on agent training, with the aim of providing our clients with better information. As such we’re delighted to have a team in Soweto that will be striving to provide exactly this to the public.” Sonwabiso has found that the lower end of the market is always vibrant
and interesting, and notes that there are a number of property developments in the area that will add to the mix. “People are also becoming more aware of the great returns offered by property investments and I believe we’ll be seeing a lot more activity in Soweto in the near future”. Brakpan Goes Green “For years I have looked into opportunities with regards to a stable and reputable franchise option. After careful consideration there seemed to be only one choice – and that was Leapfrog”, says Vincent De Lucia. Originally involved in IT and then the family business, Vincent has a long track record as operations manager – experience he brings to the new Leapfrog Brakpan office. “We’re very excited about opening Brakpan franchise; it’s an area that’s also attracting interest from Benoni, Boksburg and Germiston and Vincent and his team will be perfectly positioned to assist buyers”, says Swain. De Lucia believes that the area benefits enormously from the location of Carnival City which has opened it up to tourists. He also sees evidence of growth with the construction of new residential developments offering housing from R500 000 to R5 million and up. With these experienced entrepreneurs at the helm 2014 promises to be a good year for Leapfrog Malalane, Soweto and Brakpan. To find out more about franchise opportunities or to join South Africa’s only truly agent focused property group, contact: Gerhard van Rensburg 082 375 9343 Valerie Kritzinger 082 568 7060 Tel 021 671 4880 info@leapfrog.co.za
Page 58: T E C H T O O LK I T
TECH TOOLKIT
Cube 3D Printer AVA I L A B LE F RO M : R27 000
immediate access to over 30 free printable creations, many that can be
L OV E I T: 3D printing is now a reality and DionWired is one of the first
com, offering a marketplace of things to 3D print at home. Have the new
to bring it into the homes and offices of South Africans. So how does it
Windows 8.1? The Cube 3D Printer has Windows 8.1 support, which
work? 3D technology allows the rapid design and layer-by-layer printing
allows the user to easily make 3D objects with their PCs.
personalised. The Cube printer also comes with a membership to Cubify.
of three-dimensional prototypes using plastic, metal, and polyurethane, depending on the printer – this means that your idea in the morning could
N O S O M U C H : We all know when something new and exciting like
be produced into matter by the afternoon. The Cube 3D Printer was the
this hits the market, it is always going to be a bit pricy and may have a
winner of multiple design and performance awards and is said to be
few glitches that need to be ironed out. Regardless, 3D printing at home
reliable and easy to use. The Cube printer is packed with consumer-friendly
is pretty darn exciting and I’m guessing that in the not-too-distant future, it
features, is contemporary in design and has a tablet-like, touch screen for
is just going to get even better and more accessible.
ease of use. It is the first consumer 3D printer that is home certified and safe for children as young as eight years old. Consumer print ready and
I N A N U T S H ELL : For any tech-savvy person this is beyond exciting!
compact, this colour 3D printer fits in the living room and classroom, and
3D printing is one of those things that we have only ever heard about, so
weighing just over 4kgs, it is extremely portable. Offering hours of 3D
now to be able to have one in your home or office is quite something and
printing enjoyment on a rainbow of compelling colours, Cube includes
is definitely a product to keep your eye on.
Page 59: T E C H T O O LK I T
Canon PowerShot S95 AVA I L A B LE F RO M : R3 016 L OV E I T: Small, sleek and solid, the
PowerShot S95 is the latest and best of Canon’s highly regarded S series. The wide angle zoom goes from 28-105mm, and is great for taking everyday, good quality photos, which, if we’re honest, are all that most of us usually take. The great advantage of this lens is that it opens up to f2.0, while most cameras in this class only open to f2.8, letting in much less light. So the S95 can take better, faster pictures in low light. With the same 10MP sensor and software as Canon’s G12, the S95 can produce images of the same superb quality. In addition, the S95 shoots excellent video 720p at 24fps with stereo microphones and some interesting in-camera effects. N O S O M U C H : First impressions, it appears rather ordinary and not much to look at,
however, don’t let that fool you as this is a top class camera with great specs.
I N A N U T S H ELL : The S95 is small and works well, which is everything that most of
us would ever need. Having the biggest and best is not always the smartest option when it comes to choosing a camera – it is not very practical carrying around a backpack full of equipment while spending hours trying to figure out what it does, only for you to eventually just point and shoot. With that said, we think that light and effective is the way to go and that is just what the Canon PowerShot S95 offers.
Private Property’s new website AVA I L A B LE F RO M : It’s for free! L OV E I T: We all know how useful Private
Property is when it comes to looking for
property; well, they seem to have kicked their service up a notch even further by improving their website. Basically the Private Property website has been optimised specifically for mobile devices such as phones, phablets, tablets and the like. The platform utilises Private Property’s migration onto the Microsoft Azure cloud platform – an industry first in South Africa – to enable a seamless user experience, no matter the device being used. Now, when a
Monster PowerCard
browser navigates to the website, it recognises the device’s type and screen size, and responds
AVA I L A B LE F RO M : R599
smartphone – just plug it in, hit the charge button
by giving the best possible version of the site
and make the call. Auto-sensing technology
for that device – whether it is mobile or not.
L OV E I T: The Monster PowerCard enables
detects exactly what speed your smartphone or
Features unique to mobile devices, such as
you the freedom to have your smartphone,
USB device requires and provides the speed and
touch screen and swiping functionality, are
phablet, tablet and any other universal gadgets
power necessary.
built-in while information-rich features like geolocation search are also inherent.
charged at all times – even when you are not near any power outlets. This versatile, portable charger comes in the same shape and size as
N O S O M U C H : Love it all – especially the
auto-sensing!
N O S O M U C H : The only thing that could
get a bit annoying is that after viewing a
a credit card – with the width of a USB port, I N A N U T S H ELL : This nifty little booster
property and returning to the previous list, it
slip into your wallet or pocket without any
pack for your gadget is what all of us have
puts you back at the top of your search instead
hassle. For the technical, the card works off a
needed at some time or another. It allows a
of where you were down the list of properties
1 600mAh lithium-ion battery, has input and
grace period for those of us who like to live on
being searched.
output charging functions as well as a universal
the edge of our battery life. It is not too pricy
connection. It is compact, light in weight and
and packs a useful punch for when your smart
charges your gadgets quickly with LED lights to
device needs it most.
making it incredibly easy and convenient to
help you check battery levels. The power card quickly provides five hours of energy to your
I N A N U T S H ELL : Private Property is a
great service that now has a pretty impressive website, which is user-friendly for all devices whether they are mobile phones, phablets, tablets, laptops or your old faithful PC. ** All prices are approximate.
Page 60: D EV EL O P M EN T U P DAT E
DEVELOPMENT UPDATE Swart and Alexander said this week, spurred on by the growing problem of stock shortages in the second-hand market, that values continue to increase by some 10% year-on-year. At the Burgundy development, they added, prices are now rising by 18% on an annualised basis, therefore even faster than the second-hand market. “The Brackenfell residential market,” says Swart, “is ideally suited to anyone looking for a three- or four-bedroom home on its own plot (150m2 to 200m2) in the R1.3-million to R2-million bracket.” Buyers at the Burgundy development have a wide range of choices – there are approximately 10 styles, each of which has a big range of sizes and configurations. What is more, this development, says Alexander, has raised prices throughout Brackenfell – all homes here have increased in value recently. Not surprisingly, a fair percentage of NEW BURGUNDY DEVELOPMENT RAISES VALUES ACROSS THE BOARD
Burgundy’s buyers are, in fact, local Brackenfell people who, seeing the quality of the new homes now being offered, want to upgrade to them.
Towards the end of 2012 André Swart, franchise principal for the
They can very often achieve this by selling their own homes and moving
Rawson Property Group’s Brackenfell Roslyn franchise, and his second-
to the new homes without significantly increasing their outlay – perhaps
in-command, Rowan Alexander, predicted that probably no residential
spending only R250 000 more than they get for their existing home.
area in South Africa would experience such phenomenal development and price appreciation as Brackenfell.
Alexander and Swart both agree that they are confident that the demand will remain strong, even if interest rates increase by as much as 2% or 3%.
This confident statement was based on two facts. The first was that this franchise, which has regularly been a top performer amongst all of the franchises in the Rawson Property Group on several occasions, was generating record sales (about 25 per month) in the existing secondhand home market. Secondly, when this statement was made, they had just secured the sole marketing and sales mandate for a consortium of six property developers led by the company Brick and Board, which had been given the go-ahead by the city council on the new Burgundy development sited within five minutes of the centre of Brackenfell’s. Units here are being marketed on a plot and plan basis in a fairly wide price range, but the biggest demand is in the R1.65-million to R1.7-million bracket. In the five months since the launch, the Rawson Property Group’s sales team has sold 122 units here, and is continuing to sell at a rate of around 20 units per month. They are usually able to promise delivery within 15 weeks of the sales document being signed. Altogether, therefore, this franchise is now signing up around 40 new homeowners per month – a remarkable achievement.
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Page 62: R EB O S A I N D EP T H
W H Y I S R EB O S A N E C ES S A RY ?
Our objective is to achieve collectively what real estate business owners individually cannot. This is arguably a most critical time. Amendments to laws and new legislation are seriously impacting the property sector. The first thing that comes to mind is the looming Property Practitioner’s Bill that would have been published already was it not for the fact that the draft apparently was in conflict with the Constitution. The current Estate Agency Affairs Act which became effective in 1976, is flawed in many respects. Numerous existing clauses in the Act are extremely detrimental to the real estate industry. An example of this is Clause 34 that declares that a seller need not pay an estate agent any commission, should that agent not have been issued with a Fidelity Fund certificate at the time when the contract of sale was entered into. It is easy to see that this is not practical. I would like to think that when this act was promulgated, the original objective was to have a ‘draconian’ measure in place to ensure that agents were properly registered with the EAAB and complied with the Act, which of course would have been duly appropriate. The downside is, however, that sometimes FFC’s have not been issued due to administrative oversights, computer glitches and the like. Unfortunately and with devastating consequences, the penalty to the estate agent remains the same - forfeiture of commission. The “punishment” outweighs the “crime”. This incidentally, is a current
REBOSA : PARTNERING TO ACT
problem of some magnitude.
Property Professional speaks to Jan le Roux, Chief Executive of
paying your speeding fine to a car manufacturer! REBOSA will ensure
REBOSA, to find out more about the organisation and its objectives
that the Property Practitioner’s Bill is studied properly and responded to.
One would hope that the Property Practitioner’s Bill would address this issue and stipulate a reasonable penalty or at least suspend the penalty should it be proven that the estate agency/agent was/is not at fault. It is also probably the only legislation in South Africa where the “penalty” goes to enrich, in this case, the seller. This amounts to something like
for the real estate industry Aside from the critical issues mentioned above, REBOSA will also play a central role when it comes to addressing issues of national importance which directly affect business owners. Property publications and property W H AT I S R EB O S A A N D W H O R U N S I T ?
portals are good examples. Real estate business owners have until
REBOSA is the Real Estate Business Owners of South Africa. It is a
now had marginal successes in this regard but these are mostly on a
non-profit Company that was formed a few years ago to represent the
regional level, for instance the estate agent owned publications in the
best interests of all business owners and principals of estate agencies
greater Johannesburg, Cape Town; Durban and their surrounds. Much
operating in the residential real estate sector. I am the Chief Executive,
more can be achieved by drawing on our collective knowledge and
appointed by the board of directors who are elected at an AGM – the
resources coupled with partnering on a national level, even if only to
next to be held on 20 June this year in Gauteng.
share information.
Page 63: R EB O S A I N D EP T H
W H AT EL S E CA N R EB O S A D O F O R M EM B ER S ?
Previously, business owners and principals never had a prevailing body
and the Department of Human Settlements. This separation also applies to other industries/professions.
effectively representing their specific interests. REBOSA’s directive is to do just that. Aside from challenging the regulatory and technical
W H AT I S R EB O S A’ S R EL AT I O N S H I P W I T H T H E E A A B ?
concerns affecting our sector, there is also the important issue of
I am pleased to say that our relationship is very good. We interact on
disseminating information. Managing an estate agency in the current
a regular basis but naturally have issues that need to be addressed.
climate is a complex and demanding occupation. Whilst running a
Relatedly, co-operation between our two entities has seen the EAAB
business and attempting to align with constant changes in legislation;
sanction us placing our own staff members in their offices, to assist
government announcements, amendments and industry trends can easily
REBOSA members finalise their paperwork with the EAAB. This has been
be overlooked.
enormously popular and members have benefited greatly.
Another benefit of belonging to REBOSA is the distribution of relevant
W H AT H A S R EB O S A AC H I EV ED T O DAT E ?
information through regular newsletters and the publication thereof
REBOSA is an active member of BUSA (Business Unity South Africa) and
on the REBOSA website. Much as REBOSA is a national organisation
has through this channel provided input on various bills. As REBOSA is
there are always issues of regional concern. REBOSA will soon be
a relatively new entity, our first objective is to regularise the relationship
in a position to respond to these regional issues raised by members.
with the EAAB and facilitate the issue of Fidelity Fund Certificates
Meetings could be facilitated for REBOSA members in a particular area
more effectively. Being prepared to study and react to the Property
to evaluate specific problems, arrive at a decision and then act upon it in
Practitioners Bill will undoubtedly be a focus point.
the best interest of the local members. H OW WO U LD M EM B ER S PA RT I C I PAT E A N D GIVE INPU T?
The Annual General Meeting, to which all members are invited, is the
W H AT A R E T H E P R ES S I N G C H A LLEN G ES AT T H E M O M EN T ?
The Fidelity Fund Certificate situation is of utmost importance together with building our membership base.
most practical way to contribute. This of course includes the democratic election of board members.This may be costly for members so we also
W H Y D I D YO U ACC EP T T H I S P O S I T I O N ?
plan to have at least one meeting a year in major centres to allow us to
I have been involved in the industry since 1983 and believe I really
connect with our members, share information and gain valuable input.
know it very well. I am also reasonably acquainted with many business
We do live in an electronic age. Communication is hardly a challenge
owners and held many different positions. I was a practicing estate
and the REBOSA website is in place to publish everything that is relevant
agent for 10 years and launched many property publications. I was also
and topical.
instrumental in launching the Property Association that led to today’s BetterBond. More importantly, as a principal myself, I feel the need to be
W H O CA N J O I N ?
represented on a national level. I know it is impossible, both time and
All natural persons and legal entities that have been issued with a
impact wise, for an individual to interact with government on legislation
Fidelity Fund Certificate in terms of which an estate agency may be
like the Property Practitioners Bill. Change can only be effected by a
operated, can join. Our fee structure is exceptionally simple and
concerted effort- well researched, motivated and presented - something a
effective. It is calculated at R20.00 plus VAT per registered agent
well organised body can do.
(principals included) per agency per month. W H AT I S T H E D I F F ER EN C E B E T W EEN R EB O S A
A N D I E A S A ( I N S T I T U T E O F ES TAT E AG EN T S O F S O U T H A F R I CA ) ?
It’s very simple. An agreement has been reached between the two parties that IEASA will look after the best interests of employees (estate agents) and REBOSA will do the same for business owners (principals). This is also in alignment with the expectation of Services SETA, the EAAB
T O J OI N R EB OS A : Complete form on rebosa.co.za AGM will be held at 09h30 on 20 June 2014 at City Lodge OR Tambo` RSVP info@rebosa..co.za
NEDBANK CLIENTS BENEFIT FROM RAPID ONLINE BOND APPROVAL PROCESS Online banking is increasingly being adopted by South African consumers, as an easier and more convenient channel. As such banks need to continue innovating to deliver a choice of distinctive banking experiences and channels based on the needs of their home loans clients through every life stage. In line with its strategic intent to lead in the digital space, Nedbank’s fully automated online home loan channel continues to provide homebuyers with easy access and convenience through a paperless, hassle-free process. Launched in September 2012, the channel continues to enhance the client experience through its rapid turnaround application process. Since the channel’s inception, Nedbank has processed over R1.8 billion in loans being taken up by clients through more than 15 000 deals. The average turnaround time for credit approvals submitted online has been achieved within just two hours, with the fastest in a mere 37 minutes. Timothy Akinnusi, Head of Sales and Client Value Management at Nedbank Home Loans, says Nedbank developed this channel in order to simplify the home loan application process and drive buyer advocacy to empower aspirant homeowners to make informed decisions, by providing information to ensure much needed understanding of the application and on-boarding process. Timothy Akinnusi Head of Sales and Client Value Management Nedbank Home Loans
“Nedbank’s fully automated online home loan channel continues to provide homebuyers with easy access and convenience through a paperless, hassle-free process.” “With the growth stats for internet and mobile usage in South Africa reaching significant numbers, it is clear that online platforms are fast becoming the channel of choice and method to conduct banking services. We are pleased with the continuous efficiency drive and more importantly, the positive feedback received from clients who have completed their application process literally within a few hours. This is a significant benefit for clients who do not have the time to visit a branch to apply for a home loan,” adds Akinnusi. Independent research conducted among users of the application, revealed that clients have been impressed by the level of service received, as they are guided through the entire process whilst also receiving key information regarding the financing and purchasing of their new home. Customers are also kept informed every step of the way via SMS and e-mail. “The service was a great experience, they got back to me faster than the other three banks and were also very willing to beat the rates of the other banks,” says Nolan Makuraj, Nedbank client. “We encourage new and existing clients to make use of this channel from the comfort of their own home or in fact anywhere that is convenient to them. We also understand that concern over the security of online transactions is still a real
issue for many South Africans. However, with the Nedbank home loan digital channel, our clients can rest assured knowing that all of their details and personal information remains completely confidential. The channel was built with leading security features to ensure that our client’s personal data is kept secure at all times,” says Akinnusi. As one of the leaders in digital banking, Nedbank views the home loan’s digital channel as a key feature in its range of online services as a logical extension of its on-going expansion and broadening of digital banking capabilities. “Our priority is to make our clients’ online banking experience secure and convenient and to empower them to access their home loan finance anywhere, any time. As such, we continue to innovate to ensure that we provide great-value banking for clients in keeping with their everchanging needs,” says Akinnusi. The Nedbank online home loan channel forms part of the bank’s wider strategy to take a lead in digital banking, through the launch of various services including Approve-it™, the Nedbank App Suite™ and MyFinancialLife™, a free online personal financial management tool that makes it safe and easy for consumers to bank anytime, anywhere. For more information please visit www.nedbank.co.za/homeloans.
Page 66: WO R D O N T H E S T R EE T
WORD ON THE STREET “The bank’s focus on economic growth has declined marginally to 2.6% in 2014, compared to 2.8% previously, while the focus for 2015 has been revised from 3.3% to 3.1%. The risks to this focus seem to be on the downside given the protracted strike in the private sector and electricity supply constraints.” Gill Marcus, Reserve Bank Governor
John Loos, FNB household and property sector
“So we are not talking about finding additional funds from the fiscus to support whatever changes in benefits that Parliament might be discussing for themselves. Modesty is an important message to communicate to the public. I think we need to communicate to the public that we don’t have extra money to put into any of these exercises... Parliament will have to work within the kind of budget it has.”
grow’)
Pravin Gordhan, Finance Minister
(SABC News: ‘Repo rate unchanged’)
“In the fourth quarter of 2013, the FNB Former Black Township House Price Index for the six major metro regions rose by 7.6% year-on-year. This growth was slightly higher than the consumer price index (CPI) and indicated a good balance between supply and demand.” strategist (Fin24: ‘Township property prices
(Fin24: ‘Gordhan: No money for govt perks’)
“Consumers continue to experience financial strain. Growth in real household income and consumption expenditure remains low on the back of inflationary pressures and subdued employment growth, while the savings ratio does not show any significant improvement. In view of current trends in and prospects for the economy and the household sector, as well as recent trends in house price growth, continued single-digit nominal price growth is forecast for 2014.” Jacques du Toit, property analyst at Absa Home Loans (Fin24: ‘House price growth still in single digits’)
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