Property Professional - January/February 2015

JANUARY/FEBRUARY 2015

RENTAL AGENCIES: NOT A SOFT OPTION

LEGISLATION YOU SHOULD KNOW ABOUT IN 2015 SHARED INTELLIGENCE BOOSTS RETAIL SECURITY

TO

FRANCHISE OR NOT

TO FRANCHISE? Fast facts about Rebosa FIND OUT HOW TO JOIN (AND WHY) ON PAGE 40

is where the gold is.

We are proud to announce that we were awarded Gold for the Best Real Estate Agency in Africa at the 2014 Overseas Property Professional Awards held in London. We also received Gold for the Best Online Service, Silver for Best Media (Imagine Magazine) and Silver for Best Global Estate Agency.

Most importantly, though, we’re proud to say we’re South African.

An International Associate of Savills

www.pamgolding.co.za | m.pamgolding.co.za

ED I T O R ’ S N O T E

EDITOR’S NOTE

THE CREATIVE GROUP 6 Beach Road, Old Castle Brewery Woodstock 7925 021 447 7130

Welcome to 2015! With a fresh outlook after the December break, New Year’s resolutions made and goals for the year ahead set, what will 2015 hold for you? You have an idea, but

www.facebook.com/PropertyProfessional

no concrete answer because predictions – which are educated guesses more than anything

https://twitter.com/Property_Prof

else – are never 100% accurate as there are too many factors that could influence an issue one way or another. They do, however, give a sense of what lies ahead.

Key trends that came up in our property market predictions article last issue (November/December 2014: “The crystal ball debate”) revolved around an expected boom in the rental/buy-to-let market owing to many people being unable to qualify for home loan finance; pending legislation and its influence on the property market; and the importance of maximising technology to enhance success.

THE CREATIVE GROUP CEO Shaun Minnie 083 629 6081 shaun.minnie@thecreativegroup.info EDITOR Michelle Funke

In this issue we take a closer look at these key trends and give some insight into what it

011 462 8959

takes to be a rental agent. We also delve into the upcoming legislation that will influence the

michellef@propertyprofessional.co.za

property market and take a closer look at technology and apps that property professionals ADVERTISING SALES

shouldn’t leave home without in the year ahead.

For those who are considering opening up a real estate franchise, we look at the ins and outs, as well as how the Consumer Protection Act has forced estate agents to change the way they do business.

On the commercial side of things, we take a look at shopping centre security – the spate of mall robberies towards the end of the year compelled shopping centre owners and tenants to explore more effective options for securing their premises.

Sarah Steadman 082 334 4367 sarah.steadman@thecreativegroup.info ADVERTISING PRODUCTION & SUBSCRIPTIONS Nikki Barnard nikki@propertyprofessional.co.za

We hope that 2015 is a brilliant property year for you! Property Professional will continue

ACCOUNTS & FINANCE

to offer you tips, tricks and advice to help you achieve your goals. This issue is full of news,

Nicolette Lubbe 011 476 6293

reviews and insights to help you make your mark on the property market and, as always, we hope you enjoy the read and we look forward to connecting with you through our website,

PRINTING

www.propertyprofessional.co.za or on social media.

Paarl Media

MICHELLE FUNKE

michellef@propertyprofessional.co.za

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

CO N T EN T S

CONTENTS 04 INDUSTRY NEWS

24

12 LEGISLATION IN 2015 16 RENTAL AGENTS 20 CROSS-SECTOR GROWTH 24 DIGITAL TECHNOLOGY

34

28 MARKET SHARE 30 PROTECTION AGAINST CPA? 34 FRANCHISE PROS AND CONS 38 RETAIL SECURITY 42 NEW AGENTS ON THE BLOCK

44 FINANCE & FIGURES 46 TOP PERFORMING AGENTS 48 TECH TOOLKIT 50 DEVELOPMENT UPDATE 56 WORD ON THE STREET

50

SUCCESS BREEDS SUCCESS

We offer you the Business Solutions to accelerate your growth and maximise your income potential.

Sales Franchise Looking to take your existing agency to the next level of growth and production? Convert to Chas Everitt and experience the power of having cutting edge technology, advanced on-line marketing strategies and top quality training.

Rentals Franchise Experience our state-of-the-art EverRent© Trust and Rental Management Software Suite. Our business model allows you to grow your rental portfolio whilst creating more efficiencies and optimising resources to be more profitable.

COME GROW WITH US CALL GERHARD KOTZÉ 011 801 2500 • 082 447 5698 gerhard.kotze@everitt.co.za

Notebook© License Are you looking to take your career to the next level without taking on overheads? The Notebook model allows you to run your own business under our banner with minimal capital outlay whilst enjoying the benefits of our powerful brand offering.

Page 4: I N D U S T RY N EW S

INDUSTRY NEWS RESIDENTIAL DEVELOPERS STRUGGLE TO OBTAIN FINANCE build and sell to third parties. Banks are also

it is because of the increase in the demand

wary of financing developers who are looking

for rentals. We are, however, finding that the

to build, hold and rent out, because pre-lets

banks have not yet adapted to this trend and

are difficult to obtain prior to construction

still have tight policies in place when it comes

and residential leases are typically signed for

to lending to residential developers. In certain

12 months only.

areas we are seeing unprecedented demand for residential rentals, with rental escalations

Palmer said that after the economic recession

of 7% to 10% with less than 1% vacancy also

the South African property market shifted its

being achieved.”

property investment preference from residential to commercial property, the latter being a

Palmer explained that most South African

safer and more lucrative investment at the

lenders require pre-sale agreements to be

time. He said that over the past few years the

in place when dealing with residential

market had shifted back to residential property

development finance. Such contracts state that

as the demand for residential rentals had been

the property in question must be sold before a

increasing steadily.

developer’s loan is paid out. They give lenders the assurance that the developer will have

“This trend is evident in the increase in loan

the capital available to repay the loan taken

applications for capital to build and sell,

to develop the property. Banks often require

or to build and hold, residential property

a condition of 120% pre-sale requirement,

developments which Paragon Lending

which, Palmer believes, is unrealistic and

Solutions has experienced. We believe that

difficult for developers to obtain.

Gary Palmer, CEO, Paragon Lending Solutions

South African developers looking to obtain finance to build and sell, or to build and hold and rent out, such as townhouse complexes, flats or retirement developments, are struggling to acquire funding from banks. This is according to Gary Palmer, CEO of Paragon Lending Solutions, who said that owing to the bad debt that was accumulated as a result of residential developers defaulting during the financial recession, banks are wary of approving loans to developers who haven’t secured the required level of presales for the transactions where developers are looking to

Another reason banks don’t often approve loans to developers for residential property

“IN CERTAIN AREAS WE ARE SEEING UNPRECEDENTED DEMAND FOR RESIDENTIAL RENTALS, WITH RENTAL ESCALATIONS OF 7% TO 10% WITH LESS THAN 1% VACANCY ALSO BEING ACHIEVED”

in South Africa is that in the past, developers were unable to sell the units that had already been developed, leaving the bank with an incomplete building to pay off. “This concerns banks the most,” said Palmer.

Palmer said that developers who are struggling to obtain bank funding could consider nonbank lenders that provide short-term, assetbacked funding secured against residential, office, industrial and retail properties. “These alterative solutions are often able to provide individuals with tailored options that will suit their requirements should a bank not be able to assist with a certain situation.”

SEE WHY SO MANY ARE CONVERTING Brendon Lahana- Franchisee (Chas Everitt St Francis Bay, Humansdorp & Jeffrey’s Bay) I am grateful and inspired to be working with a select team of professionals who I believe are the most capable, honest and hard-working in the business. I made the right decision to convert to Chas Everitt - my business is stronger than ever, my agents are successful and happy, I enjoy my interactions with my Chas Everitt colleagues and I am a proud Chas Everitt family member.

Linda Erlank - Notebook Licensee (Chas Everitt Kimberley) The unique Chas Everitt Notebook License model fitted me like a glove. Chas Everitt's quality training and excellent marketing systems, especially the application of internet technology in the marketing of property, together with outstanding support ensure revolutionary results. It is a privilege to be a part of this group.

Derek Tavendale - Notebook Licensee (Chas Everitt Zinkwazi Beach) I chose to work under the Chas Everitt International banner because it is “a breath of fresh air” in the real estate industry that seeks to enable its Notebook Licensees rather than regiment them. Chas Everitt has the technology and business systems to allow me to offer the full range of estate agency services - from rentals and maintenance to sales and national marketing - all under one roof. This makes all the difference when it comes to ensuring a business succeeds in a small market like ours.

Sonja Thielen - Notebook Licensee (Chas Everitt Stellenbosch) If you know WHAT, you will always have a job. If you know WHY, you will always be the boss. I am privileged to be associated with this tremendous team of quality leaders who clearly know WHY! Chas is so much more than a company - we are a family.

Glenda Watson & Rose White - Franchisees (Chas Everitt Phalaborwa & Hoedspruit) As an independent operator with 2 branches, we have been approached by several franchise companies over the years.

Chas Everitt was the only franchisor that really impressed us. They listened to our objections, went away, did some research, and then came back to us with solutions that allow us to achieve our goals whilst also benefiting from being part of larger group. We’re very proud of our reputation, and joining a group with strong family values and high principles was an important consideration. We’ve been a part of the Chas Everitt family for just on a year now, and we remain convinced that we made the right decision.

Rose McFall - Franchisee (Chas Everitt Somerset West) The Chas Everitt International emphasis on personal service was a big factor in my decision. Although it is a group with a formidable presence in the local as well as international market, people don't get lost in a corporate maze. It is a perfect fit with my own family-oriented approach to business – my staff and I start every workday in a family atmosphere by having breakfast together, a tradition we will uphold. This conversion to Chas Everitt has been a fantastic move in many ways!

Chantelle Grard - Franchisee (Chas Everitt Mossel Bay) After many years of being an independent real estate company and always being concerned about taking on additional expenses when joining a franchise, I must say that I am pleasantly surprised at the many cost saving we now enjoy as part of the Chas Everitt brand. Converting to Chas Everitt was the best business decision we ever made. We are very proud to be part of the Chas Everitt family and I am confident that we will take our business to the next level.

The best test of any Real Estate franchise is what it’s own people have to say about it CHOOSE A BRAND THAT GIVES YOU OPTIONS CALL GERHARD KOTZÉ 011 801 2500 • 082 447 5698 gerhard.kotze@everitt.co.za

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

BUYERS STILL KEEN DESPITE RATE INCREASES: BETTERBOND The latest statistics from BetterBond Home

the 12 months to end-July was 3.34% higher

by the banks and tend to make consumers

Loans, SA’s leading mortgage origination

than in the previous 12 months, and that

wary of committing to any new debt, such as

group, show that the number of home loan

the total value of bond approvals showed a

a home loan.

applications received in July this year was 2%

year-on-year increase of 6.46% at end-July to

higher than the number received in July 2013,

some R38.8-billion.

regardless of the two interest rate increases announced by the Reserve Bank.

“For now, though, it is worth noting that the number of applications initially declined by

The average approved bond size has

one bank but subsequently approved by others

increased by almost 3% in the past 12 months

showed a 4.34% year-on-year increase in July

“This speaks to the ongoing strong demand

to R755 586, and the average bond approved

and that the number of applications declined

for housing as the backlog built up after the

for first-time buyers has increased by almost

by the borrowers’ own banks rose 7.88% in

2008/09 recession continues to spill into

1% to R585 287. The average percentage

the same period.

the market,” said BetterBond CEO Shaun

of purchase price required as a deposit has

Rademeyer. “There is more evidence for this

shown a 3.62% decline year-on-year, and the

“It is thus becoming even more important for

as home prices continue to increase in the

average percentage of purchase price required

buyers to work with a mortgage originator

face of dwindling supply. According to our

by first-time buyers has declined by 7.17%.

that will motivate individual applications

statistics, the average home price showed a

and can submit them to multiple banks

year-on-year increase of 10.75% in July, when

“Nevertheless, we are expecting to see

in order to secure the best result for the

it reached R906 407. In the same period, the

some contraction in the market as affordability

prospective homebuyer.”

average home price paid by first-time buyers

issues begin to bite, especially if there are

rose 7.63% to R639 071.”

additional interest rate increases as predicted,”

BetterBond’s overall bond approval ratio in the

said Rademeyer. Such increases make it more

past 12 months has been 75%, and the total

The BetterBond figures also show, he said,

difficult to qualify for home loans in terms of

value of applications rescued after initially

that the total number of bonds approved in

the household disposable income required

being declined was R18.44-billion.

FOREIGN-BUYER NUMBERS RISING STEADILY: PROPSTATS In a recent report, First National Bank (FNB) property economist John Loos said that agents had reported a rise in foreign buying of domestic property.

Annette Evans, regional general manager of the Institute of Estate Agents Western Cape, said this could be corroborated when analysing a sample of transactions on PropStats, the institute’s online residential property data service.

PropStats’ data was taken from agents in the Western Cape, predominantly in greater Cape Town. Comparing sample figures from June 2011 to June 2014, she said, sales to foreign buyers had risen steadily: there were 14 sales in mid-2011, 26 in mid-2012, 37 sales in mid-2013 and 43 in mid-2014.

Page 7: I N D U S T RY N EW S

WHO’S WHO IN THE PROCESS TO ‘REGISTER TRANSFER’ OF A PROPERTY? The conveyancing procedure can be very daunting for sellers and purchasers and a myriad of questions arise.

An understanding of “who’s who?” often helps clients to get a clearer picture of the interrelation between various role players. We provide a brief synopsis here.

The phrase ‘transfer process’ refers to the set of events that take place after a sale agreement was signed up to the moment that the purchaser becomes the legal owner of the property.

In any one transfer, the process can involve three separate sets of attorneys whose actions are interlinked because their respective transactions all relate to the sale. This works as follows: • The seller appoints a transferring attorney in the sale agreement. This attorney will drive the process and ensure that the parties comply with the provisions of the agreement and that all the documents relating to the transaction are legally in order. It includes the obtaining of a transfer duty receipt from the Receiver of Revenue, a municipal clearance

certificate and various other prescribed documents and consents.

• The transferring attorney will also correspond with the cancellation attorney. The latter is the attorney who is appointed by the bank that holds a mortgage bond over the property (where applicable). The attorneys arrange for this bond to be cancelled prior to the transfer of the property to the new purchaser and for payment by the seller of all the amounts outstanding under the bond. This is, more often than not, paid by the seller (via the transferring attorney) from the proceeds of the sale.

• The third attorney is the so-called bond attorney and is appointed by the bank that granted a loan to the purchaser. The bank

requires a bond to be registered over the property as security for the money advanced simultaneously when ownership in the name of the purchaser is registered.

It may happen that one attorney attends to all three aspects, or only one or two. But it is important to remember that these are separate transactions and therefore the costs are separate for all three, whether performed by one attorney or three. If your attorney attends to two of these instructions, you will therefore receive two separate invoices.

Let a specialist property firm be on your side in the process. Contact a conveyancer in your area at www.stbb.co.za

HANDS-ON IN ALL YOUR LEGAL MATTERS

MORE THAN JUST THE PAPER WORK

COMMERCIAL LAW | CONVEYANCING | LABOUR LAW | ESTATES FAMILY LAW | LITIGATION | PERSONAL INJURIES & 3RD PARTY CLAIMS

www.stbb.co.za Cape Town 021 406 9100 | Claremont 021 673 4700 | Fish Hoek 021 784 1580 | Somerset Mall 021 850 6400 | Stellenbosch 021 001 1170 Table View 021 521 4000 | Tyger Valley 021 943 3800 | Menlyn 012 348 1682 | Illovo 011 219 6200 | Centurion 012 001 1546 | Bedfordview 011 453 0577

Page 8: I N D U S T RY N EW S

Although the figures would change from

analysing where the buyers are coming from,”

prices listed gave an accurate idea of what

month to month, in most cases they were

said Evans.

was happening in the marketplace. The

similar, she said.

information was captured as sales were On the Atlantic Seaboard there were buyers

made, and then confirmed, rather than

The FNB report stated: “With South African

from France, Germany, the UK, Denmark,

waiting a few months for the transfer to go

property now a lot cheaper for foreign buyers

Switzerland, Iran, the Netherlands, Tanzania

through, she said.

than a few years ago, some would perhaps

and Zimbabwe. The City Bowl attracted

say that it wouldn’t be surprising to see an

buyers from Germany, Angola, France,

“While more overseas buyers visited Cape

uptick in the levels of foreigner buying in

Portugal, the UK, Italy, the UAE, the US and

Town last year because of its term as World

the local market. And indeed, this is what

Benin. False Bay buyers came Germany

Design Capital for 2014, the knock-on effect

we appear to have been seeing. From a

and the UK. The Southern Suburbs attracted

will more than likely only be seen in the

low point of 2% of total buying at a stage of

buyers from Zimbabwe, Belgium, New

years to come, just as since the World Cup in

2010, the survey respondents have gradually

Zealand and the UK.

2010. Since then foreign buyer figures have

raised their estimation of the foreigner buying percentage to 4% by the first half of 2014.”

increased steadily, and while many have said According to members of the institute, she

the property market wouldn’t be affected by

said, valuers had increasingly been using

the event, it could be that the exposure to the

“PropStats’ management reports, which are

PropStats’ information to motivate the

rest of the world has increased the number of

available online to principals of property

pricing of properties for bond applications,

visitors to Cape Town, and tourism increases,

companies, have been very useful in a

as the information was current and the

so too does property ownership,” said Evans.

CAPE QUARTER TO GET SOLAR The Cape Quarter, the flagship property of the Tower Property Funds portfolio, will soon be retrofitted for solar energy as part of the fund’s greening and occupancy cost reduction strategy. Solar panels will be installed on the roof of the property and will supply about R350 000’s worth of electricity, with a 10% yield growing at a minimum of 8%. However, it is expected that this figure will grow, given Eskom’s predicted high tariff increases. The Cape Quarter has also undergone lighting and other retrofits that will save it R1-million a year in energy costs.

Said Tower Property Fund CEO Marc Edwards: “Recent global research has shown that green buildings outperform normal buildings significantly, on average achieving rental premiums of 6% and capital value improvement of 12% while reducing operating costs by 30%. We will be rolling out this solar retrofit at Cape Quarter first, but this will soon be followed by similar initiatives at all suitable buildings within the portfolio.” Tower Property Fund listed on the JSE in July 2013 under the new REIT structure.

“The PayProp Tenant Assessment Report has made it easier to manage risk in our business.”

- Taryn Steven, Rawson North Riding

“The biggest problem with traditional credit checks is that you can see how many accounts a prospective tenant has, but not what the credit facility or outstanding balance is, nor the repayments. With the Tenant Assessment Report I can see all the detail. I know exactly what a person’s fixed monthly responsibilities are.” - Adele Claassens, Rawson North Riding

Only PayProp clients have access to our revolutionary new Tenant Assessment Report. To find out how PayProp can help you run a safer and more efficient rental portfolio, visit www.payprop.co.za or call 087 820 7368.

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

SOME AGREEMENTS BETWEEN AGENTS AND HOAS ‘ARE LEGAL’ “Under certain conditions the conclusion

particular communities, which are often

cost recovery for services rendered by the

of marketing agreements between estate

gated and operated separately from the

HOA for, inter alia, but not limited to: supply

agencies and homeowners associations

surrounding properties. Although HOA fees

of security access cards; supply/erection

(HOAs) are lawful,” said Jan le Roux, CE of

purportedly protect property values, the rights

of advertising boards; supply of maps/

Real Estate Business Owners of SA (REBOSA).

of its members to participate in the free-market

directions to properties; branding opportunities.

economy also need to be guaranteed.

The legal guidelines state that “an estate

Since February, HOAs have been under

agent acting in any way in contravention

attack for what was deemed an unfair and

The law is less than crystal clear on the matter.

of the ethical provisions of the Code of

unlawful practice, namely, requiring that estate

It has become common practice for HOAs to

Conduct may be subjected to a disciplinary

agents pay “accreditation” fees in return for

engage with estate agencies that they then

process which may result in him/her being

the sole right to market properties situated

accredit upon such terms and conditions as

sanctioned, upon a guilty finding, by a

within an HOA. Matters came to a head

may be acceptable to the parties. It is the norm

committee of enquiry of the EAAB”.

when the Estate Agency Affairs Board (EAAB)

for these accredited agents to pay a monthly

issued a notice to stakeholders, telling them

or yearly accreditation fee, and a fixed or

Le Roux said the practice of paying fees to

to prohibit unlawful practices and to promote

other fee in respect of sales concluded, to the

HOAs could be justified if it was fair and

acceptable standards of conduct when entering

HOA. This flow of income into the estate is one

equitable in relation to the services being

into agreements between estate agencies

of the reasons homeowners are prepared to

rendered. REBOSA, however, does not support

and HOAs. Le Roux said he welcomed the

propose, accept and consent to a restriction of

the exclusion of all other estate agencies

board’s decision to interrogate this practice:

their rights to appoint an agent of their choice.

to carry out business within HOAs. Said

“REBOSA’s primary objective is to look after

Le Roux: “We operate in a free-market system

the interests of real estate business owners and

The EAAB obtained further legal advice

and no seller or buyer should be refused

this is a matter that affects them directly.”

and consulted with REBOSA, ARC and

permission to use an estate agent of their

others, and on 5 September it issued a new

choice. Preventing other estate agencies from

Following the publication of the EAAB notice,

practice notice stating that, notwithstanding

effectively entering and competing within

several REBOSA members came forward

homeowners’ freedom of choice to appoint

HOAs goes against our industry ethos and

with concerns, as did the Association of

their estate agent of choice for the marketing,

could have long-term detrimental effects on our

Residential Communities (ARC), especially

selling or letting of their property, entering

sector. We have welcomed the revised notice

since the practice was labelled “unlawful”.

into marketing arrangements by HOAs who

and continue to cooperate with the board

HOAs are established as non-profit companies

choose to do so is permissible, on condition

and other industry stakeholders. Although not

or as common-law associations to manage

that any fees payable constitute a reasonable

perfect, the latest notice brings more clarity.”

PROPERTY, CARS AND JOBS – JUSTIN CLARKE WINS EY WORLD ENTREPRENEUR AWARD 2014 One Africa Media (OAM) CEO Justin

performance and personal commitment

affords us the opportunity to showcase the

Clarke scooped other southern African

to their businesses and communities.

holding company, namely OAM. People know about the individual brands, but few realise

companies to win the Emerging Category award in the EY World Entrepreneur

The award, determined by his peers,

they fall under the same umbrella or even that

2014 competition, from which he had

acknowledges Clarke’s contribution to the

we are a South African company,” he said.

initially been barred from entering on the

southern African economy and the role he

misplaced belief he was underqualified.

has played in founding the Private Property

Clarke said the award provided the company

brand, which is now considered South

with a platform on which to consolidate a

The EY awards programme recognises

Africa’s leading real estate portal. “This is

marketing and education strategy. “Previously

entrepreneurs who demonstrate excellence and

an honour, particularly given the number of

the group had focused on building the

extraordinary success in innovation, financial

entrepreneurs across southern Africa. It also

brands individually, but OAM was a big

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

to helping buyers find the right place to live, and the industry has to trust us.”

OAM had responded to tougher market conditions by diversifying into other classified ventures, Clarke explained.

It had also identified huge growth opportunities in Africa. Today OAM controls 18 companies across eight African countries,

FREE all associates get shares in the company

including the biggest classifieds portals in Nigeria for property, jobs and cars.

Its operations provide jobs for more than 600 people in three hubs in South Africa, Nigeria and Kenya and it runs satellite offices in Ghana, Tanzania, Zimbabwe and Uganda – all countries with rapidly growing GDPs and high internet and mobile penetration rates.

“As an entrepreneur, one tends never to look back and think about the journey,”

For franchise and agent opportunities call Bruce 082 783 7198 Tel 021 671 4880

reflected Clarke, “but winning this award story for South Africa and Africa, and the

has given me time to pause and remember

recognition meant taking advantage of

the long road that we have travelled up

being thrust into the limelight,” said Clarke.

until this point and to remember the lessons and challenges as well as the successes.”

Clarke said his largest competitors played in the international arena and attracted

When asked about his secrets to success,

the top talent, but now that the OAM story

he said that entrepreneurs shouldn’t

had been told it had an equal shot at

think too much about the details but

recruiting the best employees. He said he

should instead just summon up the

was hoping that the award would help with

courage to go ahead with their ideas.

Move on Move up

cutting through South Africa’s red tape, visas and work permits when importing

“If you overanalyses and agonises over the

international skills into the industry.

details, you will never do anything. More importantly, it is about determination and

“We started Private Property 15 years ago

perseverance – you don’t get anywhere

as a listing vehicle for properties for sale by

by giving up,” advised Clarke.

owner. In 2008 we pivoted and opened up to real estate agents and became a full listing

Clarke said that much work still lay ahead as

portal for all. From then we grew quickly and

OAM took advantage of “the perfect storm”

are now one of the few early online listing

created by it being ahead on the internet

portals still in business today,” said Clarke.

curve – “particularly in Africa, where access to fast connectivity only came with the landing

He said Private Property’s differentiating

of the undersea cables in 2009 – as well

factors were its long-term commitment to

as being leaders in the markets in which it

its customers and the strong relationships

operates and the opportunities inherent in

it had built with the property industry:

the economic growth Africa presents with its

“We are authentic. We are dedicated

burgeoning middle-class and urbanisation.”

www.leapfrog.co.za

Page 12: LE G I S L AT I O N I N 2015

LEGISLATION YOU SHOULD KNOW ABOUT

IN 2015

There is a flood of legislation in the pipeline for 2015, including bills that

• legislating the transformation of the sector

could affect every aspect of the property industry. Companies that are

• enhancing job creation

cognisant of this legislation and its implications will be able to better navigate

• enforcing tax compliance

the waters ahead of its implementation. The most important legislation on the

• giving disciplinary hearing rulings the status of a judgment in a civil

table for 2015 are the Property Practitioners and Regulation of Land Holdings

court and executing it accordingly

bills, as well as section 9 of the Broad-Based Black Economic Empowerment

• giving the EAAB the capacity to deliver on its mandate

Act No. 53 of 2003.

• making the rulings of the DC the equivalent of the ruling of a

PROPERTY PRACTITIONERS BILL

• enhancing the existing regulatory mechanism

Let’s begin by examining the Property Practitioners Bill, which is intended to

• increasing the powers of inspectors

replace the EAA Act No. 112 of 1976. According to Andrew Golding, chief

• eliminating unlawful market practices

executive of the Pam Golding Property Group, “the pending revision of the

• buying access to business opportunities

existing Estate Agency Affairs Act into the new Property Practitioners Bill will

• limiting the rights of consumers.

magistrate’s court

be extremely important in that it will govern the residential property industry for the immediate future once it’s promulgated.”

There is no doubt that the EAA Act No. 112 of 1976 is in need of updating and there is hope that the Property Practitioners Bill will have a positive

An extract from a presentation to the Institute of Estate Agents North by the

effect on the property industry, but many voices in the property industry have

Estate Agency Affairs Board on 21 February 2014 revealed that the proposed

expressed concern about the coming bill and what it could mean for the

bill would deal with:

property sector.

Page 13: LE G I S L AT I O N I N 2015

Real estate companies are under pressure to familiarise themselves with pending legislation that will affect their business

5% recruitment commission is possible on every transaction

For franchise and agent opportunities call Bruce 082 783 7198 Tel 021 671 4880

Move on Move up Said Seeff chairman Samuel Seeff: “While ripe for an overhaul – and there is a need for new legislation to regulate the operational aspects of the industry – it still needs to be discussed and debated. For example, there is some indication that the new bill proposes to include an element of transformation. While this is a high priority, it is something that most real estate practitioners would agree would be out of place and should rather be dealt with within property transformation legislation.

“Amid new legislation in the industry, we would hope that the new bill would look to simplify rather than complicate. Rather, the Property Practitioners Bill should deal with the operational aspects of real estate agencies and raising the overall standards of the professional by regulating aspects such as registration and certification, how the business should be run and looked after and legal aspects pertaining to the business.

“It needs to deal with the actual ability to register, the legal requirements around that, certification and, of course, the vital matter of issuing certificates and, of course, audits. Aspects such as the certification of practitioners, regulating ongoing activities, including trust accounts,

www.leapfrog.co.za

Page 14: LE G I S L AT I O N I N 2015

Fidelity Fund Certificates and protecting the consumer, insofar as the CPA

owned land, privately owned land or both. It is also not clear whether this

legislation is concerned, should be covered by the bill/act.”

extends to agricultural land only or also to residential ownership. While we agree with the philosophy of wanting to restrict the sale of government-

What the actual bill will deal with remains to be seen, but the best way to

owned land, we would question the value of restricting private land

ensure that your property company is ahead of the curve is to know what

ownership by foreign nationals.

the legislation entails and to make sure that your voice is heard, should the proposed bill be made available for comment by property professionals.

“Foreign property ownership accounts for at best 2% to 3% of all property ownership and is rather insignificant in terms of the amount of property

REGULATION OF LAND HOLDINGS BILL

owned when weighing this against the financial and job creation benefits

The next bill to explore is the Regulation of Land Holdings Bill. This is the

that this brings. Vitally, the 2% to 3% ownership alluded to above is

bill that will govern foreign land ownership, a somewhat controversial issue

further reduced when taking into account that many foreigners also sell

that hasn’t been resolved. In a speech presented on 15 August last year,

their property here annually and the net effect is thus further negated. It is

Gugile Nkwinti, the minister of rural development and land reform, said:

a misconception that foreigners own the most expensive or best-located

“This bill seeks to provide for the establishment and composition of a land

properties in the country.”

commission, the appointment, qualifications and remuneration of members of the land commission, the classification of

Even with regard to the luxury property market –

controlled land, the determination of land ceilings

properties priced above the R20-million mark – the

and the regulation of land ownership by foreign

percentage remains about 2% to 3% at best. In

nationals. Through this bill we seek to provide a legal framework for the disclosure of race, gender and nationality by owners of land and property (both natural and juristic). It will provide a transparent and more conducive regulatory environment for the generation and utilisation of policy-relevant information on land ownership and usage.”

While this bill has not yet been put into effect, the implications for the property industry are worrying, to say the least. According to Times Live, last year foreigners accounted for R6.2-billion worth of property purchased in South Africa. In the same

“FOREIGN PROPERTY OWNERSHIP ACCOUNTS FOR AT BEST 2% TO 3% OF ALL PROPERTY OWNERSHIP, AND IS RATHER INSIGNIFICANT IN TERMS OF THE AMOUNT OF PROPERTY OWNED WHEN WEIGHING THIS AGAINST THE FINANCIAL AND JOB CREATION BENEFITS THAT THIS BRINGS”

fact, the highest prices ever achieved for residential property sold in the country were to South Africans: the One&Only Cape Town penthouse that sold for R110-million to a South African buyer, for example. The property sector makes a valuable contribution to the GDP, and aside from attracting foreign investment, foreign-owned property generates residual income in the form of rates and taxes and other basic utility costs. Foreign property investors have also contributed to vital infrastructure development. Rather than “stealing” the country’s crown jewel, they have polished them. “Consider for example those that invested in old, run-down wine farms,” said Seeff. “They injected vital funds

article, Lew Geffen, chairman of Lew Geffen

into infrastructure development and contributed

Sotheby’s International Realty, said: “There were

to the regeneration of these as working farms,

1 497 sales, worth R2.3-billion, to foreigners in

retaining the heritage and job creation. Most of

Cape Town, and 2 565 sales, worth R2.8-billion, to foreign buyers in

these owners employ sound labour practices and provide housing and

Johannesburg. What was even more encouraging was that foreign buyers

basic services and above-average wages. Yet another example is the inner-

were looking at areas beyond these two cities. For example, foreign

city regeneration of Cape Town that was largely led by Irish investors. This

buyers purchased about 670 properties, worth about R800-million, in

brought about cash flows into the country, infrastructure development and

KwaZulu-Natal in 2013 and about 260 properties, worth about R230-

job creation.

million, in the Eastern Cape. In addition, we are seeing a growing trend among foreign buyers to purchase properties in South Africa as investments

“There is also a knock-on effect when foreigners renovate their homes: they

rather than for their own use, and that is a healthy vote of confidence in our

create work for architects, builders, artisans, decorators and so on. There is

real estate market.”

enough intervention in the market from government and we do not believe that an additional layer needs to be added for very little upside.”

A bill that proposed to limit foreign land ownership could undermine confidence in the South African property market and that could lead to very

It is in regard to bills like these, which may harm not only the image of the

negative implications in 2015. Said Seeff: “We have been ‘vocal’ since

property industry but also to the businesses and professionals within that

the question of the government’s move to restrict foreign land ownership in

industry, that the property industry needs to work together and make sure

early 2013, calling for greater clarity on whether it would apply to state-

they are not passed.

Page 15: LE G I S L AT I O N I N 2015

PROPERTY SECTOR CHARTER The last bill that could have a negative effect on the property industry in 2015 is the sector code on black economic empowerment in the Property Sector Charter, which states: “10.4.1: 50% Black practitioners as a percentage of total practitioners using the adjusted recognition for gender.”

Points 11.1 and 11.2 elaborate: “11.1 Enterprises in the sector are not adequately investing in skills development and consequently there are limited levels of workplace development and continued professional training. There is also an insufficient number of structured and accredited training programmes or curricula in property-related professions.

World Class training for all associates

“11.2 The parties to the charter commit from gazetting of the sector code to address the backlog in structured skills development. This programme will be designed in partnership with the sector, the SETA, the Estate Agency Affairs Board (‘the EAAB’) and any other sector regulatory body, academic institutions and government.”

There has been much debate on the need for transformation in the property sector and many industry leaders have already initiated transformation in their own companies. The consensus is that there is a need for government support in transforming the sector. There is no funding or programmes

For franchise and agent opportunities call Bruce 082 783 7198 Tel 021 671 4880

available to pave the way for the transformation called for in the Property Sector Charter and many professionals feel that to enforce transformation without adequate programmes and support would be to the detriment of the industry and individuals joining the property industry.

Said Seeff: “While we believe transformation is a matter of priority for the industry, we are concerned that this bill is attempting a quick fix with

Move on Move up

no long-term sustainability in mind. One of the most immediate difficulties that we foresee with the proposal to bring black owners into the business is that it poses the question as to who would buy a 50% stake in a real estate business of which they cannot be a director? Being a director of a real estate agency requires of the individual to be at a principal level with an NQF4-level qualification and at least three years real estate experience.

This is not to say that transformation should not take place – quite the contrary – but rather than trying to change the fundamentals we would prefer to see the government look to introduce black candidates into the industry where they can gain the necessary experience and accreditation and then move into an ownership role, thereby creating the platform for sustainable long-term black involvement in the industry.”

The proposed legislation that is on the cards for the property sector this year could have some profound effects on the industry and businesses from the ground up. It’s imperative to know what legislation is being proposed and what it will mean for you and your business before it is implemented.

BY ANGELIQUE REDMOND

www.leapfrog.co.za

Page 16: R EN TA L AG EN T S

WANT TO BE A RENTAL AGENT?

Page 17: R EN TA L AG EN T S

Don’t be fooled into thinking that renting out property is a soft option. Successful rental agents work far harder than you might think The one thing we can all agree on is that the modern estate agent is completely different from those of days gone by. The industry bar has been raised and, thanks to the strict educational standards imposed, it’s unlikely that it will never drop back down to the levels seen in the past.

Award winning website & unique branding all associates benefit For franchise and agent opportunities call Bruce 082 783 7198 Tel 021 671 4880

Of course, there are still those who operate without a Fidelity Fund Certificate and who last saw the inside of a classroom 20 years ago.

However, their days are surely numbered, given that these individuals will find it all but impossible to get work with a reputable agency. It takes a fair amount of knowledge and skill to sell a home, and those who can’t make it in the industry tend to move on fairly quickly. This is understandable, given that sales agents only receive commission when

Move on Move up

they sell a home.

However, real estate isn’t just about selling homes and there are many who view rentals as a quick and easy way to earn money. As in sales, there are specialised rental companies who go all out to ensure that their letting agents are qualified, educated and licensed to rent out property.

Unfortunately, there is also a large number of smaller agencies that employ individuals who refuse to conform to industry standards and who often have little or no idea of what is legally required by a rental agent. It’s a sad state of affairs and, according to a number of highly placed people involved in rentals, not enough is being done to put these agencies or agents out of business.

Loose cannons are not the only problem the rental industry is facing.

Greg Harris, CEO of Chas Everitt Property Rentals, said that although both the NQF4 and NQF5 qualifications apply to rental agents, there is a lot of specialised knowledge, legal and otherwise, that is not covered in the curriculum. There is, for example, very little taught about the Rental Housing Act or how rental housing tribunals operate, and such training and information must be acquired on the job.

www.leapfrog.co.za

Page 18: R EN TA L AG EN T S

“YOU NEED SPECIALIST KNOWLEDGE AND TRAINING AS WELL AS ACCESS TO THE PROPER TECHNOLOGY, MANAGEMENT AND MARKETING SYSTEMS IF YOU WISH TO BE SUCCESSFUL, SO IT IS ADVISABLE TO WORK UNDER THE BANNER OF AN ESTABLISHED BRAND THAT ALREADY HAS ALL THESE THINGS IN PLACE”

The ability to sell a home does not necessarily translate into the skills

access to the proper technology, management and marketing systems if

needed to let a property. Dina Porteous of Pam Golding Properties

you wish to be successful, so it is advisable to work under the banner of

said: “An agent represents the landlord in terms of a mandate and it

an established brand that already has all these things in place.”

is imperative that a rental agent has a clear understanding of what the landlord’s rights and obligations are in terms of the Rental Housing Act.

The other important aspect of the rental industry is educating landlords

One needs to remember that the agent will deal with more than one

and tenants as to the importance of dealing only with qualified,

landlord as his rental portfolio grows and so should the level of skills in

registered agents and agencies, even though they may charge more

dealing with the portfolio.”

than their unqualified counterparts.

Rental agents must have financial management skills, good

Said Porteous: “There are good agents out there, but they and their

communication skills and knowledge of the relevant acts. All money

comprehensive services are often overshadowed by unregistered agents

received by the agent must be received through the agent’s trust account.

who will not go to the expense of limiting financial risks to either the

This trust account must be registered with the EAAB and managed in

landlord or the tenant.”

terms of section 32 of the Estate Agency Affairs Act No. 112 of 1976 and all deposits must be invested in terms of the Rental Housing Act

South African consumers still have a long way to go in recognising

No. 50 of 1999.

the benefits of using a registered agency, and the existence of so many illegal operators in this country is cause for concern. The EAAB,

Negotiation and mediation skills are imperative as agents act as the

according to Harris, only conducts random checks and independent

go-between for the landlord and the tenant. Agents must also understand

audits of trust accounts, which in his opinion is not sufficient to protect

the Consumer Protection Act No. 68 of 2008 and the Sectional Titles Act

consumer interests. He suggested that there should be a separate or

No. 95 of 1986.

additional national qualification for rental agents: “At this stage there are specialist courses available, including one presented by Vivien Marx

One can understand the lure of the rental market as, unlike sales, it can

from the Rental Housing Tribunal that covers the Rental Housing Act and

produce a regular income. The correct order of business is to develop

what role the housing tribunals have to play in the industry. These types

your skills as a rental agent and then concern yourself with income.

of courses are far more relevant for those who work in the day-to-day operations of the rental industry.”

What differentiates an effective rental agent from a poor one are proper training, access to excellent credit-checking and property management

Rentals might not have the same prestige as real estate sales, but they

systems and a huge dose of empathy for landlords and tenants, because

do form a significant part of the real estate sector and are often agents’

this is business is all about people. Said Harris: “The rental sector can be

bread and butter when sales takes a downturn.

a very good business option, providing a steady income if run correctly, but it is not simply a matter of deciding to become a letting agent and setting up shop. You need specialist knowledge and training as well as

BY LEA JACOBS

OVER OVER THE THE PAST PAST 3030 YEARS YEARS WE’VE WE’VE MADE MADE OUR OUR HOME HOME ININ NEIGHBOURHOODS NEIGHBOURHOODS ACROSS ACROSS SOUTH SOUTH AFRICA. AFRICA.

WANT WANTIN? IN?

WHY WHYJOIN JOINUS? US? • • Our in-house training academy offers Our in-house training academy offers comprehensive and ongoing training that ensures comprehensive and ongoing training that ensures that our agents are successful from day one. that our agents are successful from day one.

• • We provide technology and systems that We provide technology and systems that maximise successful sales efforts. maximise successful sales efforts.

• • Our brand is fresh and eye-catching and our Our brand is fresh and eye-catching and our marketing and advertising stands out from marketing and advertising stands out from the crowd. the crowd.

• • Our Rawson Referrals Department manages Our Rawson Referrals Department manages referrals of property leads between Rawson referrals of property leads between Rawson agents throughout South Africa, allowing for agents throughout South Africa, allowing for additional income potential. additional income potential.

ATAT THE THE RAWSON RAWSON PROPERTY PROPERTY GROUP GROUP WE WE RECOGNISE RECOGNISE THAT THAT IT’S IT’S OUR OUR TEAM TEAM THAT THAT MAKES MAKES USUS GREAT. GREAT.

• • Our in-house bond origination company makes Our in-house bond origination company makes getting a bond simple and fights for each getting a bond simple and fights for each property deal so you don’t have to. property deal so you don’t have to.

• • Our ongoing incentive and awards programs Our ongoing incentive and awards programs recognise excellence in the group. recognise excellence in the group.

CONTACT CONTACTUSUS

To join To join our our dynamic dynamic team team - Sales - Sales andand Rental Rental Agents Agents andand Commercial Commercial Brokers Brokers

careers@rawson.co.za 0860 0860 RAWSON/729766 RAWSON/729766 careers@rawson.co.za YOUR YOUR NEIGHBOURHOOD NEIGHBOURHOOD EXPERTS EXPERTS

www.rawson.co.za www.rawson.co.za

Page 20: C RO S S - S E C T O R G ROW T H

CROSS-SECTOR GROWTH IN THE RESIDENTIAL AND COMMERCIAL SECTORS LOOKS PROMISING Local realtors are seizing opportunities to expand through market diversification and global networks

5th Avenue Africa is marketing and leasing the Rani Towers in Maputo, Mozambique. This A-grade integrated development with panoramic sea views comprises offices, retail and accommodation within a central location close to schools and chambers of commerce

Page 21: C RO S S - S E C T O R G ROW T H

Specialist in-house services of agencies that traditionally spanned a single

Angola, as well as Ghana, Nigeria and, more recently, Mozambique.

residential platform where commercial market activity was often viewed

The two players’ joint areas of specialisation complement the growing

as a secondary interest has produced dedicated divisions in the fields of

need for corporate support in Africa, and the potential spin-off into the

auctioneering and property development. The expansion towards fully

residential sector is facilitated through an African-based partnership

fledged industrial and commercial divisions illustrates that markets change

across multiple platforms.

according to industry needs.

On the local front, cross-sector interests remain valuable in terms of Additional exposure at international levels – owing to spin-offs from the

stimulating broadened investment opportunities that should lead to

tourism industry and investors diverting from global economic uncertainty

notable successes within extensions of the residential sector.

– has motivated global connectivity within the residential sector.

Cross-border partnerships have resulted in long-standing affiliations

Seeff Property Group, which in 2014 celebrated 50 years of industry

between local agencies and global networks operating across various

participation, has for about 20 years expressed an aggressive

market sectors.

involvement in the commercial sector, said group CEO Stuart Manning.

“This has brought significant brokerages internally, both in Johannesburg

Examples include the affiliation between Pam Golding Properties and

and Cape Town, particularly in the fields of retail management and

Savills Property Group; between Anne Porter Properties and Knight Frank;

rentals,” said Manning. The company’s growing national footprint

and between Greeff Properties and Christie’s International Real Estate.

in this sector has resulted in a fully licensed operation with 200 outlets nationally.

Specialist commercial services, on the other hand, are taking place across local as well as foreign platforms. Unlike a number of South African residential specialists who over time have extended their in-house services to the commercial sector, the Pam Golding Property Group entered this market in 2013 via a strategic business alliance with industry specialist 5th Avenue Properties.

Said Pam Golding Property Group chief executive Andrew Golding: “As part of our aspirations to be a comprehensive property services provider, including commercial, and within the overall

CHANGING MARKETS AND INCREASED INVESTMENT OPPORTUNITIES MOTIVATES REALTORS TO AGGRESSIVELY HEADHUNT THE BEST INVESTMENT BROKERS, WHOSE INSTITUTIONAL COMPANY EXPERIENCE IS A VALUED COMMODITY

The commercial division within Seeff Property Group, whose core business remains primarily in residential sales and rentals, complemented by development, agriculture and investment, had shown significant growth in turnover and exceptional broker performances since mid-2013, said Manning.

A major contributing factor is that good commercial brokers look to align themselves with best overall market opportunities. Changing markets and increased investment opportunities motivates realtors to aggressively head hunt

Savills global network, our strategy is to enter

the best investment brokers, whose institutional

into strategic partnerships and wholly-owned

company experience is a valued commodity.

opportunities within the commercial space wherever appropriate. One such strategic alliance was established in 2013 with 5th Avenue.”

The number of top brokers who operate individually and who might previously have created brokerage houses or invested directly, is

A national commercial management agency, 5th Avenue is expanding

scaling down. As proven within the residential sector, said Manning,

its operations to the emerging markets of North, East and West Africa in

new legislation that either prevents or prohibits compliance poses a

a drive to service the needs of landlords in the office and retail sectors.

complex operating environment. The result is that brokers are attracted to

Apart from its role as an individual residential service provider, Pam

commercial brands where both legal and financial expertise is offered on

Golding Properties also facilitates the residential needs of employees of

in-house.

corporate occupiers.

Additional opportunities arising from internal industry changes have Mark Latham, chief executive officer at 5th Avenue Properties, said this

been noted over the past 10 years within private equity investment funds

agreement offers an opportunity for two established industry specialists,

and by owners of property portfolios. Manning said traditional in-house

who share a common brand, to develop and deliver key synergies under

management services are increasingly being outsourced to dedicated

the Savills International Property banner. 5th Avenue’s experience in

industry specialists. When viewed from a transactional perspective, this

the global market means it is ideally placed to cater to the developing

explains why the productivity levels of commercial brokers differ greatly

needs of emerging African markets, such as the oil and gas industries in

from that of the residential sector.

Page 22: C RO S S - S E C T O R G ROW T H

A NATIONAL COMMERCIAL MANAGEMENT AGENCY, 5TH AVENUE IS EXPANDING ITS OPERATIONS TO THE EMERGING MARKETS OF NORTH, EAST AND WEST AFRICA IN A DRIVE TO SERVICE THE NEEDS OF LANDLORDS IN THE OFFICE AND RETAIL SECTORS

Rawson Property Group’s commercial manager Leon Breytenbach, who

coupled with the building of valuable corporate relationships requires

has been closely involved in establishing the division within the group (its

high levels of knowledge and industry experience in these sectors

fourth) agreed that specialist brokers benefit from high levels of expertise

as compared with the residential sector, he added. The group’s all-

of large brands. Most entrepreneurially minded individuals realise that

encompassing strategy of diversifying away from a single-base residential

establishing a brand is a time-consuming process that prohibits them, as

agency that brought additional successes to the auctioneering and

successful brokers, from earning an income.

development divisions now extends throughout the commercial division.

“Rawson Property Group provides this platform immediately, and

Manning said global alliances to complement the group profile on

the value added by a franchisor far exceeds royalty fees charged on

international platforms remained a priority, with negotiations to facilitate

every concluded deal as the new franchise has the ability to grow

cross-boundary transactions under way.

from day one,” said Breytenbach.

From an African-based-specialist perspective, Latham said, industry Recognition of the growing need for skilled professionals in the

experience and in-depth is essential to operate within the valuable

commercial and industrial sectors has led to the opening of 31 national

yet challenging African markets, where transparency and access to

franchises and the hiring of 135 staff members, and strong growth has

information is not always readily available. He said the corporate

been recorded since the opening of the first Rawson Property Group

industry offers the ideal environment from where service providers such as

franchise in 2011, said Breytenbach.

5th Avenue and the Pam Golding Property Group can leverage synergies under one banner, instead of fragmented operational structures.

Breytenbach said that upskilling and a broadened knowledge base is facilitated in-house basis for new franchisees, brokers and consultants – including residential agents – who cross over to the commercial and industrial sectors. The gathering of commercial and industrial data

BY ANNA-MARIE SMITH

A REAL OPPORTUNITY

market share. Professionalism and a high standard of business ethics, as well as an energetic, goal-oriented attitude will stand franchisees in good stead to achieve a potential 10% market share in five years.

The RealNet Property Group was established in Pretoria in 1996 and started franchising the concept in 2001; today we have a national footprint of more than 60 franchise territories employing 340 estate agents dealing with residential, commercial and agricultural sales, sales in property developments, property letting and property management.

RealNet’s tandem franchise opportunities are quite unique and will be “silver bullets” going into the new year. 2015 will also see RealNet catering for the South African market only – a single geographical focus but, also uniquely, catering to all South Africans across all Living Standard Measures – from low-cost housing through to the luxury market. The year ahead will see the Franchisor providing tailor-made SA solutions in terms of all local real estate requirements with a focus on franchisee recruitment, estate agent recruitment, training and more training, backed by the tried-and-tested business model and systems.

Now’s the time to get on RealNet’s Property Ladder

A proudly South African brand with local shareholders and heritage. Franchisees benefit from a tried-and-tested system, a choice of three franchise models (boutique, mini and standard) as well as the opportunity for customising within certain parameters in order to suit individual requirements.

There is also tailor-made upfront and ongoing training, coaching and mentoring, support through regular field visits and one-on-one sessions and an online help desk with specialised staff members.

WHAT IT TAKES Prospective franchisees need full status as agents / principals with at least three years’ industry experience, including an established and reputable name in the territory and 5%

THE BOTTOM LINE RealNet’s set-up costs, which include the once-off joining fee, a marketing pack, induction training, systems, etc., varies between R150 000 and R800 000 depending on the franchisee’s requirements. A monthly fee, which varies between R2 075 and R6 910, is payable, plus a successbased royalty fee of 5% on gross commission. (Prices include VAT.)

Open the door to...

... an excellent opportunity

n A proven South African real estate

www.realnet.co.za

business system

n A customised franchise opportunity

to suit your needs

n Industry leading website, portals

and technology

n Quality training and proffessional

support

n Residential, agricultural and

commercial real estate

n Sales and rental management

For real estate franchise opportunities contact: Tommy Thompson 082 920 9022 tommy@realnet.co.za www.realnet.co.za

We make it happen!

Page 24: D I G I TA L T E C H N O L O G Y

DIGITAL TECHNOLOGY FOR PROPERTY PROFESSIONALS

Page 25: D I G I TA L T E C H N O L O G Y

“The internet is changing all the time,” Internet World Stats stated. “Two things, in our opinion, have marked its evolution recently: the social web

We live in a digital age. Since 1999, the internet and digital technology have not only changed the way we live, communicate, buy and sell, but they have also shaped the very future of how we will do business. Here’s how you can equip yourself with the knowledge needed to survive and make sales in a digital world.

and mobile technology. These two innovations have changed the way people use the internet. In the social web people have found a new way to communicate. Since its creation in 2004, Facebook has grown into a worldwide network of over 1 000-million subscribers. Mobile technology, on the other hand, has made possible a much greater reach of the internet, increasing the number of internet users everywhere.”

With a low initial investment, anyone can own a web page to promote their business and communicate quickly and directly with a wider range of consumers. JP Farinha, CEO of Property24, said: “Over the last five years we have seen consistent growth in the number of buyers searching for property online. In August 2014 Property24.com emerged as the 24th biggest website in South Africa (according to SimilarWeb.com), and the ninth largest website when considering locally owned online businesses only. What this tells us is, firstly, that buyers’ searching patterns are relying more heavily on technology; secondly, it indicates that with online technology, making information about property and the market more accessible. It is stimulating interest in an increasingly large property audience. Based on the Mobility 2014 research study conducted by World Wide Worx, 2013 saw a tipping point in the use of mobile apps, with 51% of urban cellphone users making use of these tools. Our data supports the findings of this study regarding growth of mobile-property search as well as the use of apps.

“This increased accessibility will continue to have a positive effect on the property market. We expect to see the biggest shift in 2015 being attributed to mobile technology, as it fundamentally changes the way that consumers think about looking for property. A mental shift occurred when house-hunting moved from being restricted to certain newspapers to being possible any time consumers are at their desks or laptops. We believe that we will start to see mass consumer realisation that they are able to engage in property searching in any spare moment via mobile devices.”

SO WHAT IS THE DIFFERENCE BETWEEN MOBILE AND COMPUTER? In 2015 mobile devices will dominate the way people communicate, search and connect with businesses. People are constantly on the go and this is where mobile technology and smartphones have started to capture the broader market of consumers and businesses.

In South Africa, mobile penetration is sitting at 128% – 97% of South Africans own a smartphone, with 81.6% of them using their smartphones to access the web. Facebook, instant messaging and other forms of social media dominate their usage patterns.

Most business websites were not designed to fit a mobile-phone display, and consumers are too busy to take the time to zoom in or out of a web page in order to reach the relevant information. Instead, they will find a site that fits the device they are using.

Page 26: D I G I TA L T E C H N O L O G Y

Bruce Swain, Leapfrog Property Group MD, said: “You’ve got to advertise

search portals and social media as a key component to their property

where clients are searching, and these days that is increasingly via mobile

marketing strategy. This is largely because consumer behaviour has

phone; so if you’re to stay relevant, you’ve got to be accessible on a

changed considerably over the last two decades, with 90% of property

cellphone.” Many property companies have already recognised this and

buyers first searching the internet before using any other form of media to

have mobile sites and are active on social media. Some even have blogs.

look for a home, as it is both instantaneous and convenient. Buyers are

Those are the three keys to making sure you are relevant in today’s digital

able to access an endless amount of information without having to leave

age. Is it just enough to have a mobi site though?

the comfort of their homes. More than half of the users on Facebook are of home-buying age, and with approximately 500-million users, it is a massive

An effective mobi site needs to load quickly, be conservative in the amount

network of potential consumers who can change, shape and influence the

of data it requires, must be easy to navigate and should be uncluttered.

market. The social media phenomenon is here to stay, and consumers have the power to make themselves heard.”

Adrian Goslett, CEO of RE/MAX said: “While the traditional real estate marketing methods are still very much alive in today’s market, the addition of social media and how it can be used to influence and interact with consumers has shifted agents. Estate agents are utilising online property

BY ANGELIQUE REDMOND

THE FOUR TOP DIGITAL TOOLS It is no longer business as usual for the property industry. In today’s digital world you must have a two-pronged approach to marketing. You need to have a strong digital strategy that uses social media, websites and mobi sites, in addition to the traditional real estate marketing methods. At the end of the day people will always prefer to deal with people when it comes to buying a property, but how they decide which one to buy or which company to use will be determined by you digital strategy.

NICOLENE HAMATY OF CENTURY 21 RECOMMENDS FOUR TOP DIGITAL TOOLS TO COMPLEMENT YOUR SOCIAL MEDIA STRATEGY: Hootsuite is a

Feedly is a news

Videolicious

Dropbox is useful

social media

aggregator

is a great app

for keeping

management

app for web

for making

documents and

system that

browsers and

professional-

information on

can be used across multiple

mobile devices. It compiles

looking videos of your new

hand. It stores your files on the

platforms, such as including

news feeds from your

listings. You start by selecting

cloud (think of the cloud as a

Facebook, Twitter, LinkedIn

favourite websites according

the clips and dragging them

memory stick you can access

and Google+. Hootsuite allows

to topic. So if you want

into the order you want them to

from any computer with an

you to manage your entire

information on real estate, all

flow in; next, you narrate your

internet connection). As a real

social media platform from one

you need to do is select it as

personal message about the

estate professional you can

dashboard and to schedule

an area of interest and Feedly

property while tapping on the

benefit a great deal from having

your post for a time and date

will have articles and websites

clip you want to marry to the

your files at your fingertips

of your choosing. By using

waiting for you when you fire

voice recording; you then select

no matter where you are.

Hootsuite you can effectively run

up the app. You can share

background music, free and fully

All you need to do is download

your social media by taking an

the content from right inside

licenced, from the Videolicious

the Dropbox app for your

hour a week to schedule your

Feedly as well. “This is one of

library. It takes just a few

smartphone, create an account

post and information to go off

my go to apps,” Hamaty says.

seconds to automatically trim,

and place all your documents

at certain times of the day and

www.feedly.com

mix and layer your clips and

in your personal Dropbox

on a certain date.

photos into an impressive video.

folder. Imagine having all your

www.hootsuite.com

Finally, you upload your video

information about a client, listing

to Youtube and share it on your

or area at your fingertips.

social media platforms.

www.dropbox.com

www.videolicious.com

WE’VE PLANNED FOR YOUR FUTURE. WITH US.

WE’VE GOT THE POWER. There has never been a more important time to ensure your business enjoys leading edge systems.

We understand that cutting edge technology can propel your business to new heights and that strong paths of communication are a necessity for any professional. We offer an extensive suite of technology products that give you the tools to provide the highest level of customer service, work more efficiently, and sell more real estate in today’s competitive market.

If you are a sales consultant looking to go to a new level of performance or a business owner finding your current environment lacking in imagination, Harcourts have the power to support you in your next career move.

FIND OUT MORE ABOUT A FUTURE WITH US, CALL: JEANNE VAN JAARSVELDT // 071 607 5439 JOINHARCOURTS.CO.ZA

Page 28: M A R K E T S H A R E

BetterRewards makes

SUPPORTING

BetterBond SUPER-EASY

WITH 10-YEARS EXPERIENCE IN BOND ORIGINATION, BETTERBOND CURRENTLY SECURES MORE BONDS ON NEW PROPERTIES THAN ANY OTHER FINANCIAL INSTITUTION - INCLUDING THE BANKS. No mean feat, and one we’d never have achieved without support from our Agents. So we go the extra mile supporting them. From the speed at which we work to ensure they maintain complete control of their transactions, we prove our appreciation through our actions.

We also reward. Following OTP submissions and registration, our Agents are furnished with BetterRewards points to redeem at their leisure – whether the deal was successful or not. Just one of the many ways we say, “Thank you”.

ASK OUR AGENTS. THEY’LL TELL YOU - WE STAND BY OUR PROMISES.

I love the fact that with BetterRewards one can cash-out points and purchase anything you need. I am not even aware of any other rewards programme that offers this…

It’s really been an amazing experience being rewarded for something that I would have done anyway and to be able to cash-out those points and spend them at the rugby, at the shops or anywhere for that matter!

I can honestly say that; being an Agent and not using this programme to its full advantage is like throwing away hard earned money.

WAYNE LAWSON Realtor of Excellence

www.betterbond.co.za

0800 007 111

Page 30: P RO T E C T I O N AG A I N S T T H E C PA

ARE YOU PROTECTING YOURSELF AGAINST THE CPA?

Page 31: P RO T E C T I O N AG A I N S T T H E C PA

Things appear to have gone very quiet on the Consumer Protection Act front, but just because we haven’t heard about agents being dragged into court doesn’t mean that it is never going to happen.

We spoke to various agencies to find out what precautions their agents are taking to protect themselves against potential litigation One has to wonder whether the powers that be really gave the matter

To be fair, as with most things legal, the wording of the Act is more than a

adequate thought when they decided that the Consumer Protection Act

little confusing, both to laymen and estate agents. The fact that an awful lot

No. 68 of 2008 (CPA) should apply to estate agents. It is after all, one

has been written about the subject has undoubtedly helped agents get to

thing to return a defective toaster or kettle and demand your money back,

grips with some of their new responsibilities.

but it’s quite another to get the sale of a property overturned because the seller didn’t disclose certain things to the agent and the agent in turn didn’t

Says Michelle Cohen, who heads Leapfrog’s Johannesburg North East

disclose these issues to the buyer.

office: “We have had many training sessions with attorneys who are schooled in the CPA to try to ensure that our agents are at least aware

Agents are at the mercy of the seller when it comes to the disclosure of defects. Unless the agent has a degree in structural engineering, is a qualified plumber or holds another relevant qualification, she is not qualified to categorically state that the property is clear of defects.

As matters stand with the interpretation of the CPA, estate agents can be held liable for something over which they have no, or very limited, control. The liability imposed on agents by the CPA has not yet been tested in a court of law. However, some agency principals are taking proactive steps to protect their agents.

The CPA came into effect in 2011 and, although there

of their own responsibility in terms of CPA.” She says

SINCE THE ADVENT OF THE CPA, CONSUMERS HAVE BECOME A LOT MORE AWARE OF THEIR RIGHTS AND ARE NOT AFRAID TO ENFORCE THEM

every real estate office should be obliged to engage in ongoing training on the legislation.

One step taken by franchise property groups countrywide is to provide a seller’s declaration warranting that the seller has disclosed all known defects to the agent. Jan Myburgh, general manager of operations and learning at Harcourts, says: “Although the declaration is necessary, it should be more important to make sure that the seller is properly educated about the CPA and its repercussions in a sale.”

was a great deal of apprehension surrounding this new piece of legislation, there has not yet been a case

Cohen says the seller must sign the disclosure document

where the buyer has taken an estate agent to court with regard to her

at the time of listing the property so that the agent knows exactly what she

failure to inform the purchaser about defects in the property in question.

is selling prior to advertising it. Proper explanation must be given to the seller on the relevance and importance of the disclosure document.

This does not mean that agents should sit back, relax and assume that the entire issue was a storm in a teacup. Since the advent of the CPA,

This document must be made available to any potential purchasers, and

consumers have become a lot more aware of their rights and are not

if they are uncertain about defects, then the buyer should, at his own

afraid to enforce them.

expense, call in an expert of his choice to inspect the property.

In light of that, we polled a number of agents and agencies to see what

The disclosure document must be signed by both parties and forms part of

they are doing to safeguard themselves against becoming a test case

the offer to purchase. If there are any comebacks regarding defects that

under the CPA.

were not disclosed by the seller, the agent cannot be held liable for the

Page 32: P RO T E C T I O N AG A I N S T T H E C PA

non-discloure, because she can proved that she guided both buyer and

“However, the unintended consequences that make estate agents

seller correctly through the process.

somewhat apprehensive and nervous about the CPA is their requirement to fulfil the very broad and – may I say – grey area of what constitutes

It seems that the CPA has made selling property more difficult for agents

essential information that an estate agent should disclose or is liable to

because the average buyer (consumer) believes that agents should be

disclose to purchasers.”

experts in all matters relating to the property concerned. Meanwhile, many sellers believe they can pass the defect buck on to the agent because, in

Besides normal and obvious deficiencies and the absence of certain

terms of the CPA, most of them do not sell property in the ordinary course

disclosures and warranties regarding a property – all of which can be

of their business and are therefore not expected to be experts in this field.

recorded when listing a property –Century 21 estate agents are advised and trained to make the seller responsible for all the other deficiencies

Cohen says it is imperative for agents to explain to sellers their

which may arise, because they do not form scope of the agent’s

responsibility in terms of the CPA when the agent is listing the property

responsibility, technical know-how or training.

and not when the agent presents an offer, as this “will lessen the problems that can arise from the issues that the sellers and buyers assume fall under

As things stand, the CPA remains untested in a court of law, and let’s face

the auspices of the CPA”.

it, we won’t really know what we are in for until the interpretation of the law is scrutinised by a judge. Like we’ve pointed out, there are problems

Says Myburgh: “Agents do now rely heavily on the seller and landlord to

with the legislation in as far as holding estate agents virtually responsible

disclose the defects in the property in order not to have a backlash from a

for every aspect of a property.

purchaser or tenant when they find the property not to their expectation.

Agents do get the calls and CPA threats when occupation is taken and the

One thing has become abundantly clear – agents who are serious about

purchaser or tenant is aggrieved.”

their real estate careers go to great lengths to protect themselves from an unhappy buyer. There’s a lesson in this – make sure sellers are fully aware

The CPA has certainly complicated the contractual relationships in a sales

of the perils of non-disclosure and that agents cover every base to ensure

or lease transaction. In normal retail contractual relationships, the seller is

that the buyer is getting exactly what he paid for.

a business that promotes and sells the service or product in “the normal course of business”, which was the primary aim of the CPA. In real estate, the seller or landlord, the primary supplier of the product in this case, does not do so in the “normal course of business” and the nature of the product, a property, is mostly second hand, invoking the voetstoots clause provisions. It is virtually impossible to provide a guarantee on a product of this nature by cancelling a sale, refunding the purchaser and taking the property back. By the time the CPA sanctions are invoked, the seller might have bought another property, a mortgage might have been registered on the property and transfer duty paid to the South African Revenue Service.

There are, however, certain benefits that the CPA has brought to the fore by holding an agent responsible for the product that he is selling. Harry Nicolaides, CEO of Century 21 South Africa, says that the introduction of the CPA into the property sales industry can only serve to further

IT IS VIRTUALLY IMPOSSIBLE TO PROVIDE A GUARANTEE ON A PRODUCT OF THIS NATURE BY CANCELLING A SALE, REFUNDING THE PURCHASER AND TAKING THE PROPERTY BACK

enhance the ethics and professionalism of the industry, albeit with certain unintended consequences with regards to the role estate agents play.

Says Nicolaides: “If it’s about ensuring that a purchaser is provided with the true facts about costs and the financing process, the process of purchasing and transfer, general conditions of the property and its extent, as provided by the seller and the title deeds, together with suburb trends and features, then that is all welcome and in fact should form part of the estate agents’ role in servicing the property needs of their clients.

BY LEA JACOBS

Page 33: F I R S T-T I M E B U Y ER S

Page 34: F R A N C H I S E P RO S A N D CO N S

TO

FRANCHISE OR NOT

TO FRANCHISE?

Page 35: F R A N C H I S E P RO S A N D CO N S

With the property industry expanding each year, many people are faced with the tough decision of going it alone or joining an established property company as a franchisee. So, what are the pros and cons of franchising? Let’s take a look…

Franchising accounts for less than 25% of the property industry, which

businesses that have a strong footprint and track record in a particular

is not much when you consider the size of the South African property

area. In the South African real estate sector, the franchisee has

market; but just think of some of the groups in the property industry that

proved particularly effective. The model also works well in the US

started out as a single company and are now major franchises and well-

and Australia.”

recognised names.

There are some disadvantages to joining a franchise, the main being There is a lot to be said for going it alone and building a property

that you are not creating your own company. When you buy into a

company from the ground up, just as there are many positive aspects to

franchise you are buying into the parent company’s vision as well as its

joining a well-established franchise.

rules and regulations.

Said Seeff chairman Samuel Seeff: “Real estate is

A franchise mirrors the parent company, and how

essentially a people business; you are dealing with

you do business is dictated by the agreement you

people, whether you are listing the property of a seller or liaising with buyers – it is all about people skills.

There is no one formula for success, and it is very community based – the most successful operators are those who work closely within their local communities.

“It is also about entrepreneurship. A franchise model allows smaller entrepreneurs to become part of a strong umbrella real estate brand and benefit firstly from the brand strength and secondly from the

“IN THE SOUTH AFRICAN REAL ESTATE SECTOR, THE FRANCHISEE HAS PROVED PARTICULARLY EFFECTIVE. THE MODEL ALSO WORKS WELL IN THE US AND AUSTRALIA”

infrastructure and resources.

sign when you buy into a franchise. This can lead to problems further down the line, when operational or marketing initiatives by the parent company have to be put into practice.

There is also the difficulty of adhering to management rules laid out by the parent company. The rate of innovation can also be affected: should you come up with a marketing idea, you will need to get permission to implement it. The larger the franchise, the harder this can be: not everyone will share your vision and the parent company or other franchisees may be

“For the franchisee, the benefits of joining franchised

reluctant to put it into effect.

operations far outweigh that of trying to start up your operation, establish a brand, build a reputation and fund the infrastructure required

Said Chas Everitt International Property Group franchising director Barry

to run a successful real estate business. The particular franchisee can run

Davis: “The key is careful selection to ensure a number of issues, the first

the business according to local market dictates and requirements. There

of which is compatibility. If someone isn’t going to fit into your culture,

is generally also the opportunity to expand the business by, for example,

you should do both yourself and the applicant a favour – don’t go there.

buying additional areas. Franchisees are, on the whole, able to still

You also need to make sure the applicants understands exactly what they

manage their business directly while leveraging the strengths, ethos and

will get and what they won’t. Managing expectations is vital.

resources of the umbrella brand.

“Franchised operations generally have a much better success rate than “For the franchisor, the real estate umbrella brand is able to more

individual start-ups,” Davis continued. “An established brand with a solid

effectively spread its footprint through individually operated franchisee

reputation will open doors for you, because clients want the security

Page 36: F R A N C H I S E P RO S A N D CO N S

“MANY SUCCESSFUL AGENTS WHO DECIDE TO BECOME PRINCIPALS IN THEIR OWN OPERATIONS QUICKLY FIND THEMSELVES BOGGED DOWN” that comes from knowing there is an organisation with substance and

can. In almost every instance the independent company will do better

reputation behind the individual.

within a franchise group and the extra earnings will far outweigh the costs involved.”

“Business systems and management are also considerations. Many successful agents who decide to become principals in their own

Pam Golding Property Group presented a slightly different franchise

operations quickly find themselves bogged down in setting up

business model. Said chief executive Andrew Golding: “We believe

administration systems, creating marketing materials and managing

a hybrid model of company-owned stores (as opposed to franchises)

websites and paperwork – instead of being able to take advantage of

which form the core of the business, with franchises around these core

their superior selling skills. It makes much more sense to let a franchisor

offices, offers the best of both worlds to our brand.

handle all the admin and paperwork while you focus on income production. The fees are minor compared with what you can earn when

“In our view, to franchise or not depends on a number of factors,

selling instead of running the office.”

including the particular market opportunity, the area and, perhaps most importantly, the available operators.”

Somerset West property specialist Rose McFall recently decided to convert her agency to the Chas Everitt International brand, even though

Another important factor that could tip the balance when deciding

she had achieved huge success as an independent. She said: “My

whether to franchise or not is the role major franchised companies’ play

decision was based on the wider exposure that my clients’ properties

in the property industry. Many of the leading names in the property

receive as part of the Chas Everitt group, which has outstanding

industry are franchises and these are companies that are at the forefront

marketing platforms as well as an excellent referral system that has

of setting standards and norms for the property industry. Through their

boosted buyer enquiries from all over the world. Being part of a national

collaboration with governing bodies and institutions, they are part of the

group has also opened doors to opportunities such as new development

positive changes made in the property industry – a benefit to companies

projects that we have now been able to add to our portfolio and

that are associated with them.

showcase worldwide.”

Said Ian Olivier, franchisee and Pam Golding Properties area principal Rawson Property Group chairman Bill Rawson said it is imperative

for Port Elizabeth: “With the new legislation and qualifications required

that you do your homework and research the parent company before

by estate agents, it is imperative to ensure that you have excellent

buying into a franchise: “If you enter into an agreement with the wrong

training available for your agents.

franchisor and then want to get out of it, you may have a hard time doing so and it will likely be expensive.

“Being part of a national and international group such as Pam Golding Properties opens doors to so many opportunities that one would not be

“To avoid this, potential franchisees need to do their research and

exposed to as a sole operator. The referral network, if used properly, is

perhaps talk to franchisees within the group to get their opinions.

of huge value to both buyer and seller.

Franchisees need a substantial capital base to pay for the franchisor’s marketing demands. For example, the franchisor may require franchises

“You also get to build up a business asset. These are just a few of the

to update their branding collateral and shop furniture at certain points in

things that spring to mind. Being part of a large company means that

time. If the franchisor does not practise reinvesting into the business, then

you have friendly ‘competition’ which is not afraid to share marketing

both parties will suffer.

ideas and knowledge in the best interests of the brand.”

“In order for the brand to grow there needs to be financial support from the franchisor. If you own an independent company and you plan to franchise in the future, the best time to do it is as soon as you possibly

BY ANGELIQUE REDMOND

the estate agent’s tool kit right inin your pocket the the the estate estate estate agent’s agent’s agent’s tool tool tool kit kit kit right right right in in your your your pocket pocket pocket INTRODUCING THE BETTERREW the estate agent’s tool kit right in your pocket INTRODUCING INTRODUCING INTRODUCING THE THE THE BETTERREWA BETTERREWA BETTERREW Brought to you by BetterBond Home Loans & BetterRewards Brought Brought Brought toto you to you by you by BetterBond by BetterBond BetterBond Home Home Home Loans Loans Loans & BetterRewards & BetterRewards & BetterRewards Brought to you by BetterBond Home Loans & BetterRewards

INTRODUCING THE BETTERREWA

BetterRewards has always been about rewarding our Estate A BetterRewards BetterRewards BetterRewards has has has always always always been been been about about about rewarding rewarding rewarding our our our Estate Estate Estate Age AgA and loyalty.

BetterRewards has always been about rewarding our Estate Ag and and and loyalty. loyalty. loyalty. and loyalty.

Well, now we’re bringing them home toto you valued col Well, Well, Well, now now now we’re we’re we’re bringing bringing bringing them them them home home home toto you you you - our - -our -our our valued valued valued colleag collea col Well, now we’re bringing them home to you - our valued collea Your effort and loyalty to BetterLife will earn you points.

Your Your Your effort effort effort and and and loyalty loyalty loyalty toto BetterLife to BetterLife BetterLife will will earn will earn earn you you you points. points. points.

Your effort and loyalty to BetterLife will earn you points.

These can spent in of different ways: These These These can can can bebe be spent be spent spent in in a in variety aa variety avariety variety ofof different of different different ways: ways: ways: These can be spent in a variety of different ways: bring you special deals atat retailers, value added servi • •• We •We We We bring bring bring you you special special special deals deals deals atat retailers, retailers, retailers, value value value added added added services service servi • and We bring you special deals at retailers, value added service monthly competitions for you toto choose from. and and and monthly monthly monthly competitions competitions competitions forfor you for you you toto choose choose choose from. from. from. and monthly competitions for you to choose from. you can spend your points like cash using • •• Or, •Or, Or,Or, you you you can can spend spend spend your your your points points points like like like cash cash cash bybyby using byusing using our ouo • Or, you can spend your points like cash by using ou BetterRewards BetterRewards BetterRewards MasterCard.

MasterCard.

MasterCard.

BetterRewards MasterCard.

BetterRewards MasterCard.

• •• You •You You You can can can also also draw draw cash cash cash atat any at any any Absa Absa Absa ATM. ATM. ATM. can also draw cash at any Absa ATM. • You can also draw cash at any Absa ATM.

You’ll You’ll You’ll soon soon soon bebe receiving be receiving receiving a pamphlet a pamphlet apamphlet pamphlet informing informing informing you you you ofof everything of everythin everyth You’ll informing you of everyth Download Download Download the the Bett the Bett erBond Bett erBond erBond app app via: app via: via: You’llsoon soon be be receiving receiving aa pamphlet informing you of everythin Download the BetterBond app via: Download the Bett erBond app via:toto you you you need need need toto to know to know know about about about BetterRewards.

BetterRewards.

BetterRewards.

Attached Attached Attached this to this this will will be will b you need know about BetterRewards.

Google Google Google PlayPlay store Play store store Attached to this will Google Play store you need to know about BetterRewards.

Attached to this will b Google Play store - keep your your your very very very own own own BetterRewards BetterRewards BetterRewards MasterCard MasterCard MasterCard keep keep it safe, it safe, it safe, because becaus becau or Apple or Apple or App Apple App store App store store your very own BetterRewards orMasterCard Apple App store - keep it safe, becau your very own BetterRewards orMasterCard Apple App store - keep it safe, becaus The The innovati The innovati innovati ve ve & ve easy-to-use & easy-to-use & easy-to-use Bett Bett erBond Bett erBond erBond app app gives app gives gives you: you: you: it’s it’s your it’s your your passport passport passport toyou: to ato better aa better a better life! life! life!

The innovati veve&&easy-to-use erBond app it’s to better life!

The innovati easy-to-useBett Bett erBond app gives gives you: it’syour your passport passport to a better life! · · · · · · · ·

· ·· ·· ·· ·

to bond calculators to help with quick calculati ons. ·Access Access Access to bond to bond calculators calculators to help toyou help you you with with quick quick calculati calculati ons. ons.

Access totobond calculators totohelp you with quick calculati ons.

Access bond calculators help you with quick calculati ons. to the erRewards portal, where as aasBett erRewards member you can access your ·Access Access Access to the toBett the Bett Bett erRewards erRewards portal, portal, where where aasBett aplease Bett erRewards erRewards member member you you can can access access your account.

InIn In the In the meantime, the meantime, meantime, please please watch watch watch this this this video video video for for ayour for few aaccount. few aaccount. few words words words from from fro o Access totothe Bett erRewards portal, where as aa Bett erRewards member youvideo canaccess access your account. the meantime, please watch this video for a few words from Access the Bett erRewards portal, where as Bett erRewards member you can your account.

In the meantime, please watch this for a few words from vely you can register to become a Bett member viavia the app. ·Alternati Alternati Alternati vely vely you you can can register register to become to become a Bett aerRewards Bett erRewards erRewards member member via the the app. app.

Alternati vely you can register to become aa Bett erRewards membervia viathe theapp. app.

Alternati vely you can register to become Bett erRewards member ·Contact Contact Contact us quickly quickly and easily easily via the in app inCall app Call Call Me Me butt butt on.on. us us quickly andand easily viavia the inthe app Me butt on.

Contact ususquickly on.

Contact quicklyand andeasily easilyvia viathe thein inapp app Call Call Me button.

To fi Tondfi Tond out find out more out more more callcall uscall today us today us today | 086 | 086 |777 086 777 762 777 762762 Tofifind ndout outmore more call us today To today || 086 086777 777762 762

bbbVVVsss mmm lllNNNQQQ N Q b V s m l N V s m l PPPHHHAAAIIIKKK nnn P H H A I K n P noo EEEMMMSSSJJJK LLL OOO o E M S J O E L o O o J L ccceeeCCC aaaVVVGGG eee c e C a V G e ciii ehhh C a e www.betterrewards.co.za KKKV IIIG AAA www.betterrewards.co.za www.betterrewards.co.za h i h K I A www.betterrewards.co.za i K I A qqqpppooo LLLrrrSSSwww www.betterrewards.co.za q p o L r S w

Page 38: R E TA I L S E C U R I T Y

SHARED INTELLIGENCE BOOSTS RETAIL SECURITY The collective efforts of retailers are enhancing security solutions to combat organised crime Robberies in shopping malls have reached record highs in South

Better security is vital not only for the wellbeing of shopping centre

Africa, prompting a response from the business sector in the form of

occupants, but also for the commercial development industry. Statistics

the Collaborative Anti-Crime Platform. As part of the Consumer Goods

show that having shopping centres in prime locations has a positive impact

Crime Risk Initiative (CGCRI) of the Consumer Goods Council of South

on other sectors too, such as residential, hospitality and tourism – another

Africa (CGCSA), the platform will see improved communication between

incentive for keeping malls crime free.

retailers in a joint effort to combat in-mall robberies, the number of incidents of which jumped 32% in 2014. In 2007 the CGCSA mobilised a

In his address at the 2014 CGCSA Summit, the head of the CGCRI,

similar initiative that successfully addressed violent crimes that were taking

Graham Wright, said: “We believe strongly that an effective solution lies

place at restaurants around the country.

in our ability to create a collaborative anti-crime platform that focuses on

Page 39: R E TA I L S E C U R I T Y

the bad. We all have the responsibility of fostering relations and sharing information to prevent crime and provide a safe shopping environment for consumers.”

The robberies are placing an additional financial burden on property management companies over and above the need to generate inflationbeating returns. The sharing of information as a way to fight crime will help to optimise rental growth through strong tenancy, repeat contracts and continual foot traffic generated by brand loyalty.

Grant Elliot, regional manager of the Western Cape Fountainhead Property Trust, which manages a number of large suburban malls, said: “The comfort, safety and security of our tenants and their customers remain our chief concern. Everyone has an important role to play in crime prevention, and we encourage our retailers and the SAPS to work with mall management and security to take a strong stand against all kinds of crime.”

Elliot said that sophisticated security systems were in place at all Fountainhead Property Trust properties, and that management followed a comprehensive set of security procedures, including the regular assessment and upgrade of security measures and equipment. Proactive engagement with the relevant authorities in each surrounding community ensures swift and effective reaction to any security risks, he said.

The role of individual shopping centre managers is paramount to continued industry growth as well as occupant safety. Vanessa Blevins, centre manager at Growthpoint’s La Lucia Mall, said: “Security-wise, internet protocol-based (IP) CCTV monitoring is essential for monitoring incidents, from car accidents in car parks to armed robberies. Shopping mall tenants need to be online and need for the online and data services to be fast and free of encumbrances.”

Technology also alleviated time wastage, increased sales and provided information about shopper behaviour, and landlords who did not keep up

An exterior perspective of the revamped Paledi Mall, Limpopo, by Twin City Development and financed by Nedbank Corporate Property Finance, Pretoria

with technological advances stood to lose tenant support. Cost-effective security installations at new developments and at those centres that are being revamped needed to be considered at the earliest stages of development planning and project financing.

Nedbank Corporate Property Finance Pretoria recently provided a R125-million loan for the revamp of Paledi Mall in Limpopo. Said regional

mitigating the crime risks that currently beleaguer the retail industry. We

head D’Anvo Jones: “The bank’s retail development funding strategy, both

urge all players in the retail industry to join us in this initiative, where we

in previously disadvantaged areas in line with Nedbank’s transformational

will share information, develop solutions and strengthen partnerships with

requirements and in metropolitan areas, aim to deliver end products where

all relevant stakeholders and role players.”

pleasant shopping experiences, enhanced through the safeguarding and connectivity of occupants, increases consumer spending to the benefit of

Amanda Stops, CEO of the South African Council of Shopping Centres

all stakeholders.”

Chief Executive, said: “When it comes to stemming and preventing crime, we are all accountable and we’re all responsible. It’s about working together and creating a relationship that is there through the good and

BY ANNE-MARIE SMITH

PROPERTY PRACTITIONERS BILL

Fast facts about Rebosa Rebosa (the Real Estate Business Owners of South Africa) was established for the real estate industry – specifically, the business owners and principals in the industry. But what exactly is it?

We spoke to Jan le Roux, CE of Rebosa, to get all your questions answered.

Why join Rebosa?

What kind of challenges will Rebosa tackle?

The residential property sector in South Africa contributes a staggering R123,8 billion to the economy – we need a collective voice to address our specific concerns and ensure they are dealt with. Rebosa is that voice for the real estate industry.

The major concern in the current Act is the issuing of Fidelity Fund Certificates (FFCs). The administrative issues in the issuing of FFCs mean that agents could forfeit their commission entirely. REBOSA currently interacts and follows up on outstanding FFCs. This is just one of many ways we work together to achieve great things.

Why do we need an organisation to do it?

Transformation in any industry is inevitable, but if we want the real estate industry to grow and prosper, that transformation process must be handled smoothly, through all the right channels. As a united front, Rebosa can interact with all the stakeholders in the real estate industry to ensure we all get the results we want.

Why join now?

In 2015, the Property Practitioners Bill will replace the current Estate Agency Affairs Act of 1976. But there are serious flaws in the legislation that we need to fix – fast. This can only be done if a critical mass of real estate agents unite and use their collective power.

“

To be effective, we need the vast majority of business owners to become members Jan le Roux, CE Rebosa

”

Together we can achieve what individually we cannot!

Why do we need you?

The real estate industry is made up of big and many, many small businesses, all doing what we do best – selling property. But if we want to be truly representative, we need to ensure all our voices are heard. We need to know what the issues are and how best to fix them. And the only way to do that is by having you on board. Every one of you.

How much does it cost?

Only R20 (excl VAT) per registered estate agent per month.

How to join 1 - Go to www.rebosa.co.za 2 - Complete your membership application 3 - Or contact Dee on info@rebosa.co.za 4 - Membership fee is only R20 excl VAT multiplied by the number of registered estate agents (inclusive of Principals) per office per month 5 - For queries relating to FFCs contact Fiona on fiona.rebosa@gmail.com

Membership Application Trading name of estate agency Registered owner (if not the same as above) CC PTY LTD Sole proprietor Trust □ Vat number (if registered as a vendor) Physical address

Postal address Office telephone number Full names of managing principal Managing principal’s cell phone number Managing principal’s e-mail address Name of agency contact person (if not the managing principal)

Contact person’s cell phone number Contact person’s e-mail address Commercial: YES / NO

Residential: YES/NO

No. Principals

No. Agents

No. Intern Agents

No. Em ployees

TERMS AND CONDITIONS OF MEMBERSHIP FEE STRUCTURE A membership fee calculated at R20.00 plus VAT per registered agent (inclusive of principals) per agency is payable monthly.

Signed at ___________________________________ on this day __________of_________________ 2014 Signature on behalf of registered owner: _______________________________________________

Membership of Rebosa is subject to the Rebosa Memorandum of Incorporation of a Non-profit Company. By signing this membership application form, I agree that the company, Rebosa, may send me relevant updates and electronic communications as contained in the objectives of the organisation.

APPLICATION PROCESS Once your application has been submitted, an invoice for payment will be sent to you. On receipt of payment, the process to ratify an application by the Rebosa Board will commence and will take 7 to 10 days to complete. Following this, a communication will be sent to you, confirming your membership. A copy of both the company’s and the principal’s current FFC must be attached to your application when you submit it. Membership forms can be submitted via e-mail to info@rebosa.co.za, or faxed to 086 604 7245.

Page 42: 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

NEW AGENTS ON THE BLOCK

PROPERTY PROFESSIONAL

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

CHRIS VAN DER MERWE R E / M AX COA S TA L

CHALLENGING ASPECTS OF THE JOB? I enjoy receiving referrals from satisfied clients. The challenge comes in with effective time management.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? Discipline and a high sense of responsibility: when you have made a

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

commitment you should deliver the goods. Under-promise and over-deliver

I joined my dad in March 2003 doing residential property development

at all times.

and enjoyed the interaction with clients. Completing their homes gave me a huge sense of achievement. The marketing and sales aspect of the

WHAT ARE SOME OF YOUR CAREER GOALS?

development interested me more than the technical side. I started actively

To be the Top Individual Performer in the Eastern Cape, to receive the

selling homes in 2014 and realised that my building experience was a

Property Professional of the year award, to achieve the RE/MAX Hall of

great asset.

Fame award, and to train and mentor rookie agents to achieve the same.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? Acquiring listings and hosting show houses are the most enjoyable parts of the job. The challenge lies in the work behind making a potential sale.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

LISA MCNICHOLL

AGENT/BROKER AND WHY?

EN G EL & VÖ LK ER S

great estate agent should have. People will want to come back to you and

Tenacity, determination, discretion and respect are characteristics that any use your services again if you have these traits.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

WHAT ARE SOME OF YOUR CAREER GOALS?

I have always had a love for homes and wanted the opportunity to assist

To become a well-respected, established property specialist with a high

buyers and sellers in making the biggest decision of their lives.

market share in my designated area. To be the go-to people’s go-to agent.

NUMBERS TO KNOW

15%

Credit card fraud has dropped by 15% in South Africa over the past year, but 42% of South Africans admit that they do not keep their PINs secret and even share their PINs. (Source: Fin24 – Credit card fraud declines)

Page 43: 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

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? The most enjoyable aspect has to be the environment and the people with whom I work. The most challenging aspect is finding stock, but hard work

JACQUI HARRISON R E / M AX O N E H U N D R ED

pays off.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? You need to be a people’s person, an extrovert, self-motivated and driven.

You need to stand your ground and always keep an ethical business flow.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

WHAT ARE SOME OF YOUR CAREER GOALS?

I have always been interested in various properties and real estate.

I want to be ‘that face’, so that when people see my marketing and

Finding the right home for a family – what more could you ask for? I never

advertising they know that I’m an ethical agent, and I want to always

thought I would be able to become a real estate agent until I sent my CV

make sure to assist my clients in meeting their needs. I would also like to

through to RE/MAX One Hundred.

become one of the top 10 agents in Gauteng.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? The most enjoyable part of the job is building a relationship with my clients and then finding them their perfect home. The most challenging part is the very long hours. But the pros definitely outweigh the cons.

CARLA WENTZEL

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

R E / M AX A LL S TA R S

I think that a person needs to be a people’s person, dedicated,

AGENT/BROKER AND WHY? trustworthy, hard-working and willing to go the extra mile.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

WHAT ARE SOME OF YOUR CAREER GOALS?

I love working with people and assisting them in making their wishes

I want to build a good client base by providing excellent service that

come true. What better reward is there than to find someone their

exceed customers’ expectations. That way, my customers will become my

dream home?

source of referrals, because they liked how I assisted them.

NUMBERS TO KNOW

FROM 40.57% TO 10.43%

The late 1970s and early 1980s appear to have been the golden era of the swimming pool: 40.57% of homes built from 1980 to 1984 had swimming pools. Thereafter, a mere 10.43% of homes built from 2010 to 2013 had such luxuries.

(Source: Fin24 – Consumers reduce ‘luxuries’ to afford homes)

Page 44: F I N A N C E A N D F I G U R ES

HOW DO HOME LOANS MEASURE UP?

Property Professional gathered information from Ooba, one of the country’s leading mortgage originators, to provide some insight into various bond statistics in South Africa.

AVERAGE PERCENTAGE OF BONDS GRANTED FOR: January—September 2014

MAIN RESIDENCE

95.58%

HOLIDAY RESIDENCE

0.27%

INVESTMENT/RENTAL PROPERTY

4.15%

Spread some festive cheer with extra protection for your landlords, and get your Tenant Assessment Reports for free!

The PayProp Tenant Assessment Report is free every time you convert an eligible tenant to the trusted protection of DepositGuarantee. This festive season, give your tenants the option of an alternative to the normal damage deposit, and free up their cash flow while offering your landlords up to 2½ times the cover of their monthly rental.

To find out how Tenant Assessment Reports and DepositGuarantee can give you protection you can trust, mail us at support@paypropcapital.com, visit www.paypropcapital.com or call 087 820 7260 to speak to one of our specialists.

PayProp Capital (Pty) Ltd is an authorised financial services provider – FSP 43441. support@paypropcapital.com | www.paypropcapital.com

Underwritten by RMB Structured Insurance Limited, an authorised financial services provider – FSP 1027

TRUSTED PROTECTION

Page 46: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

PROPERTY PROFESSIONAL

TOP PERFORMING AGENTS

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR

CATHY PRETORIUS PA M G O LD I N G P RO P ERT I ES, P I E T ER M A R I TZ B U RG

DISPOSAL IN TODAY’S MARKET AND WHY? Knowledge. Use technology to stay up to date on stock, to communicate with clients and to constantly update yourself on market trends. Be eager to learn as much as you can about real estate, its legalities, its people and its properties.

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

During my first month at Pam Golding Properties my principal, Barbara

I am passionate about my work and really care about my clients and strive

Becker, asked me to take buyers to her listing as she could not make it to

to help them meet their needs. I always try and go the extra mile. I listen

the appointment. The clients loved the townhouse, signed and bought.

carefully, ask many questions and pick up on body language – even on

Years later, they sold through me.

what clients are not telling me. And I turn negatives into positives.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN

SUCCESS IN THEIR CAREER IN PROPERTY?

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

Persevere, work hard and be determined to succeed. Keep in contact

How to handle disappointment and rejection and not take it personally.

with friends and clients and watch your business grow. Always be alert to

I try to see it as being one step closer to the next successful transaction.

opportunities and be prepared to learn every day.

CLINT SOUTHWOOD JAW I TZ P RO P ERT I ES, C L A R EM O N T / K EN I LWO RT H

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Ongoing valuable training and brand knowledge from Jawitz Properties have been vital to my success.

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. It was a townhouse in Newlands that I had undertaken to sell privately, with the promise of getting the best price for my clients. Despite a very

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

difficult market, I secured a great price that pleased them. I remember

Professionalism at all times, which leads to repeat business; constant

thinking that once a sole mandate has been agreed, there is only one way

visibility and understanding the current market; and staying in contact with

to go – pull out all the stops and go for it.

buyers and sellers alike.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU WHEN

SUCCESS IN THEIR CAREER IN PROPERTY?

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

Start with one property sale and build on it. Tell the seller that your

I wish someone had told me that building trust with clients is paramount.

motivation to sell their property is your sole mission and that all your

Irrespective of market conditions, top agents always provide a professional

energy and effort will be focused on achieving this – which is more than

service and are determined to achieve the best possible price.

most other agents would be prepared to do.

Page 47: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY?

NELIA RETIEF S EEF F, T U LBAG H

Computer technology – a cellphone/tablet with email functionality for immediate response and a system to measure sales and to know where you are in relation to your budget.

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. The first property I sold was number 8 Nuwe Street in Tulbagh, a threebedroom spec house on a very small plot opposite the local school. It

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

was unfurnished, so not an easy sell. The purchaser still owns the house:

After-sales service/client service, resulting in referrals to their friends

he lived there until last year and then moved to Darling. We are now

and family; continuous follow-up with prospective buyers and asking

the rental agents for the property.

the right questions (what are they looking for, why do they need the property and is it zoned for this purpose?); know your area, the market

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A

and the sellers and get involved in your community.

SUCCESS IN THEIR CAREER IN PROPERTY? Never give up. Motivate yourself every day. The more you put in the

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD YOU

more you get out. Long hours do pay off in the long run. Remember

WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?

client service – go the extra mile. Get involved in your community via

Focus on sole mandates and increase your market share.

charity organisations, social events, sponsorships and so on.

time to realise that boundaries between work and play actually make you a better agent.

KATE ALEXANDER JAW I TZ P RO P ERT I ES, CA P E T OW N

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? A capable and efficient personal assistant. Agents are often not strong administrators. But even when they are strong in this regard, they can truly benefit from having the free time to spend on businessgenerating activities.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? To value clients equally and make them a priority – they might not

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL

remember anything you tell them, but they will remember the experience

US ABOUT IT.

they had with you, and this always pays off; knowing when to push and

I was selling off-plan in Durban with a development company. I went to

when to step back is key – there is a fine line that should not be crossed

site on launch day and sold out that weekend. I loved interacting with the

and you will save time if you acknowledge when you are in control and

clients and being part of the process of manifesting their new home or

when you are not; and speed to market is essential, so efficiency is vital

investment. I felt as though I was doing something special for them.

– listening to clients and meeting their needs with haste is crucial.

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?

Don’t have false illusions of glamour, because the industry is dependent

I used to push for perfection but I have since realised that while it is

on so many factors that there is no constant. Never compromise your

important to manage your standards, practicing to be perfect can be

ideals – nothing is sweeter than a clean deal and if that is not possible

counterproductive. More importantly, it took me an extremely long

then it isn’t worth it.

Page 48: T E C H T O O LK I T

TECH TOOLKIT Homi, your show house locator COST: free LOVE IT: homi.co.za – your show house locator – is a dedicated national

show house portal using geolocation services to detect your location on

Takealot app

your smartphone or tablet. It is the perfect site to use when looking for show houses, as it picks up your location on your smart device and displays all the properties in your vicinity. No more driving up and down looking for show

CO S T: data and the

houses and potentially missing the perfect house, as Homi displays very

cost of whatever you

clearly on the map exactly what is on show as well as all the essential details

end up purchasing

you might need, such as the price and size of the home. Real estate agencies such as Chas Everitt (nationally), Seeff (Blouberg), Jawitz (Sandown), Pam

L OV E I T: Takealot

is the most impressive

Golding Properties (Brackenfell) and RE/MAX Property Associates (Blouberg) are making use of this service and getting their properties out there.

of the online retailers bunch. It sells just about

NO SO MUCH: you need a GPS-enabled device in order for it to be able

anything you could

to pick up your location, which isn’t such a big deal; however, you will only

possibly imagine and

really start to see activity on the site the closer you get to Sunday – usually

the service is excellent.

from Friday onwards.

Buy via the Takealot app, and your purchase – no matter how small – will be delivered free and usually within a day or two at the most. Takealot has linked forces with Mr Delivery to get products delivered quickly – sometimes even on the day the order is placed. Everything can be done online, but if you do need to chat to someone you can phone the call centre, where you will be put in touch with a well-informed, helpful, wellspoken individual who will give you the information you need.

N O T S O M U C H : nothing not to like.

I N A N U T S H ELL : it is so exciting to see such great

functionality and after-sales service. Once you give it a try, you will never look back. If fact you will find yourself shopping on the Takealot app first before looking anywhere else.

IN A NUTSHELL: it is a great idea, and the more agencies that sign up to

utilise the service the more effective and, no doubt, popular it will become.

Page 49: T E C H T O O LK I T

Ooba home finance app CO S T: data costs L OV E I T: Ooba has developed an application to simplify the

home loan application process for homebuyers and the real estate agents. The app provides a host of calculators that are simple and easy for consumers to use for calculating bond repayments, home affordability, additional home loan repayment, bond and transfer costs, deposit savings and amortisation (the total interest paid on a home loan). It also allows consumers to pose questions to an Ooba home finance expert. Real estate agents can use the app to send the details of affordability, costs and various other details to the interested buyer in real time. It can also be used to digitally prequalify candidates for a home loan. The Ooba app is available for Apple and Android users.

N O T H I N G N O T T O LI K E : the app is clear and easy to

search for, is free to download and has great ratings.

I N A N U T S H ELL : It appears as though everything can be done

or solved with an app these days, which rings true in the case of Ooba’s home finance app.

BodyGuardz AVA I L A B LE F RO M : the price varies depending on your device L OV E I T: we have all done it at some point – dropped our phone or tablet and smashed the screen

into a million pieces. It is one of those things that need replacing at the cost of hundreds of rand

because, let’s face it, the phone/tablet is worth thousands. BodyGuardz’ range of tough clear plastic device protectors includes Pure, HD Anti-Glare, Ultra Tough, and Privacy.

N O S O M U C H : we hate that we need it, but love it when it saves our device from another

smashed screen.

I N A N U T S H ELL : phones and tablets are expensive and delicate. If they drop, they smash, so we

need to do what we can to protect them from being damaged and to protect us against the repair costs.

NUMBERS TO KNOW

300 000

The University of South Africa (UNISA) is a pioneer of tertiary distance education and is the largest correspondence university in the world, with approximately 300 000 students.

(Source: The SouthAfrican.com – Top 10 facts you didn’t know about South Africa)

Page 50: D EV EL O P M EN T U P DAT E

DEVELOPMENT UPDATE

A SLICE OF SIGNAL HILL A new residential security estate Signal Hill has been launched

Properties are selling on a plot-and-plan basis and range in size from

in Bo-Kaap. Jawitz Properties holds the exclusive mandate for the

254m2 to 372m2. Priced from about R5.75 million to about R7.3 million,

development, which will comprise 12 freehold homes with views of the

inclusive of VAT, the units will be set over two or three levels. Each home

city, the mountain and the ocean.

will have three bedrooms, two bathrooms, an open-plan living room with fire place, underfloor heating, a luxury kitchen and modern finishes,

The first property on the site is expected to be completed by the middle

a double garage and swimming pool. “The option to add on an extra

of 2015.

bedroom en suite and additional decking is also available,” said Lolly Unterslak and Darice Loeb of Jawitz Properties City Bowl.

“The area has become very popular and is in high buyer demand,” said Jawitz Properties director Francois Venter. “Bo-Kaap has become a more

Signal Hill is being developed by Topit Property Management and

affordable option for buyers looking to live in the City Bowl, as there is

JZE Architects. An environmental impact assessment has been carried

great value for money to be had.”

out, and the large bluegum trees on the site will preserved.

Page 51: P RO P ERT Y O N LI N E

THE PROPERTY MARKET GOES ONLINE

Increasing access to the internet via smartphones and better broadband is changing how buyers search for, and how real estate agents market, residential properties. Results of an IOLProperty survey show that online listings generate leads, but print advertising still has a key role to play

The proof is in the fact that 91% of responsdents indicated that most (more than 50%) of the their leads came from the portals, and only 9% found that their own websites competed with the portals on an equal footing. The remaining 31% either did not know or did not provide an answer. In terms of own websites, 87% of responsdents indicated the use of a national/regional agency website, while 7% had a branch-specific website and 6% didn’t have a website at all. “It appears that agents are opting to focus their time and finances online not only because it is cheaper than advertising in print, but also because they seem to find that the property portals generate better sales leads,” said Grant Leigh, CEO of IOLProperty. “However, print is still a very popular from a branding point of view, which is key to mandate acquisition”.

These findings are in line with research cited in the National Association of Realtors Digital House Hunt report, which indicated that “nine in 10 homebuyers today rely on the internet as one of their primary research sources, and 52% turn to the web as their first step. In fact,” it continued, “real estate-related searches on Google grew 22% year-over-year.” This trend is gaining traction in SA, with buyers doing their homework online before contacting agents to view a property.

At this point social media platforms such as Facebook and Twitter seem to be having a negligible effect, with almost no agents finding them useful in terms of marketing property and gaining credible leads.

THE BIG 3 As with different newspapers, not all portals are created equal. The

ABOUT THE STUDY

study revealed that 52.2% of agents advertise on the “big four”: Private

The research was conducted by an independent party on behalf of

Property, Property24 and IOLProperty.co.za. Many agents – 18.58% –

IOLProperty with the aim of establishing how estate agents make use of

also made use of various property feeds, ensuring maximum coverage

the internet to market properties.

of their listings, while 11% of agents made use of Gumtree to market

their properties.

Three hundred agents in metropolitan areas were contacted and asked

to answer questions such as where they advertised, how much of their

THE PERCEPTION OF VALUE

marketing budget was spent online and whether they believed that the

The study also asked agents if they believed the portals were making

portals provided value for money.

any money, in order to determine whether their perception of its value

was valid. Two-thirds responded that the portals were making money;

PRINT IS GOOD FOR BRANDING AND MANDATE ACQUISITION

the other third wasn’t sure.

Newspapers have long bemoaned the difficulties of keeping up with

the internet, both in terms of its flexibility and price, and it’s no different

“It’s true that most of the portals have at best been breaking even over the

when it comes to advertising property – more and more buyers are using

last few years, with some haemorrhaging millions of rand in an attempt

the internet to search online as opposed to buying the Sunday papers.

to capture the market,” said Leigh. “At present the portals are definitively

As such, agents are increasingly spending the bulk of their marketing

offering value for money.”

budgets online rather than on print. The IOLProperty study indicates that

67.3% of participating agents are now spending 50% or more of their

More data from the study will be released in 2015, with the focus on the

marketing budget online while 25% of the 67% spend more than 90%.

effectiveness of online property marketing.

Page 52: D EV EL O P M EN T U P DAT E

CENTRAL SQUARE – WHERE MANHATTAN MEETS JOBURG Situated in the exclusive suburb of Benmore, Sandton, Central Square is a multipurpose hub commissioned by Lushaka Investments, a family-run business that “places an emphasis on quality accommodation and value for money above all else”.

Lushaka Investments focuses on developing high-rise luxury apartments.

Its most successful and recognisable developments to date are the Amazonas and Sunset Towers, both in Sandton.

When asked whether there is demand for such a development, managing director Sergio Aquino said that with more than one million square metres of commercial space coming online in Sandton in the next three to five years – including Sasol, Sanlam and Standard Bank – the ratio of residential to commercial property was “woefully under-catered”.

“We know that there is huge demand for quality residential living.

Commuting in and out of the Sandton CBD is no longer an option, as

Artist’s impression of Central Square, Sandton

the hub becomes almost gridlocked during peak hours,” Aquino added.

“This expressive architecture enables form to follow function. An example is the meandering division line between the solid and glazed

The World Trade Centre Johannesburg, adjacent to Central Square, is

portions of the balustrade, which is raised to provide privacy to

an exclusive brand that has been a catalyst for property investment and

bedrooms and rakes downward to afford unhindered views from living

adds value to the rate per square metre, attracting commercial clientele.

areas and terraces, while creating a strong sculpted form,” explained Brent Buchanan, a partner at Nsika Architecture & Design.

If every building tells a story, then every architect is the author who sets the plot in motion. Nsika Architecture & Design has written a captivating

Central Square will have 12 floors with 14 apartments to a level and

tale using a vocabulary of light, space and harmony.

will offer buyers a choice of one-, two- or three-bedroom units as well as bespoke penthouses. The building will feature wraparound balconies to

The structure’s shape unfolds elegantly with worldly sophistication,

encourage outdoor living and dining.

and the sleek lines of the curvilinear architecture are responsive to the energetic lifestyle of Sandton.

Specialist sales and marketing firm Kent Gush Properties has been appointed for Central Square. Director Kent Gush said that this is fresh architecture for the precinct. “It reaches new heights, with spacious

First World experience

modern apartments offering a choice of top-quality finishes. This is location, luxury and convenience of the highest level,” said Gush.

“Identifying a gap between affordable pricing in the Sandton area and exclusive living, the development team is coming in at about R33 000m2 compared with the average price of about R40 000m2 in Sandton,” added Gush. “A one-bedroom unit starts at R2.2-million for 89m2 at Central Square positioning this new address favourably in the market.”

Other features include fully integrated kitchens with premium kitchen appliances, a rooftop restaurant, a sky bar, a 25m-long rimflow pool, a gym and access to a massive central park of 4 910m2, complete with water features and gravel paths. Blending relaxation with sophistication, the building is centred on a piazza with restaurants spilling out.

Viewing real estate from another angle “It’s not sometimes about the people, it’s always about the people” This is the foundation of our attitude at Leapfrog Property Group and to make sure we attract and keep the right people, we offer our agents and franchisees the following services and benefits: Ÿ

Wealth creation though share ownership

Ÿ

Recruitment incentives

Ÿ

Ongoing inhouse training and development

Ÿ

Customised property marketing programme

Ÿ

Cutting edge technology

Ÿ

National referral system with over 50 offices

Ÿ

Ongoing franchisee support

Ÿ

Franchise opportunities available in prime areas

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

Move on Move up

To find out more contact: Bruce Swain 021 671 4880 bruce.swain@leapfrog.co.za www.leapfrog.co.za

Page 54: D EV EL O P M EN T U P DAT E

Greenery flourishes throughout the entire complex, and as the

within walking distance of the Gautrain station as well as the major

development is extremely visible, the architects have created grand

corporate headquarters. The 240 apartments at 101 On The Park will

and green urban gestures. The meandering floor plates complement

be distributed over two towers of 15 stories each, said Russel Peach,

the structure of the layered landscaping designed in collaboration with

Renprop Residential’s projects sales manager.

Landmark Studios. “This modern, simple, elegant and fluid building will be our signature piece to date,” said Buchanan.

One- and two-bedroom units priced from R1.5-million are available, as well as selection of luxury penthouses with views.

Interior designer David Muirhead said that the overall aesthetic balances uncluttered, seamless living and sophisticated, modern

“These apartments are exceptionally well priced for the area,” said

convenience. David Muirhead & Associates (DM&A) is a design team

Peach. “Property statistics reveal that the average selling price of a

specialising in hospitality and high-end residential interior design.

sectional title unit within Sandton is close on R2-million. In the past three

Designing with their clients’ needs in mind, the DM&A signature

months about 30 sectional title apartments have changed hands in the

combines sleek glamour with warmth and functionality.

Sandown area, more than half of which were sold for between R1.5million and R3-million. A further 22% sold for R3-million or more.”

All units will have spacious open-plan floor plans. The layouts will prioritise the kitchen and living areas .The bedrooms will be

Designed by GLH Architects, 101 On The Park will also include

of a “comfortable” and “practical” size, with generous built-in

a bistro/coffee shop, a wellness centre, a concierge service and

cupboard space.

conference facilities as well as basement parking.

The interior finishes will balance modern design with “a tangible touch

The development borders Mushroom Farm Park, giving its residents

of class and finesse”. Flat-panel high-gloss cabinetry, stone counters and

direct access to Sandton’s green lung and its walking trails, playground,

brushed-metal ironmongery will contrast with natural wooden floors that

rolling lawns and outdoor gym.

will provide a sense of texture and warmth. Buyers have a choice of two design schemes – the cool and sleek Crystal look or the warmer, earthy

“There is no shortage of amenities in the area, from shops and

“Quartz” tones.

restaurants to medical facilities and other lifestyle and entertainment offerings,” said Peach.

Central Square will be positioned close to hospitals, schools, shopping centres. A shuttle service will be offered every 30 minutes to get residents around Sandton as well as to the Gautrain station.

240 LUXURY APARTMENTS FOR SANDTON CBD There were about 100 000 people commuting in and out of the greater Sandton area at the end of 2013 and it is anticipated that another 10 000-plus will be joining them in the next couple of years.

Close on 300 000m2 of new commercial office projects are either in the planning phase or under construction in the Sandton area. Companies such as Ernst & Young and Alexander Forbes already have new offices there, the Webber Wentzel, Sasol and Discovery buildings are under construction and work on the Old Mutual building is about to commence.

Chris Renecle, MD of Renprop, says the influx of people will drastically increase the already burgeoning demand for residential units, whether owned or rented out. “I anticipate that there will be a shortage of rental accommodation in the Sandton CBD in excess of 5 000 units in the next five years,” said Renecle.

One of the new residential developments in the area set to cater to this demand is 101 On The Park, which will be situated on Katherine Street,

Artist’s impression of 101 On The Park

OVER 200 FRANCHISES SERVING NEIGHBOURHOODS ACROSS SOUTH AFRICA. WANT IN? INVESTMENT OPPORTUNITY Become part of one of the biggest and fastest growing brands in the country and grow your own business according to a highly profitable tried-and–tested business model. As a business partner with decades of experience the Rawson Property Group provides support, advice, infrastructure and training.

FRANCHISE OPPORTUNITIES AVAILABLE

RAWSON PROPERTIES

RAWSON RENTALS

RAWSON COMMERCIAL

RAWSON AUCTIONS

(residential sales & administration)

(rentals & administration)

(commercial sales & rentals)

(auctions of immovable property)

CALL US

For tailor-made franchise opportunities +27 ( 0 ) 83 679 9495 www.rawson.co.za

franchising@rawson.co.za YOUR NEIGHBOURHOOD EXPERTS

Page 56: WO R D O N T H E S T R EE T

WORD ON THE STREET Interest rate increases and escalating municipal costs are lowering the demand for commercial property in South Africa, according to Gary Palmer, CEO of Paragon Lending Solutions.

Palmer says five years ago municipal bills as a percentage of operating costs were about 40%.

“Today these costs have escalated to about 66% of operating costs.”

Paragon Lending Solutions CEO Gary Palmer

(Source: Fin24 – “Rates dent commercial property demand”)

“The challenge to improving business confidence is for the private sector to be convinced that the economy is entering a new era of economic growth” The South African Chamber of Commerce and Industry (Source: Fin24 – Business confidence dips)

“We believe that an appropriate institutional environment – applicable to South Africans and foreigners alike – is critical to ensure the long-term growth and stability of the property sector” Sapoa chief executive Neil Gopal (Source: Fin24 – Land bills may ‘threaten investor confidence’)

“You should not just assume that your income will increase sufficiently to take care of any rate increases that may occur over the next couple of years. Slow economic growth and tough times for businesses can play havoc with employment prospects and annual salary increases” BetterBond Home Loans CEO Shaun Rademeyer (Source: Fin24 – Use time wisely before next rate hike – expert)

Your properties. On all devices.

All the time.

We make sure that buyers can find your properties anytime, anywhere, on any device.

Just another way that Property24 offers more value to your business.

www.property24.com