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
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no concrete answer because predictions – which are educated guesses more than anything
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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
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takes to be a rental agent. We also delve into the upcoming legislation that will influence the
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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
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to offer you tips, tricks and advice to help you achieve your goals. This issue is full of news,
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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,
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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.
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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
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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
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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
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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%
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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.
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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
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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)
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