Property Professional - July/Aug 2015 by Property Professional

LAND HOLDINGS BILL:

THE EXPERTS WEIGH IN

TOWNSHIP MARKETS TOP THE CHARTS

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JULY/AUGUST 2015

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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

With the arrival of spring in September comes our much-anticipated relaunch of

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Property Professional, the property industry’s leading trade publication. We are

https://twitter.com/Property_Prof

planning a complete overhaul in the coming months, with a fresh new design and exciting content upgrades to provide you with the best insight into and analysis of the property industry. But we need your help. What would you like to see more of? Where can we improve? Should we add more in-depth features, or publish shorter, snappier pieces? Please email your thoughts and suggestions to me at bridget.mcnulty@thecreativegroup.info. What we won’t do is change the ethos of the magazine – Property Professional will remain the voice of property in South Africa. The one magazine that is all about

THE CREATIVE GROUP CEO 00763 BL DREAMS LOTTERY PROPERTY PROFESSIONAL - EARPIECES RP.indd 1

Shaun Minnie

083 629 6081 shaunminnie@me.com CONTENT STRATEGIST Bridget McNulty bridget.mcnulty@thecreativegroup.info

the things that you, as a property professional, really care about. That approach can be seen in this very issue, where we cover a broad spectrum of topics ranging from an explanation of bridging finance (page 44) to industry experts’ opinions on the Regulation of Land Holdings Bill (page 34) and the hottest ticket in residential property, townships (page 16). I do hope you enjoy this issue. We can’t wait to show you what we have in store for you in September… Until then, Happy reading (and selling)!

SALES AND MARKETING MANAGER Michèle Jones 084 246 8105 michele.jones@thecreativegroup.info ADVERTISING PRODUCTION & SUBSCRIPTIONS Jackie Maritz jackie.maritz@thecreativegroup.info ACCOUNTS & FINANCE Nicolette Lubbe 011 476 6293 PRINTING Paarl Media

BRIDGET MCNULTY

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 publisher is not responsible for any unsolicited material.

2015/06/1

Our reach is further than the eye can see Chas Everitt International have partnered with Leading Real Estate Companies of the World® to empower our agents with truly global reach. Here’s what this means for you, the agent. While every real estate agent is different, successful agents all

Your local listings are also given global reach, with

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CO N T EN T S

CONTENTS

05 INDUSTRY NEWS 06 HOW TO EXPLAIN THE HOME LOAN PROCESS TO FIRST-TIME BUYERS 16 COMMUNITY COUP 20 COMMISSION CONUNDRUM 24 INTERN AGENTS: AN INVESTMENT FOR THE FUTURE

28 THE BEST WAY TO MARKET YOUR PROPERTY ONLINE 32 THE STATE OF CAPE TOWN’S CBD 34 UNPACKING THE FOREIGN LAND OWNERSHIP DEBATE 38 WHERE SOUTH AFRICANS BUY AND RENT 40 SIMPLE STEPS TO SPEED UP A SALE

44 MINDING THE GAP 50 NEW AND TOP PERFORMING AGENTS 58 TECH TOOLKIT 60 DEVELOPMENT UPDATE 64 WORD ON THE STREET

Page 5: I N D U S T RY N EW S

INDUSTRY NEWS CAPE TOWN CBD OFFICE AND RESIDENTIAL FOR R20K/M 2 It is almost unheard of for residential

15-storey Touchstone House on Bree Street is

system that links the CBD to the rest of the city.

accommodation in a CBD to exceed

one such corporate and retail development,

As a result we’ve been able to attract new

R20 000/m2, but the Cape Town Central City,

expected to be complete by October this year.

investor confidence back to our downtown, and

an area of 1,62km² – excluding neighbouring

we’d like to thank investors for sharing in our

suburbs such as De Waterkant and the V&A

“The rate of development in the Cape Town

Waterfront, where prices are even higher – is

CBD seems to be setting us apart from the

achieving these prices. (Because of the blurring

other CBDs in South Africa,” says Kane. “We’d

According to Craig Armstrong, regional director

of neighbourhoods, the average price of

obviously like to attribute this to the work the

of developer FWJK, final costs of the sectional

properties being sold in these areas is added to

CCID and other partners in the City of Cape

title office development are below R19 000/m2

the average prices sold in the CBD.)

Town have done to turn the CBD around over

and include three parking bays per 100/m².

the past 15 years. The city has also been

The developer is confident that no comparable

This causes the value of CBD properties to be

extremely proactive in creating important

sectional title A-grade office premises exist in

quoted closer to the R3m or even the R4m mark,

infrastructure, such as a new transportation

Cape Town currently.

says Rob Kane, chairman of the Cape Town Central City Improvement District (CCID). “Right now we’re sitting at the R1,92m average sales price per unit,” Kane says, noting that of the 50 properties sold during the first quarter of 2015, eight were still below the R1m mark and came in at an average of R17 596/m2. Apartments are also getting smaller. Today the average size is 44m2, but this is expected to decrease. Dave Russell, the director of consulting firm Baker Street Properties, says the Cape Town CBD’s large units of more than 100m2 are being bought and subdivided. “The rate per square metre may well start to climb towards R35 000 in order to reconfigure existing office space into residential,” says Russell, “and the average size of the unit will be between 40m2 and 50m².” But Kane says that if buyers are going to continue to buy for R1m, they will have to make do with less: apartments in the 32m2 range. With all the residential development taking place, corporates have cottoned on to the global trend of residents trading their suburban homes for apartments in CBDs, where amenities and job opportunities are close at hand. The

vision and voting with their money.”

Page 6: A S S I S T I N G F I R S T-T I M E B U Y ER S

IS THE HOUSE A GOOD INVESTMENT? Explain to your buyer that the future value of a house can be determined, in large part, by its location. Houses that are located in areas with day-to-day amenities such as shopping malls, good roads, schools and hospitals will increase in value, while houses located in remote areas with no amenities in close proximity may depreciate in value.

HOW TO EXPLAIN THE HOME LOAN PROCESS TO FIRST-TIME BUYERS I F T H ER E ’ S O N E T H I N G T H AT OV ERW H EL M S F I R S T-T I M E H O M EB U Y ER S, I T ’ S T H E P RO C ES S O F G E T T I N G A H O M E L OA N . H ER E ’ S H OW T O M A K E I T A S E A S Y A S P O S S I B LE F O R T H EM

So, you’ve found the perfect buyer for one of

is enormously useful as it can help to cover

your properties – congratulations! Here are

other costs associated with buying a house,

three tips to share with them so that the home

such as transfer duties (where applicable) and

loan process is as straightforward as possible.

attorney fees.

1. MAKE AN INFORMED DECISION

3. THINK OF THE FUTURE

The first and most important step is deciding

Choosing the right banking partner can make

exactly what you can afford. Talk directly

all the difference when deciding whom to

to your bank about this and bear in mind

make this long-term financial commitment

that most home loans are paid back over

with. In the next 20 to 30 years it is likely that

a period of 20 to 30 years, so you need to

changing economic circumstances, such as

consider your ability to repay the loan over

rising interest rates, fuel price hikes, electricity

an extended period.

tariff increases and inflation, could affect how

2. PLAN AHEAD Having some money saved up for a deposit

much you can afford to pay back. Make sure you’ve chosen a flexible home loan solution that is tailored to your individual needs.

Need more information? Nedbank has a free, step-by-step video and booklet that empowers first-time homebuyers or anyone else who is considering purchasing a new house. The guide is available to Nedbank and non-Nedbank clients, at no cost, on the Nedbank Home Loans website. For more information, visit nedbank.co.za/homeloans and click on the “Home Buyer’s Guide” link.

9168

MAKE

Chapter 8

Home loan8 Chapter application Homeprocess loan

HOME LOANS IN SIX SIMPLE STEPS Home loan application process

application process

HAPPEN

Chapter 8 Chapter 8

Home loan Home loan application process application process

STEP 1 APPLY FOR YOUR HOME LOAN

STEP 5 BOND REGISTRATION

Chapter 8

STEP 6 HOME OWNERSHIP

Home loan application process STEP 2

GET A BOND APPROVAL

STEP 3 VALUATION OF YOUR DREAM HOME

STEP 4 LOAN IS APPROVED

Go to nedbank.co.za/homeloans for all you need to know, from the loan application to moving in. Whether you are a first-time buyer or not, we’ll make finding your home sweet home quick and easy with the Nedbank Home Buyer’s Guide. For the full guide and video visit Nedbank.co.za/Homeloans. nedbank.co.za

Nedbank Limited Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

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

PINELANDS ON THE UP AS YOUNG AND OLD MOVE IN Pinelands in Cape Town is witnessing two

a year ago,” says Johan Meyer, Seeff’s licensee

bulk from 3 000m2 to 12 800m2 as well as

interesting occurrences: younger buyers are

for the suburb. “The demand is so high now

full community participation and an approved

moving in even though the average price of

that correctly priced homes and those below the

energy feed,” says Peterson, noting that by

homes is climbing, while a new retirement

R2,5m price mark seldom go on show or stay

today’s standards this was relatively quick.

village, Pinelands Grove, is simultaneously

on the market for longer than a month. Stock

“We would have struggled without the enormous

taking shape on Sunrise Road.

levels are down considerably, with very few

support of the ratepayers’ association,” he adds.

homes in the R2m to R3m price range on offer.” Home prices in Pinelands average R2,5m.

Retirement accommodation is in short supply

Lightstone data reflects that about 42% of recent

Rental prices start at R12 000/month for smaller

and the launch of a new retirement development

buyers are under the age of 35 and that in the

three-bedroom homes and can reach R25 000

will help meet this growing demand, says Bev

past two years about 225 sales transactions

for residences at the top end of the scale.

Bloch, Pam Golding Properties development

worth just less than R294m have been

sales executive in the Western Cape metro

concluded – and with good year-on-year capital

Pinelands Grove, an integrated 218-unit

region. “Construction is well under way,” Bloch

appreciation of 17,5%.

development, came about due to lobbying by

says. “Pinelands Grove Retirement Village is

the local ratepayers’ association, which pushed

scheduled for completion in December this year

“The number of visitors to our show houses when

for the development of a retirement village

and occupation is scheduled for February 2016.

a property first comes on the market has more

rather than residential apartments or student

than doubled, and the number of enquiries –

housing, according to Barry Peterson, director

“The units are being sold on a life-rights basis,

depending on asking price – we’re getting via

of the developer Pinelands Grove Securitisation.

and the retirement village will be managed by

our online portals have increased threefold since

“It took us one and a half years to increase the

the Cape Peninsula Organisation for the Aged.”

ESTATE LIVING REMAINS POPULAR EVEN AS THE COST OF HOUSING RISES There are about 6 000 closed communities

property price spectrum. Many buyers typically

“However, and perhaps surprisingly,” says

and estates in South Africa, comprising

buy up from their previous homes and often for

John Loos, household and property strategist

318 000 homes worth an estimated R643bn

as much as twice the value of the non-estate-

at FNB, “we forecast a slight acceleration in

in total. Estate living is by no means unique to

based property they sold.”

average house price growth in 2016 to 5,6%, whereas 2015’s average house price growth

South Africa, having come to this country in the 1980s, but it only really took root in the

Regionally, Gauteng dominates. According to

is expected to come in at 5,3% The reason has

mid-‘90s. Pam Golding Property Group CEO

the Pam Golding Property Group’s research

to do with the general inflationary environment

Andrew Golding says that it is primarily the

findings, almost 50% of South Africa’s

dipping in 2015 and, it is expected, recovering

security offered by the estates that makes them

residential estates are to be found in Gauteng,

in 2016. The result of an expected higher

so popular with homebuyers, but this is by no

and about 25% in the Western Cape.

CPI inflation rate in 2016 is the forecast of a higher average wage inflation rate next year

means the only reason. On a macroeconomic level, there is expected

compared with 2015, which could drive a

“Key factors contributing to the popularity of

to be slower growth in residential demand, as

slight, renewed acceleration in nominal house

estate living are security and location. Those

reflected in the forecast of 0,9% growth in FNB’s

price inflation too.”

that are situated either in or around major

Valuers’ Demand Strength Rating. This follows a

metropolitan areas or business hubs and are

growth rate of 7% last year. Residential supply

close to good schools are proving to be among

is expected to increase, too, and the result of

the most sought-after and successful,” says

slowing demand growth and a return to mildly

Golding. “Many buyers also perceive that the

positive residential supply growth would be

demand for this type of housing has created a

a slower rate of increase in the FNB Valuers’

sound investment that will appreciate in value

Market Strength Index from 5,5% in 2014 to

or generate good rental income. Estate homes

0,4% in 2015, before it turns to negative growth

have in the past been on the upper end of the

of about -0,5% in 2016.

THE (ACCIDENTAL) CULPRIT DELAYING PROPERTY TRANSFER DEREGISTERED COMPANIES AND CLOSE CORPORATIONS Deregistration of close corporations and companies resulting from the failure to render annual returns, occurs frequently. Over the past 3 - 4 years, CIPC reported that it undertook the bulk deregistration of some 345 000 non-compliant entities. One of the most important consequences of deregistration is that the entity ceases to exist as a legal persona and therefore cannot enter into transactions, such as selling or buying property or registering a mortgage bond. REINSTATEMENT The Companies Act does make provision for the reinstatement of entities in certain circumstances, including instances where the deregistration followed on non-submission of annual returns.

This relief is, however, not without a sting in its tail as these applications are lengthy; in the case of entities owning immovable property, it takes some months! Any transaction that the entity seeks to register in the deeds office is necessarily delayed as a result. It is therefore strongly recommended that if you plan to sell a property that you own in an entity, to verify its status with CIPC as soon as possible. In the event that it is deregistered, instruct your conveyancers upfront to commence the re-registration process. You will thereby avoid some of the unpleasant hold-ups that are occasioned by the restoration of the selling entity. Contact us at info@stbb.co.za for assistance in all aspects of your property transaction.

MASTERING THE INTRICACIES OF HOME OWNERSHIP

MORE THAN JUST THE PAPER WORK

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

AFFORDABILITY A LIKELY STUMBLING BLOCK THIS YEAR In the final quarter of 2014 there were

growth was lower in most segments of the

are likely to have a big effect on affordability

6,07-million residential properties in SA with

market in the first quarter of 2015 as compared

for first-time buyers. “The affordability of

a combined value of R4,27-trillion. A third of

with the same period a year ago. Household

property is reflected in the ratios of house

these homes, valued at R2,25-trillion, were

debt, food and electricity costs and rising petrol

prices and mortgage repayments to household

bonded, according to the latest Absa Housing

prices are all impacting on housing prices.

disposable income,” says Mike van Alphen,

Review, which also shows that 3,36-million

national manager at Rawson Finance,

properties, valued at R2,02-trillion, were

Buyers have been warned not to be lulled into

the Rawson Property Group’s in-house

unbonded. Absa’s house price data shows

a false sense of security by the slowdown in

bond originator. “When house prices and

that nominal and real year-on-year house price

property price growth, as rising interest rates

mortgage repayments increase faster than disposable income, purchasing or paying off a property becomes much less affordable.” Interest rates were left unchanged at the end of May, and this continues to provide some relief to residents with a mortgage. First-time homebuyers make up 25% of the market nationally, says Seeff chairman Samuel Seeff. “The improved mortgage-lending landscape has greatly aided first-time buying,” he adds. “According to the Oobarometer, the home loan application success rate is more than 75% and about 50% of these are first-time applicants.” But mortgage interest rates are expected to rise from an average 9,25% to 9,5%, and this will affect affordability.

HOME PRICES IN PRETORIA’S NEW EAST AVERAGING MORE THAN R1M Pretoria’s “New East”, including

in Equestria in the past 12 months at an

price range, but most properties for sale in

Equestria, Faerie Glen and Silver Lakes,

average sales price of R1m. About 250 sales

the area are priced at R1,6m or higher.”

has grown in the past few years.

of freehold stands and cluster homes in secure estates were recorded, with homes selling for

In Lynnwood Ridge, which borders Equestria

Says Anne Rich, Rawson Property Group

an average of R1,85m. Says Rich, “The highest

and is closer to Menlyn, 47% of residential

franchisee in Equestria, “People used to move

demand here is for homes in the R1m-to-R1,3m

housing stock is in sectional title flats and

here to enjoy a country lifestyle, but as the

townhouses, at an average price of R995 000.

city expanded and the whole area around

The average price of freehold homes sold

Silver Lakes Golf Estate became increasingly

in Lynnwood Ridge over the past 12 months

fashionable, developers saw the opportunity

was R2m, according to Lightstone.

to open it up to younger buyers by building more affordable homes on the smallholdings.”

Another popular suburb is Faerie Glen, where homes prices can reach R2,5m. Cluster homes

Good schools, hospitals and retail facilities have

are priced from R600 000 to R1,5m. According

made this one of the most densely populated

to Lightstone, more than 300 sectional title sales

nodes in Pretoria. Lightstone reports that more

have been registered in Faerie Glen in the past

than 530 sectional title sales were registered

12 months at an average price of R1,1m.

Page 13: I N D U S T RY N EW S

RAWSON DINNER CLUB KICKS OFF

Rawson Auctions and Property Junction

THE INAUGURAL DINNER CLUB PROVED TO

(rebranded to Neighbourhood in Sunday Times)

BE A MASSIVE SUCCESS. ATTENDING THE

launched their Dinner Club at Pastis Brasserie in

EVENT WERE A NUMBER OF MAJOR PLAYERS

Constantia, Cape Town, on 27 May. This was

IN THE CAPE TOWN PROPERTY INDUSTRY,

the first in a range of monthly networking events

INCLUDING SHAUN MINNIE (PICTURED

of this type, targeting property developers,

BELOW NEAREST TO CAMERA), THE CEO OF

investors and architects. Each event will be held

THE CREATIVE GROUP, WHICH PUBLISHES

at a different venue. Anyone is welcome to

PROPERTY PROFESSIONAL.

attend the events by contacting Charmaine at charmaine.roodt@rawson.co.za.

THE RISING USE OF MOBILE FOR PROPERTY BROWSING

It’s difficult

the traffic was from mobile users. In 2015 it is a

in a more relaxed environment. It’s a trend

to imagine a

50-50 split between mobile and computer use.

that shows no sign of slowing, especially as

world without

smartphones and tablets become more prevalent

smartphones.

Surprisingly, the figures show a spike in mobile

and more websites catch on to the power of

How we find

usage as recently as the beginning of 2014.

responsive design. And therein lies the key.

info and how

Looking at month-to-month figures, the proportion

we share it is intrinsically linked to our mobile

of users browsing property on mobile has

A responsive website gives users a satisfying

devices. It should come as no surprise, then, that

increased, while computer access has decreased

experience regardless of whether they’re on a

the way we look for property has changed, too.

(according to Private Property), which illustrates

computer or a mobile – all the content is resized

the change in the way people look for homes.

to the fit the screen in question. Agents must

The rise of mobile in property browsing is a

In the past, property listings were predominantly

ensure that their websites are responsive, as

significant trend and the curve keeps getting

accessed during the day on work computers.

this will let the website do all the hard work and

steeper. Recent statistics from Private Property

The trend now is for people to browse property

show your listings in the best possible light.

show a year-on-year increase of more than

websites on their mobile devices from home –

100% in mobile users and an increase of more

a more advantageous situation for agents, as

than 20% in tablet users. In 2014 about 34% of

listings are viewed more often by more people

BY BRIDGET M c NULTY

GoldClub status is awarded to those agents who have achieved service excellence and exceptional property sales, whilst exhibiting the highest level of professionalism

CONGRATULATIONS TO OUR NATIONAL GOLDCLUB AGENTS: Sascha Bausch, Tony Santana, Pravin Gopaldas, Jo Lotter, Lynn Pinn, Marcelle Conradie, Vickie Francis, Shirley Finnemore, Andrew Golding, Sue Ralph, Doug Gurr, Bridget Shiffer, Paul Levy, Byron Thomas, Louis Green, Vanessa Johnson, Peter Spencer, Christiaan Steytler, Jeanine Allan, Shelly Schoeman, Myrna Duveen, Heather Turner, Kimberly Dods, Barbara Rogers, Brenda Gilbert, Brenda Courtney, Linda Middleditch, Leanne Santana, Mariël Burger, Jackie Rosenberg, Annette Hepburn, Carol Truter. Absent: Sharen Byren, Janice Toay, Jean Markham, Clarence Collins, Suzaan Henning, Sharon van Rooyen.

“…recognition is great but without trust and integrity, it is meaningless.” Pam Golding, Life President

NATIONAL AGENT OF THE YEAR Barbara Rogers – Camps Bay, Western Cape

NATIONAL HIGHEST NUMBER OF RESIDENTIAL SALES Peter Spencer, Bridget Shiffer & Mariël Burger – City Bowl, Western Cape

Our success is our people’s success, which is why we recently honoured the outstanding achievements of our 2015 top national agents and managers. Hosted at Wild Coast Sun, kzn, The Annual Goldclub Gala Banquet was a magical evening of celebration.

NATIONAL BRANCH OF THE YEAR – LARGE CATEGORY Basil Moraitis – Sea Point, Western Cape

NATIONAL BRANCH MANAGER OF THE YEAR & BRANCH OF THE YEAR - SMALL Annien Borg – Welgemoed, Western Cape

NATIONAL DEVELOPMENT AGENT OF THE YEAR Vanessa Johnson – Stellenbosch, Boland & Overberg

NATIONAL BRANCH OF THE YEAR - MEDIUM & ROSE BOWL AWARD Surina du Toit – Paarl, Western Cape

NATIONAL FRANCHISEE OF THE YEAR & NATIONAL FRANCHISE OFFICE OF THE YEAR Emarie Campbell – Blaauwberg, Western Cape

NATIONAL AGENTS OF THE YEAR: CATEGORY B Shelly Schoeman, Jeanine Allen & Doug Gurr – Franschhoek, Boland & Overberg

NATIONAL REFERRAL AGENTS OF THE YEAR Vickie Francis & Heather Turner – Newlands, Western Cape

NATIONAL RENTAL AGENT OF THE YEAR Jean Markham – Dainfern, Gauteng

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

Page 16: T OW N S H I P P RO P ERT Y

COMMUNITY COUP T OW N S H I P M A R K E T S A R E T O P P I N G T H E C H A RT S

Page 17: T OW N S H I P P RO P ERT Y

FNB Home Loans recently reported that in the first quarter of 2015, residential price growth in townships outstripped many higher-priced suburban regions. The report by John Loos, household and property sector strategist for FNB, explains that prices in areas formerly labelled as black townships under apartheid era classification rose by 11,6% across the six major metro regions in the first quarter after a 9,3% rise in the last quarter of 2014. This figure is significantly higher than the overall Major Metro Regions House Price Index growth rate of 7,3% for the same period. Loos explains that this inflation can be attributed to two main factors – a high percentage of first-time buyers entering the market, and demand (affordability being a key priority for these people). The experience of agents on the ground reveal similar findings. “We can’t keep up,” says Paul Campbell of Pietermaritzburg-based Natal Property Consultants. “We took a decision eight or nine years ago to branch into this market and have never looked back.” Natal Property Consultants, which services suburban areas as well as former townships such as Edendale and Imbali, has six specialist agents in the township areas who are continually making sales and a number of other agents who regularly make sales in township areas. Besides the normal exchange of homes in places such as Edendale and Imbali, markets are shifting. “A few years ago,” says Campbell, “agents working in the suburbs would refer these properties to our agents in the townships, but many of them now know their way around the townships and are taking a far more active role in the sales process. As a company, we have invested significantly in the township areas. Although the houses are priced at the lower end of the spectrum, from R250 000 for a four-bedroom house to a maximum of R800 000 for a very large home, the market is really active and we wouldn’t want to miss out.”

Page 18: T OW N S H I P P RO P ERT Y

The situation is similar in Soweto. Says Private Property CEO Simon

are financially vulnerable and struggle to raise a bond. This often results

Bray, “Soweto is one of the most popular areas on Private Property and

in township properties being “sold” two, three or four times before a

consistently features in the top 50 in terms of visits. It is a high-demand

real deal goes through. “Yet, despite the fact that the agents work three

area with a large number of views for every listing; properties for sale

times harder, they still continue to make sales,” adds Campbell.

in Soweto get 25% more views per listing than properties in the greater Johannesburg central and CBD areas. There is also a high demand for rental properties, with 34 people, on average, interested in each property for rent. “ “Affordability and value for money are major drawcards in areas such as Soweto,” says Dina Soukop, CEO of Soukop Property Group. “One can pay R900 000 for a four-bedroom, two-bathroom home on a 460m stand with outside cottage, or 2

R799 000 for a two-bedroom, three-bathroom home in Meadowlands, complete with outdoor braai area and fireplace.”

“Properties for sale in Soweto get 25% more views per listing than properties in the greater Johannesburg central and CBD areas”

In the Western Cape, Nazmie Anthony of Pam Golding Properties Mitchells Plain and Southeastern Suburbs has 12 agents in Mitchells Plain alone. “Regardless of creditworthiness, we are finding that the average age of firsttime buyers is getting lower and lower, as this generation gets better jobs and earns more. We have a policy, though, of getting all our clients in these areas preapproved for credit before we show them any properties.” Like former township areas in other parts of the country, the demand in the Western Cape is high. “Prices have risen too,” says Anthony. “A three-

Demand is outstripping supply, according to Khumbulani Mcanana, partner at KK Mavela Properties, which services areas such as Durban,

Simon Bray, CEO, Private Property

Umlazi, Verulam, Newcastle, Vryheid and Ulundi. “If

bedroom council house in Gugulethu would have fetched R110 000 to R180 000 five years ago but will now sell for R280 000 to R360 000. You’re looking at R850 000 for a four-bedroom bonded

a property in a township area is priced correctly, there is no way it will

home in Ilitha Park in Khayelitsha. And prices for three-bedroom homes

stay even two months on the market,” he says. The increase in value,

in suburbs such as Portlands, Rocklands and Westridge in Mitchells

too, is “phenomenal”. Mcanana gives the example of a house (two

Plain have increased from R290 000 to R340 000 five years ago to

bedrooms, one bathroom and kitchen and dining room) in Kwamashu

R450 000 to R640 000.

that was bought for R15 000 in 2000: after some renovation it sold for R185 000 in 2004 and again in 2013 for R285 000.

“There is lots of movement. Homes in general are well maintained. Many people sell to upgrade and many sell to move to other areas that

“There are two main problems that we face in the townships, the first

perhaps offer more prestige or better value for money,” Anthony adds.

being crime,” adds Mcanana. “The crime itself appears to originate in

“Although we have 51 listings in Mitchells Plain, and even though our

the surrounding shack lands, where people are unemployed, and in the

agents live in the area, have been to school there, belong to the local

hostels. If the government was diligent about removing informal settlers,

sports clubs and know their neighbours, we still need to do regular

it would increase the values in township properties even further, and I

expos to get sufficient stock.”

hope to see that happening in the next 10 to 15 years.” Mcanana and Campbell agree on the second problem: creditworthiness. Many clients buying at the lower end of the market

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Page 20: CO M M I S S I O N

COMMISSION CONUNDRUM A N EW K I D O N T H E R E A L ES TAT E B L O C K S AY S I T O N LY C H A RG ES 1, 9 5% CO M M I S S I O N O N T H E S A LE O F I T S C LI EN T S ’ H O M ES, W H ER E A S T H E AV ER AG E I N D U S T RY CO M M I S S I O N I S S O M EW H ER E B E T W EEN 4 ,8 % A N D 7 ,5 %

There exists a split between standard industry practice on the amount of

Bill Rawson, owner at Rawson Property Group, says that prescribing a

commission real estate brands charge for selling their customers’ homes

commission to a franchisee goes against his business’s approach. “We

and those who leave it up to the individual agency to determine a suitable

give franchisees complete freedom in this matter,” he says. “I would

commission structure. For example, RE/MAX and Rawson Property Group

like to mention that some of our most successful franchisees and agents

each state that, as franchisors, they do not set commission.

regularly work on a 7,5% commission and also insist that if they are to handle the property it must be on a sole-mandate basis. On average in

Adrian Goslett, regional director and CEO at RE/MAX of Southern

our group, the majority of sales are achieved on a 5% commission.”

Africa, says that the agent negotiates the commission with the seller: “There is not a set commission. The agent’s experience and ability to get

Seeff chairman Samuel Seeff doesn’t mince his words, saying his business

the home sold at the best price in the shortest time will usually dictate the

charges an “industry standard rate” of 7,5%. He notes, however, that

commission and drive the negotiation at the time of taking the mandate.”

there are exceptions, “generally only where the rate of commission is

Page 21: CO M M I S S I O N

the commission that is paid to the estate agent, which averages around 7% (excluding VAT) of your final selling price”. The bank further advises that the estate agent’s commission can be negotiated and should be spelled out on the mandate. “Their fee will include advertising your property, finding a suitable buyer and acting on your behalf between the attorneys and buyer,” FNB says. “This amount is usually paid from the proceeds that are derived from the sale. You should consider the desired amount you want for your property and then speak to the estate agent about factoring their commission into this figure.”

Wealth creation and shares for all those who work for Leapfrog, medium or long term

In other words, FNB advises sellers to base the commission an agent will receive on the successful sale of their home on the amount of money they take home after the sale – the proceeds. But consider this calculation from Neville Berkowitz: “Using home price research figures from Absa,

For franchise and agent opportunities call Deon van Zyl 082 858 7222 deon.vanzyl@leapfrog.co.za

the capital profit of an average medium-size home purchased in 2006 for R637 300 and sold in late 2014 for R1 194 200 would have been R556 900 for the average eight years of home ownership. The traditional estate agency charges commission of 7,5% plus VAT, or 8,55%, and on the sales price of R1 194 200 this amounts to R102 104 paid out in

Move on Move up

commission, or 18,3%”. Berkowitz has more than 40 years’ property industry standing in the way of concluding a deal between a

experience, including property economics, institutional

willing buyer and willing seller”. In such cases, “there

advice and residential property development. He

will be a small leeway of about 2% to 3%”, he says,

launched HomeBid, a low-commission real estate

noting that commissions exclude VAT.

agency, in May and looks set to shake up the traditional real estate industry by charging sellers 1,95%

Lew Geffen, chairman of Lew Geffen Sotheby’s

commission on the sale of their home. “Using the Absa

International Realty, says commissions vary according

research example, the HomeBid process at 1,95%

to the location and price of the property. “Our company

commission will only claim 4,2% of the homeowner’s

range is between 5% and 7,5%,” he says, noting

capital profit,” he says.

that agents can’t make an autonomous decision to go below the company’s parameters. “In the very

This is significant, as sellers rarely calculate the

rare times this has happened, it has come out of the

commission paid to estate agencies in terms of the

agent’s percentage.”

proceeds from the capital growth of the property.

While some agencies are clear about their commission

But, while Berkowitz says no one can argue with the

structure and others leave it up to the individual

maths, Seeff says agents do not work on the basis

franchise, FNB provides advice to sellers on its

of the potential profit that a seller stands to make.

website, stating that “as the seller, you are liable for

“Whether or not there is a profit, the agent would have

www.leapfrog.co.za

Page 22: CO M M I S S I O N

to put in the same amount of work and the company would employ

Geffen says that the average commission obtained by most agencies is

the same amount of time, resources and investment,” he says, noting

4,8%, excluding VAT. “Commission of 7,5% is not the national norm,” he

that it is out of context to look at the commission in this way. “Existing

says, noting that, on average, estate agents will work with a particular

agencies generally already offer all of the services that HomeBid refers

buyer or seller for about four months before they see a cent of return on

to, including the use of property portals and other online and web-

their work. “When sellers mandate a traditional estate agency to sell

marketing tools as well as the traditional advertising and marketing

their home, they appoint them to work at their own risk and to expose

media and tools.

the property through a wide range of media, at the agency’s expense, in order to appeal to as wide an audience as possible, with the objective of

“In addition, it needs to be borne in mind that the existing agency

obtaining the highest price and best terms for the seller.”

commission structure provides for aspects such as infrastructure, facilities and services, as well as agents who operate in various local

Says Rawson, “Sellers who begrudge paying commissions should take

markets where they have direct insight and experience and understand

into account the long process that all agents have to work through in

the local market dynamics; for example, how to price, and why some

building a potential buyers’ list and understanding exactly what each

properties in the same complex will sell for different prices. All of this

of these buyers is looking for,” he says. “The seller should also realise

is vital to assisting sellers and buyers conclude successful transactions.

that the agent, although possibly achieving a quick sale on his home,

Agencies also have extensive existing buyer databases, often with

will almost certainly have others in which endless difficulty in achieving

100 000 to 250 000 potential buyers, with whom they are in

a sale is encountered. It should be mentioned that in 2007 there were

regular contact.”

93 000 estate agents operating in South Africa. Today there are fewer

Page 23: CO M M I S S I O N

than 30 000. The reasons for this are that, firstly, this is not an easy profession in which to succeed, and secondly, the barriers to entry have been raised higher than ever before as a result of agents having to attain very useful professional qualifications that go a long way to making them truly competent.” Berkowitz insists that HomeBid will do as much work for sellers and

noting that he settled on charging

“Our agents are mostly retired professionals who are already receiving a pension” Neville Berkowitz, HomeBid

buyers as traditional agencies and

its agents a fixed monthly salary and not commission. Our agents are mostly retired professionals who are already receiving a pension. This is just extra cash in their pocket and the commission on the home sale is therefore less important.” It remains to be seen whether HomeBid’s message is taken to heart by sellers. But the bigger players will need to

will take the vetting process even further by conducting a valuation on the home itself

1,95% because HomeBid pays

Our team is made of entrepreneurs, not employees with jobs

demonstrate to sellers why any commission higher than 1,95% is justified.

as well as the area. “Sellers will pay R1 750 for a valuation that they can then use and proceed to sell their

Pam Golding Properties declined the invitation to

home, or keep and take to another agency,” he says,

comment.

For franchise and agent opportunities call Deon van Zyl 082 858 7222 deon.vanzyl@leapfrog.co.za

STEEPLE WEIGHS IN For the past two and half years, Steeple, another low-

possible and don’t have any hooks or lock-ins such as

commission estate agency, which charges 1,5% for its

sole mandates. You can choose your own conveyancer,”

services, has seen how sellers have increasingly opted to

he says.

use its services over traditional agencies. De Waal maintains that traditional estate agencies CEO David de Waal believes this is because sellers

are “lying” about having a buyer database with cash

are becoming increasingly aware of the costs involved

purchasers and about their agents’ being trained sales

in hiring a real estate agent to market and show

negotiators. “The buyer database is no longer relevant

potential buyers around the property, as well as the

as they use the internet portals too,” he says. “Besides,

advent of the internet and its power to reach millions of

Private Property has an even bigger database than any

potential buyers.

agency would hope to have. Buyers know what they like

Move on Move up

and what they want, and will not pay for a home simply “We have sellers from across the range, from retirees

because it is in a sought-after area – although location

to the tech-savvy,” he says from his office in Salt Rock.

does play a role.

He notes that the majority of properties on Steeple’s books are priced between R800 000 and R2m. “But we

“We listed a property in Woodstock, Cape Town, which

have homes from as low as R600 000 all the way up to

generated significant interest and sold for more than the

R16m,” he adds.

listing price. A week later we marketed another property in Woodstock which was not as nice as the previous

De Waal says his company is able to charge a very

one but was in a similar area. We mailed the listing to

low commission because of its online business model.

50 people who had expressed interest in the previous

“It’s far more efficient, and that’s exactly how we have

property, but only two or three of them were interested

been geared since we started,” he says, noting that

enough to ask for a viewing.

all the key prerequisites for sellers are in place, such as marketing, the correct paperwork and the provision

“If the internet had developed earlier, everyone would

of a professional service. “We are as transparent as

be selling the way we do.”

BY DAVID A STEYNBERG

www.leapfrog.co.za

Page 24: F O C U S O N RO O K I E AG EN T S

INTERN AGENTS: AN INVESTMENT IN THE FUTURE AG EN C I ES T H AT WA N T T O B U I LD O N T H EI R S U CC ES S N EED T O S TA RT F I N D I N G T H E R I G H T RO O K I E AG EN T S

Page 25: F O C U S O N RO O K I E AG EN T S

“Poaching” is the latest buzzword and, no, we are not talking about the dwindling numbers of our country’s endangered wildlife. What we are actually speaking about is the somewhat new trend of poaching qualified agents from other agencies. To be fair, agencies have always had a relatively high level of staff turnover – understandable in a commission-driven industry – and this doesn’t necessarily become a problem until agents with the right qualifications and vast amounts of experience decide to join another agency that supposedly offers much more. Headhunting is a common practice in the corporate world; however, although top agents may have switched alliances and joined another agency in the past, the numbers were relatively low and the practice went largely unnoticed. This has now changed. It takes time and money to train an agent, and while some agencies are willing to invest in their workforce, it seems others are more intent on luring qualified agents into the fold. “The poaching of competitors’ estate agents has become a full-time occupation, with a number of national groups having employed fulltime recruiting officers,” says Anthony van der Riet from The Coaching Factory. “The reason these principals want experienced agents is that they don’t need training and will start selling almost immediately.” Van der Riet quite rightly points out that, just as you need air, water and food to survive, your business needs good people to make it flourish. Successful principals shouldn’t work only in the now but should also be planning for the future and dedicating their efforts to employing future real estate stars. “After all, your best agent in three years’ time has not entered the industry yet.” The South African real estate industry has always attracted an older set. Think about it: many agents started selling property later in life once they had retired from their respective careers in other fields. And why not? In the past the profession put up very few barriers to entry and selling homes was the ideal way of keeping busy and helping to subsidise a pension. Last year it was estimated that the average age of an estate agent working in this country was 54 years old. Of course, things have changed: although it’s still possible for the very determined to sell homes, potential agents have to jump through an enormous number of hoops in order to become qualified. There are costs involved, too: they range from R4 950 to R12 500, depending on which training route is followed. It’s pretty obvious that this has put

Page 26: F O C U S O N RO O K I E AG EN T S

a lot of older people off the idea, but where has this left the industry? If truth be told – a little topheavy. It would therefore appear to be in the best interests of agencies across the country to start employing intern agents. There are a number of very good reasons why this would be beneficial. Interns can be trained correctly from the start and learn how to work within timeframes in order to complete their logbook and NQF 4. In addition, they often bring new ideas to the business and enhance motivational levels within the agency. Not everyone is suited to selling property, and there are certain traits that principals should look out for before taking the decision to bring an

of financial responsibility, because money will

“The poaching of competitor’s estate agents has become a full-time occupation, with a number of national groups having employed full-time recruiting officers”

initially be tight. Individuals who are less suited to the real-estateselling game include high maintenance individuals and those who enjoy the stability of routine. There’s also no place for negative people in sales – they don’t sell well, and they affect the morale of the entire office. Unfortunately, as things stand, senior agents regard interns as a hindrance or nuisance, as it takes them time to train the new recruits. Van der Riet believes that senior agents who take the time to train and guide interns should be paid a portion of the rookie agents’ commission.

intern on board. Competitive individuals as well as peoples’ people (those who are able to sell themselves and their company to all personality types) traditionally perform well in sales.

Anthony van der Riet, The Coaching Factory

It may be a good idea, given the amount of handholding and training involved, and it could help develop talented individuals who could go on to be top performers in the industry.

Self-discipline and motivation also play a key role in any agent’s success, and individuals who possess these traits generally won’t need constant supervision in order to perform at their peak. Interns, particularly the younger generation who haven’t built up cash reserves of any description, should display a certain amount

BY LEA JACOBS

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Page 28: O N LI N E M A R K E T I N G

THE BEST WAY TO MARKET YOUR PROPERTY ONLINE I N T O DAY ’ S CO M P E T I T I V E I N D U S T RY T H E D I F F ER EN C E B E T W EEN I N T ER ES T ED B U Y ER S A N D H A P P Y S ELLER S A N D A P RO P ERT Y T H AT LI N G ER S O N T H E M A R K E T CA N B E A S S I M P LE A S H OW W ELL YO U ’ V E M A R K E T ED YO U R P RO P ERT Y O N LI N E . W E A S K ED P R I VAT E P RO P ERT Y T O S H A R E A F EW O F T H EI R B ES T T I P S F O R S U CC ES S F U L O N LI N E LI S T I N G S

INSIDE INFO: HOW TO GET A GREAT LISTING SCORE Listing scores on property portals such as Private Property (privateproperty.co.za) encourage property adverts so real you could almost move in. To provide the best possible listing, they’ve chosen the most important criteria in terms of visibility and accuracy and attached scores to them. The higher the score the more “real” the listing. Want to know how to ace your property score? Listings are rated according to the amount of information. There are, of course, minimum requirements, and meeting them will score you a rating of 25%. Minimum requirements: • three images • asking price • expiry date • address listed privately • property description of 140 characters or more • land size • home type

6 INGREDIENTS FOR A SUCCESSFUL LISTING:

1 3 5

BEAUTIFUL PHOTOGRAPHS A COMPELLING PROPERTY DESCRIPTION FLOOR PLANS

2 4 6

• number of bathrooms and bedrooms Add more and raise your score as follows::

ALL THE INFORMATION ABOUT THE PROPERTY

+30% for a virtual tour and floor plan +15% for 12 unique high-res photos +10% for full address visible

A VIRTUAL TOUR OR VIDEO THE PROPERTY’S ADDRESS

+10% for map of location +5% for additional price details (levies and rates) +5% for floor/land area Why bother? The higher the listing score, the higher up in the search results the property will appear, so it’s well worth paying attention to your listing score.

Page 29: O N LI N E M A R K E T I N G

WHAT’S THE MOST IMPORTANT PART OF A LISTING?

NB: LOCATION, LOCATION, LOCATION

It’s true: a picture really is worth a thousand words. Photos are without

Once again, the cliché rings true. The most important factor in property

doubt the most important part of an online listing. Photos create the most

is location, so it’s extremely frustrating for a buyer to find a promising

impact, and great pictures can make buyers fall in love with a property

property online and not know exactly where it is. Some buyers will pick

before they’ve even seen it in person. Conversely, a grainy, out of-focus

up the phone to find out the address, but many will move on to the next

picture of what might actually be a fantastic house will put buyers off

listing. Be sure to include the address and/or a map with your listing so

and may discourage them from requesting a viewing.

that you don’t miss out on potential buyers.

HOW TO GET AHEAD ONLINE If you really want to make your property stand out, there’s one simple way to do it: a virtual tour. It’s a great way to showcase a property and allows the buyer or renter to get a 360-degree view of every room in the property. It also gives a nice boost to a property’s listing score and ensures that it will be listed as a “verified listing” because it was visited by a Private Property representative.

AVOID THESE COMMON MISTAKES Some of the most frequent mistakes real estate agents make when listing on Private Property are below. Make sure you’re better than the rest by avoiding them. • Using bad photos – nobody wants a close-up of a toilet! • Adding a generic or very brief property description – remember that people want to imagine themselves living here, and to them the property will be unique and wonderful. • Not really trying to sell the property and its associated lifestyle – the lifestyle in an area plays a huge part in a buyer’s decision to buy or rent. • Not providing all the information available – you’ll save time for yourself and the potential buyer if you outline all the information you have about the property. • Leaving out the address – this is very frustrating!

FINAL TIP Double-check that the website that you use to market your property is responsive (as Private Property is). This means that it works beautifully on computer, tablet and mobile. About half the traffic to property websites is through mobile devices and if the site that you use does not cater for them, your listing will be seen by far fewer people.

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Page 32: F O C U S O N CA P E T OW N ’ S C B D

THE STATE OF CAPE TOWN’S CBD Just before this issue went to print, the Mother City’s Central City Improvement District (CCID) organisation released its exhaustive annual report detailing the state of affairs of the CBD in 2014. Here are some of the insights we gleaned from the report.

WHERE IS THE CBD? The boundaries of the Cape Town CBD are Nelson Mandela Boulevard in the northeast, Buitengracht to the west, Orange Street at the southern section and Christiaan Barnard in the east (give or take a few cutaways around Parliament and the Castle of Good Hope).

Page 33: F O C U S O N CA P E T OW N ’ S C B D

CAPE TOWN IN CONTEXT

COMMERCIAL PROPERTIES Square metres of office space,

11,3%

of which 515 535m2 is B-grade

Contribution to the national GDP

and 86 600m2 is the highest grade, P

(vs 16,8% for Johannesburg)

1 025m 2

25,5% Unemployment rate (the national average is 35,6%)

Office vacancy rate at Q4 2014 (vs 17,3%

13,4%

in Johannesburg)

3 861 000 people live in Cape Town

Estimated value of property

R3,44bn

RESIDENTIAL PROPERTY IN THE CBD

investments in the next five years

THE RESIDENTS OF THE CBD

The total market value of properties

R23,72bn Value of residential properties sold in 2014 (191 traded hands)

(compared with R6,12bn in 2005)

R296,4m

40% 27%

43% 66%

R1,55m

The average price of a residential unit sold last year (vs R1,43m in 2013)

are very happy

The average size of a unit (the smallest was 34m2 and

80,73m 2

the biggest was 315m2)

109,27

91,3%

The number of days an average unit stayed on the market

living there ((89% said it’s SA’s best CBD) live close to work or school rent (47% own their property) are between ages 25 and 34

Sales in July (the busiest month)

R7 500

22 Average monthly rental of a studio flat (vs R27 250 for a threebedroom unit)

(Source: The State of Cape Town Central City Report, 2014: A Year in Review)

have children

Page 34: U N PAC K I N G T H E F O R EI G N L A N D OW N ER S H I P D EBAT E

UNPACKING THE FOREIGN LAND OWNERSHIP DEBATE W E I N V ES T I G AT E W H E T H ER T H E R E G U L AT I O N O F L A N D H O LD I N G S B I LL W I LL S EN D F O R EI G N I N V ES T O R S S C U R RY I N G O R W H E T H ER I T H O LD S A N Y B EN EF I T F O R T H E P RO P ERT Y M A R K E T A S A W H O LE

Page 35: U N PAC K I N G T H E F O R EI G N L A N D OW N ER S H I P D EBAT E

Property professionals in South Africa have felt keenly the confusion and concerns that were raised when President Jacob Zuma, in his 2015 State of the Nation Address, announced proposed restrictions on foreign land ownership. Pam Golding Property Group CEO Andrew Golding later stated his misgivings about the government’s subsequent announcement that the restrictions would apply only to agricultural land. This latter announcement made limited headlines, thus cementing the international property investment community’s doubts on the matter. What would be the impact of such restrictions? Says Bill Rawson, chairman of the Rawson Property Group, “What makes the case for restricting foreign ownership particularly illogical and misguided is that the South African government recently published economic revival plans in which it stated clearly that the encouragement of foreign industrial development will be a key part of their strategy for the next few years. How can you invite foreign investors to be fully involved in South African business without also giving them the right to own business premises and a residence of their own?” So, why would the government introduce such measures in the first place? There may be something to the idea that by restricting foreign ownership of agricultural land, local farming will increase, the price of agricultural produce will come down and more citizens will benefit from the lower costs.

Page 36: U N PAC K I N G T H E F O R EI G N L A N D OW N ER S H I P D EBAT E

This view, however, is far from accurate: the amount of land owned by

however, the key will be the clarity of implementation of the policy

foreign citizens in South Africa is a negligible 3% a year.

of which the government generally has a very poor track record. The sooner the details of the limitation and how it will work are

Says Seeff chairman Samuel Seeff, “We have on numerous previous

communicated the better it will be for everyone.”

occasions drawn attention to the fact that we see the attempt by the government to limit property ownership as counterproductive and a

And while the restrictions may apply to agricultural land only, their

move that, rather than advancing the redistribution of land, is likely

impact will be felt in other sectors, for example, tourism.

to dampen investment and further inhibit economic growth. It assumes that foreignproperty ownership has in some way had an impact on the market, either in terms of the volume of property and land that they own or the prices that they pay and, of course, there is no proof of either. The highest prices paid in the country have also been by South African buyers, thus quashing that argument.” Also under discussion is the constitutionality of such a restriction on land ownership, as it would limit owners’ right to sell their properties. Says Berry Everitt, MD of Chas Everitt International Property Group, “Gugile Nkwinti, the minister for rural development and land reform, believes that the constitutionality of the bill will be tested when it goes to Parliament later this year. But it is likely to face challenges both before and after that, and at some stage could well be ruled unconstitutional by the Constitutional Court.” There is always the possibility that the issue of constitutionality may not be enough to halt a similar bill being proposed in the future. Says Rawson, “Tony Leon, formerly the DA party leader and lately South Africa’s ambassador to Argentina, in a recent speech at a Rawson Auctions Western Cape function, warned that

Says Seeff, “Consider for example that it was foreign

“What makes the case for restricting foreign ownership particularly illogical and misguided is that the South African government recently published economic revival plans in which it stated clearly that the encouragement of foreign industrial development will be a key part of their strategy for the next few years. How can you invite foreign investors to be fully involved in South African business without also giving them the right to own business premises and a residence of their own?” Bill Rawson, chairman,

investment that ignited the wine industry in the late 1990s and early 2000s. It was foreigners who bought up the old run-down wine farms, renovated them and turned them into world-class tourism products and wine producers that now rank among the best in the world. Aside from the wine farms’ being top tourist attractions and wine producers in their own right, the wine industry has also given rise to a host of tourism products, routes and even the development of towns. “Think, for example, of Franschhoek, which is a gourmet capital that is abuzz almost every weekend with visitors from across the globe who not only visit the wine farms, but also frequent the many restaurants, buy goods from the boutique stores and stay in the hotels and guesthouses. It has also boosted the real estate industry: Franschhoek is a sought-after address and has seen enormous property growth over the past decade, and all of this has boosted the economy.” Is there anything that can be done? Says Derek du Toit, director: north, at the IEASA, “It is uncertain what the rationale is behind the concept, but in the interim and for future reference, foreign buyers can register a local company as the buyer and simply

Rawson Property Group

have a shareholding in that company. This is the

the clause in the constitution guaranteeing

route that is being followed, as it provides for major

secure property ownership – with expropriation

tax incentives in both countries.”

possible only when valid compensation is paid – was agreed to very reluctantly by many members of the ANC at the

The consensus remains that limiting foreign property ownership in

time the constitution was being drawn up, and in Leon’s view, this clause

South Africa will see foreign investors think twice before considering

is now under threat.”

the country as a property investment destination. With an economy that shows very little growth, this move leaves more questions than answers,

South Africa is not alone in restricting foreign land ownership. Many

and given the government’s less-than-stellar record in implementing and

countries have successfully limited foreign land ownership and

streamlining such laws, the future of foreign property investment is on

have done so without harming the property industry. Says Herschel

shaky ground.

Jawitz, chief executive at Jawitz Properties, “There are countries such as Mauritius which do limit foreign ownership and have done this successfully without necessarily discouraging foreign ownership;

BY ANGELIQUE REDMOND

At Leapfrog it's all about the people and we've designed a franchise model with built-in benefits to make your Leapfrog franchise a success. To help you get there, we offer: An Award-winning Brand, Forme Recruitment and Share Incentive, Operational Support, Branding and Marketing, Cutting Edge Technology, Recognition, Sales and Admin Training. Flexible franchise options suited to your business needs.

Want to know more? Simply get in touch with us and we'll send you detailed information regarding our franchise opportunities. Deon van Zyl 082 858 7222 deon.vanzyl@leapfrog.co.za www.leapfrog.co.za

Move on Move up

Page 38: T O P 10 S U B U R B S

WHERE SOUTH AFRICANS BUY AND RENT A F F O R DA B I LI T Y A N D VA LU E F O R M O N E Y R EM A I N T H E M O S T I M P O RTA N T R E A S O N S W H Y S O M E S U B U R B S P ER F O R M B E T T ER T H A N O T H ER S

Leading property search portal Private Property recently released its findings detailing South Africaâ&#x20AC;&#x2122;s best-performing

TOP 10 SUBURBS WITH THE MOST SALES LISTINGS

suburbs for the first quarter of 2015 across six major metros.

SUBURB

AREA

Potchefstroom

Midstream Estate

Centurion East

Doornpoort and surrounds

Northern Pretoria (Far North)

Wavecrest

Jeffreys Bay to Tsitsikamma

Annlin

Northern Pretoria

Montana

Northern Pretoria

generally sell for between R400Â 000 and R1,5m.

Faerie Glen

Pretoria East

Closely following Potchefstroom in second and third

Ballito

Ballito and surrounds

Silver Lakes Golf Estate

Silver lakes and surrounds

Jeffreys Bay

Jeffreys Bay to Tsitsikamma

We explore the main findings.

TOP SALES AREAS Potchefstroom proved tops when it came to residential sales in Q1. The North West town has a healthy mix of apartments, townhouses and freestanding homes, while the main campus of North-West University ensures that demand for sectional title properties to buy and rent out to students is always high. The average home price ranges from R1,2m to R2,5m, while apartments

places were Midvaal Estate in Centurion East and Doornpoort and surrounds in Northern Pretoria.

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TOP RENTAL AREAS Popular rental areas differ considerably from those achieving high percentages of sales, because corporates tend to own a number of apartments and houses close to business hubs, to accommodate employees and their families. It therefore makes sense that the three suburbs

TOP 10 SUBURBS WITH THE MOST RENTAL LISTINGS

with the highest number of rental listings are all located

SUBURB

AREA

Morningside

Sandton and Bryanston (North)

Bryanston

Sandton and Bryanston (North)

which takes motorists to Midrand and Pretoria, is popular

Sandown

Sandton and Bryanston (North)

among businesspeople. Good schools draw expats who

Greenstone Hill

Edenvale

Lonehill

Sunninghill, Lonehill and Fourways

a shortage of stock”.

Sunninghill Sunninghill, Lonehill 00763 BL DREAMS LOTTERY PROPERTY PROFESSIONAL - EARPIECES RP.indd and Fourways

A short drive down William Nicol Drive, Bryanston

North Riding

North Riding to Lanseria

remains high on renters’ wish lists, while third-placed

Annlin

Northern Pretoria

Umhlanga Rocks

Umhlanga

Woodhill

Pretoria East (South)

near the country’s major business hub: Sandton. Highest on Private Property’s list was Morningside, which thanks to easy access to Sandton and the M1 highway,

work in Johannesburg. Here, corporate rentals range from R20 000 to R60 000, and according to Marilyn Perkel of Pam Golding Properties Hyde Park, “there’s

Sandown offers lower rents because of an oversupply of properties, says Perkel.

“Sunninghill, Lonehill and Fourways attract buyers and renters because they offer a plethora of housing complexes with easy access to schools and workplaces, a number of lifestyle amenities and good security, all at competitive prices. Sunninghill alone has 80 such complexes” TOP 10 VIEWS PER LISTING (SALES) – MOST IN-DEMAND AREAS SUBURB

AREA

Craigavon

Sunninghill, Lonehill and Fourways

Sunninghill

Sunninghill, Lonehill and Fourways

Waterfall Estate

Midrand

Pierre van Ryneveld

Centurion East

Woodstock

Cape Town City Bowl

suburbs attract buyers and renters because they offer

Randpark Ridge

Randburg and Ferndale

a plethora of housing complexes with easy access

Claremont

Southern Suburbs

Douglasdale

Sunninghill, Lonehill and Fourways

Parkmore

Sandton and Bryanston (North)

Kyalami Hills

Midrand

MOST POPULAR AREAS Private Property also compiled a top-10 list for the areas that attract the most views per listing. Beating all others is Craigavon, which incorporates such areas as Sunninghill, Lonehill and Fourways. These

to schools and workplaces, a number of lifestyle amenities and good security, all at competitive prices. Sunninghill alone has 80 such complexes, and in a number of them buyers can still find units priced at less than R1m.

2015/06/1

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SIMPLE STEPS TO SPEED UP A SALE B Y EM P L O Y I N G A F EW S AV V Y M E A S U R ES T O M A K E A P RO P ERT Y M O R E A P P E A LI N G , S ELLER A N D AG EN T CA N B O T H B EN EF I T

Page 41: S P EED U P A S A LE

00763 BL DREAMS LOTTERY PROPERTY PROFESSIONAL - EARPIECES RP.indd 3

Selling a home is not always easy and can become a lengthy and tiresome process that costs the seller and agent time and money. Despite booming property markets in the main centres, there are still areas in the country where the average property can sit idle for three months or longer before being sold. However, simple solutions such as basic home improvements, savvy online marketing, stylish home staging, smart incentives, creating a “lived-in” look with a house sitter and pricing the property right can often help speed up the sale. SIMPLE HOME IMPROVEMENTS INCREASE INTEREST Simon Bray, CEO of Private Property, says it’s essential that all maintenance issues be rectified before placing the property on the market to ensure a quicker sale at the best price. He says buyers notice smaller problems that the owner or agent don’t see because of their familiarity with the property, such as a leaking tap or broken doorknob, and will form the impression that the property is not well maintained and could have even bigger faults. “Ensure the condition of the house can’t be used against the seller. Remove any excuse for a buyer to negotiate down on the asking price. Potential purchasers mentally reduce the price of the property every time they spot a problem that needs fixing. They want to move in without the hassle of making any repairs, and if they think it’s going to cost them money to get the property in good shape, they will stay away,” he says. Ricardo Gouveia, director of Valuetec Property Valuations, says if the owners are going to invest in home improvements, they should put money into improvements that will likely yield the best return. He says that the owners, when trying to increase the value of the house,

2015/06/1

Page 42: S P EED U P A S A LE

must be realistic; fitting a new kitchen will not necessarily increase the

Bray says that more than 90% of buyers start their search online, so not

asking price if the roof is caving in.

listing the property on the internet deprives you of the opportunity of reaching buyers at the start of their buying journey. He says a property

Says Gouveia, “Any improvements should be practical. Use colours

can be advertised through online classifieds, online auctions, pay-per-

and designs that appeal to the widest audience and complement the

click outlets, through banner ads on relevant websites and by joining

home. It is possible to overcapitalise on the property by improving it

property investor forums.

to a point where it becomes one of the most expensive properties in the area, above the average sale prices, so take note of the suburb

HOME STAGING MAKES BUYERS FALL IN LOVE WITH A LIFESTYLE

and keep the house similar to other properties in the area, to avoid

Lucy Le Roux, owner of Illuminate Home Staging, says that for a

renovating it out of the market. But the upkeep and maintenance of the

property to sell fast and earn a greater return on investment, it needs

property should not be neglected.”

to be presented as “move-in ready”, and the lifestyle it offers should be effectively portrayed. She says that home staging includes minor

ONLINE PROPERTY MARKETING IS EASY AND COST-EFFECTIVE

renovations, the styling of existing furniture and accessories, or

Property owners and agents now use social media as a way of

providing a full house of furniture and accessories to assist in the sale

communicating with potential buyers, as it is an easy, cost-effective

of empty properties.

way to generate new interest in a property. YouTube, Facebook and Twitter remain the most popular avenues. Some savvy agents have even

“It is estimated that staged homes sell in half the time of comparable

started employing Instagram.

non-staged homes, all things being equal. To optimise the sales process, home staging should be used before a property is listed

Realistic goals and expectations should be set for social media

rather than as a quick fix after buyers have seen the home on show for

marketing and for finding potential investors or homebuyers, and

months and know the seller is getting desperate,” says Le Roux.

tactics should be put in place to meet these goals. Sellers and agents can use social media to publish a variety of content types, such as

According to Le Roux, by providing stylish and trendy furniture, art and

photos, links, videos and stories, to promote the property or use it as a

accessories, the seller gets to send the message that the value of the

website if they don’t have one.

property is understood and that the owners are not in a rush to sell.

Page 43: S P EED U P A S A LE

She says empty homes portray a cold, clinical and lifeless environment that most buyers find depressing, and since there is nothing for buyers to really see, they start to become overly critical of what is there, such as paintwork and fixtures, and they battle to imagine where their furniture would go. “Research shows that homebuyers form an opinion within the first 15 seconds of entering a property and are likely to spend only five minutes viewing an unfurnished house versus up to 40 minutes in a furnished home. If you do go the extra mile when presenting your property and staging it correctly, you will be head and shoulders above the competition,” says Le Roux. INCENTIVES WILL SWEETEN THE DEAL Builders continue to chip away at home prices by offering special deals. Individual sellers should

sitters show how a potential buyer could live in

“It’s not always imperative to be the lowest-priced home on the block, but it is important that the listing price not be out of line with other comparable homes” Tshegofatso Selahle, communications manager, Nedbank

the home. Buying a home is about more than sales price, school district and length of commute. Alexander says, “Buyers want to feel the house is right for them and see themselves living there. People want to live in neighbourhoods because there are people there. Getting a house sitter is something to consider in areas where there have been many vacancies and where you want buyers to have a sense of the neighbourhood and someone occupying the home for security. House sitters lower the risk of break-ins and keep property values stable for everyone else living on the block.” CORRECT PRICING IS STILL KEY Tshegofatso Selahle, communications manager at Nedbank, says that regardless of how well a buyer

take their lead and consider offering prices and

renovates and stages a home, the most important

incentives that might entice buyers to view their

thing is to price the home appropriately.

property. Simply offering an incentive such as a vacation, petrol card, spa trip or car hire can help get traffic through the door; or,

This is where the agent plays a major role in aiding the seller to

during negotiations, the seller might want to throw in the pool table or

settle on a price by comparing the home with others in the area.

lawnmower to help seal the deal.

“By researching the property market, buyers will get an idea of the costs in the area and will be able to recognise a good deal. It’s

In a down market, buyers are looking for a deal. You have to attract

not always imperative to be the lowest-priced home on the block,

their attention somehow, so do your best to make them feel they’re

especially when significant improvements have been made to the

getting one. Offering to pay for a year’s worth of homeowners’ fees,

property; however, it is important that the listing price not be out of line

or throwing in transferable home insurance for a one-year policy

with other comparable homes on the market,” says Selahle.

that covers appliances such as air conditioners and refrigerators, for example, often helps to convince the buyer. Potential buyers may feel

Bray says that overpricing a property is the biggest mistake people

more at ease knowing they will be covered against such problems,

make and the main cause of a property’s remaining unsold. He says

which could make the home more attractive than a competing home.

sellers should never forget to place themselves in the buyer’s shoes;

Sometimes, potential buyers see the concessions and realise the seller

they must then determine what a fair price might be, as buyers are

and agent are willing to work with them, and this assists in getting

pretty savvy at spotting an overvalued property and will avoid it.

closer to agreement. “The longer a property languishes on the market unsold, the more HOME SITTERS CREATE A NEIGHBOURLY VIBE

the perception grows among buyers that there is something wrong

Dominique Alexander, owner of Happy Home House and Pet Sitting,

with it. Sellers should get an estate agent or independent property

says house sitters are often called on by agents to help sell upmarket

valuer to price the property. The basis for the valuation would be a

yet slow-moving houses. The goal, she says, is to remove the air

comparative market analysis which lists all properties recently sold in

of desperation from the home and add emotion to it. House sitting

the area,” says Bray.

involves filling vacant for-sale homes with short-term tenants and their attractive furniture, thereby giving the property a well-kept, lived-in feel that will win buyers. According to Alexander, banks and individual homeowners are often interested in hiring house sitters as a way to set a particular property apart from foreclosures and other listings. House

BY LISA DEWBERRY

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

MINDING THE GAP B R I D G I N G F I N A N C E – T H E N U T S, T H E B O LT S A N D H OW I T CA N WO R K F O R YO U

Page 46: B R I D G I N G F I N A N C E

Many property professionals have a general idea about bridging

Agents, principals and licensees can also use bridging finance if they

finance, but just how it works and how it can be used to facilitate

need advances on their commission.

transactions and seal deals is often less understood. Here’s a closer look at what you need to know.

HOW CAN BRIDGING FINANCE HELP SECURE A SALE? In many cases, buyers need to put down a deposit on their next property.

WHAT IS BRIDGING FINANCE?

If they are expecting proceeds from a current sale, they can access

Bridging finance is a financial service – a short-term loan – that

these funds through a bridging-finance company. Buyers often don’t

bridges the time between when a transaction has been signed and

realise the considerable costs associated with buying a property. Before

when payment is made. It can be used in many situations but is most

a conveyancer can effect transfer of a property, the buyers will need to

commonly used in personal-injury claims and property deals.

pay transfer duty (where applicable). If the buyers need to raise cash to do so, it can be bridged on the sale of their current property.

WHAT IS PROPERTY BRIDGING FINANCE? Property bridging finance is a service that allows property owners,

Sellers usually have to settle rates in arrears, while buyers have to

sellers and estate agents to access their funds earlier in the process.

pay rates in advance for the first few months. These costs can also be

The proceeds from a sale of a property or from a new or further bond

bridged on the sale of the property.

become available to the owner, seller or estate agent only on registration of the transaction at the Deeds Office – a process that can take anything

HOW CAN BRIDGING FINANCE HELP THE AGENT?

from 30 to 90 days, and occasionally even longer.

In addition to being a useful tool for buyers and sellers, bridging

But many people need the proceeds sooner than this in order to pay deposits on their next property purchase, for paying relocation costs and transfer duties on their new properties or for other pressing expenses. For them, bridging finance can take the stress out of buying and selling

PERSONAL INJURY

(and is sometimes the only way they can afford the purchase of a new

Personal injury claims are straightforward examples of

property) by helping eliminate the waiting period for funds.

situations where bridging finance is regularly used. Injured parties can often wait years before an insurance company

WHO NEEDS PROPERTY BRIDGING FINANCE?

pays out the claim that is due to them. During this time they

Sellers can make use of bridging finance in order to pay relocation

can have substantial medical and living expenses (often their

costs, arrear rates and transfer duties on their new properties. In many

salary is also compromised as a result of the accident), so

cases they have specific debt, such as school fees and consumer debt,

bridging finance, in a situation like this, is a loan against the

which urgently need to be settled.

security of the claim acknowledged by the insurance company, which they can use to cover expenses while waiting for the

Buyers – if they are also sellers – can use bridging finance for the same reasons.

insurance payout.

Page 48: B R I D G I N G F I N A N C E

finance can also benefit estate agents. Firstly, in many bridging finance

expensive than normal banking rates. Bridging finance is also charged

companies, agents, principals and licensees qualify for short-term

on a daily rate and therefore the term of transaction should be kept to

credit, meaning that they can, through bridging finance, access their

a minimum. The shorter the term the cheaper the cost of finance, so you

commission, or part thereof, before the transfer is registered at the

should always obtain bridging finance on the last day possible.

Deeds Office. Secondly, many bridging finance companies offer agents,

• Principals, licensees and agents are usually entitled to commission from

principals and licensees commission on the loan if they refer a client to

bridging finance companies and this commission is usually split within

them, so it’s worthwhile finding out which reputable companies offer

the agency in agreed proportions.

bridging finance and building a relationship with them.

• Principals and licensees of estate agencies need to take great care when signing any documentation around bridging finance as they can

WHY NOT TURN TO A COMMERCIAL BANK FOR A LOAN INSTEAD?

unwittingly incur liability for monies borrowed by their agents. Bridging

Transaction turnaround times in bridging finance are usually very fast,

finance companies usually contract directly with the agents rather than

and commercial banks are not usually set up to deal with short-term

the agency, but a principal or licensee should always be required to

loans, nor are their systems geared towards lending money quickly.

consent to one of their agents taking a loan. Principals who are unsure of what they are signing should query the documentation with an attorney

WHAT SHOULD YOU LOOK OUT FOR WHEN APPLYING FOR BRIDGING FINANCE?

or with the bridging finance company itself.

There are quite a number of factors to be aware of when considering

• Buyers who haven’t been able to raise 100% of the acquisition costs

bridging finance. Andrew Church, chairman of the Bridging Finance

of a property can apply to certain financial institutions for a personal

Association of SA (BFASA) and CEO of Rodel Financial Services, offers

or top-up loan. This is not bridging finance, but most bridging finance

the following advice:

companies should be able to direct clients to suitable companies for this service.

• The BFASA regulates the behaviour of its members. An estate agent or member of the public should, first of all, deal only with reputable bridging finance companies and never deal with a bridging finance company that is not registered with this body. • While certain legal firms offer bridging finance, they are almost never registered as authorised credit providers. Consequently, every year the Attorney Fidelity Fund receives claims from the public against attorneys who have engaged in bridging finance. Steer clear of attorneys who offer bridging finance, as they inevitably find themselves in a conflict situation where they are involved as a money lender and in a professional capacity as an attorney. And they very often flout the law society’s touting rules. • While bridging finance companies, like most financial institutions,

USEFUL CONTACTS

are prepared to pay referral commission, look out for bridging finance

• Bridging Finance Association of SA bfasa.org.za

companies that offer referral commission to attorneys, paralegals

• Rodel Financial Services rodel.co.za

and estate agents and then add that commission to the client’s costs. Borrowers are always entitled to know where someone is earning commission from their transaction. • Bridging finance is a short-term transaction and accordingly is more

BY ANDRÉ FIORE

Page 50: N EW AG EN T S O N T H E B L O C K

PROPERTY PROFESSIONAL

NEW AGENTS ON THE BLOCK spent and that they will possibly refer me to others. A challenging aspect would be the stress that accompanies a job like this, as well as long

DIANNE PENTZ S EEF F B L O U B ERG

hours away from one’s family. Not having a fixed income can also prove a challenge. Another challenging aspect is when a deal falls apart, owing to circumstances beyond your control, after you worked really hard on closing it. WHAT CHARACTERISTICS MAKE FOR A GOOD ESTATE AGENT AND WHY? The ability to listen to clients’ needs. This way they can truly identify

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

the right property for them and not necessarily what the agent thinks is

Coming from a family with a background in property, especially in the

nice for them. Agents should know the area they are working in so that

Blouberg/Table View area, coupled with a love of houses and strong

they can advise clients correctly in terms of what is selling where and

interpersonal skills, meant that it was a natural choice for me. After

for how much. Good agents will learn from their mistakes and not be

running my own business for 12 years, I needed a new challenge and

too sensitive when facing negative clients. Successful agents are self-

felt that this was something that I could excel at while making money.

motivated and hard working and strive to achieve their goals.

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

WHAT ARE SOME OF YOUR CAREER GOALS?

CHALLENGING ASPECTS OF THE JOB?

My short-term goals are to achieve my targets in terms of sole mandates

I enjoy the challenge of being able to match a buyer to the perfect house

and sales in my area and to grow our market share and dominate in our

and being able to sell a house for the highest price in the fastest time.

area. My long-term goal would be to one day head my own team and

I also enjoy being able to take care of a lot of the aspects of the job

to become a reputable and well-known name in the real estate world; to

that the buyer or seller does not have to stress about. The satisfaction

obtain the required number of mandates needed to do the sales; and to try

lies in the fact that they feel that every cent of commission paid is well

to be the sales agent of the month on a regular basis.

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

NICCI GEYSER 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

CHALLENGING ASPECTS OF THE JOB? I love interacting with people. I enjoy reading them and adapting my approach in a way will establish a good relationship. Making people happy is really important to me. The most challenging aspect of the job has to be the admin – I have an assistant to take care of my paperwork. Oh, and trying to remember all the properties on the market and their prices. I have a shocking memory – thank goodness for laptops. WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

AGENT/BROKER AND WHY?

For 18 years I was self-employed while raising my three boys, but last

Honesty and transparency when dealing with clients and colleagues are

year I realised they were growing up and needing me less. I decided I

very important. You obviously rely on clients for work, but you also need

wanted a career that was challenging and didn’t leave me confined and

to have a good relationship with your colleagues, as teamwork helps

bored stiff, a career where what you earn is relative to the effort you

a great deal. One also needs to be self-motivated and have personal

put in. I met with a friend (who is also a principal), armed with a list of

goals to strive towards. I am tempted to use the words “ambitious” and

questions about the industry. As soon as she said I would make a great

“competitive”, but in a healthy and personal way. I have also noticed

agent, my fate was sealed.

that enthusiasm is infectious, and I am really enthusiastic.

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Page 52: T O P P ER F O R M I N G AG EN T S

PROPERTY PROFESSIONAL

TOP PERFORMING AGENTS

NASIMA OSMAN WA K EF I ELD S W ES T V I LLE

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET, AND WHY? It’s important to partner yourself with a supportive brand that you’re proud to represent. Computer and cellphone: you stay in touch with buyers and sellers and can offer prompt and efficient service at all times.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL

My immediate response to any enquiry, whether from the web, SMS,

US ABOUT IT.

email or phone. In that way, I stay in touch with my buyers and sellers. A

My first house was sold on my first show day at my first show house.

great attitude is another important ingredient, together with the discipline

Since then, show houses have become a big part of my business. I was

needed to get stock. If you have stock, you have business. And service

ecstatic, since I was new to the business and had just left the SAPS. The

excellence: I want my clients to remember me in any property transaction

house was in Reservoir Hills and sold for R750 000.

by ensuring that I am honest, dedicated, passionate and knowledgeable. 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?

Surround yourself with other experienced agents so that you might learn

To save, in order to weather all conditions, and not go into panic mode

from them. Always be positive, honest and ethical. Strive at all times to

when the market quietens down or if you have a few slower months.

do your best.

NICHOLAS FALCK S EEF F J O H A N N ES B U RG SOU TH

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? I always carry my Apple iPad with me. I use it to check property reports and to show clients my presentations. I try to be eco-friendly when it comes to the way I work. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

US ABOUT IT.

In my opinion, the top three secrets to success are to stay true to your

Yes, I sold a two-bedroom, one-bathroom unit in Mulbarton to an

company’s values, to give 100% every single day and, last but not least,

investor. It was sold for around R375 000 and is currently still used

to network. I also make sure that I consistently keep my clients informed

as an investment property by my client.

and continuously stay motivated to achieve my goals. WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT WHAT IS THE ONE THING YOU WISH SOMEONE HAD TAUGHT YOU OR TOLD

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?

Start investing early and stay hungry for business. Your reputation is

That each deal has its own challenges, such as insolvencies, shortfalls

everything in real estate, so it is important to always deal with clients

and bank repossessions. You need to keep track of these things.

with integrity and honesty.

Page 54: T O P P ER F O R M I N G AG EN T S

LOUISE YEATS 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

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Confidence, knowledge of property, a reliable, clean car, a cellphone and a laptop or iPad. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT.

WHAT ARE YOUR TOP SECRETS TO SUCCESS?

I sold my first house for R260 000 19 years ago to a good friend of

I am honest, reliable, confident and sincere at all times with sellers

mine who did not mind that it was on a very busy road, because he

and buyers.

held a lot of parties there with his friends over the years and kept on reassuring me that he loved his home.

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

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

To have patience. I never realised how many after-hours business an

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

agent has to do. Most clients can only deal with you after hours and

You must know your areas and properties and be confident,

over weekends, so you have to plan your life around this.

knowledgeable and totally honest at all times.

SONJA CILLIERS H U I Z EM A R K R U S T EN B U RG

applies to this industry. It takes time and the gaining of valuable experience doesn’t happen in one month. You have to go through the ups and downs in order to fully understand the property industry as a whole. Only then do you start reaping the benefits. Selling property is not a quick fix; you have to be in it to win it, otherwise you’re fooling yourself.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD

I work fast, am responsive and always get back to my clients, even

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

if I can’t give them good news. We live in a world where good

An iPhone and tablet. I don’t know what we did without the

service is scarce and most definitely something a customer deserves.

internet, social media and emails. Everything can happen with

We make a good living out of the industry; we should respect the

a click of a button and the world is your oyster. Utilise it for your

people that make sure we get paid and grant them impeccable

own benefit. There are no excuses for not being responsive.

service – this is what differentiates one agent from another. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL Be presentable. Dress well, keep your car clean. If you’re a neat

US ABOUT IT.

person, people tend to trust you and believe in you more. Remember,

Yes! I was fortunate that it happened in the first month and I was able

for example, that they drive with you in your car when you view

to take full commission on that transaction. I quickly realised after the

properties. A car that reeks of cigarettes and with clutter all around

first one that it isn’t as easy as that, but it was a great experience!

must certainly say something about the way you feel about your job. Be on time. Time is against us all. We have to appreciate

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

our clients’ time and never be late for our appointments.

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY? Be someone who answers your phone. Get back to your clients. Do what

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

you promise to do. You are in this business as someone to be reckoned

YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY?

with and someone who people can trust. It goes a long way. You want

That the principle of “Rome wasn’t built in a day” is something that

people to make you their preferred contact − give them reason to!

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Page 56: T O P P ER F O R M I N G AG EN T S

KEM THOMPSON WA K EF I ELD S W ES T V I LLE

clients and not rely on email alone. I keep in constant contact on a longterm basis as well as with my current clients, to ensure that all clients know they matter. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL US ABOUT IT. It was a little two-bedroom apartment on the third floor in a complex in Sherwood, for R440 000 in 2008. The buyers were a young couple

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

about to be married. It was the first property I showed them. I was

I am passionate about property and love what I do. I listen to my clients

about to say goodbye when they said they wanted to put in an offer.

and look after them because I know that if I don’t, someone else will.

I took the offer sitting in my car, presented it to the seller there and then

I make them feel that I care and that they can trust me. Integrity is

and he accepted straight away. I thought selling houses was easy!

essential. Hard work – always being available, no matter the time. I’ve

The next property I sold took five offers and five months to conclude.

learnt to balance this by taking time out for myself on a regular basis.

I subsequently sold two more properties to that first young couple as they grew their family.

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

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

I didn’t realise how important it is to market yourself and let everybody

MAKING A SUCCESS IN THEIR CAREER IN PROPERTY?

know what you’re doing and where you’re working. Networking is vital.

Always be there – this is a 24/7 job. Attend all the training you can get. Know your stock – never miss out on a valuation or viewing. There

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD

is no substitute for hard work, but it is very rewarding and doesn’t feel

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

like work when you enjoy it. Don’t chase the money – just look after your

My cellphone (not my computer) to make personal contact with my

clients and the money will follow soon enough.

AMANDA KRUGER

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD

H U I Z EM A R K R U S T EN B U RG

You have to know the area you operate in and what the actual selling

HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? prices are. This will enable you to work better with sellers and provide price counselling on a different level. DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? PLEASE TELL

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

US ABOUT IT.

If I get a lead, I work with the prospective purchaser and seller until

I sold a very modest house that didn’t “get value” (at that stage I wasn’t

a property is bought or sold. I don’t give up. I have a strong sense of

even aware what it meant). I was so disappointed and sad. After that it

empathy for people – I try to understand their circumstances, and that

got a whole lot better!

makes the working relationship easier. 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?

This is your job. This is your career. Don’t think you can do it half

That there would be quite a lot of situations where I would be

way. Be everywhere and be known for the right reasons. A good

disappointed. I have learnt that everything that happens to us serves

reputation goes a long way. Make sure you surround yourself with a

a purpose. You work hard, believing that you will succeed, but you

team you feel comfortable with – don’t underestimate the power of team

sometimes don’t. But you get up and tackle the next mission. You learn

work. Although you work for yourself, you do it as part of a group of

to become resilient (a trait you won’t be able to survive without).

professionals building something together.

realWINNERS w w w . r e a l n e t . c o . z a

The RealNet Stars shone brightly at the 2015 Annual Star Awards recently held at Glenburn Lodge. Top franchisees and estate agents were commended for their excellent achievements.

Standard Franchise of the Year: Bloemfontein

Mini Franchise of the Year: Wapadglen

realAMBASSADOR of the Year: Annette Kasselman

Most Units, Highest Turnover and Highest Commission (Mini franchise territory): Cisca Louw

Top Agent (Coastal Region): Petro van der Colff

Highest Turnover and Highest Commission (Franchisees’ own sales): Johann du Plessis

Most Units (Franchisees’ own sales): Nelis Bezuidenhout

Most Units (Boutique franchise territory): Amanda Serfontein

We make it happen!

Boutique Franchise of the Year: Pringle Bay

Rental Franchise of the Year: Erasmuskloof

Top Agent (Inland Region): Antoinette Nieuwoudt

Most Units and Highest Commission (Standard franchise territory): Antoinette Nieuwoudt

Highest Turnover and Highest Commission (Boutique franchise territory): Jaco Erasmus

Highest Turnover (Standard franchise territory): Madeleine Burger

“At RealNet we believe in empowering our franchisees to obtain the best possible market share and to assist their estate agents in constantly achieving above average results in facilitating real estate transactions.” - Jan Davel (MD)

For career opportunities contact: Eon du Toit Cell: 082 859 7963 / Tel: 0860 460 460 realnet@realnet.co.za

Page 58: T E C H T O O LK I T

TECH TOOLKIT Outlook for Android AVAILABLE FROM: free for Android users – download the app from

Google Play.

LOVE IT: after being stuck in the beta phase for months, Outlook for

Android finally launched at the beginning of May. It’s got a nifty function where you can resend email to your inbox at a later time, allowing you to deal with emails later in the day. Outlook for Android works with Gmail, iCloud, Yahoo and Microsoft systems (including Outlook and Hotmail). IN A NUTSHELL: consolidate all your email accounts into one

convenient system. And it even lets you customise swipe gestures and triage emails – the most important ones are always at the top of your feed.

LaCie RuggedKey AVAILABLE FROM: takealot.com for R774 (32GB) LOVE IT: the LaCie RuggedKey can withstand drops from 100m and is

water-resistant, making it perfect when you show clients apartments in

those sky-high apartment blocks in Cape Town and Sandton on a rainy day. The 32GB RuggedKey can store up to 16 000 images and transfer them quickly at speeds of up to 150MB/s thanks to USB 3.0 tech. IN A NUTSHELL: the RuggedKey is protected from the outside and

from within by AES 256-bit encryption technology, which requires a

password before it allows access to data, so only you will see what is stored on the device.

Page 59: T E C H T O O LK I T

LG G4 AVAILABLE ON: contract and cash purchase

(R8 135 from Orange)

LOVE IT: long an also-ran in the smartphone

market, LG looks set to gain wider traction thanks to its do-all G4 flagship. It’s perfect for agents who take their own pics of properties. The 16MP with f/1.8 aperture is perfect for low-light conditions, while the ultrathin 0,1mm blue IR filter cancels out infrared interference and give photos a natural look IN A NUTSHELL: the G4 is one stylish number.

Alongside standard metallic-look back cases, LG will also offer leather cladding in six colours.

Gizmon Smart Clip AVAILABLE FROM: takealot.com for R325 LOVE IT: struggling to take images of confined spaces, such as bathrooms

and kitchens? Pop a wide-angle fish-eye lens on the front of your smartphone and snap away. The Gizmon Smart Clip simply clips onto your phone and is both compact (115mm) and compatible with most phones and tablets, as well as a few digital cameras. IN A NUTSHELL: Gizmon offers five other lens types, including a CPL option

that reduces reflection from bright surfaces, sharpening your images.

Page 60: D EV EL O P M EN T U P DAT E

DEVELOPMENT UPDATE

FINAL UNITS OF EDEN ISLAND NOW SELLING

development unique is that Basin 5 is the only section in which owners have mooring directly in front of their homes. “Another noteworthy

Properties in the last two basins in the luxury Eden Island resort

feature is that one of the apartment blocks released in Basin 6 consists

development in the Seychelles are for sale. Basin 5 and Basin 6

of one-bedroom units of a new design that includes a larger floor space,

comprise apartments, maisons and villas: the apartments (88m to

making them ideal as holiday apartments or as an investment with sound

215m2) are priced from $450 000 to $895 000 – about R5,5m

rental returns. Storerooms have also been added to the new apartment

to R10,9m at R12,2 to the US dollar – maisons (250m2 or more) from

blocks in this phase,” says Immelman.

$1,3m and villas (at least 317m2) from $2,65m. Eden Island is one of the very few Indian Ocean island developments Construction on Eden Island, which lies just off the coast of the

where foreigners can purchase property, which also enables them to

Seychelles’ main island of Mahé, started in 2000 with reclamation

apply for residency. There are regular flights to and from South Africa,

work and the first apartments were completed in 2007. Since then,

and the development is just eight minutes’ drive from the airport.

480 have been sold off-plan for a total of $440m, of which 423 homes

Amenities on the island include the Eden Plaza retail centre, with a Spar

have been built.

supermarket, restaurants, boutiques and a casino, and the Eden Bleu Hotel and Conference Centre, which opened in October 2014. The

According to Chris Immelman, MD of Pam Golding Properties

Eden Island residential estate, meanwhile, has a clubhouse, tennis court,

International and Projects Division, what makes this section of the

gym, swimming pools and four beaches.

Page 61: D EV EL O P M EN T U P DAT E

CAPE TOWN ICON TO GET A FACELIFT

The five-star Radisson Blu Hotel and Residence will include 11 floors of apartments, which will fill the top half of the skyscraper.

Cape Town’s distinctive 105m-tall Triangle House office building (formerly Safmarine) will haven been transformed into a hotel and

There will be 166 flats sized from 40m2 to 160m2. The smallest unit on

apartment block by this time next year. And what’s more, it will be the

the lowest (12th) floor is priced at R1,63m.

first such mixed-use project to be undertaken by an international hotel brand in South Africa.

Because the building is in an urban development zone, owners will be eligible for tax cuts equivalent to 30% of the value of their flats over five

Carlson Rezidor Hotel Group (owner of the Radisson brand), Signatura

years. They will also have the option of adding their units to the hotel

(John Rabie’s brand) and Shaun Rai of Stonehill Property Fund, which

rental pool.

bought the building from Old Mutual in 2014, are behind the building’s makeover and repurposing. (Signatura has already rejuvenated 19 other

Triangle House was originally designed by Louis Karol Architects and its

building in the Cape Town CBD and along the Atlantic Seaboard.)

construction was completed in 1993.

VAL DE VIE RELEASES AFFORDABLE LUXE UNITS

effectively gaining access to a well-managed, successful estate where elegant housing is set among lakes, vineyards, polo fields, farms and

Val de Vie, in the Franschhoek–Paarl valley, has lowered the point of

landscaped gardens – at an accessible entry-level price.”

entry to the luxury residential polo estate with the launch of The Vines, which is made up of 142 plot-and-plan homes set over 12ha. Units

The price packages for the homes include architect fees and

start from R2,799m and peak at about R5m, which is far lower than

landscaping. A variety of designs are available, including 172m2 single-

the R15m price tag that some homes on the estate have commanded in

storey units and premium double-storey homes of 290m2.

recent resales. Residents of The Vines will have access to all facilities on the estate, “A crucial advantage for buyers in this new phase is that the homes

including the gym, sports and leisure centre, with its tennis and squash

are well priced,” says Andrew Golding, CEO of Pam Golding

courts and heated indoor pool; cycling and running tracks; fly-fishing

Property Group, which is marketing the units. “Homes in this price

spots; polo fields; indoor showjumping and dressage; bistro-style

band are in huge demand on estates in this area. New owners are

restaurant; the Kinder Ark preschool; and state-of-the-art security.

Page 62: D EV EL O P M EN T U P DAT E

PEARL VALLEY VOTED BEST ESTATE IN SA

and placing/spacing of houses); facilities, such as a spa, parks, shops, schools, restaurants and bars); and activities. Pearl Valley, where

Pearl Valley Golf Estate has been rated as the best residential estate in

property prices range from R5m to about R25m, was commended for

South Africa by the influential consultancy New World Wealth (NWW)

the quality of its golf course, the design of its homes, its excellent security

in its 2015 estate ratings report.

and its natural surrounds.

According to Andrew Amoils, head of research at NWW, the ratings

Rounding out the top 10 were Zimbali, Fancourt, Arabella Country

criteria included: value for money and resale potential; security, scenery

Estate, Pezula, Atlantic Beach Golf Estate, De Zalze, Vaal de Grace,

and wildlife; quality and design of houses; space (average stand size

Erinvale and Highgate Estate.

EASY ACCESS AND VIEWS THE MAIN SELLING POINTS AT THE GREEN ON GLENHOVE

highway. It’s a gateway to Rosebank, which is fast becoming a highly

Barrow Properties is nearing completion of The Green on Glenhove, a

The building is positioned on Killarney Golf Course. Overlooking the

three-storey office development situated on Glenhove Road in Melrose,

10th green and the 16th tee, it has been designed to maximise the

Johannesburg. Neighbouring buildings include the Pharmaceutical

views over the fairways. Its high-tech facade is made up of three glazing

Society and other offices grouped along the arterial route feeding into

layers: a protective double-glazed facade on the outside and a frameless

Rosebank. Says Barrow Properties MD Paul Barrow, “This new 2 753m2

partition glass on the inside. These skins are separated by a ventilated

office development will be a modern glass building that optimises the

cavity that cools the facade by extracting hot air (built up by solar heat

superb views and exposure to the Glenhove off-ramp from the M1

gain) out the top of the building.

desirable location for office users.”

NUMBERS TO KNOW

R643m

Total value of residential estate properties

318 000

The number of units in residential estates

(Source: Pam Golding Properties)

There are

6 000

closed communities in SA

50%

of all estates are in Gauteng

85%

of properties are in security estates

12%

are in golf estates

“If you want to go fast, go alone. If you want to go far, go together.” AFRICAN PROVERB

Rebosa invites you to join together in the best interests of the South African real estate industry.

WWW.REBOSA.CO.ZA

REBO SA

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