Property Professional - Nov/Dec 2015 by Property Professional

NOV/DEC 2015

PROPERTY

PROFESSIONAL THE SOUTH AFRICAN PROPERTY INDUSTRY MAGAZINE

IN T E RV IEW

CHRIS TYSON Why perception is so important in this industry HOW TO RECOGNISE THE NEXT BIG GROWTH NODE IN CITIES PP NovD_Cover_FA.indd 1

M UST- R EA D

WHAT THE ECONOMISTS ARE SAYING ABOUT THE PROPERTY MARKET GET THE WORK / LIFE / STUDY BALANCE RIGHT 2015/11/05 9:30 AM

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CONTENTS HIGHLIGHTS

LOCAL NEWS

12 24

INTERNATIONAL NEWS

Editor’s note I

f the word of 2015 was “load-shedding”, the term of 2016 could well be “downturn”. There have been downward revisions to economic growth outlooks, value added tax looks set to be raised in February, and with fuel prices always fluctuating, the pressure is on over-indebted consumers, who are hoping for unchanged interest rates. And all eyes are on the US Federal Reserve… With this backdrop, it’s not surprising that economists are forecasting economic storm clouds ahead for the market. But it’s not all doom and gloom; there are opportunities in a market like this – read our finance story on p32. As Chris Tyson from Tyson Properties says in our cover story, “If you get out there continuously – whether the market’s good or bad – you will sell and you will make money.” And if you know where to look, you’ll find opportunities around infrastructure injections, says writer Anne Schauffer in her feature on p38. Keep reading, for these features and a whole lot more. And keep on telling us about what you want to see in your magazine. Drop me an email at catherine.davis@thecreativegroup.info – I’d love to hear from you. Here’s to finding opportunities in the new year! Catherine Davis PUBLISHED BY THE CREATIVE GROUP 6 Beach Road, Old Castle Brewery, Woodstock 7925 087 828 0423 www.facebook.com/PropertyProfessional https://twitter.com/Property_Prof

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CHRIS TYSON ON THE POWER OF PERCEPTION PHOTOGRAPHY BY: STEVE MARAIS

32 IS THE INDUSTRY READY FOR AN ECONOMIC SLUMP AHEAD? Find out what economists are saying about the property market

HOW AN INFRASTRUCTURE INJECTION CAN CHANGE A LANDSCAPE

THE CREATIVE GROUP CEO: Shaun Minnie shaun.minnie@thecreativegroup.info EDITORIAL TEAM Editor: Catherine Davis Content Strategist: Bridget McNulty Chief Copy Editor: Yaron Blecher Designer: Megan Cooper Online Editor: Andy Möller

LIFE HACKS Fit studying into your already very busy schedule

ADVERTISING SALES: Sales and Marketing Manager: Michèle Jones michele.jones@thecreativegroup.info 084 246 8105 Advertising, production & subscriptions: Jackie Maritz jackie.maritz@thecreativegoup.info Printing: Paarl Media | 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.

2015/11/04 2:22 PM

LOCAL NEWS

LOCAL INDUSTRY NEWS IS SANDTON THE NEW MILLIONAIRE’S MILE?

The Atlantic Seaboard may be South Africa’s premier residential real estate belt, but high net-worth individuals will pay top dollar for the right properties in Johannesburg too. A three-bedroom penthouse at Michelangelo Towers in Sandown has been listed for R48.9m with Pam Golding Properties. Rupert Finnemore, Pam Golding Properties’ Hyde Park joint area manager, says the highest price paid for an apartment in Sandton’s city centre was R43m for a penthouse in 2014. Most new residential apartment developments in and around central Sandton sell for R35,000/m2 to

JOBURG SUBURBS WIRED FOR TECHNOLOGY A new company called Vumatel is bringing fibre-optic infrastructure to Johannesburg homes, one suburb at a time. Fibre to the Home (FTTH) delivers practically unlimited speed, capacity and quality in broadband connectivity, at a similar cost to slower competitor services such as ADSL, and it’s a huge selling point in the area. Vumatel’s ‘fibrehood’ fibre roll-out started in Parkhurst in July 2014, after the community collectively requested proposals for high-speed internet for their homes. “Parkhurst was really a pilot test for connecting a suburb – before only gated communities and estates had been done,” says Giorgio Iovino, Vumatel sales and marketing director. “Now over 60% of Parkhurst residents have taken up the service and are connected to the network.” Vumatel targets residents’ associations to mobilise support for their fibre-optic rollout. Once they have community buy-in, it typically takes three months for the installation in a suburb. “We try to rally about 30% of the community and get them to commit on a non-binding basis. When we reach that critical number we start rolling it out,” says Iovino. Parkhurst (the first suburb, finished in February 2015), Parktown North and Greenside are already connected via Vumatel’s FTTH network. Saxonwold, Parkwood, Riviera and Killarney installations will be complete by early November 2015. FTTH in Victory Park, Linden, Bryanston South and Blairgowrie, Hurlingham and Emmerentia should be complete by early December. Glenadrienne, Hyde Park, Northcliff, Sharonlea and Olivedale have signed up for Vumatel fibrehoods in 2016.

R60,000/m2. At R85,500/m2, the Michelangelo Towers penthouse is one of the most expensive homes of its type to go on sale in the area. Business Day reports that insurance tycoon Douw Steyn’s Fourways mansion, on the edge of Sandton, was recently completed at a cost of R250m, possibly setting a new South African residential property record. Palazzo Steyn is a 3,000m2 property on a 2.5ha stand, the first residential property to be completed at Steyn City mixed-use lifestyle estate. A Seeff agent recently made one of South Africa’s pricier property sales, achieving R111m for a multi-level home in Clifton’s Nettleton Road. During 2015 the Atlantic Seaboard has had 24 sales with a combined value of almost R777m, according to Ian Slot, Seeff’s managing director for Atlantic Seaboard and City Bowl.

PROPERTY PROFESSIONAL

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2015/11/04 2:23 PM

LOCAL NEWS

LATEST VISA DEVELOPMENTS COULD BOOST ATLANTIC SEABOARD SALES Tourism minister Derek Hanekom announced positive changes to the controversial visa regulations in late October. The minister said to limit the impact current regulations have had on South African tourism and economic growth, it would no longer be mandatory for inbound travellers from visa-exempt countries to carry unabridged birth certificates for children travelling with them. Laurie Wener, Pam Golding Properties’ MD Western Cape, said these recommendations should offset concerns about South Africa’s stringent visa regulations having a negative long-term effect on South African’s property market. “We are delighted that processes have started to have a more user-friendly system. This will give us an added reason to market properties in the summer months, the traditional international buyer season.” Wener said less than 10% of Atlantic Seaboard property is owned by foreign investors. “But all foreign investment is important. Only 15% of sales in the Atlantic Seaboard are to foreigners between December to March (when most sales to foreigners are achieved). So while the direct effect on property is actually very low and quite limited to certain pockets, these buyers contribute substantially to the economy in many ways.” In early October, Seeff’s managing director for the Atlantic Seaboard and City Bowl Ian Slot, announced that sales to foreign buyers across Cape Town’s Atlantic Seaboard and City Bowl were down by more than 30% year-on-year, despite attractive pricing facilitated by the slump in the value of the rand against the pound sterling, euro and dollar. Said Slot: “This seems to mirror the reduction in tourist numbers and one has to assume there is a correlation between the two. Our experience has been almost universally that foreign buyers make the decision to buy when they are actually in Cape Town, so if they are not here they are less likely to buy. The Atlantic Seaboard and City Bowl top the list for foreign buyers looking for second homes on the continent, comprising of about 20%-30% of the sales activity for these areas over the last two years.” After seeing a ‘notably downward curve in sales to foreign buyers’ from April/May onwards, Slot estimated a potential loss in turnover of up to half a billion for 2015.

PROPERTY PROFESSIONAL

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2015/11/04 2:29 PM

LOCAL NEWS

WHAT’S ON What you need to know to stay plugged into the property industry in South Africa

NOVEMBER

19 NEW ERA OF AFFORDABLE HOUSING First-time buyers are finding increasing investment opportunities in the affordable housing arena, if they know where to look. The rising cost of living, as well as the current strict qualifying criteria implemented by the major banks, makes affordable housing the best option for the majority of South Africans wanting to own their first home. Says Jonathan Acutt of Acutts Real Estate: “While strict criteria by the banks prevented South Africa from plunging into an even deeper recession, those same policies are now preventing buyers in this market from purchasing their first home.” Adds Willie Els of Standard Bank Home Loans: “There is a huge increase in people wanting to buy in this sector and an immense shortage of stock. While purchasers are resorting to creative ways of buying property, such as joint or co-ownership, with a partner, family members or friends, it is often difficult to find workable models to suit these.” Yet why the delays in meeting the demands of this burgeoning sector of South African society? Roughly defined as property priced at less than R1m, affordable housing has historically been a sector subject to subsidy abuse and major hindrances in target delivery. Solutions including Reconstruction and Development Programme (RDP) and gap housing have 06

regularly been marred by cumbersome red tape, widespread failure and sorry tales of misuse. For those with ingenuity though, despite the complications, it promises great investment potential. James Arnott, owner operator of Arnott Consulting, facilitated the launch of Pietermaritzburg’s Beacon Views affordable housing, which, at R450,000 per unit, sold out five years ago. “Although we generally had to ‘sell’ the units many times over before we got a viable buyer, I still get regular calls from interested parties,” he says. “However, even with land at subsidised rates, the rising costs of construction and the need for affordability make for narrow profit margins.” In Benoni the 2012 launch of the Crystal Park affordable residential development saw spin-offs including the development of supporting facilities and BEE employment opportunities in the real estate industry. “There remains however a definite need for buyer education, prior to the purchaser entering into an agreement with the banks,” says Acutt. “This educational process would not only increase the purchaser’s awareness of their own credit rating, and mean their chances of defaulting on their home loan due to poor financial management would decrease substantially, but it would help maintain and increase property values in these areas in the medium to long term.”

WHAT SAPOA RESEARCH BREAKFAST: OPERATING COSTS

WHERE: Hogan Lovells, Sandton CONTACT: eventmanager@sapoa.org.za

DECEMBER

WHAT PRINCIPLES OF VALUE FEASIBILITY

WHERE: University of Pretoria CONTACT: 012 434 2500 or info@ce.up.ac.za

JANUARY 2016

WHAT SAPOA BREAKFAST – EDP UPDATE: PARTNERING FOR INCLUSIVE CITY DEVELOPMENT

WHERE: The River Club Conference Centre, Cape Town CONTACT: wc.sapoa@sapoa.org.za

Add to your diary now! THE ANNUAL SAPOA International Convention and Property Exhibition: 21-23 June 2016 at the Sandton Convention Centre

PROPERTY PROFESSIONAL

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PROPERTY TREND

Cape Town Foreshore growth A massive re-urbanisation of the Foreshore area has begun, says Rob Kane, the Chairperson of the Cape Town Central City Improvement District (CCID). “As the CCID, we define this area as stretching from Riebeek Street and Old Marine Drive down to Table Bay and Nelson Mandela boulevards, and bordered on either side by Buitengracht and Christiaan Barnard streets. “Of the more than R7bn of investment being made in the CBD between last year (2014) and declared to date to be completed by 2017, over R2.114bn of this has recently been completed in the Foreshore area. More than R3.112bn is still to be completed between now and 2017, including the new Netcare Christiaan Barnard Memorial Hospital and the CTICC expansion. This is going to completely revitalise the Foreshore. It’s also one of the few areas in the CBD where greenfields developments can

still take place.” Two major corporates have recently concluded lease agreements through Ikon Property Group for prime office space in the area. “The Foreshore precinct has been earmarked as the next major growth node in the Cape Town CBD. It has convenient accessibility to public transport, and being on the periphery of the CBD it has almost immediate access to the N1 and N2 freeways,” says Jerri Mperdempes, senior commercial property broker of Ikon Property Group. But it’s not just commercial property developers and brokers that have recognised the appeal of the foreshore area, residential development has taken off too. Amdec Property Development’s newly launched The Yacht Club is a high-rise, apartment-style, mixed-use development that will build on the incredible success of the existing V&A Waterfront. Those with the equity in place have been quick to jump on opportunities as they come to market. Basil Moraitis, Pam Golding Properties area manager City Bowl and Atlantic Seaboard, says the demand for apartments in The Yacht Club has been overwhelming. “We anticipated a period of about three months for the sell-out of phase one. However the units were snapped up in a matter of days, necessitating the fasttrack release of phase two,” he says, noting that it was launched to the Johannesburg market on 6 October and more than 60% sold on the night. “The demand is driven by the lack of stock in the market and the value proposition of this development when compared to pricing of units elsewhere in the Waterfront area.”

BRIDGET MCNULTY

WHY VIDEO IS VITAL IN PROPERTY SALES

Experts predict that video will account for around 70% of all consumer internet traffic by 2017. Here’s how video impacts property sales

property is the most significant purchase that most people will make in their lives, and video is playing an increasingly important role in that purchase. Prospective buyers undertake extensive research on properties and the areas they are interested in before they commit. Video is a great way to satisfy this thirst for information, as it offers an immersive view of an area and allows the viewer to ‘experience’ a neighbourhood. This is one of the reasons for Private Property’s recent foray into neighbourhood videos. Video is a great medium for storytelling, and their emphasis has been on the story of each neighbourhood: a local describing life there, drone footage giving an overview of the area, and lifestyle highlights. The 2015 Cisco Visual Networking Index Forecast and Methodology predicts that by 2017 up to 70% of consumer internet traffic will be video. How does this relate to estate agents? The power of video tours in property listings is only going to increase. Currently, prospective buyers can get a much better idea of what a property looks like if there is a virtual tour, as they can “walk through” the rooms in the property as they would in a show house – except this show house is open 24/7! Private Property reports that properties with virtual tours get more views than regular listings and achieve a higher listing score, so they feature higher up in the search results. The bottom line? Video is here to stay – especially in the property industry.

NOVEMBER/DECEMBER 2015

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ADVERTORIAL

Leading the way to prosperity in tough times Chas Everitt continued to grow and expand in 2015 and even more growth is predicted for 2016

n the face of a slow-growing economy and uncertainty in much of the real estate industry, the Chas Everitt International Property Group continues to expand.

Highlights of the year 18 NEW OPERATIONS OPENED, INCLUDING MORE CHAS EVERITT PROPERTY RENTALS FRANCHISES These franchises use the EverRent© property management programme, a proprietary one-stop system that gives the agent managing a portfolio of rental properties quick and easy online access to a number of functionalities (including day-to-day management, financials, lease renewals and deposits held in trust). It’s ideal for specialist rental agents with a large book of properties to manage. NEW CHAS EVERITT INTERNATIONAL SALES FRANCHISES OPENED In Dainfern, Hout Bay, Swellendam and Worcester (Rawsonville & De Doorns). NEW NOTEBOOK© LICENCES GRANTED In Robertson, Richards Bay, Empangeni, Mtunzini and Upington.

20% INCREASE IN OPERATIONAL FOOTPRINT ADDED ACROSS SA

PROPERTY PROFESSIONAL

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ADVERTORIAL

In Hout Bay

Leading local estate agency RattleWalton Properties converted to the Chas Everitt International brand after 27 years as an independent operation. Established in 1988 by David, Anne and Martin Rattle, the agency was an institution in the area, commanding a significant market share. So why change to Chas Everitt? “When we met the team, we were so impressed by their professionalism and passion that we took an immediate decision to convert to a franchise,” say current owners Greg Walton and Jenny Langton. “And that decision has been absolutely validated for us by the positive reaction we have had to the change, especially from our loyal long-term clients, all of whom have expressed support for the new brand and our decision to be part of a national group.”

In Worcester

In Worcester, the owner of the new Chas Everitt International franchise, which also covers Rawsonville and De Doorns, is Lulu Theron, who has a wealth of real estate experience as both an agent and a business owner. “There are some outstanding opportunities here now for developers and property investors, and I appreciate that being part of the Chas Everitt International Property Group will give us access to a range of sophisticated marketing platforms and enable us to reveal these opportunities to a much wider national and even international audience,” she says.

The Notebook© concept

Top agents and independent principals continue to embrace the Notebook© concept. It’s specifically created to give those operating in defined areas and smaller centres the opportunity to derive the same benefits as a franchisee trading under a strong national brand, but at a much reduced entry and operational cost – without the necessity for formal business premises or staff. In addition to the brand, the licence gives them access to the Chas Everitt International Property Group business systems, websites, marketing material, training resources and proprietary technology solutions for transaction management. So it’s not surprising that the concept has proved popular with many top agents and principals in smaller towns, where the set-up costs of a traditional franchise would have been prohibitive relative to market size.

Leading Real Estate Companies of the World network Recently invited to join LeadingRE, Chas Everitt International is already participating in its luxury real estate programme, Luxury Portfolio International®, which showcases top-end homes to more than three million high-net-worth individuals around the world and achieves more than $44 billion in sales a year. This programme gives franchisees access to award-winning online channels such as www.luxuryportfolio.com and hugely influential publications such as the Wall Street Journal, and enables them to show off the exceptional properties available in South Africa – and the value and lifestyle on offer – to a truly global audience of potential buyers.

When we met the team, we were so impressed by their professionalism and passion that we took an immediate decision to convert to a franchise – Jenny Langton, Chas Everitt Hout Bay franchise owner

NOVEMBER/DECEMBER 2015

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2015/11/04 2:31 PM

I N T E R N AT I O N A L N E W S

PROPERTY MOVEMENTS AROUND THE WORLD AUCKLAND’S PROPERTY PRICES DRIVEN UP

LEA JACOBS

HOW THE UK’S BUY-TOLET MARKET IS AFFECTING FINANCIAL STABILITY The Bank of England recently released a warning regarding the buy-to-let sector in the UK, saying it was posing an increasing threat to financial stability. At this stage, one out of every five homes in the United Kingdom is owned by private landlords and it’s been estimated that the buy-to let sector is worth a staggering £1tn (yes, that’s one trillion). According to data published by the bank, buyto-let mortgage lending has increased by more than 40% since the 2008 crash. This is in sharp contrast to the owner-occupied sector, which only increased by 2% during the same period. The stock of buy-to-let lending expanded by 8% during the first quarter of 2015, and now accounts for 15% of the stock of outstanding bonds and 18% of the total flow of new mortgage lending. So, you might ask, what’s the problem? After all, the UK property market is thriving: tenants are snapping up properties and landlords are making good money.

The bank’s concerns stem from how the actions of buy-to-let investors affect the broader housing and mortgage market as people compete to buy the same properties. Competition among the various banks to provide bonds for this sector is high and, generally speaking, buyers in this sector receive more favourable terms. Another concern is the effect landlords have on the affordability of homes. The bank notes that looser lending standards in this sector could contribute to general house-price increases. However, the real problem is what happens when investors try to sell investment properties during a downturn. The Bank of England’s Financial Stability Report, released in July 2015, stated: “In a downswing, investors selling buy-to-let properties into an illiquid market could amplify falls in house prices, potentially raising losses given default for all mortgages. This could be a particular concern in a rising interest-rate environment if properties become unprofitable, given higher debt-servicing costs.”

Find more industry news at www.propertyprofessional.co.za

lthough the New Zealand government has rejected claims that offshore investment is fuelling price increases, there have been calls for public debate on the issue. Foreign property ownership is big news in New Zealand at the moment, and while politicians from the two main camps wade into the fray, the Labour faction stands by their statement that almost 40% of residential property buyers in the first four months of 2015 were Chinese. The data collected from a leaked Auckland real estate website report indicated that just under half of the buyers had Chinese surnames, despite the fact that Chinese-New Zealand residents make up only 9% of Auckland’s population. Labour Party’s Phil Twyford says large-scale real-estate investment from Chinese nationals in Auckland has helped drive the city’s 29% year-on-year price growth. He is quick to point out that Labour was referring to offshore investors and weren’t pointing fingers at Chinese-New Zealanders who are residents in the country. National Party MP Nick Smith has dismissed the claims outright, labelling Twyford a racist. While the politicians argue, the Government has instituted new residential property laws from 1 October. These dictate that non-residents have to open bank accounts in New Zealand, obtain an IRD (tax number) and declare their home country’s tax details.

PROPERTY PROFESSIONAL

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I N T E R N AT I O N A L N E W S

Melbourne comes out tops ... again It’s where everyone seems to want to live!

MELBOURNE NAMED THE WORLD’S MOSTLIVEABLE CITY FOR THE FIFTH YEAR RUNNING PROPERTY IN NUMBERS

elbourne has done it again. It was named the world’s most-liveable city for the fifth year running in The Economist Intelligence Unit’s Global Liveability Ranking. All in all, the Australians have much to brag about, as Adelaide was ranked fifth (a tie with Calgary, Canada), Sydney was seventh, Perth was eighth and Brisbane was eighteenth. Cities are rated on various comfort criteria for 30 factors across five categories: stability, healthcare, culture and environment, education, and infrastructure. Each factor is rated acceptable, tolerable, uncomfortable, undesirable or intolerable, and marked out of 100. Melbourne scored 97.5, and racked up full marks for its infrastructure.

£1TN

T he value of the UK’s buy-to-let sector

29%

uckland’s year- A on-year house price growth

Interestingly, the survey found that, since 2010, the average liveability across the world had fallen by 1%, mainly driven by a 2.2% drop in the stability and safety sector. A report in The Economist notes that while this may seem marginal, in real terms it highlights that 57 of the cities surveyed have seen declines in liveability over the past five years. Factors that have had a negative impact include the terrorist shootings in France and Tunisia, civil unrest in the US and the ongoing conflicts in Syria, the Ukraine and Libya. Although the Melbourne accolade has been welcomed, there are those who believe that the city needs to focus on its future planning needs. At the Australian National Planning Congress, themed Great Places and held in May 2015, Andrew Dixon, a speaker from the UK who specialises in invigorating declining industrial towns through arts and culture, warned that the city will become less liveable as it gets bigger, unless it addresses its transport issues. Likewise, the city’s director of city design, Rob Adams, stated that Melbourne couldn’t afford to continually create new suburbs on the city fringe. “The fringe is becoming a harder and harder place to make work because of the time it takes to get anywhere and the lack of infrastructure,” he said.

97.5 / 100

M elbourne’s score in the latest Global Liveability Ranking

rop in average D liveability across the world since 2010

NOVEMBER/DECEMBER 2015

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National Awards Top Broker 2014

Top Rookie Sales Associate

Champion of Champions 2014

ERA Alberton – Jacques and Mara Louw

Wilhelm Kruger – ERA Vryburg

Top Rental Franchise

Mary Bradbury ERA Alberton

ERA Kuruman – Jan Le Roux and Tiaan Pretorius

Top Office Members

Premier Club Members

ERA Alberton ERA Pretoria East ERA Rustenburg ERA Steer Blaauwberg ERA Sun Properties EL

Mary Bradbury John Moreland Marlize Van Rooyen Beverly Newenham Chris Visser Lindy Dippenaar

Always there for youTM l www.era.co.za

Top Rental Agent

Hester Erasmus – ERA Kuruman

Realty 1 Annual Awards 2015

Top Five offices Réhan Muller - Pretoria New East, Hano Jacobs - Realty 1 COO, Sarina van der Westhuizen - Cape Agulhas, Carina Nieuwoudt - Cape Town North, Willem Coetzee - Pretoria Lynnwoods, Ian McIntyre - Group CEO

Top Overall Office

Sales Agent of the year

Willem Coetzee - Pretoria Lynnwoods

Réhan Muller - Pretoria New East

REALTY 1 F1RST IN PROPERTY Best Managed Office

Joey Naude - Nigel

Rookie Agent of the year

Riana du Toit - Midstream

www.realty-1.co.za

TOOLS OF THE TRADE

GOODIES AND GADGETS FOR WHEN YOU’RE ON THE GO RYAN SCOTT

Get more done and stay ahead of the game with these four powerful tools, gadgets and services

TOMTOM MYDRIVE APP

MINI COOPER ROADSTER

YOU NEED IT BECAUSE Relying on your on-board GPS as you dash off to a meeting with a client in an unfamiliar location doesn’t always work out, and it can distract you from the task at hand – selling that listing. Eliminate the stress by being more efficient with your time. THE NITTY GRITTY Download the free app to your phone or tablet and take the time to plan your route prior to driving to your client or listing. Enter your destination and monitor real-time traffic information to know when to leave. The app also sends information to the TomTom device in your car, so you can safely negotiate your trip without having to look at your phone for updates while driving. X-FACTOR TomTom has mapped South Africa with precision and it constantly updates road names and infrastructure. Being able to pre-plan your trip can make a great difference to how smoothly your day runs. Available at no cost on iPhone and Android. Free; tomtom.com

YOU NEED IT BECAUSE You want to create the impression that you’re accessible and reliable without being too in-your-face with an ostentatious fuel-guzzling vehicle that takes up more than one parking space. This car is nifty for urban driving and parking. THE NITTY GRITTY The space in the new five-door MINI is ample for a group of four. Its low centre of gravity makes for a smooth ride while negotiating unfamiliar tight roads. Fuel consumption is 4.7l/100km, max torque is 220Nm and it has 100kW of power, which means impressive acceleration and pull in any situation. X-FACTOR The MINI design remains the go-to vehicle for the most effective business branding. The cost-effective visual impact you can make if you spend a lot of time on the road is more valuable than you can imagine, and with 13 colours to choose from, your canvas awaits. From R312,500; mini.co.za

PROPERTY PROFESSIONAL

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THULE STRÄVAN LAPTOP SLEEVE YOU NEED IT BECAUSE Moving continuously from your car to office, to listings and to clients places your laptop and tablet at risk of being damaged. And you don’t have the time or money to have your ‘workstation’ go in for repairs. THE NITTY GRITTY Weighing in at just 120g means the Strävan remains light and easy to carry, while offering great protection. The shape is tailored to your specific device and its plush sleeve covering is made from abrasion- and water-resistant canvas. Additional soft padding around the edges protects the sides and corners, which are more susceptible to damage. X-FACTOR It’s super-slick and slim, and its side pocket is extremely useful for slotting in a phone or other small item for safe-keeping. R1,299; thule.co.za

IPHONE 6S YOU NEED IT BECAUSE All this tech in one small package puts you ahead of the game. This is where to host all your apps and tools to make you more efficient. And the camera is incredible! THE NITTY GRITTY The 6S is the ninth generation of the iPhone. It looks just like the iPhone 6 but is vastly improved. Most notable is the 12-megapixel camera for professional quality images, and 4K video at 30 frames per second. It’s great for when you need to send images to a potential client or buyer right away. This phone introduces the 3D Touch, which recognises pressure, enabling a range of new shortcuts. Navigating your way through this device under pressure and on the move is a breeze; and the glass is stronger to protect it against being damaged if dropped. X-FACTOR Some phones can match the specs of the iPhone 6S, but the intuition of the operating system is what Apple fans wax lyrical about. Price not yet available; iStore

NOVEMBER/DECEMBER 2015

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PP ONLINE

Stay up-to-date online ANDY MÖLLER

s a property professional, or if you’re on your way to becoming one, you need to know what industry events to attend. Take a look at the “What’s on” section at www.propertyprofessional. co.za - click on “News” on the homepage - and stay informed of upcoming conventions, workshops, training courses, social gatherings and various real estate industry events taking place in South Africa. Check in regularly to keep your calendar up to date. Please let us know of any relevant event you’d like added too.

How else can www.propertyprofessional.co.za help you? GET THE LATEST INDUSTRY NEWS From legislative changes to new developments launching to industry advice, “Industry News” will ensure that you are kept in the loop at all times. BE IN CHARGE OF YOUR SUBJECT Read smart commentary and analysis on the real estate industry in South Africa and internationally. You need to know how the big picture will affect your sales. TOOLS TO MAKE YOUR JOB A BREEZE There are so many applications and gadgets that can minimise your workload, and maximise your time. The trick is knowing which ones are actually worth investing in. Check out the “Tools of the Trade” features online.

GAIN PUBLICITY AS A NEW OR TOP PERFORMING AGENT Each month we add the latest new and top performing agents throughout South Africa. Estate agencies are invited to submit their top and new agents for this space. ADVERTISE YOUR TRAINING OR CAREERS TO AGENTS Not only can you learn the latest industry secrets from Property Professional, but you can also teach them. We regularly share agency training courses and workshops.

Find the latest stories at www.propertyprofessional.co.za

VOTE ON OUR POLL If you work in the real estate industry, we would like to hear your thoughts. Visit the Property Professional homepage and vote on our latest poll in the right-hand sidebar. All our poll results will make it into the following print edition.

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SOUTH AFRICAN

PREPPING FOR POPI ANDRÉ FIORE

Is your agency ready for the Protection of Personal Information Act? Here’s what you need to know

lthough the internet is generally an all-too-easy source of personal information, and client-agent relationships elicit personal details as well, the enforcement of the Protection of Personal Information Act (POPI) is set to have far-reaching implications for the real estate industry. While many companies have started planning how they are going to adjust to POPI, too few have started the sizeable task of implementing those changes, a process that in itself could be very time consuming. The Protection of Personal Information Act was signed into South African law by President Jacob Zuma in November 2013, and expectations are that the Act will be proclaimed by the end of 2015, carrying with it a one-year grace period. After that, POPI will be enforceable and non-compliance will be punishable with a fine up to a maximum of R10 million or imprisonment of up to 10 years. In its aims of bringing South African legislation regarding privacy principles on a par with international law, the POPI act has advantages for the real estate industry, despite its challenges. COMPLYING WITH POPI WILL MEAN: • I ncreased customer trust because of transparency regarding what information is collected and how it is processed and used. • Improved efficiency and reliability of a company’s databases through capturing the minimum required data, ensuring accuracy, and removing data that is no longer required.

• Reduced storage and archiving costs because of less data being held. • Minimised risk of data breach because of improved measures for identifying and protecting data. •P ositive overall effect on the controls and good business practices of a company. THE DISADVANTAGES INCLUDE: • I ncreased administration and documentation regarding any use of personal information. •A t times, agents may find themselves in compromising situations if they become aware of information they feel they should pass on (such as a fraudulent buyer, seller or tenant), but are unable to because of the rulings of the Act. IN REAL TERMS

In agencies countrywide, management and staff are still sizing up what POPI will mean in concrete terms. “The implications, I think, to real estate and its agents go way beyond what agents currently comprehend,” says Jonathan Acutt, managing director of Acutts Estate Agents. “While agents may have good intentions about how we handle the information at our fingertips, we need to remember that there are other people out there who do not share the same value systems,” says Acutt. “The

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While agents may have good intentions about how we handle the information at our fingertips, we need to remember that there are other people out there who do not share the same value systems. The Act sets out to prevent parties from selling their clients’ information to a third party Jonathan Acutt, managing director of Acutts Estate Agents

Act sets out to prevent parties from selling their clients’ information to a third party. And while this is not a common practice among agents, how you protect information from falling into the wrong hands is now utterly crucial. In the past, agents were required to store sale information for five years and then they could throw the paperwork away. POPI is dictating that we destroy that information in a proper way so that it can’t be used by anyone else.” Acutt goes on to say that POPI also seeks to control how we communicate with our clients through newsletters. “Before, it was acceptable to have an ‘opt out’ facility at the bottom of your mail, but now I believe we will need to have an ‘opt in’ facility, instead.” He says Acutts haven’t made any great changes in their marketing strategy, but they are educating their agents to be more aware about what they do with client information, to be aware of the fact that they are collecting personal information and that the loss of this information can have serious consequences. “We are also instructing agents on how to deal with old and unwanted client information in the appropriate manner, and this includes copies of IDs, payslips and utility bills. Another source of information is old printers that are thrown away. Often, these printers have onboard memory that records anything that has been copied or scanned,” explains Acutt.

POPI at a glance The POPI Act seeks to regulate the processing (collection, usage, storage, dissemination, modification and destruction) of personal information (information relating to an identifiable, living person, company or CC), including: •C ontact information (email, telephone, address) • Demographic information (age, gender, race, birth date, language, ethnicity) •H istory (employment, financial, educational, criminal, medical) •B iometric information (fingerprints, iris recognition, blood type) • Opinions of and about the person • Private correspondence SOME OF THE OBLIGATIONS UNDER POPI ARE: •B eing open and transparent when collecting information and making sure the parties know their rights and obligations. •M aking sure the reason for collection, the data collected and the manner of collection are lawful and appropriate, and that any further processing is in compliance with POPI. •T aking all reasonable steps to ensure that information is accurate, correct and secure. •A llowing the subject of the information to see it on request. Many companies and businesses rely on the possession and use of the types of information listed. The Act allows for this in certain instances, but it must be justified by the holder thereof.

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SOUTH AFRICAN

THE INDUSTRY’S TAKE

Geoff Stroebel, from RealNet Premier in Cape Town’s southern suburbs, raises some complex points. “We don’t use personal information once it has been gathered after the relevant deal has been concluded, and all the necessary steps are taken to protect the information that we do have,” he says. “POPI requires that there must be a valid reason as to why an institution would share information. In the real-estate environment, the parties that have access to personal and private information are the agents, support staff and the conveyancing attorneys, and none of these parties should have any valid reasons to spread this information around,” Stroebel says. “The Estate Agency Affairs Act prescribes that sufficient measures be taken to protect data on site by means of secure and protected data connections and hardware, lockable and fire-proof storage for hard copies, and regular back-ups of electronic data. After this, we rely on our trusted conveyancing attorneys, mortgage originators and banks to follow their own protection policies in adherence with POPI.” Michela Soukop, from the Soukop Property Group in Durban, says POPI also raises questions in the letting arena. “We will no longer be able to reveal a tenant’s identity, bank statements or letter of employment to a landlord. It’s an interesting issue - for example, a landlord will ultimately be letting their property to someone they know absolutely nothing about. I think it will be a learning curve for us all, with some unexpected situations likely to arise.”

The cloud: how safe is it? “Today’s cloud services, including the likes of Microsoft Office 365, Google Apps and Amazon Cloud Services, are unparalleled in their attention to data security and integrity,” says Henry Craythorne, technical director at Instaweb. “Most, if not all, mainstream cloud service providers use encryption and security measures comparable to military standards. This means that data stored on a cloud service is far more secure than data stored on a personal computer, laptop or server, which anyone with a little computer know-how can access.” However, Craythorne says using an encrypted cloud storage solution is “useless if you haven’t used secure passwords and the correct policies, procedures and protocols while securing your data.” Password strength is paramount, Craythorne says, so don’t use the obvious birth dates, pets’ names or nicknames. Also, “by far the biggest threat to data security is not where you store your data, but the person using the data. It only takes a single user who gains another user’s password to compromise a system. Instaweb works with all the major cloud service offerings and we come across companies daily who are in dire need of the correct protocols within their organisations to secure their information.”

Most, if not all, mainstream cloud service providers use encryption and security measures comparable to military standards. This means that data stored on a cloud service is far more secure than data stored on a personal computer, laptop or server, which anyone with a little computer know-how can access Henry Craythorne, technical director at Instaweb

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COUNTER-OFFER MUST BE ACCEPTED IN WRITING TO CONSTITUTE VALID SALE There is often a lot of comings and goings between a seller and buyer negotiating a property sale agreement. In such circumstances, it is crucial not to lose track of the legal requirements for concluding a valid sale agreement. The Alienation of Land Act stipulates that all the material terms of the agreement must be reduced to writing and signed by the parties. This sounds simple enough, but this requirement provides for much case law nonetheless! A recent decision in the matter of Cowley v Lai Thom illustrates this fact. In this matter the parties negotiated various changes to their sale agreement.

A final amendment was accepted by the seller who telephonically advised his attorneys that he accepted the agreement and instructed them to proceed with registration of the transfer. However, when the relationship between seller and purchaser soured, the purchaser was successful in his argument that the agreement was void as it was not signed by both parties after the last amendments were affected. This was not compliant with the requirements of the Act. Make sure all aspects of your sale transaction is in order. Contact STBB at www.stbb.co.za for any assistance you may require in the sale or purchase of your property.

MASTERING THE INTRICACIES OF HOME OWNERSHIP

MORE THAN JUST THE PAPER WORK

Perception is so important in this industry. What the new Cape Town office says is: ‘We’re in this game. We’re here now, and we’re ready to be here’

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STYLE AND CONTENT CATHERINE DAVIS

Chris Tyson, CEO of Tyson Properties, on breaking into new markets, the power of brand perception, and attracting top agents

elow the industrial-style concrete ceilings and aluminium piping are the crisp-white, spacious agents’ desks. There’s a coffee bar with good coffee in the reception and large flat screen televisions on display in the shop front, showcasing the company’s portfolio of fabulous homes and apartments. The overall effect of the new Atlantic Seaboard and City Bowl Tyson Properties office, which is in a plum position in Sea Point Main Road, is on trend, slick and modern. Even the agents are good-looking and stylishly dressed. There’s a temptation to assume it’s all style over content. Except it’s not. Chris Tyson knows what he’s doing. There’s a quiet confidence about him that offers a good balance to the shiny new offices, and it’s a powerful combination. This is style with substance. “Perception is so important in this industry,” says Tyson. “What the new Cape Town office says is: ‘We’re in this game. We’re here now, and we’re ready to be here’.” He’s referring to the company launching in Cape Town and Johannesburg this year – the company’s 10-year anniversary – making it a national property brand and a top contender. Tyson Properties was established in August 2005 by Tyson, who was already an experienced estate agent, and businessman and partner Gavin Cunningham. Says Tyson: “The rationale behind the creation of the company was two-fold – to provide a specialist agency that is aware of the distinctive

needs of the market, and to create a sophisticated real estate environment that offers exceptional service to clients and a platform for top agents in the industry to excel.” The company started out with a single real estate office based in Morningside, Durban. Ten years on, they employ more than 270 agents and employees in 21 offices. The company now includes residential, commercial and rental properties in its portfolio, and has a Property Management Division. TYSON’S TRADE SECRET

Tyson says he was tired of working for companies that had a negative working environment. It was all about the bottom line, with little regard for integrity, or agents’ work environment. Tyson Properties made it its aim to create a happy and professional working environment, along with a strong corporate identity and support, excellent operational systems and marketing, knowledge sharing, training and a vibrant company culture. And, he says, the strategy has translated into measurable success over the years. “We’ve attracted younger, creative, professional agents. The right people in a business give the business content. I’m proud of our collective expertise.” Tyson said he faced scepticism from the industry – the big names supposedly had the Cape Town and Johannesburg property market sewn up. But for him, it was about his goals – after 10 years he wanted to push the company and set about on his next five year plan to grow the company nationally. NOVEMBER/DECEMBER 2015

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COVER STORY

Feathers in the Tyson cap

• Awarded affiliate status for KwaZulu-Natal from Christie’s International Real Estate (which is achieved by invitation only) • ‘Best Real Estate Agency in South Africa’ category at the International Property Awards Africa consecutively from 2009 to 2013 • The Tyson Properties website was awarded the ‘Best Real Estate Agency Website in Africa’ award at the International Property Awards for 2013–2014 and received a Highly Commended award for 2012–2013

A good working space “We had everything in place locally before the expansion – the preparation was key. And we made sure we moved and attracted the right people to Cape Town and Johannesburg. “We knew we needed a fresh approach or we wouldn’t survive, but our aim is to build our brand and positively impact the market with our service and innovative ideas,” says Tyson. “Each year, we have exceeded our forecasts, grown our footprint and increased our market share. Tyson Properties now dominates the market in most of the areas it operates in.” But what about the economists all calling downturn time again? “We were just three years old in 2008 when the last downturn hit, and we made the most of that time,” says an optimisitic Tyson. “We used the time to reinvest back into the company franchises weren’t surviving so we took them back as branches. We also focused on our human resources and actively head-hunted for management positions. We used the slow market as an opportunity to grow, so we were ready when 26

the market turned. “But we’re bullish about the current market – we’re not seeing a serious slowdown. People might be downsizing and there is a shortage of properties to sell.” That said, Tyson’s not burying his head in the sand. “South Africa is volatile, and it’s not a brilliant market, but it’s also not bad. I’m relaxed. I’ve been an agent and I know the pitfalls. If you get out there continuously – whether the market’s good or bad – you will sell and you will make money.” THE END GAME

Tyson Properties plan to have six offices open in Cape Town and Johannesburg in 2016. “Joburg’s a harder market because they’re not as brand loyal as Capetonians.” And they may look at franchising in certain areas but, says Tyson, he likes the philosophy of their affliate partner, Christie’s International Real Estate: “We’re not in every area, only the good ones. “My next five-year goal is to have about 50 offices, with a turnover of R8bn a year.”

Considering that many of today’s office employees spend more time at work than at home, it’s important that working environments should be a comfortable, efficient and inspiring place. “We are extremely proud of the new office, as it represents what Tyson Properties is as a brand. It’s unique, it looks great, and is functional for both agents and our clients. A well-designed office space can breathe life into an organisation by boosting creativity and output among employees and give the business credibility,” says Tyson. Interior designer for Tyson Properties, Jacqueline Berry explains: “A happy and professional working environment with excellent operational systems has been successfully achieved here. By creating pockets of casual meeting areas, the agents can sit down with their clients in an informal atmosphere to enjoy a cup of coffee and do what they do best – communicate. Openplan workspaces allow for knowledgesharing and great communication among the employees,” explains Berry.

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“It is not in numbers, but in unity, that our great strength lies.” THOMAS PAINE

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

WWW.REBOSA.CO.ZA

REAL ESTATE BUSINESS OWNERS OF SOUTH AFRICA

AGENT DEVELOPMENT

THE POWER OF GOOD COMMUNICATION A CENTRAL PART OF YOUR ROLE AS AN ESTATE AGENT IS COMMUNICATING WITH BUYERS AND SELLERS. BUT ARE YOU DOING SO EFFECTIVELY? WE ASKED PRIVATE PROPERTY FOR A FEW TIPS AND INSIGHTS

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AGENT DEVELOPMENT

Why is communication so important for estate agents?

How can estate agents improve their communication?

BUYING OR SELLING PROPERTY isn’t something that people do often, so it’s generally a stressful process for them. They rely on the estate agent not only to give them all the information and knowledge they need, but to put their minds at ease. But an estate agent who doesn’t communicate only adds to the stress. In fact, on Private Property, lack of communication is the number one complaint about estate agents. How well an agent communicates can either make or break their reputation.

Four key areas should be considered:

What are some common communication mistakes agents make? Three primary communication errors exist:

1 . 2 . 3 .

Not responding to queries on time.

Ignoring communication preferences: older clients may prefer a phone call while younger buyers may be happier with an email or SMS.

Not listening properly.

• RESPOND TO QUERIES PROMPTLY otherwise the client may move on to the next agent. Even if you can’t resolve the issue immediately, let them know you received the query and assure them that you’re working on it. • STAY IN CONSTANT CONTACT with a client during a property transaction, even if it’s just to let them know that everything is proceeding as it should. • BE PROACTIVE WITH YOUR COMMUNICATION - if the client is constantly calling you, that’s a sign that you’re not communicating enough. • LISTEN TO YOUR CLIENT and let them share their thoughts and ensure they feel heard before you respond.

What tools can agents use to improve communication? A GOOD CUSTOMERRELATIONSHIP MANAGEMENT (CRM) SYSTEM is invaluable for recording communications, keeping track of customer details and any relevant information

that pertains to their transaction. Social media (Facebook and Twitter) can also be enormously helpful, provided you have someone checking it every day.

How does Private Property help agents communicate better? THROUGH THE WEBSITE, Private Property offers agents multiple ways for clients to make contact with them. They can email, send a request to be called or phone the agent, all in one place. On the mobile version of the site and the Private Property app a client can call the agent directly from a listings page.

What’s the advantage to being a good communicator? IT’S SIMPLE, an agent who is a good communicator provides better customer service than those who aren’t as good at communication. Their satisfied clients will gladly refer them to their friends and family and approach them again for property transactions. This inevitably results in more mandates and sales for the agent.

Find more really useful training and industry advice on www.propertyprofessional.co.za

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FINANCE

STORM CLOUDS OVER RESIDENTIAL PROPERTY GARTH THEUNISSEN

Right now, it may feel a little like summer, but the economic thunder clouds are gathering. Is the industry ready for the next stormy season?

roperty is the only investment where even stupid people can make money. That’s the view of South African-born billionaire Nathan (“Natie”) Kirsh, who has amassed a real-estate empire worth billions, which spans the US, the UK, South Africa and Australia. He featured in the Top 20 in the 2015 London Sunday Times Rich List, for being worth about R91bn.

While Kirsh’s self-effacing humour makes for great media coverage, what it fails to capture is that property – just like any other asset class – is also a good way for people to lose money. “Property cycles come and go – years of feast are typically followed by years of famine,” says Adrian Goslett, CEO of RE/MAX Southern Africa. “The residential market is probably at a

crossroads right now. While I don’t think we’ll see a massive price correction, we’re probably due for a growth correction.” Residential property has certainly had a good run over the last decade-and-a-half. FNB’s Property Barometer shows that South African house prices surged a massive 280.9% in nominal terms between January 2001 and July 2015. Even when adjusting for inflation,

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the average real house price in South Africa is still 66.3% above what it was in January 2001. SHIFTING PATTERNS OF RETURN

That’s precisely what makes residential property South Africa’s favourite asset class. Virtually everyone, regardless of race, class, income or social background, aspires to own their own home. But while the residential market has offered stellar returns when measured from January 2001 to July 2015, a closer inspection reveals that the weather is beginning to change. According to FNB’s data, once inflation is taken into account, the average real house price in South Africa is almost 19% lower than the high reached in December 2007. Property economist Erwin Rode, CEO of Rode & Associates, is not surprised. “Property is a function of the South African economy, which is a function of global economic forces,” he says. “South Africa’s economy has not really performed that well since the financial crisis,

and at the moment the outlook is bleak.” That’s why Rode, for at least the last four years, has been advising people to rent rather than buy. In fact, Rode says the only reason one should buy a house in the current market is if you are able to do so with a 100% cash purchase. “Over the next five years, the prognosis for the economy is poor and therefore the outlook for property is also poor,” says Rode. Another potential spanner in the works for property is the interest-rate outlook. The South African Reserve Bank has been at pains to warn consumers that it intends to normalise interest rates, which fell to multidecade lows in the wake of the 2008 financial crisis. Although the central bank paused at its September policy meeting – so as not to imperil the economy, which shrank 1.3% in the second quarter – consumers need to brace for higher borrowing costs going forward. “Rates must go up. The only question is how fast and by how much,” says Rode. “Once the

The residential market is probably at a crossroads right now. While I don’t think we’ll see a massive price correction, we’re probably due for a growth correction Adrian Goslett, chief executive of RE/MAX Southern Africa

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FINANCE

Despite a current gloomy economic environment, the residential housing sector has been in suprisingly positive territory. Demand continues to outstrip supply Andrew Golding, chief executive of Pam Golding Property Group

US Federal Reserve System begins its own tightening cycle, the Reserve Bank will have no choice but to hike rates.” THE STORM AHEAD

Rode’s forecast is for two percentage points of increases over the next two years. FNB property economist John Loos agrees that interest rates are likely to rise, but says it will be gradual. He is forecasting a one percentage point rate increase by early 2017. Loos is also similarly downbeat on the longterm prospects for property. “Current property prices still reflect the buoyant times when the economy was growing at more than 5%,” he says. “Given the challenges facing the economy – which range from an electricity shortage, slow growth, labour issues and a possible ratings downgrade – we’ll be lucky if we get growth of between 1% and 2%. In that scenario, we are likely to see a downward real price correction in the residential property market over the next five years and maybe even for as long as 10 years.” Loos says it’s impossible to quantify just how much property prices will correct, but he reiterates that right now doesn’t present the best buying opportunity. So what is the prospective home buyer likely to do? A SILVER LINING?

Both Loos and Rode stress that their forecast is for the market as a whole. Certain sub-sectors 34

of the market may still offer opportunities. Moreover, there are important caveats that can impact an individual’s purchasing decision. “People don’t only buy for pure investment reasons,” says Rode. “They also buy for practical, emotional and social reasons. If your partner is tired of living in a rented flat, you’re more likely to consider buying a house despite the market outlook.” Location is also a key factor. Rode says places with limited land for development, such as Cape Town’s CBD and Atlantic Seaboard or the Sandton CBD, are likely to continue outperforming the general market. Suburbs that are key catchment areas for sought-after schools, such as Cape Town’s Southern Suburbs, will also continue to enjoy a buffer against negative factors affecting the general market. “There are micro-pockets within the property market that could still do well,” agrees Goslett. “Any area that is close to good schools, and primary schools in particular, will continue to experience robust demand. Areas such as the Cape Town and Sandton CBDs – and even once obscure places like Lephalale, where the Medupi Power Station is being built – continue to experience good rental growth.” Says Andrew Golding, chief executive of Pam Golding Property Group: “Despite a current gloomy economic environment, the residential housing sector has been in suprisingly positive territory. Demand continues to outstrip supply.”

Keeping ahead Our immediate economic future is being described as a period of high inflation and low growth. There are valid reasons for this but many of them are out of the control of the real estate industry. So how do we prepare? Three things are critical: access to credit, managing consumer expectations and strong marketing plans. It seems that SA’s major banks have adjusted to the tough economic conditions and are in a cycle to compete with one another for market share. So credit, at least for the short term, is flowing into the market. Identifying the best consumers, early in the buying process is key. Originators will play an important role here. Agents need to set realistic expectations with sellers on price and time on market. Now’s not the time to speculate with over-priced properties. A strong marketing plan is a must in a down market. Agents need to build a strategy with the sellers: how much should we ask, when is the best time to market, how do we utilise marketing platforms... Great photos, detailed descriptions and a strong sales follow up are essential. - SIMON BRAY, CEO, PRIVATE PROPERTY

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Samuel Seeff, chairman of Seeff Properties is a little more circumspect. While he remains causiously optomistic that residential property growth will at least match inflation or even maginally outstrip inflation in the foreseeable future, he concedes that economic headwinds could be a drag on the market. “Nonetheless, we believe that the still tight stock levels should keep the market nicely balanced into next year.” A new force that is starting to shape the face of property is the rising cost of ownership. Rising electricity, water, rates, security and maintenance costs are already resulting in a preference for smaller, lock-up-and-go homes. Loos says the vast array of consumer goods that didn’t exist in previous eras, but which consumers now regard as necessities (think internet, tablets, smartphones) also leave less disposable income available for property purchases. “Not only was the cost of ownership lower in previous eras, there just wasn’t as much stuff to buy. People could apportion a greater chunk of their incomes towards paying off their homes,” says Loos. “If the past was characterised by large houses with sprawling lawns, pools and double garages, then the future will have smaller homes with a lot more consumer goods packed into them.”

THEN AND NOW, IN NUMBERS

If the past was characterised by large houses with sprawling lawns, pools and double garages, then the future will have smaller homes with a lot more consumer goods packed into them John Loos, FNB property economist

280.9%

T he South African house price surge, in nominal terms, between January 2001 and July 2015

66.3%

T he increase in the average real house price in SA since January 2001

19%

The decrease in the average real house price in SA, compared with the high reached in December 2007

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Aida National Awards The AIDA National Awards Ceremony was held at Sun City and the evening was a glamorous and prestigious affair. All the top performing agents and principles were honoured. The top performing agent and agency WON A CAR. AIDA National Franchises would like to thank everyone who attended this special weekend and we look forward to another prosperous year.

Top Overall Office: Aida Pretoria East – Piet Joubert / Johan vd Westhuizen

Top Overall Agent: Jackie Meyer – Aida Pretoria North

Top Overall Rookie Agent: Naranja Bisschoff – Aida Pretoria North

Top Office Coastal and Rural: Commission – Aida Onrus Deon en Aurelia Esterhuyse

Thank you for your generous contribution

Eve

ur on

Top Rookie Coastal and Rural: Hylton Davidson – Aida Johannesburg South

Top Rookie Overall: Naranja Bisschoff – Aida Pretoria North

Top Rookie Office Overall: Aida Johannesburg South

Top Agent Overall: Units – Jackie Meyer – Aida Pretoria North

Top Rental Office: Aida Pretoria Johan vd Westhuizen

Top Agent Non Residential: Martie Knoetze – Aida Pretoria Commercial

Top Office Coastal and Rural: Units – Aida Bethlehem

Top Rookie Metro: Naranja Bisschoff – Aida Pretoria North

Everything we touch turns to Sold! www.aida.co.za Tel: 012 682 9600

NEWSWORTHY

HOW INFRASTRUCTURE INJECTIONS IMPACT REAL ESTATE ANNE SCHAUFFER

Major public infrastructure stimulates sectors of the property market, both directly and indirectly. Can knowledge of proposed projects give real estate agents the inside track on market direction?

ost estate agents are understandably cautious of the ‘crystal ball syndrome’: predicting the next suburb revival or demand in an area. But for those prepared to delve beneath the skin of their city and arm themselves with knowledge about current or future new, improving or expanding infrastructure – catalytic projects – it can be rewarding. No matter where in the world you are, property always rises to the occasion around appropriate infrastructure. There’s growing consensus worldwide that high-quality, high-capacity public transport is the only way for increasingly congested cities to accommodate sustained and sustainable economic growth. The current 38

locations of South African cities mean that many, particularly poorer, communities live far from places of work and opportunity, and have to travel long distances. This factor is a significant driver of South Africa’s infrastructure. In the three major cities – Cape Town, Johannesburg and Durban – the government’s focus is firmly set on accessible, safe, affordable public transport and smooth, smart arterial connections between commercial/ industrial and residential nodes. Decisions about these links are being made within a far greater regional and national framework of planning for sustainable cities of the future. In many instances, city maps are being rethought and redrawn.

PROPERTY PROFESSIONAL

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Sustainable and transformative city building means we need to develop housing closer to where people currently work, while also developing work and other opportunities near where people currently live, with everything located in close proximity to high-quality public transport Draft 2(a) of the City of Cape Town’s BEPP 2014/15

THE GAUTRAIN SUCCESS STORY AND BEYOND

Commuters attach great value to easy access to high-quality public transport, and the Gautrain project is a golden example of the knock-on effect on real estate. The Gautrain has spawned new developments, stimulated old, and increased development in and around the stations – effectively becoming a development node. There’s massive demand for property close to the stations – particularly sectional-title units – and prices have increased markedly against equivalent properties further out. Councillor Christine Walters, a member of the Mayoral Committee (MMC) for transport in the City of Johannesburg, says: “For the Gautrain, we currently have the south-north and the eastern links. The premier and the MEC for roads and transport are now finalising plans to take it to the western side, and down to the south. We’re complementing that with the BRT (Bus Rapid Transit) system. Completed is Phase One A: Soweto into the eastern side of the City; and Phase One B: massive infrastructure from Soweto coming down the corridor right into the city. We’re currently busy with Phase One C, by far the biggest of the three, and a project due for completion by 2037. Eventually, you’ll be able to travel from the Soweto area on any route, and still get into Sandton and Alexandra, Ivory Park into Midrand.” That’s not all they’re doing. Whatever catchphrase the various cities have given it, non-motorised transport is the buzzword, to which the month-long EcoMobility World Festival experiment in Sandton is testament. Given that every day about 10,000 people walk and cycle roughly 5km from Alexandra to Sandton − crossing over the M1 at Grayston Interchange – the building of new bridges, and revamping of old ones, is high on the agenda. A dedicated bridge will be a game changer.

and transformative city building means we need to develop housing closer to where people currently work, while also developing work and other opportunities near where people currently live, with everything located in close proximity to high-quality public transport. The city has therefore identified two initial priority corridors in which to promote TOD-oriented development, and has undertaken extensive analyses in support of its proposal to introduce a spatially targeted investment incentive regime for a number of industrial areas within these corridors.”

DURBAN ON THE GO

GODurban! is Durban’s integrated rapid public-transport network. Now well underway, it comes with a massive vision to redress and address Durban’s transport links and to facilitate safe, non-motorised transport options. “It’s the biggest infrastructural project the city has ever undertaken, with an investment of R22bn over 13 years,” says eThekwini Municipality mayor councillor James Nxumalo. Durban has a great deal on its dashboard. With the dangling carrot of the Commonwealth Games in seven years’ time, not only does the city have numerous major infrastructure projects on or nearly off the drawing board, but a tantalising need to capture the attention of – and entertain – the Games’ estimated 200,000 tourists likely to descend on their shores. In total, international visitors are expected to contribute up to R12bn in direct expenditure, while investment in infrastructure is expected to contribute to lasting benefits for the city. The Games will be designed, planned and executed to facilitate certain national priorities, like housing. It’s envisaged

HOW CAPE TOWN IS MOVING

What about the Mother City? Scutinising their Built Environment Performance Plan* (BEPP), it’s clear this city, too, is prioritising transit-oriented development (TOD). The city considers TOD a priority development strategy that is achievable only in partnership with the property-development sector. They are currently mobilising resources, expertise and mechanisms that will leverage private-sector interest, starting with a R57m capital investment grant from the government. The city has already invested R5.7bn in the MyCiTi Bus Rapid Transit (BRT) system, and has a 20-year plan for its further roll-out. Its public transport strategy will be further bolstered by plans to upgrade the city’s passenger rail system. Draft 2(a) of the City of Cape Town’s BEPP 2014/15 states: “Sustainable

We’re currently busy with Phase One C, by far the biggest of the three, a project due for completion by 2037. Eventually, you’ll be able to travel from the Soweto area on any route, and still get into Sandton and Alexandra, Ivory Park into Midrand Councillor Christine Walters, a member of the Mayoral Committee (MMC) for transport in the City of Johannesburg NOVEMBER/DECEMBER 2015

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NEWSWORTHY

that the athletes’ village will contribute around 1,800 housing units within the greater Durban area. After the event, it may accommodate around 7,000 individuals. In total, the Games are expected to deliver up to R20bn to the economy in output, translating into an estimated R11bn GDP growth. Take Durban’s Promenade, beachfront, uShaka Marine World, The Point development and, recently, Film City. The local and international investment partnerships with the city are massive – and game changing. It’s been 10 long years, but Anant Singh’s Videovision subsidiary, Rinaldo Investments, fought the good fight, and won. Government has given the South African film

We have a vision to become the most liveable city by 2030, and we won’t achieve that if we don’t cater to all Durban residents. We have a very rich cultural heritage we’d like to protect, but simultaneously, we’re striving to become a world-class city that will attract foreign investment Musa Mbhele, Durban’s deputy city manager for Economic Development and Planning

industry the status of a ‘strategic industry’, so its role in the country’s economy is significant. The Department of Trade and Industry has a programme in place to incentivise film-makers who spend a sizeable portion of their budget on South African soil. Movie-maker Anant Singh says: “Durban’s been behind in getting any meaningful slice of the R10bn-a-year movie pie − barely 3%, if we’re lucky. I believe we’ll shift some of that pie here”. This R7bn-plus world-class project promises to be a far broader, more interactive, community-centric development. It’s a vast, multipurpose theme park, not unlike the legendary Universal Studios City, but with a strong local community interface and African flavour. And on the southern end is the Point Waterfront development, potentially a R40bn mixed-use project. The primary developer is the Durban Point Development Company, with eThekwini Municipality, through the Durban Infrastructure Development Trust (DIDT), and ROC Point (Pty) Ltd (UEM Sunrise of Malaysia 80,4% and Vulindlela 19,6%) as joint shareholders. The development has been tied up with legal challenges for years. Now, an entirely new development framework plan has been drafted.

EXPECTED IMPACT OF THE COMMONWEALTH GAMES ON DURBAN IN NUMBERS 40

200,000

T he number of tourists estimated

*The Built Environment Performance Plan (BEPP)

is a compulsory plan submitted to the National Treasury annually, indicating how cities intend to align and expend national grants related to infrastructure to address specific national and local policy objectives.

What’s interesting is that the Durban Point development is seen by Durbanites as a separate entity, but for eThekwini Municipality, it’s an integral part of the inner city matrix. The words ‘inner city’ conjure up Durban Central, but the actual boundaries demarcate a far broader block. The Durban Point is envisaged as the catalyst for that bigger picture. Musa Mbhele, Deputy City Manager for Economic Development and Planning, explains: “Most of our projects are directed at revitalising the inner city. Instead of dealing with each project piecemeal, we’ll look to a commonality of vision. A city is defined by its inner city look and feel, so we’ve crafted a master plan, designing remedies for a decaying urban core, which has led to, among other things, the business flight. We have a vision to become the most liveable city by 2030, and we won’t achieve that if we don’t cater to all Durban residents. We have a very rich cultural heritage we’d like to protect, but simultaneously, we’re striving to become a world-class city that will attract foreign investment.” Talk to agents along the Durban beachfront and they say they have no stock, and the few frontline apartments that come to market have high price tags. Wakefields Estate Agents is marketing a bachelor apartment with views for more than a million rand, which would have been unheard of a year or so ago. And they’re selling. Over the past year, Tyson Properties has recorded a 200% increase in enquiries at the Point Waterfront. Infrastructure affects property, no doubt about it. How to tap into this flood of information? For those who are determined to have the inside track, government, municipal and private-partner websites have all the information about yesterday, today and tomorrow. They’re often technical and hefty documents, but it’s all there for the brave.

R12 BILLION

C ontribution of direct expenditure of international visitors

1,800

umber of N housing units to be contributed by the athletes’ village

R20 BILLION mount expected A to be delivered in output to the economy

PROPERTY PROFESSIONAL

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I N T E R N AT I O N A L

TAKING ON THE WORLD LEA JACOBS

Rising property prices, money laundering and the Chinese fallout have all made international headlines this year

n 1972, when Chinese premier Zhou Enlai was asked about the impact of the French Revolution during Richard Nixon’s visit to China, he was famously quoted as saying: “It’s too early to say”. Although it’s now widely held that Enlai had misunderstood the question and was referring to events that took place in France in 1968, not the uprising that overthrew the monarchy in 1789-1799, China is renown for taking a long view of history when looking at the future. However, the country’s recent economic meltdown has certainly got Chinese leaders’ attention. While the government scrambles to try and stop the fallout by getting the country’s larger brokerage companies to establish 42

a fund worth some 120bn yuan to buy shares in the country’s major listed companies – and uses propaganda to convince the Chinese people to hold on their shares for patriotic reasons – the rest of the world sits and waits for the effects of the fallout to hit home. Australia and New Zealand appear to be particularly concerned about the impact this could have on their property markets, although there seems to be a divide as to which way the sorry saga will pan out. Some fear Chinese investors who have invested in the two countrys’ property markets will pull out, leading to a crisis and a drop in prices. Others see things differently: they believe Chinese investors will reconsider investing in stocks, and also

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I N T E R N AT I O N A L

in bricks and mortar, across the globe. As things stand, the Chinese have been investing heavily in both Australia and New Zealand. One of the concerns raised by the Australians is that Chinese investors have been ‘parking’ some of their cash in new developments. In a report in The Sydney Herald in May this year, it was noted Chinese investors and immigrants had bought property for more for than AU$8bn over a 12-month period and due to growing demand it was forecast that another AU$60bn would be pumped into that country’s property market over the next six years. Perhaps the most concerning aspect is that many of these investors aren’t interested in renting out their stock, choosing to shelve the properties so that they remain ‘new’. Whether the average Chinese investor will now be able to hold on to an asset that isn’t making money remains to be seen, but it’s clear a mass exodus from the Australian property market could prove disastrous for the country’s real estate industry. IT’S NOT JUST THE CHINESE MAKING HEADLINES

“Would they?” or “wouldn’t they?” were key questions around Europe in July, when Greece called a referendum to decide whether to accept a bailout agreement proposed by the Eurogroup. The no vote won the day and although there was a great deal of talk about Greece being forced to leave the Eurozone, a new agreement was drawn up and accepted by the Greek government in mid-July. Despite the various bailouts worth billions that the Greek government has received, the country is still struggling. The International Monetary Fund’s Global Housing Watch noted that Greece is showing the third-largest correction in house prices since 2007, and estimated that property prices have fallen by 40%. It’s worth remembering that this excludes the luxury Greek market, which, according to those in the know, has remained relatively unscathed. Georg Petras, partner at Engel & Völkers on Rhodes says, “The financial crisis has had a weaker impact on the price structure of the luxury secondhome market on Rhodes than on the market for first homes. Luxury holiday residences did drop in value slightly during the crisis. But prices are now on the rise again, thanks to high demand.” Prices may be dropping drastically in parts of Europe (Global Housing Watch noted that prices had fallen by 45% in Latvia and by a staggering 70% in the Ukraine), but property prices in the more cosmopolitan cities have held their own. Paris is a prime example. Although prices have fallen in the rest of the country, homes in the capital are still selling for a premium. This market has seen an incredible 37% increase in prices since 2009. However,

International cities to watch

Although none of the cities listed below are among the world’s top 10, or even get a mention in the top 20 most important cities, a recent Knight Frank reports that their high net-worth individuals (millionaires) and ultra-high net-worth individuals are rising. These cities include: •B elgrade, Serbia •P anama City, Panama •A ddis Ababa, Ethiopia •Y angon, Myanmar

The financial crisis has had a weaker impact on the price structure of the luxury second-home market on Rhodes than on the market for first homes. Luxury holiday residences did drop in value slightly during the crisis. But prices are now on the rise again, thanks to high demand - Georg Petras, partner at Engel & Völkers on Rhodes, Greece NOVEMBER/DECEMBER 2015

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I N T E R N AT I O N A L

there is speculation that this will change when the French president, François Hollande, introduces tax increases and cuts property subsidies. Property prices are expected to drop although, as Bernard Cadeau, chairman of Orpi, France’s largest real-estate agency, says, “Everybody in the world wants to buy in Paris.” The scarcity of rented accommodation in the city means that owners will always be able to rent out their homes. LONDON’S A GOOD BET

It’s pretty much the same across the Channel. London property continues to soar and although house prices aren’t dropping in the rest of the UK, they certainly aren’t selling for anything near to those in the nation’s capital. The average price of a home in England is sitting around £295,000. The average price paid for property in London is now £602,000, and asking prices are 9.5% higher than they were this time last year. The price of property in the capital is raising concerns and steps are being taken to investigate the fact that offshore companies are being used to launder money via the London property market. Transparency International estimates that companies in an offshore secrecy jurisdiction own one in 10 properties in the City of Westminster. Of course, not all of the companies involved are set up as a means to get rid of dirty money. But it’s estimated that £120bn of properties in England and Wales are owned by offshore companies. Steps are being taken to address the problem, with Prime Minister David Cameron announcing that the government will publish a central public land registry of foreign companies, detailing which land they own.

MOST EXPENSIVE REAL ESTATE PER M2

1. M ONACO $60,114/m2

2. LONDON $34,531/m2

3. HONG KONG $22,814/m2

4. NEW YORK $18,499/m2

5. PARIS $18,415/m2

… 31. CAPE TOWN $4,214/m2

MONACO IS STILL EXPENSIVE

The Global Property Guide indicates that Monaco has the most expensive real estate in the world. The price per square metre in this tiny principality is currently sitting around $60,114 – miles ahead of London, which averages out at approximately US $34,531/m2. Hong Kong is third in line with an average price of $22,814/m2, New York comes in fourth place with an average of $18,499/ m2, and Paris is in fifth place with an average of $18,415/m2. Cape Town – the only South African city that features in the list – is ranked as the 31st most expensive country, with an average price of $4,214/m2.

The average price of a home in England is sitting around £295,000. The average price paid for property in London is now £602,000, and asking prices are now 9.5% higher than they were this time last year 44

PROPERTY PROFESSIONAL

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The Pearl Awards took place during the Century 21 â&#x20AC;&#x2DC;All Will Be Revealedâ&#x20AC;&#x2122; National Convention at the Wild Coast Sun on the 8-11th September 2015. Over 85 awards were up for grabs, recognising individual and team performances across the country. The Century 21 Pearl Awards ceremony kicked off the evening with star guest and MC Barry Hilton creating a vibrant atmosphere in the prestigious and elegant setting. The room was filled with a surge of anticipation, suspense and one could sense the utmost respect amongst the Century 21 Agents, Principals & other members of the Group. During this glamorous award ceremony, the group admired the Century 21 top performing & dynamic Property Professionals as they were awarded and became the Century 21 'Pearl Award Agents of 2015'.

Pearl Award Agents 2015

AGENT OF THE YEAR

Agent of the Year 2015 awarded to Tanya Dubber of Century 21 East London (left) for her all round excellence, hard work and dedication to the brand. Tanya will represent South Africa at the Century 21 Global Convention to be held in Orlando, Florida in March 2016.

FRANCHISE OFFICE OF THE YEAR

Century 21 Franchisee of the Year award went to Century 21 Sandton, in recognition of their passion, inspiring and motivational office environment & operations. Right: David Savage, Sales Manager, Century 21 Sandton

INSIDE INFO

WHAT BUYERS WISH AGENTS KNEW KATE CALNAN

THE QUESTION TO FOUR RECENT RESIDENTIAL BUYERS

What do you wish agents knew about show houses and viewings THEIR ANSWERS HELEN HINKLEY, HOUT BAY, CAPE TOWN We recently bought a house and obviously went to a whole lot of show houses and viewings. What I couldn’t understand was why the estate agent would follow us around the whole time. Sure, we wanted a tour of the place, but then all I wanted was to be able to get a feel for it, and chat to my husband as we walked around and tried to imagine living there. So many agents followed us from room to room giving us sales pitch after sales pitch when all I wanted was some quiet. We ended up buying from an agent who showed us the house and then quietly walked around the garden while we looked around – it was such a refreshing change!

ASHLEE PETERSEN, FISH HOEK, CAPE TOWN I don’t know why estate agents love taking it upon themselves to show prospective buyers properties that are completely out of scope of their initial requirements. Maybe it’s because they don’t have enough properties in their books that match the brief, so instead of ‘fessing up and saying, “Sorry, we don’t have any properties that match your criteria”, they take their clients on a wild goose chase. We dragged our kids along to so many viewings of houses we would never, ever buy. TOM FERRIS, BRYANSTON, JOHANNEBURG One Sunday, when my wife and I were doing the show house rounds in Bryanston, we came across two types of estate agents. There were those who appeared to make up answers to questions about the property, and those who came back with a respectable response like, “I’m not entirely sure, but I will find out and get back to you”, and they really did get back to us too.

There were those who appeared to make up answers to questions about the property, and those who came back with a respectable response like, ‘I’m not entirely sure, but I will find out and get back to you’ Tom Ferris, Bryanston, Johanneburg

We ended up renovating rather than selling and buying, but based on those estate agents, I know who I would use to sell my house. MATHEW IRISH, KILLARNEY, JOHANNESBURG The biggest let down when coming to see show houses after you’ve seen them online is what I consider deceptive photography. Of course the photos are taken to show off the house in the best possible way, and to encourage buyers to view the property, but when the reality is very different, it’s hard not to be disappointed. It’s usually about size – a garden which looks good in the photos that turns out to be postage-stamp size. Or a kitchen that looks gleaming but in reality, it’s old and in disrepair. Estate agents need to realise the emotional coaster sellers and buyers go thorugh in the process, and manage expectations accordingly.

NOVEMBER/DECEMBER 2015

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TO P T I P S LUCY LE ROUX

things home stagers wish all estate agents knew

1 HOME STAGING IS A SEPARATE DEAL

A good home stager will keep the staging agreement completely separate from the house-selling deal. We contact clients directly and set up separate meetings so that the seller doesn’t try to take the staging fees out of the agent’s commission. This also ensures that the agent is not seen as responsible for my obligations as home stager, so there’s no risk to the client-agent relationship.

LIKE PLAYING 2 WE ‘BAD COP’

It’s incredibly difficult to tell a potential new client that their house is unappealing. If you’ve ever read Dale Carnegie’s classic book, How to Win Friends and Influence People, you will know that this is the last thing you’d want to do. Yet agents have to make this tough call on a daily basis. Home stagers can help. By making staging a standard part of your new client inductions, and referring them to an independent third party, the stager gets to play bad cop while you remain in the good favour of your clients.

3 STAGING HELPS CLIENTS MOVE ON

Some agents fear that once sellers have invested in home staging, they will be even more resistant to lowering their price, if necessary. The reality is that staging, which includes decluttering and depersonalising a space, actually helps 50

Research shows that home staging helps sell houses 50% faster, and for 8%-10% more than the seller would have sold for. This easily covers the costs of home staging

clients mentally prepare to move on. It makes them more ready to leave their homes. If you’ve ever helped a client prepare their property to sell, the words, “this doesn’t feel like my house anymore”, may sound familiar. This is exactly what you want to hear if you want your seller to be serious about selling. The more a client associates the space they live in with the feeling of home sweet home, the higher the value they attach to the property, and the less likely they’ll be to accept a fair offer.

market conditions or if their products aren’t selling. They use these principles as standard practice to get the most lucrative response from buyers on a continuous basis. Even Coke, one of the world’s most well-known brands, still needs to advertise. Big brands know the value of constant marketing, because they’ve tested the impact on sales when products are brought to market in less than optimal conditions. Such products take longer to sell and are eventually discounted. It’s the same with selling a property.

AFFORDABLE AND 4 IT’S WORTHWHILE

At Illuminate Home Staging, we charge R1,500 for a property report, in which we recommend various courses of action with different associated budgets. This is a great starting point for clients, as they can choose to make the changes themselves or hire a home stager. A few updates to an already furnished home could cost as little as R5,000. For a full house of furniture for an empty property, you could pay anything from R15,000 to R25,000, depending on the desired look. Will you recoup that money? Research shows that home staging helps sell houses 50% faster, and for 8%-10% more than the seller would have sold for. This easily covers the costs of staging.

5 HOME STAGING IS NOT A LAST RESORT

The world’s biggest brands don’t save their triedand-tested marketing techniques only for tough

The more a client associates the space they live in with the feeling of home sweet home, the less likely they’ll be to accept a fair offer

Lucy le Roux is the entrepreneur behind local property innovation Illuminate Home Staging. In 2014, Lucy saw the potential in the local property industry, so she started Illuminate Home Staging to offer rental furniture and styling services to property sellers. illuminatehomestaging.co.za

PROPERTY PROFESSIONAL

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ADVERTORIAL

TIMOTHY AKINNUSI

How homebuyers can get an indication of the home loan amount they could qualify for in three minutes flat

ouse hunting and getting finance for a home should be an exciting and enjoyable experience from start to finish. Armed with the knowledge of what one could qualify for beforehand goes a long way towards that experience. The good news is that Nedbank Home Loans has launched a new online tool called Instant Bond Indicator that provides customers with an indication of the home loan amount they could qualify for, in less than three minutes.

How does it work?

Unlike the other affordability calculators that are in the market, Instant Bond Indicator provides customers with vital information about their credit health check, pulled directly from the credit bureau, and their affordability status. The tool takes it a step further by providing customers with the estimated deposit required, expected instalments, as well as other estimated costs associated with the loan, such as transfer duties and attorney fees. All customers need to do is answer a few quick questions using any internetenabled device, such as a cellphone, tablet, laptop or desktop computer. And the tool can be used anytime, anywhere, at clients’ convenience. Once they receive their results, they can find the home they want and proceed with the full online application.

Who can use it?

Instant Bond Indicator can be used by anyone who is looking to buy property, as it provides an indication of what Nedbank is willing to lend them upfront, whether they bank with

Nedbank or not. Once customers find their dream home they can move on to complete the full Nedbank home loans online application and get bond approval within hours. Customers will more than likely qualify for the amount provided by Instant Bond Indicator, as long as their personal information has not changed. The insight that led to the development of the tool is a direct result of listening to clients’ request for a tool that would give them an indication of what they could qualify for before starting the search for their dream home. The Instant Bond Indicator puts the power back in the hands of customers. They will be better equipped for the process of searching for a home, with the confidence of knowing how much Nedbank will finance them for.

Once customers find their dream home they can move on to complete the full Nedbank home loans online application and get bond approval within hours

What else is available from Nedbank Home Loans?

The Instant Bond Indicator follows on from Nedbank’s award-winning Home Loans Online Application Channel, which offers a simple application process, providing clients with a credit decision within hours, anytime and anywhere. It enables customers to upload all their supporting documentation electronically, and to save and retrieve their applications online at their convenience. Since inception in 2012, the channel has seen over 40,000 applications from clients and has significantly improved the home loan application experience.

Timothy Akinnusi is Head of Sales and Client Management at Nedbank Home Loans. For more information, contact us on 0860 911 007 or visit your nearest Nedbank branch. nedbank.co.za/homeloans

NOVEMBER/DECEMBER 2015

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M O T I VA T I O N COLIN BROWNE

Three things to know if success is your goal

ome people make millions overnight. That probably won’t happen to you or me. The normal path to success is one of work and discipline in the pursuit of a specific goal. We need to get our act together and focus in order to create a notable achievement. That’s just how it is. If you’re struggling to focus, there’s a good chance you need to come to terms with three simple things.

IT WILL TAKE TIME

Do you want to be a property tycoon? A doctor? An astronaut? Short of a few excluding criteria, most people have what it takes to be any of these. The limiting factor isn’t money or any of those other stories we tell ourselves. The limiting factor is misuse of time. Perhaps it will take you 20 years to complete your law degree, or a decade of financial sacrifice to afford the cost of going into space. It may discourage you when other people with better funding do it faster. The question is: how badly do you want it? You can have almost anything you want if you accept that it won’t happen overnight. Get started anyway.

For most of us, success requires time, effort and focus. If you’re trying to step it up a notch while the rest of South Africa winds down for the year, consider these key points

between those who make great things happen and those who don’t is often nothing more than their willingness to push themselves, especially when they don’t feel like it.

TEST YOUR ASSUMPTIONS – DAILY

Ah, but there’s no point in chasing a pipe dream, is there? We’re far better off, or so we tell ourselves, aiming for realistic goals than reaching for some crazy dream. Well, I once worked with a guy who was writing a book on the late silver-screen legend, Steve McQueen, in his spare time. He simply picked up the phone, sent emails and got on with the task of contacting every actor, director and producer who had ever worked with McQueen. About 80% of those he contacted agreed to talk, many of them Hollywood legends. He even managed to get the legendary actor Robert Vaughn to write the book’s foreword. It took this guy nearly 20 years of work, which he did without any guarantee that he would be successful. But he proved that crazy dreams can be more realistic than we ever imagine – as long as you accept these three truths.

A key difference between those who make great things happen and those who don’t is often nothing more than their willingness to push themselves, especially when they don’t feel like it

YOU’LL RESIST GETTING STARTED

There’s never going to be a moment when you feel perfectly at peace with pushing yourself into a long-term commitment to work hard for a goal. There won’t be an obvious time when you’ll feel ready to make a sacrifice in your life. Recognise this, and take comfort in the fact that it’s the same for most people. A key difference 52

Colin Browne, the author of How to Build a Happy Sandpit, helps businesses understand how their organisational culture impacts their employee engagement and performance. Read more about his thoughts on his blog, Colinism. colinjbrowne.com

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WE ARE COURAGEOUS. This is just one of the defining attributes of a Harcourts agent.

If you’re a passionate, fearless real estate professional ready to take your career or your real estate business to the next level, join a worldwide team that prides itself on being able to deliver for our clients regardless of any current market constraints. With the tools and resources of a massive global network, you can be sure you’re part of a team that dominates our competitors and sells more property in today’s competitive market.

FIND OUT MORE ABOUT A FUTURE WITH US, CALL: CHRISTEL WILLETT // 082 568 0782 HARCOURTS.NET

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LIFE HACKS ANTHONY VAN DER RIET

Work, life, study balance

e all have the same number of hours in a day, but how you use that time could mean success – or not. In the case of estate agents, time management could mean clinching that sale − or not. In the highly competitive property industry, good time management is critical. The real-estate profession has changed since the days of old, when you could get a Fidelity Fund Certificate on a Monday and operate as a fully-fledged agent on the Tuesday, signing mandates and closing deals without the supervision of the principal. Now there’s a mandatory logbook, a Further Education Training Certificate (FECT) in Real Estate and the Professional Designation Exam (PDE), which you need to write before completing any legal documents on your own. Added to that, the Continuing Professional Development (CPD) requirements, launched in 2015, compel all full-status agents and principals to obtain 20 credits per year, and 60 credits in a three-year cycle, to retain their Fidelity Fund Certificates. Finding time for the compulsory study needed to remain certified has changed the way estate agents operate today. To work more efficiently and increase profitability, it helps to see yourself as a

We all have the same number of hours in a day, but how you use that time could mean success – or not. In the case of estate agents, time management could mean clinching that sale – or not. In the highly competitive property industry, good time management is critical

professional business owner and emulate the skills required to run your own business successfully, adopting the right habits and keeping a positive attitude. The question many estate agents are grappling with is: “How do I find the time to make a living and have a life with all the study, exams and courses required?” The answer? Sacrifice now to make gains in the long term. This doesn’t mean working 12 hours a day, seven days a week. It means working differently, knowing what you want to achieve, and having an action plan for what you want to get done every day. Here’s how:

PLAN YOUR WORK AND WORK YOUR PLAN

Mapping your monthly, weekly and daily study plan in advance will help get you through more work in less time. Besides your study schedule, your weekly planner needs to factor in time for lead generation, meetings with potential clients, viewings and follow-up calls. Plan for the unplanned by allocating time in your day for the unexpected. Deal with any emergencies that arrive swiftly, then refocus on your deadlines to avoid falling behind your study schedule.

The question many estate agents are grappling with is: ‘How do I find the time to make a living and have a life with all the study, exams and courses required?’ The answer? Sacrifice now to make gains in the long term NOVEMBER/DECEMBER 2015

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Have strong visual reminders of your study schedule on your phone or placed on a wall, perhaps, so that you are constantly reminded of the tasks at hand.

PRIORITISE LEARNING

car in between appointments; watch YouTube videos and TED talks; subscribe to relevant blogs. Limit time spent on social media such as Facebook, if it’s not adding value to your day. Over time, all these daily steps will count in your favour.

Most people spend more time planning their holidays than they do ensuring they’re certified. If you don’t set goals with a realistic time frame and deadlines, you’ll end up feeling overwhelmed when your time, inevitably, runs out. Start by making a list of the educational requirements and then set out to complete them as early as possible as the year unfolds. This will lead not only to a sense of accomplishment, but free you up to pursue your income-generating activities.

MAKE APPOINTMENTS WITH YOURSELF

We are creatures of habit, so the quicker we learn to form good habits and protect our time judiciously, the more time we will have to do the things that matter most, professionally and personally. Just as you would diarise sales meetings and training sessions for the days of the week, you should make appointments with yourself to attend to CPD seminars and conferences. Resist the urge to cancel an appointment with yourself, as this quickly becomes a bad habit that is hard to break and may spill over into other aspects of your life.

TAKE TIME OUT

Life is not meant to be all hard work and pursuing constant deals. Both are equally important, but if you don’t take regular breaks to recharge, you could lose interest in one, or even both. As counterintuitive as it sounds, if you feel you’re not coping, take a break. Go away for the weekend and disconnect from your mobile devices, and you’ll come back refreshed, ready to give it your all. Use technology to your advantage: download podcasts to aid learning and listen to them in the 56

Anthony van der Riet is business performance coach at The Coaching Factory, which specialises in business intelligence for the real estate industry. The main focus is on risk management, corporate governance, and the coaching and mentoring of principals and agents. thecoachingfactory.co.za

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