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OVERSEAS INVESTMENTS Making Money through Dual citizenship
DOLF DE ROOS Investment Insights from a Master Investor
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THE PROPERTY COACH
Rugby World Cup success tips for Investors
Accommodation through the Economy of sharing
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› › ›› ›› CONTENTS
CO VE
RS
TO
RY
OCTOBER 2015
10 Master Investor
14 Airbnb
33 FLISP
40 The Deal
54 Mozambique Economic Outlook
UPFRONT
5 Investor Talk From the Editor and Founder
6 Ask the Experts Your Property Questions Answered 10 Master Investor Dolf de Roos 14 Cover Story Airbnb
COMMERCIAL
RESIDENTIAL
OFFSHORE
24 Linda Erasmus
40 The Deal
54 Mozambique Economic Outlook
26 In Duplem Law
42 Secondary Citizenship Programmes
56 Forex Trends
28 Risk Management of Buy-to-Let
46 Logistic REITS
59 UK Investment
32 Compliance Certificates
48 Property Portfolio
60 Namibian Housing
33 FLISP Subsidies
52 Sectional Titles
61 Select Property
36 SA Property Review
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EDITORIAL
Publisher Neale Petersen Editor Drew Hook Senior Designer Kurt Daniels Digital Strategist Matt Wroth Financial Manager Marisa George
CONTRIBUTORS
Neale Petersen, Monique Terrazas, Koos Du Toit, David Rebe, Mike Spencer, Ulrik Strandvik, Meyer De Waal, Gary Palmer, Michael Bauer, Gail Cawood, Debbie Justus-Ferns, Mike Brown, Carola Meyer, Mike Smuts, Wim Prinsloo and Vangile Makwakwa.
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EXPERT CONTRIBUTORS
››
MONIQUE TERRAZAS Monique is a journalist and freelance writer, with more than a decade of experience across a range of industries, and was the winner of the 2012 SAPOA Property Feature Journalist of the Year Award.
ANDREW RISSIK Andrew is Managing Director of Sable Group’s Forex business, which facilitates investment of international client money in the emerging SA property market. He established The Sable Group after a decade in the UK doing private equity deals. WIM PRINSLOO Wim is the Portfolio Manager at Reitway Global. He has worked at Liberty Group and then at Quantum Asset Management as an Analyst and Assistant Portfolio Manager.
DR ANDREW GOLDING Dr Andrew Golding is the Chief Executive of the Pam Golding Property group and also serves as a Director of Mortgage SA. He has been responsible for introducing new innovation and marketing initiatives focused on the overseas market, including the highly successful Euro Invest tour of England, Ireland, Holland and Germany and other European countries GILES BESWICK Giles Beswick is the Director of Select Property. Giles has been integral to the expansion of Select Property into new territories and sectors, including establishing corporate structure in multiple jurisdictions, negotiation contracts with principals and partners, and protecting the intellectual property which makes the business unique in its market. MEYER DE WAAL The Rent2buy concept and My Bond Fitness is the brain child of practicing attorney, Meyer de Waal. His inspiration came from his company’s participation in raising funds and constructing houses in the Mfuleni Township Project in Cape Town.
DIGITAL EDITION Group First Global Limited Property Investments
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THE ULTIMATE PROPERTY INVESTMENT
Your A-Z Guide On Property The Roommate Debate
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Property Investment through secondary Citizenship Programmes
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2013 & 2015 Publication of the Year Property
Firepower
BAD DEBT INTO GOOD
Accommodation through the Economy of sharing
Leverage, Invest and Thrive
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the Economy of sharing Accommodation through
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Leverage, Invest and Thrive
BAD DEBT INTO GOOD
Firepower
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Property Portfolios Expanding Residential Innovations for SA Homebuyers FLISP - The Missing Money
3 Ways to subscribe A Boon for Logistic REITS
ONLINE SHOPPING
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Become the architect of your finances
Property TV Reality Show
A new way to promote your property
Learn To Invest Like The Rich Exclusive Interview With
Secrets to Success
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Kim Kiyosaki shows us how
Secrets toONLINE Success
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Become A Rich Woman Learn To Invest Like The Rich Exclusive Interview With
way to promote your property Go to www.reimag.co.za, subscribe Rewarding Early Investors Become the architect of your financesclickA new
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How To Prepare For The Next Global Crash
Specialist REIT’s
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SEPTEMBER 2015 SAPOA JOURNALISM AWARDS
Citizenship Programmes through secondary Property Investment
SAPOA JOURNALISM AWARDS
Property Publication of the Year 2013 & 2015
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from a Master Investor Investment Insights
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FLISP - The Missing Money Innovations for SA Homebuyers Expanding Residential Property Portfolios
A Boon for Logistic REITS
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INVESTOR TALK FROM THE PUBLISHER
T
echnology is a game-changer in the world of real estate, says Dr. Andrew Golding of Pam Golding Property Group. Internet and technology in general have substantially changed the game for the South African residential real estate industry with around 90% of investors beginning their real estate journeys on the web in the US. According to Golding, we are now seeing a similar trend here in South Africa.
Technology a Big Game Changer California Association of Realtors says more than eight out of 10 home buyers are accessing home information on their smart phones and computer tablets. This is mirrored in SA’s move to mobile and is set to increase further as access to more bandwidth improves. We have also seen how the introduction of crowd funding real estate is impacting international residential and commercial investment through multiple channels. Scott Picken of Wealth Migrate says this innovation is driving change in investor behavior. The big question is whether or not these technological innovations will lead to significant changes to investor-vendor relationships and the role and function of the individual broker or estate agent? Investment principles don’t change despite technology. Here are 5 things you can do to be a better investor:
1. Treat your investments like a business and keep that mindset 2. Have a goal and set a course for your destination and check progress 3. Build a capable team especially a good accountant or bookkeeper, property manager and agent 4. Build relationships with key professionals who have a grasp of the market and the opportunities 5. Be an effective communicator Use face to face communication like Facetime, Skype or Whatsupp rather than written communication
Successful investing
NEALE PETERSEN
FOUNDER & PUBLISHER
FROM THE EDITOR
I
n recent years the concept of sharing has moved from a community practice into a profitable business model, dubbed the ‘sharing economy’. The Sharing Economy is a socio-
The Economy of Sharing economic ecosystem built around the sharing of human and physical resources, including shared creation, production, distribution, trade and consumption of goods and services by different people and organisations. People are at the heart of the sharing economy, as active citizens and participants of their communities and society as a whole. The participants are individuals, communities, companies, organisations and associations, all of who are deeply embedded within a system of sharing. They create, collaborate, produce and distribute peer-to-peer and person-to-person. The popularity of these services
mean that more and more people are choosing to rent as opposed to buy, challenging the face of the more traditional retail market. The two most successful examples of this are Uber and Airbnb (which we profile this issue), both having recently arrived in South Africa, to varied degrees of controversy and opportunity for the local market. As technology unites more people across the globe, new business ventures will be there to capitalize. As always, keeping up with these changes is the key to successful investing. Enjoy the read
DREW HOOK
EDITOR
“I think life on Earth must be about more than just solving problems… It’s got to be something inspiring, even if it is vicarious.” ELON MUSK
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OCTOBER 2015 SA Real Estate Investor
5
Q&A
ASK THE EXPERTS
Question What is the wisest financial course to take when buying houses to renovate and sell at market value. Can the capital gain be claimed back in tax?
I would like to know what contributes to the value of a property apart from the annual appreciation? I know that elements such as renovations done on the property and the neighborhood contributes to the market value of a particular property in an area. The reason why I ask this question is because that I don’t want to solely base my judgment on price.
Meyer De Waal
Richard Wade
of My Budget Fitness answers:
I
am not aware of any practical financial course that can be followed; however, sound judgment and “knowhow” can only be obtained by experience. I can suggest that you “hook up” with a partner with expertise and enter into a joint venture agreement – do it you in writing that all parties are full aware of their responsibilities and contribution. If you start on your own, you may also be able to achieve your purpose, but may pay a lot of ‘school fees” in mistakes that you make and taking in a partner to show you the “ropes” may be the fastest way to obtain all the knowledge and skill. Remember that you will be working with “big numbers” and small mistakes can cost you thousands of rands. The capital gains that you make will be added to your income tax, not “claimed back in tax’ as mentioned – it is best advised to consult with a tax advisor regarding tax and capital gains tax issues
Ask The
Property Experts click here 6
of Horizon Valuation answers:
P
roperty value has two elements – the value of the land and the value of any permanent building with foundations built on it. The value of the land will be affected by the way the neighbourhood changes and the value of the building by the use to which it is put and the way in which it is maintained, improved or enlarged. Price is a product of these two elements and influenced by the quality of both. The more desirable the area, the higher the land price (e.g. Sandton, Clifton) and the newer the development, generally the higher the building value. Look for building quality within your budget and you should make the right investment decision.
DO YOU HAVE A PROPERTY QUESTION YOU WOULD LIKE ANSWERED BY OUR EXPERTS? If so, post it on ASK THE EXPERTS on www.reimag.co.za or email editorial@reimag.co.za
OCTOBER 2015 SA Real Estate Investor
www.reimag.co.za
PROPERTY ALERTS
The Bad
The Good
Thely Ug
Johannesburg gets gold in green awards
Slow property price Liquor law’ will growth and rising shut down many demand for 100% bonds taverns
J
S
oburg is the best green city in the country, Minister of Agriculture, Forestry and Fisheries Senzeni Zokwana said at the start of National Arbor Week in Durban. The Arbor City Awards recognise and incentivise cities to green their areas, especially disadvantaged areas. Entrants are adjudicated on whether a greening policy is available, how it is funded, project maintenance, the extension of greening services to previously disadvantaged areas, public participation in projects and how they stimulate local economic development. This year, 32 municipalities entered. Six were shortlisted and Joburg’s City Parks and Zoo emerged as the winner. City of Joburg member of the mayoral committee for social development, Chris Vondo, said the The theme of this year’s Arbor Week is “Forests and people: investing in a sustainable future”. It is being used as a build-up to the World Forestry Congress, which takes place in Durban next week. www.reimag.co.za
tatistics released by ooba, South Africa’s largest bond originator, reflect positive growth in housing prices but at a significantly slower year-on-year growth rate. The Average Purchase Price in August 2015 increased by 3.4% from R982,297 in August 2014 to R1,015,766. This low single-digit growth is a marked slowdown from the double-digit growth of 11% recorded in the second quarter of 2015. This slowdown in housing prices is not surprising given that consumer confidence is at its lowest level in 15 years. This reflects concerns about South Africa’s future, particularly given worse-than-expected Q2 GDP figures, poor economic growth forecasts for the remainder of 2015 and rising interest rates. 52% of all home buyers applying for home loan finance in August indicated that they had no access to a deposit, which represents a 4% year-on-year increase in demand for 100% bonds.
L
ocated near a school and a church, a tavern owner in Langa could be in trouble should a proposal to have liquor outlets more than 500 metres away from such institutions be signed into law. The Department of Trade and Industry’s (dti) national liquor policy is open for public comment until the 24th , and one of the proposals in the policy recommends that liquor establishments be located at least 500m away from schools, places of worship, recreational facilities, rehabilitation or treatment centres, residential areas and public institutions. Western Cape MEC for Economic Opportunities Alan Winde said that in some small towns and dense suburbs, imposing a 500m limit would result in the closure of many businesses. “In the city, in Long Street for instance, restaurants and pubs operate in close proximity to mosques and churches. “It was decided that the Western Cape legislation would not contain a limiting distance, but would include a strong public comment process via the local councillor and other planning processes for use by interested and affected residents and establishments.” OCTOBER 2015 SA Real Estate Investor
7
INVESTOR INTELLIGENCE
The Property
Coach
Real Estate Investor Magazine coaches The Sharks rugby team to invest in real estate!
R
eal Estate Investor Magazine (REIM) is South Africa’s premier real estate information source, experts and educators of how to invest into passive income generating residential, commercial and offshore investment properties. REIM partnered with The Sharks rugby management to educate and coach the senior and junior Sharks rugby players on financial fitness and property education class called ‘The Sharks Impact Programme.’ The goal of the programme is to teach players how to manage their personal finances wisely, build their income, source credit, protect their assets and invest for their future now so that when their rugby careers end they are set up with a new source of direct passive income mainly from property investment. Player and manager Jacques Botes and biokineticist Jimmy Wright led The Sharks financial training initiative with REIM founder and property coach Neale Petersen. ‘Rugby players have busy careers and many don’t have time to educate themselves on how to invest the fruits of their highly paid careers’ says Wright. Most top rugby professionals are highly successful in their careers and are well paid sportsman but tend to lose their wealth due to following bad advice on
8
OCTOBER 2015 SA Real Estate Investor
get rich schemes, developing bad financial habits, submitting to financial predators and general poor choices. Rugby is similar to a high paid job, which does not always translate into long-term wealth. Botes says, ‘Players have around an 8 to 12 year window to earn big but not all are taught how to hold onto their wealth after their careers come to an end when they face the real world.’ The players learnt new ideas on both successful investment principles plus were exposed to some of the investment failures. Some of the principles include how to invest wisely, set financial goals, use your psychology when investing, analyse a property both physically and numerically, find an investment property as well as step-by-step guides on investing and managing your investments. The players were also taught the fundamentals of seeking proper asset allocation, getting smart financing, using leverage, asset protection and smart asset management. Many of the established senior players said they were excited by the prospects of building their wealth in real estate while some of the longer serving players have already become successful investors in their own right through acting on their strategies. Click on the link to see some of the video highlights of the training.
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OCTOBER 2015 SA Real Estate Investor
9
MASTER INVESTOR
Dolf De Roos The Global State of the Real Estate Market 10
OCTOBER 2015 SA Real Estate Investor
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D
olf first began investing as an undergraduate while studying for a PH.D in electrical and electronic engineering at the University of Canterbury in New Zealand. He noticed that engineers were not uniformly wealthy, and started to study the rich to find out what they had in common, finding that it wasn’t age, gender or religious. Rather, they were all people of high integrity, and they all either made their money, or held their wealth, in real estate. “I knew then that I should invest in real estate,” says Dolf. His book Real Estate Riches was a New York Times and Wall Street Journal bestseller. He regularly conducts seminars, investment tours and education events throughout the world, including the US, Australia, New Zealand, Europe and South Africa. The current state of the Real Estate Market As of today, the world economies are in turmoil, exemplified by Greece’s financial collapse shortly after the implosion of Wall Street in 2008 and growth in China, the second biggest economy in the world, falling to its lowest level since 2009. Rather than watch the news and panic, Dolf advises us to rather stand back and look out for the developing long-term trends, as Real Estate itself is often a long-term proposition. As such, if you purchased property just before the crash throughout 2008 and 2009, then three years later you would have found yourself down on your investment. However, if you go back and look through recorded history, generally at the end of any ten-year period you find prices higher than what they were. This is true for real estate across the board, the only exception being when property is destroyed through floods or another natural disaster. The real estate itself rarely if ever disappears otherwise. Real estate, according to Dolf and despite all the ups and downs, will always be a desirable purchase and proposition. China has a population of 1.3B and the number of people reaching the ranks of the middle class is swelling enormously and in turn the amount of money leaving China for investment abroad is going up exponentially. Opportunities in the Real Estate Market The current state of global real estate market is on a general downturn. The chance of finding a bargain in the US market is well over while Australia’s housing price boom has begun coming down into a sustained decline. Dolf sees Europe as being markedly underrated, chiefly throughout the greying of population (when the median age of a country or region rises due to rising life expectancy and/or declining fertility rates). This opens up all kinds of interesting property opportunities, from rest homes, medical facilities etc. Europe is currently home to a massive influx of refugees, all of which have to be accommodated for. By investing in real estate that caters to this increase, you are investing in a growing market with no signs of slowing down.
“If you go back and look through recorded history, generally at the end of any tenyear period you find prices higher than what they were”
PERSONAL STATISTICS AGE: 57 EDUCATION: Doctorate in
Electrical Engineering
MENTORS: Buckminster Fuller,
an American philosopher, systems theorist, architect, engineer, author, designer, inventor and futurist. He had an enormous influence on the world, creating a host of inventions, patents, books and initiatives.
MOTTO: “It is not who is right, but what is right”
WWW.DOLFDEROOS.COM www.reimag.co.za
OCTOBER 2015 SA Real Estate Investor
11
MASTER INVESTOR Offshore investment options for South Africans Dolf sites a number for reasons for not investing in property throughout South Africa, chief of which being the decline of the Rand over recent years. “If you look at the Rand over the past 15 years next to US and UK currency, there is a linear decline of around six to seven percent a year and no evidence on the horizon that that decline is going to come to a halt and reverse itself ” he says. If we assume that things will go down by six percent annually, then there would have to be an upswing of at least a further six percent just to stand still and cover the investment costs. He is also keen to emphasize the effect that nationwide load shedding has had in shaking the confidence of prospective investors. Dolf has always been a large supporter of offshore investment, reasoning that investment overseas gives your a hedge against a falling currency and
falling economy. While spreading your money across the Continents may sound risky, keeping all your eggs in one basket opens you up to as many, if not more so risks. While investing solely at home may have been sensible 50 years ago, when the cost and effort to get to another country was enormous, in this day and age, when you can get on a place and be anywhere within 24 hours, the opportunity for offshore investment is at your feet. Shipping your money overseas is often seen as being dishonest to your country, but, according to Dolf, by successfully investing your money overseas you bring the fruits of those investments back into the country and ultimately any capital grown that comes with it. In the case of a weaker home currency, you are bringing a strong forgiven currency into the country.
While Dolf is regularly associated with residential property investments, his personal interest lies more in Commercial Property, the secret of which he says is to know to convert an ordinary building into an extraordinary income generator. The following are his eight golden rules for commercial property investing. 1. Investing in commercial property is a totally different game When you invest in residential property, you deal with people. With commercial property you deal with contracts. This requires a different level of advice and compliance in order to protect both you and the tenant. It requires that you become better educated. It requires that you have a good team of professionals around you. 2. Fall in love with the deal, not the property One to the biggest mistakes investors make when they buy into an investment property (whether it’s commercial or residential) is that they fall in love with the property. When it comes to a commercial property, in most cases, the property is only as good as the tenant and the lease. Without a tenant, the property could be useless - or it could be an amazing opportunity. It all depends on your education and experience. 3. Look beyond what the current use of the property is Know your market. What else could the property be used for? For example, could you pick up a warehouse with little structure and build offices. Is the area zoned for some residential and could you therefore redevelop the property and get a greater return. The rent you can get on a commercial terrace house in Sydney’s Paddington is likely to far outweigh what a residential tenant will pay to rent the same property. 4. Be counter-cyclical Don’t do what everyone else does! The most successful property investors buy when everyone else is selling, and bide their time when everyone else is buying. Right now, many residential real estate investors are starting to look at commercial, that papers 12
OCTOBER 2015 SA Real Estate Investor
are hinting that while residential property prices are down, returns on commercial are likely to remain healthy so if you want to get into the market, don’t wait until the market is flooded with newcomers. 5. Always try to buy with zero or little down For years we have been told by our parents to “pay off your debt”. We have this natural inclination to want to get rid of our mortgages. Putting in a lot of cash does not make good investment sense. Educated investors know how to secure deals with little or no outlay. 6. Seldom Sell In general people who sell their properties never do as well as people who just keep hanging on to them. 7. Always buy from a motivated seller The more motivated (read desperate!) the seller, the better the deal will be. Often properties passed in at auction can be a good deal - especially if the owner desperately needs to move the property. Remember there are far fewer potential buyers for a commercial property compared to a residential one. 8. The Deal of the Decade comes along about once a week If you believe that great deals do not really happen, then you will not see one even if you fall over it. The more good deals you see the more you believe they exist. But, you need to know what you’re looking for. You need to have access to finance, be able to accurately analyse the property and know what the market is doing. www.reimag.co.za
COVER STORY
Airbnb
Accomodation through the economy of sharing BY DREW HOOK
I
f Uber is unique in being a taxi service that owns no cars, and Facebook a sharing site that creates no content, then Airbnb is remarkable for being the largest accommodation site in the world without owning any property. Since its inception in 2008 the company, an online marketplace for people to list, discover and book unique accommodation around the world using the web or mobile phones, has grown in an unprecedented way, with listings spreading across the global village. The company officially launched in South Africa this year, overseeing local listings while outlining plans to move upwards throughout the rest of the continent. Beginnings Airbnb was born in 2007 when Joe Gebbia and Brian Chesky, both Rhode Island School of Design alumni, decided to rent out three airbeds on their living room floor during a design conference being held in San Francisco (as the cities hotels were all fully booked). They charged each guest $80 per night and cooked
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OCTOBER 2015 SA Real Estate Investor
them breakfast each morning, launching the service on a site called airbedandbreakfast.com. After successfully renting out all three beds, and receiving numerous requests for the service in other locations around the world, Gebbia and Chesky began targeting conferences and festivals across America with the aim of getting local’s to list their rooms for travellers to book. They enlisted Gebbia’s former flatmate, Nathan Blecharczyk, a computer science graduate, to develop the website and began coordinating the launch of the company around the Democratic National Convention of 2008 to capitalise on the lack of accommodation. Seven years later (and now calling itself Airbnb) the company boasts over 40 million guests, 1500,000 listed properties worldwide, and a total valuation of $24B. The last year has seen the site grow by 400% and Airbnb expects to maintain a similar growth rate over the next twelve months. Shaking the Establishment The success of Airbnb lies in it’s timing. The company www.reimag.co.za
JOE GEBBIA, NATHAN BLECHARCZYK, BRIAN CHESKY was founded on the idea of ‘collaborative consumption’ or the sharing economy, which aims to re-invent traditional market behaviour such as lending and renting through the means of technology (where, instead of sharing music books or movies online, people are sharing property and accommodation). The ability to offer more than just a place to sleep gave Airbnb a foot in the door, but it was the substantially lower accommodation costs that allowed them to complete alongside the major hotels. In general, the prices are usually much cheaper (Roughly 30%–80% lower) and guests are able to stay with a friendly local who can steer them to restaurants and stores they would they may never find otherwise. Hosts are able to offer shorter-term rentals from two days up to two months, and are able to manage bookings based around their own personal schedule In the summer of 2010 Airbnb officially launched a photography program that gave hosts the opportunity to automatically schedule a professional photographer to take pictures of the space that they were renting. This allowed the prospective customers the opportunity to verify the address as well as see the space they were renting, assuring them they were not being sold on false promises. In 2011 the company began introducing the Airbnb Social Connections application, which, when combined with Facebook, would show the avatars of mutual connections, friends or acquaintances who have stayed with or know the host. The Social Connections also allowed guests to search for hosts based on other characteristics, such as Universities or High Schools. The South African Market On the 27th of July 2015 Brian Chesky launched Airbnb in South Africa, the companies largest market in Africa with 9,400 homes listed. South Africa makes up for two of the five largest markets in Africa, with Cape Town hosting 5,000 listings and Johannesburg hosting just over 1,000. The number of South Africans using the service to travel is increasing by 163% per month, with the majority travelling locally and the US, France and the UK making up the most popular international destinations. At the launch Chesky detailed the companies plans to expand further across the African continent, with listings in the region increasing by 145%, while the number of Africans using Airbnb to travel has increased by 139% in the past year. Kenya and Morocco are two of the key areas they plan to focus on, with Morocco currently hosting around 3 000 listings and Kenya around 1 5000. www.reimag.co.za
OCTOBER 2015 SA Real Estate Investor
15
Sustainable Travelling
COVER STORY
Using Airbnb to Host and Stay Where Airbnb differs from traditional rentals is that the renter is not simply leasing four walls and a roof, but selling an experience. Airbnb hosting is service sector hospitality, closer to that of a hotel concierge where the host doesn’t just provide the room but offers advice on activities, provide directions to landmarks and answer questions about the weather. As such Airbnb hosts compete on greater customer service, relying on the feedback of the guests in promoting their accommodation. As there is no clear ‘model’ for the Airbnb experience, one common theme among hosts is that it’s important to set expectations upfront. While Airbnb itself provides detailed guides to guest and host etiquette, both parties can sometimes find themselves at odds due to differing expectations. In many cases guests are comfortable with a more informal setting, while others expect the same service they’d get at a 5-star hotel. It is important for guest to understand that they are not booking into a hotel, they are in fact staying at someone’s home, meaning there is no daily maintenance crew to clean up and there is no 24 hour service on call. The concept of being in someone’s home is the plus of Airbnb, and the service is not an alternative to staying in a hotel. Hosts are given the opportunity to reject a request, if the timing is inconvenient, the guest request is rude or abrupt or if the host and guest are not a good fit. A typical listing provides the standard number of items you would find at a hotel, which includes: • Ironing board • Coffee maker • Hairdryer • Full-length mirror • A few clean towels One harsh reality of monetising a private property is that it becomes open to public criticism. Which is why both guests and host need to have a clear understanding of what is being offered, to avoid any negative feedback and hurt feelings. www.reimag.co.za
TACTICAL TIPS FOR AIRBNB HOSTS • Leave tourist guides such as local restaurant listings etc out for guests to read. • Leave a welcome guide / FAQ list out for guests (which includes things like the WiFi password, and house rules, or says things like, “The light switch to the bedroom is behind the door.”) • Set expectations clearly, especially around check-in procedures to avoid situations like late check-ins or outs (as often guests assume it’s okay to show up at anytime, as if you’re going to be there 24/7). As people are used to showing up to a hotel at anytime, so some people project that same expectation onto their Airbnb host. Be clear about what time is appropriate for check-in, and include this in your welcome email. • Create a list of “fun stuff to do” if they arrive early (before check-in time) — recommended restaurants, cafes, coffee shops, parks, etc. Include this in the welcome email. • Write the directions to the house in the welcome email, as well as the best way to reach the destination, whether by public transport or with a rental car; don’t just tell them to GPS the address. OCTOBER 2015 SA Real Estate Investor
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UPFRONT
Why I Invest in
Real Estate Robert Kiyosaki writes for Real Estate Investor
I
n 1973, I returned from Vietnam, where I had flown helicopter gunships for the U.S. Marine Corps. Returning from the war, I was fortunate to be stationed at an airbase near my home in Hawaii. With little over a year remaining on my military contract, it was time to decide what I was going to do once my flying days were over. My poor dad—my real dad, the former head of
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education for the State of Hawaii, with a PhD, suggested I go back to school, get my MBA, and climb the corporate or government ladder. My rich dad, my best friend’s father, suggested I take a course in real estate investing. I did both, enrolling in a 2-year, MBA program at the University of Hawaii and a 3-day real estate investing course. After I completed the real estate course, it www.reimag.co.za
UPFRONT wasn’t long before I dropped out of the MBA program. That 3-day real estate course was much more of a real-life experience. During the real estate down turn, which began in 2007, I acquired nearly 40% of my current portfolio of properties. Needless to say, I love real estate crashes because I love buying great real estate at bargain prices. But I do not invest in real estate just to own real estate. The primary reason I invest in real estate is to leverage debt and minimize taxes. In many ways this article is about debt and taxes…more than real estate. A Word of Caution I have the good fortune of teaching all over the world and no matter where I go I always hear people say “You can’t do that here.” I even hear, “You can’t do that here” from people in the United States—where I am doing what I am about to tell you about. In other words, as you read further, please keep an open mind and don’t tell me “You can’t do that here.” I just left South Africa and I know you can do what I do in South Africa. Pictured below is the CASHFLOW Quadrant, from my book by the same name. In this graphic below, E stands for employee S stands for self-employed B stands for big business (with 500 employees or more) I stands for active investor
We have added the average percent that individuals or companies in each quadrant pay in taxes. For example, for those in S quadrant—the self employed, small business owners, and specialists such as doctors www.reimag.co.za
and lawyers—pay approximately 60% in taxes. That means if I earn $1 million as a doctor I will pay 60%, on average, of my income in taxes. Percentages vary slightly from country to country, and they vary from state to state in the United States as well. If I were that high-income-earning doctor in the S quadrant, I would also be a real estate investor in the I quadrant—not only to increase my income but to give me the opportunity to pay less in total taxes. Here’s the way I would do it: • Take classes on real estate investing • Start small, as a real estate investor and gain reallife experience • Learn to identify great properties • Use debt as leverage in financing the property Learn to manage the property, improve the property, and increase rents • Then I’d refinance the property, pulling out taxfree capital that • Use to acquire more properties. As my confidence and experience grew, which could take years, I would gradually begin investing in larger, more complex properties. My first property was a tiny one bedroom / one bath condominium on the island of Maui. I purchased it in 1973 for $18,000. I used my credit card to pay the $2,000 down payment, secured a mortgage and had myself an income property that cash-flowed $25 a month. In other words, the property was 100% debt financed, which gave me an infinite return, since a $25 cash flow each month—with none of my own money invested—is infinite. My 3-day real estate course was paying off and I soon dropped out of the MBA program. It made no sense to me to spend two years in school—learning to work for a taxable paycheck—when I was learning to make money out of nothing. About this time in my talk, the hands of the people in the audience go up and people shout, “You can’t do that here!” Years ago, I did a course on Maui and showed the class the very 1-bedroom condo I had purchased in 1973. It was right across the street from where I was teaching, on a beautiful secluded white sand beach. You’d think that ‘seeing is believing’… but I still had people who were convinced that “You can’t do that here.” And: they couldn’t believe such a great property could have been purchased for $18,000. In 1973, once I knew the numbers worked, I purchased two more units in the same development using two different credit cards. Foolishly, I sold two OCTOBER 2015 SA Real Estate Investor
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UPFRONT
of the three, for approximately $35,000 each and paid capital gains taxes on the profit. I held on to the remaining unit, that1-bedroom condo, for about 15 years and eventually sold it for $375,000 when the real estate market boomed on the island of Maui. As I’ve said: Start small and gain experience. A few years before I sold that last 1-bedroom unit, it was renting for $850 a month—and delivering an infinite return, since I never had any of my own money in the investment. As rents went up, I refinanced the condo, taking out approximately $100,000 in debt. That $100,000 was tax-free money, because it was debt, not income. The rental income paid the mortgage loan and I was still receiving net rental income of about $300 a month, after expenses. I eventually sold the condo because managing a single property, on an outer island was a hassle—and I had learned enough from that experience. I had learned to make money out of nothing. Today, in 2015, I continue to use the same formula. The only difference is that the number of units, total dollars, and number of people required making the deal work have increased. My latest property, which closed in May of 2015, was 1,600 units for $80 million. Once again, I have none of my money in the deal. Rather than use my “hard-earned” after-tax dollars for the purchase, I used a series of rolling-equity refinances and government tax incentives, plus debt—a formula very similar to my first, $18,000 Maui property. I’ll review the formula: 1. Acquire undervalued property. 2. Improve the property. 3. Raise rents. 4. Increase NOI (Net Operating Income). 5. Refinance—taking out cash, tax-free. 6. Reduce taxes using fundamental accounting principles, of amortization, appreciation, depreciation, and component depreciation. Here again, like in virtually every group in cities all over the world, hands go up and people say, “You can’t do that here.” Many of the people who say, “You can’t do that here” that are high-income professionals such as doctors, accountants, and lawyers. 20
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Frosting on the Cake The real financial benefit to acquiring millions in income-producing real estate is to legally pay as close to nothing in taxes as possible. In other words, because I invest in real estate in the I quadrant, I pay almost nothing in taxes on income I earn in the E, S, and B quadrants. For example, I earn considerable income as an author on my book sales in the S quadrant. The tax write-offs from real estate investments—in the I quadrant—offset my book income in the S quadrant. The same is true for income from The Rich Dad Company, income from the E and B quadrants. Every year my income in the E, S, B and I quadrants goes up, which means I must acquire more real estate in the I quadrant—or face the taxman and pay more in taxes. This is another reason why the rich get richer and the gap between poor and middle class grows wider. It is a matter of financial education. If you would like to learn more about this formula for real estate investing, you may want to read the books of my Rich Dad Advisors and business partners, Ken McElroy and Tom Wheelwright, CPA. Ken’s books are: The ABCs of Real Estate Investing, The ABCs of Property Management, and The Advanced Guide to Real Estate Investing. Tom’s book is titled Tax-Free Wealth. www.reimag.co.za
Investor Talk with Robert Kiyosaki
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REI RESIDENTIAL
EXPERT Q&A
Wim Prinsloo, CFA 1.
How does a company qualify as a REIT? The basics tenets for qualifying as a REIT is based on property ownership and regular income distributions:
• •
Assets must consist of real estate; Income must be derived from the rentals and/or investment income through property ownership. A high proportion of taxable income must be distributed to shareholders.
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Although these tenets relate to REITs in a global context, there are minor differences in qualifying criteria on a country level. 2. • •
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3. •
What property sectors do REITs invest in? REIT’s operate and invest in a number of property sectors, including Shopping Centres, Apartments, Office buildings and Hotels. Some interesting, nontraditional property sectors include Self-Storage, Data Centres, Student Accommodation and Health Care.
4.
What are the investment benefits of REITs? REITs offer investors the following significant benefits:
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Competitive returns: REITs provide stable & competitive returns due to their conservative operating policies. Greater liquidity: The ability to buy or sell a REIT on a stock exchange provides greater liquidity compared to the physical property market. High dividend yields: REITs distribute a high proportion of their income and therefore have higher dividend yields than other equities. Professional Management: REITs are actively managed by skilled property managers Diversification: By investing in REITs, investors can diversify their real estate portfolios by geography and property type.
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STATISTICS PROVIDED BY PROPERTY24 www.reimag.co.za
What type of REITs are there? There are three types of REIT’s, namely Equity, Mortgage and Hybrids REIT’s. Equity REIT’s mostly own and manage incomeproducing properties and operate them as part of their own portfolio. Mortgage REIT’s loan money for mortgages to real estate owners, or buy existing mortgages or mortgage-backed securities. Hybrid REIT’s as the name suggests are a combination of both equity and mortgage REIT’s and invest in both properties and mortgages. Equity REITs are the predominant form of REITs. They are actively managed enterprises seeking to maximize the returns from their property portfolios by applying their management skills in operations and finance.
OCTOBER 2015 SA Real Estate Investor
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POWERFUL WOMEN IN PROPERTY
Linda Erasmus of Fine & Country Local start, global success BY MONIQUE TERRAZAS
T
he first South African woman who successfully launched an international real estate brand in South Africa, Linda Erasmus is the owner and Chief Group Executive of Fine and Country South Africa, as well as the owner of the Fine & Country Constantia and V&A Waterfront, and part-owner of Fine & Country Sandton. With more than two decades of experience in the property industry, Linda is certainly one of the most experienced women in the sector. In 1986 Linda, a qualified radiographer, changed career and set out to become an estate agent. She joined Johannesburg’s Oriain Estates and sold 52 houses in her second year of being an agent, earning the first of many “Top Sales Agent – Most Units sold’awards. In 1990, Linda moved on to Seeff Residential Properties. She bought the Randburg Seeff franchise in 1996, and the Seeff Plettenbergbay and Knysna franchises soon after. She won Seeff ’s trophy for National Franchise of the Year for three consecutive years, followed by the prestigious international 5-star 24
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Platinum Award for the Best South African Estate Agent in 2002. During this time, Linda exhibited at the International Homes Exhibitions in the UK and received the 4-star Platinum Award for Best South African Agent. After being headhunted in 2005 to bring the UK’s Fine & Country brand to South African shores, Linda opened 30 offices in one year. Today, there are 50 wellsupported, established Fine & Country offices across the country. Property advice from fine & country • Always start with the property you intend living in - it is also an investment. • The golden rule is to repay the bond on the property you live in first and foremost. From there you can become more adventurous with your money. www.reimag.co.za
• When buying a property, start with the end in mind. An extra bedroom or a second bathroom may be a financial stretch in the beginning, but adds value when selling without the cost and hassle of adding on to the property. • Avoid the trap of spending every extra penny on your primary residence, adding extras that may not add value or offer a better lifestyle. Keep it simple and practical, as buyers do not invest in a seller’s sentiment. In the meantime, Linda also served as the President of the Randburg Chamber of Commerce ( Johannesburg) for six consecutive years and obtained her Bachelor of Law (LLB) through the University of South Africa, studying part-time. She also chaired the Seeff Licensees Forum in Gauteng and served as vice chairman of the Gauteng Institute of Estate Agents for four years. Linda’s top tips for property investors 1. Buy a property that is situated in an area with “buyer” traffic, especially if you buy for investment purposes only. Not all property investments offer the same exit strategy: popular suburbs allow for quicker, easier sales and the market in big cities are always better accessible and more active than in smaller towns. 2. Avoid fancy gimmicks like Jacuzzis and water features when buying an investment property, which require high maintenance and will erode your investment returns. 3. Maximise your returns. It is better to invest in 10 properties valued at R1 million than to invest in one property worth R10 million. This will also provide easier access to your money or parts of it as needed. 4. Property investment is a long-term investment. Ensure your personal circumstances and financial position tie in with your property investment plans. 5. Market sentiment fluctuates continuously. Buy property when the market sentiment is down to find well-priced properties that yield a return sooner. www.reimag.co.za
LEGAL
The In
Duplum Rule
Progress Extending further protection to consumer and debtors BY NATASHA AYSEN
T
he common law in duplum rule limits the amount of interest that may be charged on an outstanding debt and provides that such interest amount cannot exceed the capital amount. Section 103(5) of the National Credit Act has extended and altered this rule by including not only default and contractual interest but also charges such as initiation fees, service fees, credit insurance costs, default administration charges and collection costs, which accrue during the time of a consumer’s default. A recent judgement handed down by the Constitutional Court has altered the position of our law with regard to the operation of the in duplum rule by overturning the 1997 Supreme Court of Appeal decision of Standard Bank Limited v Oneate Investments. That case decided that if the maximum interest had been reached prior to litigation commencing, interest would start accumulating afresh on the capital debt as and when legal proceedings commenced by the service of the summons on the debtor. The majority of the Constitutional Court judges in the recent matter of Paulsen and another v Slip Knot Investments, decided that the Oneate decision did not take adequate account of debtors’ rights of access to courts, as it would hinder rather than promote this right of access. The Court explained that suspending the in duplum rule during legal proceedings could have an undesirable effect because some debtors, despite having a valid defence to the creditor’s claim, might settle the claim rather than face the prospect of interest commencing to run again. This could significantly 26
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deter a debtor from approaching the Court as it is constitutionally entitled to do. The Paulsens, who had borrowed R12 million from Slip Knot Investments in this matter, were ordered to repay the R12 million principal debt together with R12 million interest. Interest would, however, commence running on the full amount of the judgment debt (R24 million) once the judgment had been handed down. In a strong dissenting opinion Judge Cameron argued that the Oneate decision of the Supreme Court of Appeal was correct and constitutionally compliant. There are also strong public policy considerations against the operation of the in duplum rule during the course of litigation for both debtors and creditors and rather than focus only on the effect of the rule on creditors, the interests of both the creditors and debtors must be weighed equally.
THE IN DUPLUM RULE PROVIDES THAT A CREDITOR IS ENTITLED TO THE FOLLOWING: • Repayment of the unpaid capital sum • Interest on the unpaid capital sum at the contract rate up to an amount equal to the unpaid capital sum • Interest on the aggregate of the above amounts (unpaid capital and accrued interest up to an amount equal to the unpaid capital sum), at the contract rate from the date of judgment of the court to date of payment by the debtor.
www.reimag.co.za
Become an Asset owner Imagine owning multiple investment properties: • Inflation-linked passive income streams for the rest of your life • Financial Freedom
• Fulfil your dreams • Carefree early retirement • Leave a legacy
The P3 Investment Club specialises in: • Teaching ordinary citizens how to become Asset Owners • Helping our club members to create multiple income streams with a carefully selected property portfolio • Finding the best investment properties in SA for our club members • Showing club members how to maximise returns and avoid risks • Sharing our knowledge and experience through seminars,
books, workshops and purpose built software
JOIN THE P3 INVESTMENT CLUB! Attend a free P3 Property Wealth Seminar. Book at: www.hope.co.za or phone 086 100 7729
STRATEGIES
Risk Management
in Buy-To-Let How to manage interest rate risks BY GERT VAN STADEN
I
n July this year, the SARB Monetary Policy Committee (MPC) increased the repo rate, raising the prime lending rate for consumers by 0.25% from 9.25% to 9.50%. This was the first rate hike since July 2014, when the last 0.25% rate hike was announced. While this very gradual rise in interest rates is unlikely to impact buy-to-let investors substantially while interest rates remain at historically low levels, it is a red flag that interest rates are moving up. Interest rate cycles The interest rate moves up and down in cycles, as do all other economic variables. The cycles are only revealed over time and as such, managing the risk inherent in the interest rate cycle requires a long-term perspective. Over the last two decades, the interest rates have risen and fallen by around 600 basis points per cycle. However, the cycles are influenced by numerous factors and as such, the extent of the interest rate hikes and cuts vary from cycle to cycle, as does the length of time
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between the beginning and the end of a cycle. While these two variables - how much the interest rate will change and over what period of time - remain uncertain in each cycle, what is absolutely certain is that interest rates will rise and drop over time as the interest rate cycle completes itself. Understanding the risk The monthly bond repayments on an investment property are undoubtedly the biggest expense property investors face, and the higher the interest rate charged on the mortgage bond used to acquire a property, the higher the repayments and the greater the impact on the investor’s cash flow and return on investment. A significant risk property investors face is acquiring a property at the bottom of an interest rate cycle, when interest rates are low, and the monthly bond repayments calculated on this low interest rate are just manageable given their cash flow situation. When the interest rates begin to increase as the cycle turns www.reimag.co.za
the viability of each and every investment property they consider and their calculations are based on a long-term scenario. Built into these long-term cash flow projects are a buffer against the risk of interest rate increases, to ensure that when the interest rates do increase, it does not place their cash flow under severe strain or make the investment less viable. Professional investors using the P3 Wealth Manager do so by calculating their cash flow projection on the long-term average interest rate of 12% - not on the current interest rate. This means that the viability of the investment and the cash flow position is based on a realistic long-term average, providing a buffer against
upwards, as is happening right now, the monthly bond repayments increase and start placing strain on an investor’s cash flow. Depending on the extent and the timing of the interest rate increases, the impact could be disastrous. The last upward trend in the interest rate cycle provided a vivid example: between June 2006 and June 2008 - just 24 months, interest rates rose from 10.5% to 15.5%, increasing bond repayments by around 30%. The effect on property investors with a number of investment properties was severe. Managing the risk Professional property investors, given their longterm perspective and their focus on minimising risk, understand that the interest rate cycle is an inescapable reality and a significant risk that must be managed proactively. For this reason, these investors use custom-designed software, such as the P3 Wealth Manager, to evaluate www.reimag.co.za
Professional property investors, given their long-term perspective and their focus on minimising risk, understand that the interest rate cycle is an inescapable reality and a significant risk that must be managed proactively. inevitable future interest rate increases. By paying the difference between the bond repayments calculated by the bank on the current interest rate and their own projections of what the interest rate may be in future, these investors not only ensure their cash flow can absorb a number of interest rate hikes, they are also building a cash reserve in the bond by paying a little extra each month. While this provides a financial buffer should the interest rates rise even higher than expected, it also shaves thousands of rands and off the bond repayment amount and years off the repayment term.
RESOURCES P3 Investment Group www.hope.co.za OCTOBER 2015 SA Real Estate Investor
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ADVERTORIAL
5
Reasons You’ll Fall In Love With Little Karoo’s Touwsberg
For booking info please phone Hugo on 082 823 9777 or Bruwer on 082 928 4743, but hurry as the development is already70% sold out
TOUWSBERG Do you believe in love at first sight? The little Karoo’s Touwsberg Nature Reserve will have your heart racing. This hidden gem is a once in a lifetime find where limitless adventure, wildlife abundance and peaceful tranquility come together. Here are 5 reasons Touwsberg will surely find it’s way into your heart. An undeveloped peace of heaven Forget game reserves filled with tourists – this untouched paradise offers a more bone fide experience than those places ever will. With unpolluted streams, unexplored hiking paths, and free roaming game – you’ll be happy living off the beaten track. It is located right next to Route 62 From panoramic mountain passes to arid desert areas to historic wine lands – Route 62 has it all and it’s right on Touwsberg’s doorstep. Make a day trip of it by grabbing a beer at Ronnie’s Sex Shop, tasting some wines at Robertson’s famous vineyard or meander through a true “padstal” (farm stall). Your nature activities are limited to your imagination If you are lucky enough to call Touwsberg home, the reserve is your playground. Imagine early morning game drives, hiking through the enveloping mountain range, and paddling down one of the many dams or streams. For bird lovers – over 160 species are waiting to be spotted. And if doing as little as possible is what you prefer – no one will bother you. Touwsberg is conducive to your overall wellness Good for the soul, good for the mind and good for the body – is there anything else to say? Thanks to the drier climate, the Karoo is nature’s doctor. The air has been known to treat and rejuvenate ones respiratory system. Coupled with a couple nature walks, you’ll be feeling revitalized and even healthier in no time. The future looks bright for Little Karoo’s Touwsberg In addition to all the wonders above, Touwsberg Nature Reserve has made its land available to both safari operators and the general public. According to hearsay, the 7000 hectare paradise is being snapped up. As lovers of all things eco-friendly, we look forward to seeing these future developments reaching full fruition. If you’re feeling the chemistry building between you and Touwsberg, then don’t hold back on the sweet marriage any longer. Ignite your desire – it’s time to call this nature reserve home. OCTOBER 2015 SA Real Estate Investor
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Compliance Certificates
M
Staying on the right side of Municipal law
unicipal laws now require homeowners to obtain additional certificates before a transfer of ownership takes place. Previously only Electrical and Beetle Certificates were required, but new laws now stipulate that you need to obtain a Gas Certificate, Electric Fencing Certificate as well as Plumbing/ Water Certificates. Some of them (electrical certificates, electrical fence certificates) are required under national regulations; some (water certificates) under municipal by-laws; and some (beetle certificates) have become accepted practice Electrical Certificate: An Electrical Certificate has to be submitted before the local authority will connect the electricity supply. This Certificate has to be completed by a qualified electrician and has to be obtained by the seller and made available to the purchaser. Take note that the certificate is only valid should there be no additions or changes to the electrical system of the property. Electric Fence Compliance Certificate: In terms of the Electrical Machinery Regulations of 2011, issued under the Occupational Health and Safety Act 85 of 1993, an additional compliance certificate is now required where there is a change of ownership of immovable property. The compliance certificate relates to electrical fence systems. An electrical fence system, as defined in the regulations, is an electrified barrier consisting of one or more bare conductors erected against the trespass of persons or animals coupled with electrical machinery arranged so as to deliver a periodic non-lethal amount of electrical energy to an electric fence connected to it. This can only
be issued by a party that is registered as an electric fence system installer. Gas Certificate: Gas has become a more popular commodity due to the rising cost of electricity. Gas is a very dangerous component so the Gas Certificate was introduced for safety reasons. This Certificate ensures that all gas fittings are safe and in proper working order. Gas installations for which Certificates of Conformity are required, would include built-in gas fires or braais, gas stoves and hot water systems and the like. Furthermore, in terms of Regulation 17(3) of the Pressure Equipment Regulations, any person disposing of a property on which such a gas appliance is installed, must obtain a Certificate of Conformity in respect thereof, and must deliver a copy to the purchaser (on the same basis as an Electrical Compliance Certificate). Water Installation If your property is situated within Cape Town’s municipal area, you’ll need to know that the City’s Water By-law (which came into effect in 2010) requires you to be in possession of a Certificate of Compliance of Water Installation before transfer can take place. The Plumbing/Water Certificate must be done by a certified plumber and guarantees that all plumbing in the property complies with the correct standards. You should check that: • the water installation conform to the National Building Regulations • there are no defects • the water meter is registered • there is no discharge of storm water into the sewerage system
RESOURCES Private Property
FINANCE
FLISP Firepower Examining the FLISP subsidy benefits for both the bank and the consumer MEYER DE WAAL AND PAUL DE BEYER
O
wning your dream home is something many of us aspire to, however there are can be so many stumbling blocks along the way! Often we are stifled by rising property costs, credit records and the lack of funds to use as a deposit. The Department of Human Settlements has taken it upon themselves to help people reach their dream – this time through something called FLISP. FLISP ( Finance Linked Individual Subsidy Program) was started to bridge the gap between those who simply could not afford housing and those who could. The subsidy is aimed at those who earn between R3501 and R15 000 per month, have never benefitted from any government housing scheme in the past, and are preapproved for a home loan with a registered financial institution. The subsidy can be anywhere between R20 000 and R87 000, depending on your affordability, and can be used as either a deposit to secure the property or injected straight into your home loan as a way to lower your overall bond repayment period.
The FLISP subsidy can make a huge difference to potential home owners but is also appealing to banks and other lending institutions. One of the major stumbling blocks in buying a property is having a large sum of cash to act as a deposit to secure the property. “After the 2007/2008 economic downturn we realised that there were fewer aspiring home owners able to meet the strict lending criteria imposed by the banks,” Meyer de Waal, director of conveyance law firm Oosthuizen and Co, explained. “With banks seldom willing to offer 100% home loans, many buyers just don’t have the capital to use as a deposit. This is where things like the FLISP subsidy www.reimag.co.za
can be so beneficial to the public. Sadly, few people know about it and are missing out of thousands of Rands in financial aid.” The other method of using your FLISP subsidy, as a cash injection into your bond, has many benefits too. Fazlin (real name withheld) was one such home owner who recently obtained her subsidy through the help of Meyer and his team. Fazlin fits the FLISP requirements perfectly: • She is a South African citizen who has never benefited from any housing scheme in the past • She earns R9900 per month and qualified for a home loan of R355 000, which she opted to pay back over 30 years • She qualified for a FLISP subsidy of R50 575 • Without the FLISP subsidy, she would have paid the bank the capital loan of R355 000 plus interest of R862 069, for a total of R1 217 069 over 30 years • By depositing her FLISP subsidy directly into her loan she continues to pay back the same instalment costs but will have paid back her home loan in 14 years and 11 months, saving herself a further R514 210 on repayments The FLISP subsidy can make a huge difference to potential home owners but is also appealing to banks and other lending institutions. When getting a home loan, the financial institution underwriting the loan is essentially taking a gamble on the applicant’s ability to pay back the money. By adding a FLISP subsidy as deposit or as a direct injection into the bond, it immediately reduces the financial risk for the lender and makes the applicant a “safer bet” than before. If you want to know more about the FLISP subsidy, go to www.flisp.co.za or contact Oosthuizen and Co through www.oostco.co.za. OCTOBER 2015 SA Real Estate Investor
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Technology and House Hunting More than three-quarters of house hunters use technology when both searching for a home and interacting with realtors or agents
37% read profiles of real estate agents online
74% find a tech savvy agent more reliable
89% use online resources such as property sites/social media/crime stats during the home buying process
Top three ways in which buyers use online tools to find homes
83% use online resources to find property in their desired area
72% use online maps to explore neighbourhoods of interest
71& Use email, apps and websites to submit important documents to agents
ANSWER AND WIN A DESIGNER WATCH!
For a chance to win a David Green Timepiece valued at R3,995,00 simply answer the following question.
“Which university did Dolf de Roos attend in New Zealand?” Submit your answer to subs@reimag.co.za by no later than 30 November 2015. T&C’s apply. *Hint: Answer on page 11
ACQUIRING
SA Property year in review
The local property market performance through 2015 BY DR ANDREW GOLDING
A
lthough national house price growth currently reflects a gradual and modest easing – while still remaining ahead of inflation, the past year has seen a robust residential property market maintain its ongoing resilience despite South Africa’s sluggish economy and other global economic impacts. There are a number of trends, which characterise this period, with some still very much in evidence as we reach Q4 in 2015. First and foremost this includes a shortage of stock and an abundance of homebuyers – particularly in major centres, commercial hubs and other high demand areas around the country. This is along with a strong rental demand across the board, with every segment of the market active and experiencing a shortage of rental stock, with an oversupply of would-be tenants and as a result, increasing rental yields. As is the case globally, densification and urbanisation are becoming increasingly evident as households move to economic nodes along public transport corridors to avoid traffic congestion and young professionals gravitate towards city centres. This is accompanied by the continued trend towards a desired ‘live, work, 36
OCTOBER 2015 SA Real Estate Investor
play’ lifestyle, as seen in examples such as Melrose Arch, Steyn City and Park Central in Gauteng, Cape Town’s vibrant central city and the Gateway precinct in uMhlanga in KwaZulu-Natal. House prices within the country’s major metropolitan areas continue to good capital growth, registering healthy growth rates with pockets of excellence such as Cape Town Metro which has experienced house price growth in excess of 20 percent over the past year to date. Limited land availability within these areas, combined with rapid urbanisation and migration between metros – with a steady influx of people seeking economic opportunities, are contributing to a steady increase in metro house prices. An exponentially increasing aspiration among home owners to seek residences with lower overheads and energy-saving features in order to reduce utility and other monthly costs has seen the demand for sectional title units ie apartments and townhouses, grow in comparison to freehold properties. Confirming the national trend towards downsizing to more manageable homes, the number of flats and townhouses built has also risen, brought to market by developers who www.reimag.co.za
continue to demonstrate confidence in the marketplace, following their return after a long absence in the wake of the 2007 global financial crisis. This has resulted in a healthy recovery in the number of new units being sold. As the revival in the residential property market has become more entrenched, it has precipitated the return of the holiday buyer, with many capitalising on the opportunities for sound value for money presented in the market. For most leisure buyers, the coastal lifestyle – whether for permanent residence or holiday getaways – represents easygoing, fun living with sun and sea free of traffic, pollution and the crime often associated with large cities. Notably, the last time that coastal areas enjoyed a price premium over non-coastal regions was during the 2004 residential property boom. The coastal premium then re-emerged in late-2013 – a trend that continued into 2015. In the face of an ongoing supply of leisure properties, the sector has clearly benefited from renewed interest among cash-flush buyers.
RESOURCES Pam Golding Properties www.reimag.co.za
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SOLUTION D TE A uarding Service R | G s | t G Command El en onal
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Fidelity Security Group is Southern Africa’s largest integrated security solutions provider and the industry leader in protection innovation.
Our electronic security solutions lead the field across the residential and commercial markets in South Africa. Our thorough system needs analysis ensures our clients benefit from custom designed capabilities, which can include: Digital/IP based DVR and NVR CCTV Access control systems Perimeter physical fencing First line detection, e.g. electronic security fence detection or stacked active beams • Electric fence installation (with COC certification) • Remote site monitoring • • • •
• Guard monitoring systems (including an innovative interactive jacket) • Specialised security products: - vehicle video transmission - remote video verification - video viewing software
These integrated technology solutions are strengthened by the combined performance of our comprehensive service offering, including Guarding Services, Cash-in-Transit and Retail Cash Solutions, as well as Specialised Services such as Tactical Air and Ground Support, Events and VIP Services, Mining Security and Intelligence. Trust a new breed of security solutions based on expertise and service excellence. • Over 82 branches nationwide • Protecting 1 000’s of citizens and their assets
• Supporting 49 000 employees and their families • Proudly South African. AAA BEE rating
+27 11 763 9000 www.fidelitysecurity.co.za
REI COMMERCIAL
MARRIOTT INTERNATIONAL UNVEILS PLANS FOR SOUTH AFRICA
M
arriott International Inc. an American diversified Hospitality Company that manages and franchises a broad portfolio of hotels and related lodging facilities, plans to develop a Johannesburg hotel and executive apartments at a cost of about R1 billion, the U.S. hotelier’s first own-branded properties in South Africa. According to Marriotte, Africa is important to their growth strategy because of its rapid economic growth, growing middle class and youth population, as well as the expansion of international flights onto the continent U.S. companies including retailer Wal-Mart Stores Inc. and food-maker Kellogg Co. are expanding in Africa as household incomes rise and economies grow faster than more developed markets. Amdec Property Group, Marriott’s local partner, said in a separate e-mailed statement that Marriott’s 150-room hotel and 200-unit apartment complex would cost a combined R1 billion. Marriott agreed to buy Cape Town-based Protea Hospitality Holdings last year for about $200 million. The company expects the two brands to expand into 18 African countries from ten over the next five years, Marriott said.
Cape Town’s Cape Town’s
Central City Central By the numbers City By the numbers Generated property rates in the CBD in Generated property millions of rands: rates in the CBD in millions of rands:
24
216 216
23.69
23.69 23.72
24 23 23 22
2012 2012
22 21
+23%
266 266
+23%
21.7 21.5 21.5
2013
2011
2012
2013
2014
2013
2011
2012
2013
2014
5 696 5 696
Jobs generated by the financial services Jobs generated by sector in the CBD the financial services sector in the CBD
2014 2014
155 151 155 151
93 % 93 %
21.7
21
254 254
Number of companies operating in the Cape Town CBD: Number of companies operating in the Cape Town CBD:
Total current value of Central City property (in billions of rands) Total current value of Central City property (in billions of rands)23.72
of companies are happy with the of companies CBD as a location aretohappy with the do business CBD as a location to do business
582 582
Companies offering legal services in the Companies offering Cape Town CBD legal services in the Cape Town CBD
155 151 155 104 151 88 104 72 88 59 72 59
104 104 88 72 59 88 72 59
Healthcare & cosmetic services Specialised services Healthcare & cosmetic services Architecture & engineering Specialised services Finance & banking services Architecture & engineering Travel services Finance & banking services IT & communication services Travel services IT & communication services
Office space in the CBD 83
Office space in the CBD
86.6% 1.025 Million 86.6% 1.025
of office space in the Cape Town CBD is of office space in the occupied Cape Town CBD is occupied
Million
of the metro region’s Premium-grade office of the metro region’s space is in the CBD Premium-grade office space is in the CBD
of A-Grade office space in the CBD of A-Grade office is occupied space in the CBD is occupied
60% 60%
www.reimag.co.za
Square metres of office space in the CBD Square metres of office space in the CBD
90% 90%
7183 59 71 59
12% 12%
Improvement from 2013 Improvement from 2013
2012 2013 2012 2014 2013 2014 the Businesses rating CBD’s public transport Businesses rating the as “Good or excellent” CBD’s public transport as “Good or excellent”
Education in the CBD
7% 7%
Improvement from 2013 Improvement from 2013
93 9386 81 86 81
2012 2013 2012 2014 2013 2014
Satisfaction with doing business in the CBD Satisfaction with doing business in the CBD
OCTOBER 2015 SA Real Estate Investor
CBD & Government
39
MY STORY
The Deal
Cashflow breakdown on Commercial properties
G
awwie Venter is the main dealmaker in Africas hottest new business reality show, The Deal, which has created a unique way for the South Africa Property Market to view how property is bought, renovated, leased and sold. The shows central focus is on buying below the market value commercial property and extracting value from it. The degraded building is purchased and Gawwie, with a team of renovators and entrepreneurs, focus on turning into an architectural gem within one month. The show aims to highlight the nitty-gritty of property renovations, along with the all the extra expenditures incurred along the way.
The Building Statistics Erf size: 6770m2 Warehouse: 2268m2 Offices: 406m2 with top end finished on the first floor Total under roof: 2675m2 Additional Prices Incurred • • • • • •
16 Cameras (inside and outside) that monitor and keep record of all activities Electric Fencing linked to an alarm Outside beams linked to alarm and security lights Alarm system with 3 loud sirens and remote management via mobile phone 55 inch TV screen connected to cameras Cameras can be linked to your cell phone and any computer device and viewed from anywhere in the world • Armed Response • Intercom at gate • SMS received of all activities on premises and sms interaction with alarm -
RESOURCES thedeal.tv 40
OCTOBER 2015 SA Real Estate Investor
www.reimag.co.za
GLOBAL CITIZENSHIP
Secondary Citizenship
Programmes Benefits of Long term investing overseas
O
ffshore investment through secondary citizenship programmes has grown in popularity in recent years as a viable source of investment income, ideal if for those who have global financial needs and want to hold some of their money outside their home country. We spoke to George Eid of Arton Capital about the options currently available to South Africans looking to invest offshore, and the benefits of secondary citizinships. What are the options available to South Africans wanting to invest in secondary citizenship programmes? Global citizen programs basically fall within two categories: direct citizenship programmes which allow investors to invest or to donate capital to a government fund, or buying property to obtain citizenship within less than a year. However these options are probably not the most popular ones amongst South Africans due to the fact that they tend to be non-EU programmes. Of course what we’ve seen is that South Africans are looking at EU programmes due to the fact that their kids could eventually go study, work and live there. For them the education factor is the most important. When we talk about the EU programmes there are
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OCTOBER 2015 SA Real Estate Investor
three that we specifically recommend: Cyprus of course being the most expensive but the quickest – requires the investor to put R2.5 million into a residential property for three years and then they can sell it. You’re looking at a 90 day time frame for them to get citizenship and a passport. It is expensive of course, generally properties that South Africans have been exposed to are the pricier ones in for example in Portugal or Spain we do advise that they look at the alternatives available to them. On the other hand the programmes in Bulgaria and Hungary require investors to an investment in government bonds, which can be financed, and it becomes more cost effective for the whole family. How long does it take? There are two options in Bulgaria – there’s the normal procedure which requires the initial €511,000 (which can be financed as I mentioned); the applicant gets their permanent residency in six to eight months while the family takes another 3 to 4 months to get their permanent residence and in 5 years they qualify for citizenship. As of December 2013 a new law allows investors who already have one year of permanent residence to fast track their application. So rather than waiting 5 years, www.reimag.co.za
GEORGE EID they’re doing here. Like all South Africans they love their country but they want to have a backup plan in case of political turmoil or instability. The third benefit is the wealth protection and making sure that their wealth can be passed on to the next generation. When you look at secondary citizenship plans that’s one avenue that you can investigate further. they can double their investment 18 months after they joined the program, put another half a million Euros in government bonds and then apply for citizenship. So it can basically take two years instead of the normal 5 year period. Do you assist in terms of selecting a property? In Cyprus we do filter a few properties that we believe are suitable; where we’ve done all the due diligence and there’s a bank guarantee which means that they will eventually reach fruition etc. But of course when you go with a passive investment in government bonds there’s always the benefit of not having to worry about the investment depreciating or being at risk; because it’s a government bond you’ll get your money back at the end of the day. Are you finding that more and more South Africans are looking into these options? Definitely. If we look at it from a perspective of them securing something for the next generation – especially when it comes to the EU education system and having something for their children – that’s the biggest goal and objective that South Africans have. The other one is that they don’t necessarily want to leave South Africa, they’re very happy doing what www.reimag.co.za
What does Arton Capital do to facilitate this process? Arton Capital is a financial advisory firm. We advise governments on how to structure programmes so we always look at the global citizen as the centre point – he’s surrounded by all these government programs. We advise governments with regards to legislation and what kind of programs need to be in place to attract these investors. What advice do you have for South Africans wanting to invest in secondary citizenship? Before an investor pursues any programme they need to do their homework; they should look deeper into these programmes and the legislation, contact the embassy and try to visit, to explore to see what the reality is on the ground, to meet our team and the lawyers and the bankers. It’s always much better to get all the bits and pieces together before you make a decision. Have you seen a trend in terms of increasing global immigration? Definitely. There are different variables; instability, political turmoil…but lately for the first time we’re seeing Americans and Europeans looking at it for reasons like tax as their governments are taxing their wealth quite heavily. OCTOBER 2015 SA Real Estate Investor
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Mandela Bay Development Agency Inspiring Tourism Real Estate Investment Since establishment, the MBDA has invested over R500 million in urban infrastructure upgrades in Nelson Mandela Bay. The results have been outstanding, generating R548 million in new business sales, creating nearly 2000 jobs and an impressive R178 million in additional GDP, changing the face of the Nelson Mandela Bay.
Supported by:
Supported by:
CLEAN AUDIT REPORT FOR 2012-2014 from AGSA
Tel: 041 811 8200 info@mbda.co.za www.mbda.co.za
MBDA UPGRADES STIMULATE PRIVATE SECTOR INVESTMENT AND JOB CREATION Resulting from the MBDA’s public investment in the inner city of Port Elizabeth, Nelson Mandela Bay The outcomes of the 2014 primary research, in respect of private sector investment, indicated the following: 29.8% of businesses within Central made some form of improvement to their property in 2014. In comparison, 75.0% of residents who indicated that they owned their properties made improvements in 2014. The average value of improvements made by businesses was R45 000, while for residents it was R21 667. Based on the average value of improvements, Central businesses invested R3.4 million in 2014. A sharp fall-off in investment by Central businesses and residents has been evident since 2013. Engagements with businesses and residents in the area have indicated that the primary reason for this decline is the poor overall economic environment (i.e. slow growth in domestic consumption expenditure resulting in less revenue for upgrades and/or business expansion). Businesses, as evidenced by survey results, are also less confident about future economic prospects, rising crime levels, and poor levels of service delivery (including maintenance). The total value invested by Central businesses into their properties between 2009 and 2014 was R50.2 million. Jobs in Central are on the up The survey outcomes indicate the following in terms of employment creation in Central:
23.5% of surveyed businesses indicated that they had hired additional staff in 2014. Central businesses hired on average, 3.2 new staff members in 2014. Using this average number, as well as the number of Central businesses, it is estimated that 193 new jobs were created in 2014. Between 2010 and 2014 an estimated 1709 new jobs have been created. The businesses surveyed in 2014 employed approximately 1 360 people. Of this total, 81.8% were employed on a permanent basis (2013: 75.9%) and 18.2% were employed on a part-time/ casual basis (2013: 24.1%). Upgrades encourage conducive trading environment The survey outcomes indicated the following key findings about the business trading environment within Central: 15.3% of businesses surveyed (39) indicated that they had been operating for less than one year meaning that they only started operating in Central in 2014 (2013: 13.1%). New start-up businesses are a positive sign for the area as they are both an indicator of positive sentiment about the area and they tend to spend more money in the local area as opposed to larger companies which tend to have central purchasing offices.
The majority of new businesses started in Central during 2014 were apparel and personal care stores (25.6%). Over 50% of new business start-ups are located in either Govan Mbeki Avenue (28.2%) or Parliament Street (23.1%). Other popular locations for new business start-ups were Rink Street, and Strand Street (both 20.5%). Business confidence shows positive signs in Central Businesses were asked how they would rate their overall confidence in the business environment in Central (i.e. prospects growth, trading conditions etc.). Almost two thirds of businesses surveyed (62.7%; 2013: 55.6%) indicated that they were either extremely positive (7.1%; 2013: 18.8%) or positive (55.7%; 2013: 36.8%) about the current Central operating environment.
Construction in Progress
For more information please contact: Luvuyo Bangazi | info@mbda.co.za | www.mbda.co.za
REITS
Online Shopping a Boon for Logistics REITs Long term investing specialising in the Logistics Industry BY GRANT LOWTON
I
t is a familiar notion that online shopping has made certain purchases more convenient. This has amplified the need for some companies to raise their web presence in order to gain competitive advantage, or even just to remain relevant. Notably though, it has also increased the need for the warehousing and distribution of merchandise. This in turn makes a compelling case for long term investment into Real Estate Investment Trusts specialising in the Logistics industry What is a REIT? A Real Estate Investment Trust (REIT) is a company that owns income producing real estate. A REIT is much like a specialized mutual fund, as opposed to a traditional home ownership. A REIT may
invest in a wide variety of companies that build, own and manage commercial real estate. REITs provide the investor an opportunity to own a fraction of shopping centers, office buildings, parking garages, factories and a number of other property types that produce and provide income. By law, REITs must distribute 90% of their income through to shareholders, who are liable for taxes on that income. The distributions are taxed as ordinary income, only once, at the shareholder level. This is unlike corporate dividends, which are taxed once at the corporate level and then taxed again at the shareholder level. For decades, the rate of shopping centre growth in the United States was robust. As suburban population density increased and purchasing power thrived, retail landlords strategically positioned themselves to benefit
US SHOPPING CENTRE GROWTH RATE, 1974 – 2013 Source: ICSC, Cowen and Company
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OCTOBER 2015 SA Real Estate Investor
www.reimag.co.za
ELECTRONIC SHOPPING AND MAIL ORDER AS % OF RETAIL SALES Source: US Census Bureau, Cowen and Company
from this. However, over the last few years there has been a decrease in the rate of shopping centre growth, as seen in the chart below. Notwithstanding the fact that shopping centre growth has almost ground to a halt over the last few years, retail sales growth has been steady. The disparity in shopping centre growth versus retail sales growth can to some extent be attributed to the increase in online shopping relative to total retail spend. The following chart reveals an interesting trend. Albeit off a low base, it is clear that an increasing proportion of retail spend is occurring through online channels. According to research by Cowen and Company, the sharp decline in retail development over the last few years may be more than a transient blip. Increases in GLA are likely to remain depressed over the foreseeable future. Reasons for this include: • Higher market penetration has moderated the necessity for significant surges in retail space. • Suburban centres are largely landlocked, making further expansion spatially challenging. • Online shopping has somewhat obviated the need for physical stores. In addition to decreasing the need for physical stores, increasing online shopping also has supply chain ramifications, as virtual purchases necessitate warehouse storage as well as adequate distribution capabilities.
www.reimag.co.za
A REIT that is benefitting from the shift in consumer purchasing behaviour is US-listed Prologis. It is a global logistics and distribution operator that provides essential warehousing and distribution capabilities, key components of the online retail supply chain. A crucial aspect of Prologis’ strategy is to own and operate facilities near main seaports, airports and highway interchanges. This calculated positioning allows them to most profitably store and distribute goods to customers whose businesses are linked to global trade and who depend on the efficient movement of goods through the global supply chain. The secular shift towards online shopping is forecast to perpetuate the strong demand cycle for Logistics REITs and makes a compelling case for long term investment into this REIT sector.
REIT INVESTMENT BENEFITS • Diversification: Long-term Equity REIT returns have recently exhibited low correlation to the returns of the broader stock market, providing diversification benefits. • Dividends: Stock exchange-listed REITs have provided a stable income stream to investors. • Liquidity: Stock exchange-listed REIT shares can be easily bought and sold. • Performance: Over most long-term horizons, stock exchange-listed REIT returns outperformed the S&P 500, Dow Jones Industrials and NASDAQ Composite. • Transparency: Stock exchange-listed REITs operate under the same rules as other public companies for securities regulatory and financial reporting purposes. OCTOBER 2015 SA Real Estate Investor
47
FINANCE
Investments through the
Global Market Why property portfolios continue to remain an attractive investment BY KELLY HOOK
D
iversification in the South African context used to mean a mix of properties across three sectors, namely retail, office and industrial spread across the main metropolitan areas. Today, diversification includes property investments across various global markets, including Europe, United Kingdom and Africa, as well as exposure to Australian real estate through shareholdings in offshore property companies. Investors face a new reality when buying SA listed property shares. Investments in locally listed property offer investors exposure to property investments outside of South Africa. On average, SA-listed property portfolios have diversified so much so, that more than 25% of investments in the sector are situated beyond SA’s borders. Property companies such as New Europe Property Investments (NEPI) and Rockcastle have portfolios that are entirely invested outside of SA, while the local diversified portfolios of Growthpoint and Redefine have 25% and 16% invested offshore exposure respectively.
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OCTOBER 2015 SA Real Estate Investor
Of the 20 companies in the FTSE/JSE SA Listed Property Index (SAPY), 12 have diversified into offshore property investments with eight of the largest companies by market capitalisation offering at least some offshore exposure. The biggest currency exposure is to the euro, thanks in part to NEPI’s investments in Eastern Europe.
While the net income yield on offshore investments is generally lower than in SA, favourable low funding rates can provide yield enhancement on equity. Diversification of this nature appeals to SA investors, as it provides a currency hedge against the rand. While the net income yield on offshore investments is generally lower than in SA, favourable low funding www.reimag.co.za
SA faces a number of headwinds and economic growth is likely to continue to disappoint in the short term. In this environment, the opportunity to access growth via offshore diversification, yield accretive transactions and management expertise in sweating assets is valuable and demands a premium. Few other investments, whether locally or globally, offer the attractive combination of a high initial yield, as well as income and capital growth that property does.
rates can provide yield enhancement on equity. However, the growth potential of these investments is generally lower than in SA, given the very low inflation environment. A further diversification to the SAPY is the inclusion of development companies, Attacq and Pivotal, which now make up 6% of the index. These companies earn development profits, as well as rental income on their portfolios. However, they do not distribute income to investors, but reinvest the income into new developments, boosting capital growth. The effect on the SAPY is an unwitting reduction in the overall income yield. In the past two years, listed property has become more expensive relative to long bonds for a number of reasons. The search for yield with good growth gives listed property a material advantage over bonds, while effect quantitative easing on local property yields, as cheap money floods the market, has been evident. Given that the local property market is relatively well hedged in terms of debt over the medium term, www.reimag.co.za
a sovereign rating downgrade would affect the bond market more significantly. However, the current premium of 31% that listed property trades over long bonds has sounded alarm bells with market commentators decrying listed property valuations. The increased weight of foreign property investments and new development companies in the SAPY requires a reconstitution of the composition of the index when comparing historical perspectives. When offshore and development holdings are excluded from the SAPY, the net result provides a clearer understanding of the actual yield being achieved on local property. The forward yield on the property sector increases from 6.1% to 7.1%, resulting in a 1.1% spread (or a 13% premium) to the bond yield. This means investors are paying for 24 months additional income growth upfront, which seems reasonable in an investment world searching for income yield and growth in income.
RESOURCES metopegroup.com OCTOBER 2015 SA Real Estate Investor
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MidCity Property Group has taken on the challenge set out by Tshwane Vision 2055 by further investing and uplifting the inner city of Pretoria through various avenues including but not limited to: City Living, The Edge Student Living and Fleurenville Assisted Living and Care Centre.
The Edge Student Living was developed with the intention of setting a new standard in design and operational management of student developments. It also provides students with the comfort of the quality of services that all buildings within the brand must deliver.
The drive behind the City Living brand is to provide the consumer with the comfort of a standardised product. Key focus areas are affordability, cleanliness, safety and locality.
Fleurenville Assisted Living & Care Centre is situated in central Pretoria, with a new home in Montana opening soon! They are specialists in elderly care as well as exlcusive and convenient services. They make it as easy as possible for their residents by offering various services.
Services
MidCity Property Group is one of the leading property services companies in the Pretoria area. We are unique in that we provide holistic property solutions, covering all aspects of the property industry.
/ Property Management / Commercial and Residential Rental Management / Sectional and Full Title Management / Property Broking / Sales / Project Management / Developments / Property Valuation / The EDGE Student Living / Fleurenville Assisted Living and Care Centre / Khwela Power Metering / Property Insurance
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The Feenstra Group of companies is niche Commercial Developers & Investors, and also specialises in Strategic Facilities Management and Student & Inner-city Accommodation. The professionals associated with the Feenstra Group have proven knowledge of, and demonstrable experience in all facets of the property market.
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INSURANCE
Sectional Title Trusts Staying on top of policies and procedures
A
trusteeship can often be an overwhelming acquisition for first time trustees, with a multitude of new policies and procedures to organize and access. Ensure that the correct procedures are being followed with these helpful tips Check the building policy Ensure that you have a copy of both the policy wording and schedule. Make a list of the following points to double check • Is the sum insured as you have been advised? • Is the policy a specific sectional title policy? • Does the policy provide for burst pipes and burst geysers? • Has trustee indemnity cover been included? This is either a separate section or an extension of liability cover. • How much fidelity cover is provided? Check fidelity cover requirements Check if there has been a body corporate decision on the amount of fidelity cover required, if any. This is the most over-looked insurance aspect and something that should be dealt with immediately. Trustees are required to ensure that the owners make a decision on the amount of fidelity cover required. Excess arrangements Take a look at the body corporate rules in respect of excess, i.e. who pays the excess under which circumstances. Make sure that brokers and insurers structure excesses in a way that accommodates this rule. Excesses “per unit per claim” are not advisable. Make sure your policy reflects excesses “per event” so that apportionment of excesses in multiple claim scenarios does not become over-complicated. 52
OCTOBER 2015 SA Real Estate Investor
Request a claims history Obtaining a claims history report from the insurer will reveal the true history. Are the trustees aware of each and every claim submitted? Check the trend and ratios, and have the insurance advisor provide thorough explanations on the claims history. Take all reasonable precautions around common Ensure that a consultation with a safety expert has organized to audit the common property for fire and safety requirements. The inspection can cover safety standards in respect of national building regulations being met, e.g. handrails are where they should be, braai area chimneys are up to standard, swimming pools properly enclosed, etc
Obtaining a claims history report from the insurer will reveal the true history. Have all owners concur with the sum incurred Ensure that all owners have a copy of the latest schedule of replacement values and that the owner’s acceptance of the schedule of replacement values has been recorded at a general meeting. The rights to increase the amount of insurance for units where large alterations or improvements have been undertaken should be made clear to the owners of the property.
RESOURCES www.addsure.co.za www.reimag.co.za
REI OFFSHORE
EXPERT Q&A
CHINESE BUYERS SNAP UP US PROPERTY
C
hinese buyers have been snapping up U.S. real estate of all kinds, looking for a safer place to put their money than their own slowing economy. Investors from China are now second only to Canadians in the number of U.S. homes they buy. In the last few months, amid signs that China’s economy is slowing even more than expected, Chinese investors have stepped up their buying even more. The government’s decision last month to downgrade the country’s currency added to their urgency, since a weaker yuan makes buying real estate in dollars more expensive. While purchases by foreigners represent just a sliver of overall U.S. home sales, they have impacted markets significantly in certain cities such as New York, San Francisco, Seattle and Irvine, California. Buyers are also showing up in more affordable Midwestern areas like Chicago. In the 12 months ended in March, roughly 209,000 U.S. houses were sold to buyers living outside the U.S. or immigrants in the country for less than two years, according to the National Association of Realtors. That represents about 4 percent of all sales of previously occupied homes in the same period. Of the $104 billion in total sales, Chinese buyers accounted for the biggest portion, $28.6 billion. Half of those sales involved homes in Florida, California, Texas and Arizona.
George Eid General Manager of Ayton Captial Q What is the difference between a residency and citizenship?
This differs in small respects from country to country but in essence the difference between residency, permanent residency and citizenship can be explained as follows: A residency permit gives a person the legal right to work, live and or study in a country while still holding foreign citizenship. The permit does have a time limit and the permit holder will need to meet various requirements to have it extended or renewed. Permanent residency implies that you can live in said country indefinitely but may well not have the right to vote and your residency can be revoked in the event of a criminal conviction. Q What are the advantages of having either citizenship or residency?
The answer to this question depends on where you’ve applied. For example; if you apply for either a residency permit or secondary citizenship in Dominica you don’t need to live there and you get Visa-free access to over 95 countries – including the Schengen Zone, the UK, Hong Kong, Malaysia, Singapore and Turkey. You do not however gain access to the right to live and work in these countries. If you apply to Hungary on the other hand you can eventually become an EU citizen which gives you all of the rights natural born Europeans have (within a period of five years). So in essence the advantages range from Visa-free travel to the right to live/ work and study in a country to eventually also being able to vote. Q Are residencies or citizenships open to family members?
This process differs from program to program but in general the answer is yes. In Hungary applicants can include dependents under 18 at the time of PR (primary residence) application approval. In Cyprus on the other hand dependent children under 28 years qualify for citizenship on the basis of their parents’ applications.
www.reimag.co.za
OCTOBER 2015 SA Real Estate Investor
53
AFRICA
The Future of
Mozambique The Impact of Gas BY BRYAN WESTER
T
he world may be poised for the beginning of the ‘Golden Age of Gas’. According to a study conducted by Ernst and Young, natural gas is the only fossil fuel whose share in the global energy market is expected to grow. Mozambique stands at the forefront of this gigantic opportunity for economic development. The development of Mozambique’s gas resources can substantially add to the potential new supply Mozambique needs. The global landscape offers and holds a tremendous opportunity for the country to become a prime mover amongst economies of scale in Africa. The North-eastern coastline of Mozambique, with a specific focus towards Areas one and four are estimated to hold more than 100 trillion cubic feet of natural gas deposits, which translates to about 50 metric tons of liquefied natural gas exports. These discoveries can hold as much potential as 30 to 40 times the current Gross Domestic Product (GDP) of Mozambique. More importantly though, are the subsidiary industries that have already started to the reap the benefits of these large natural gas fields in the Northern 54
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part of Mozambique such as in the property and construction sectors. The skyline of Maputo has already been transformed into a ‘modern oasis’. Numerous infrastructure layouts are now taking shape. What does this mean for Mozambique, and more specifically the property sector? Natural gas resources are a critical, foundational element of the economic growth and development of Mozambique. These resources will account for a significant part of the states revenues, a catalyst for employment and Foreign Direct Investment (FDI), and the broader development of infrastructure in the country. This is most notably seen by the large amounts of FDI in the exploratory phase of these natural gas fields, from the likes of Anadarko, Vale, ENI and Sasol, whom combined have contributed US$5 billion towards these endeavors over the past five years. The Mozambican government and property developers are those who have benefited the most so far. In the last quarter of 2014, the Mozambican state owned company of ENH (the commercial arm for the hydrocarbon sector, for research, development www.reimag.co.za
and production of oil and gas) and Royal Dutch Shell signed an agreement to proceed with conducting a feasibility study into the transformation of natural gas into liquid fuels, in order to start expediting the realization of exportation.
“Natural gas resources are a critical, foundational element of the economic growth and development of Mozambique.” However, the property sector in these surrounding regions are at the mercy of this sometimes arduous process, as the E and G companies face many risks in the political, economic, legislative, taxation, operations and security spheres. If these above-mentioned aspects can be dealt with within a realistic time frame we will see once again www.reimag.co.za
see the ‘boom’ up North rejuvenate and prepare for a second wave of mass construction. However, much lies on essential gas master plans in order to convert these gas fields into natural prosperity and allow for the subsidiary industries to grow to full fruition. Elias Pungong from Ernst and Young, states that, “The virtual completion in exploration and the future production activity brings opportunity, not just for the large international players, but also for local and regional companies that can contribute to the supply chains and associated support infrastructure. The associated development sector brings substantial commercial opportunities for power generation, housing, transportation and a range of other facilities such as; hotels, offices and mixed-use developments.” Northern Mozambique’s port city of Pemba is a shining example. Traditionally known as a tourist destination, Pemba has now become an integral part of Mozambique’s offshore natural gas industry. The Pemba Beach Hotel, which eight years ago was struggling for survival, is now consistently booked to capacity through the gas companies housing their workers, due to the lack of available accommodation resources. Property developers have spotted this gap in the market and as a result over the past four years have rushed to secure prime parcels of available land set for development to satisfy this need, thereby re-igniting this once dormant town. It remains to be seen what 2015 holds, owing to the legislative beaurocratic nature of the Mozambican government to pass sufficient strategies enabling the LNG process to take shape. Many developers have been ‘waiting this process out’ from mid-2014, as much uncertainty is evident in these Northern regions as to the final outcome and when to progress forward once again. A projected GDP is expected to increase between US$50 to US$100 billion in the next decade, which is being led from gas and mineral profitability upon smart regulation of the extraction and packaging of the reserves to international markets. There needs to be considerable emphasis on strengthening the financial sector within Mozambique and adequate institutional arrangements must be made between local business practices and government policies, in order to adequately prepare for a successful stimulation of the economy and to positively affect the associated subsidiary industries.
RESOURCES Te Galetti Knight Frank los Group OCTOBER 2015 SA Real Estate Investor
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FOREX
How to make the most of
SARB’s relaxed exchange control regulations BY ANDREW RISSIK
In April this year, the National Treasury announced an increase in the annual foreign investment allowance from R4 million to R10 million per individual per year. In this article, Sable Forex MD Andrew Rissik explains what this means for local and foreign investors as well as how they can take advantage of this increase.
W
ith the increase of the personal allowance from R4 million to 10 million per individual, investors are now able to send up to R11 million abroad to any account they like (when taking into account the R1 million discretionary allowance). If you are married to a South African citizen, this amount increases to R22 million per year, taking into account the combined personal and discretionary allowances of you and your spouse. In addition to this, there were a raft of other positive exchange control threshold changes announced this year: • The corporate investment limit that authorised dealers can process has been increased from R500 million to R1 billion per year. • Dispensation of credit card usage will be extended to corporations - currently this is only available for individuals. 56
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• The annual R1 million individual single discretionary allowance subcategories have been scrapped, allowing for the discretionary use of all funds in this category. As we examined last year, offshore purchases are considered imports and will not be included in your yearly discretionary allowance. This means that the online purchase of, for example, an iPad, won’t count against your R1 million allowance. What these changes mean for you Until this year, the South African Reserve Bank’s (SARB) stranglehold on money movement out of South Africa made it difficult to invest large amounts of money abroad. Previously, the per-person allowance was increased to R4 million per year, allowing a transfer of up to R8 million if your spouse was also a registered www.reimag.co.za
taxpayer and South African citizen (R10 million if you took both parties’ R1 million discretionary allowances into account). Although a fair amount of money, the steady fall of the Rand along with the rising costs of property and other investments abroad meant that the allowance sometimes fell short of what was needed to make a meaningful investment within the European Union. What these changes mean for South Africa One reason for the drastic relaxation of the exchange control regulations is to incentivise international expansion for local companies, particularly into Africa. However, at its core, what the decision really reflects is the SARB’s decision to modernise capital flow management in a bid to attract more foreign investment. By relaxing controls and allowing foreign investors to move money in and out of the country without the fear of being trapped in a bad financial situation, South Africa has opened its doors to long-term capital investment. This can only be a good thing. The challenge of reporting and how Sable can help Sending money into South Africa has traditionally been easy, but ever-increasing surveillance requirements are www.reimag.co.za
making it more frustrating than ever for locals to send money out of South Africa. Despite the SARB relaxing its capital flow restrictions (in fact, it has removed capital control measures on non-residents altogether in a bid to attract inward investment), it has tightened financial surveillance in an attempt to counter money laundering and the funding of terrorism. This means an increased emphasis on reporting and the associated bureaucracy - a frustrating process for many, as the complexity involved in securing both allowances makes the exercise long-winded and often plagued by red tape. Sable Forex operates in this niche. Our goal is to make the process easier by removing the daunting prospect of dealing with governmental red tape, inefficiency and bureaucracy. We do this by managing all reporting and surveillance requirements, accelerating the process through which your money enters and leaves the country. In all cases, we uphold the strictest compliance standards and conform to all SARB regulations. We tailor our approach to your needs, helping you open your own offshore account or, alternatively, holding your currency in our London-based client settlement account if you need time to make an investment decision. As an added bonus, you can fix your exchange rate when you send your funds and, when you are ready to buy, simply instruct us to transfer your funds to any onward bank of your choice. If you are interested in investing your money abroad, contact Sable Forex on +27 (0) 21 657 2153 or email us at forex@sable-group.com. You can also email me personally on andrew.rissik@sable-group.com. Here’s to the positive changes we’ll see from 1 April. OCTOBER 2015 SA Real Estate Investor
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NAMIBIA
Namibia’s Increasing Housing Bidding Wars Namibia is now ranked fourth globally in terms of housing-price increases
BY MICHAEL PITSOKOS
A
dearth of housing has driven up home prices among middle-class buyers in Windhoek, (population 400,000), the desert-fringed capital caught in an economic crosscurrent. Dozens of professional families move into the crowded city each month, drawn to jobs spurred by the mining and financial-services industries, and to new shopping malls and other amenities that offer a comfortable lifestyle. The increase in population has put a strain on the limited water and sewage service, which has resulted in the capping of building expansion. Namibia, with a population of 2 million, was ranked fourth globally in 2012 for the biggest housing price increases, after Hong Kong, Dubai and Brazil. Although price gains eased a bit in 2013, average prices still are double what they were six years ago. The rapid increase in property valuations is pricing many first-time buyers out of the market and increasing competition for the meager supply in the $100,000 to $300,000 bracket that is available. The average home price in Namibia today is $120,100, six times as high as the average price in 2000 of $18,800, according to the FNB data. How fast midlevel property prices are rising can be seen on the ground. According to Jannie Erasmus, a real-estate agent for Andreya Pereira Properties, a house bought for $116,200 in March 2012 was sold in February this year for $140,400. A half-year later, www.reimag.co.za
the property was sold again—for $155,000, with only minor touch-ups having been preformed inbetween. But while demand for midlevel homes is on the rise, the upper end of the property market is oversupplied, pushing prices lower. Still, high-end houses sell for as much as $1.2 million, such as an eight-bedroom, eight-bathroom house on the market through realestate company Pam Golding. A key selling point is the space. The biggest mansions have architecture that mimics castles, or have additional buildings on the property to house staff. A 12,000-square-foot home with three bedrooms and three bathrooms, was placed on the market for $366,100. Windhoek was once the center of German and apartheid-South Africa colonial rule. After independence in 1990, the city experienced rapid growth as people in the rural areas poured into the city, and investors arrived to mine uranium and diamonds. Windhoek was designed for about 150,000 residents. The government is trying to ease the housing shortage. The president announced plans for several thousand low-income homes, and the central bank is studying a regulation to limit speculation by requiring buyers of second and third properties to put down cash deposits. For now, Namibia is a difficult market for middle-class buyers.
RESOURCES
www.tgh.na OCTOBER 2015 SA Real Estate Investor
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UK
UK Property Investment Secrets Time to leave London for the best returns? BY GILES BESWICK
A
So why would a first-time investor considering making a UK property investment look anywhere else?
The emergence of Manchester Manchester has been bestowed a number of accolades in 2015. It was named by HSBC as the UK’s second city for investment and buy-to-let property hotspot, whilst it was once again named Britain’s best city to live in by the Global Liveability Survey. The largest economic area outside of London, Manchester’s growth has been stark. Its population is growing at three times the national average and 150,000 new jobs are forecast to be created over the next few years. This growth has been reflected in the property market. With one of the lowest levels of housing stock in the country, Manchester cannot keep up with the sustained demand for property, resulting in capital growth of 21% in the last two years and rental rises 13 times faster than London.
The market in the capital has peaked The London market has reach the top of its cycle. Property prices in central London are falling faster than at any time since the financial crash, with family homes down as much as 10% in just eight weeks The rental market is fairing little better, with quarterly growth of 0.2% representing the London market’s lowest rise since April 2014. Already investment is heading elsewhere in the UK, with interest from Hong Kong, Singapore and Malaysia is waning.
7 billion reasons to invest in Manchester now Manchester is central to the UK government’s Northern Powerhouse plans, and is set to benefit from £7 billion worth of investment in the coming years. As increased visitor numbers and workers migrate to the city, thanks to new business opening in tax-favourable enterprise zones, the emphasis on accommodation will become even more pronounced. Entering the market at the start of a curve, as proven in London twenty years ago, is pivotal to securing the best returns.
s South Africans have started to rush to buy a rand-hedging UK property asset, which cities should they be looking at?
London – a proven track record for growth For decades, investors have been charmed by London. High-end property, a major economic hub and returns in a strong currency; in many ways it was the perfect destination for overseas investors. In January 1995 the average London property cost £126,295. Twenty years later and that has risen to £611,340, representing an increase of 384% and returns of £485,045 for those investors who entered the market at the start of its curve.
So, where are international investors buying? 60
OCTOBER 2015 SA Real Estate Investor
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AN INTERNATIONAL PROPERTY INVESTMENT MASTERCLASS 22 OCTOBER 2015 RADISSON BLU, SANDTON, JOHANNESBURG Learn why South Africans are rushing to invest in UK property and why experts believe you can’t afford to be left behind.
KEYNOTE SPEAKER DOLF DE ROOS
Internationally renowned investor, author, educator and entrepreneur
EXPERT INSIGHT AND ADVICE FROM OUR SPEAKERS: ANDREW RISSIK Managing Director of Sable Group, expert in forex and international projects GILES BESWICK UK property market expert and Director of Select Property Group
With thousands of South African investors buying up property in the UK, REIM asks the experts to examine this growing trend and offer advice on how you can benefit too.
AS WELL AS EXPERT ADVICE YOU WILL LEARN: > Where the best locations are in the UK to invest right now > The process of investing as a non-UK resident > The property investments that are going to offer you the highest yields
HEAR FROM SOUTH AFRICANS WHO HAVE BOUGHT IN THE UK
“The UK property market has a stable, reliable and growing rental market that delivers healthy returns and offers some of the best locations to invest in globally.”
PLACES ARE LIMITED – SECURE YOUR PLACE TODAY
Call us on:
+27 21 761 3848 or email:
events@reimag.co.za
“The pound is long established as a hedge against the rand and provides a strong and attractive investment currency for overseas investors.” ANDREW HOSACK, 38, JOHANNESBURG
selectproperty.com
reimag.co.za reimag.co.za
28/07/2015 12:36
KEYNOTE SPEAKERS AN INTERNATIONAL PROPERTY INVESTMENT MASTERCLASS 22 OCTOBER 2015 RADISSON BLU, SANDTON, JOHANNESBURG GILES BESWICK
ANDREW RISSIK
KEYNOTE SPEAKER DOLF DE ROOS
Internationally renowned investor, author, educator and entrepreneur
GILES BESWICK
For over 20 years, Dolf has been Andrew is Managing Director GilesINSIGHT BeswickAND is the Director EXPERT ADVICE Learn why South Africans OUR SPEAKERS: writing books and teaching real of Sable Group’s Forex business, FROM of Select Property. Giles has estate,are as well as conducting facilitates investment of ANDREW been integral rushing to investwhich in UK RISSIK to the expansion educational programs in twentyinternational client money in the Managing of Select Property new Director of Sable into Group, property and why experts in forex and international six countries encompassing Asia, emerging SA property market. Heexpert territories and sectors, including believe you can’t afford to beThe Sable Group afterprojects North America, and Europe, established establishing corporate structure training real estate agents, and a decade in the UK doing private GILES in BESWICK multiple jurisdictions, left behind. UK property market expert and with introducing software to both equity deals. negotiation contracts Director of Select Property Group analyze and manage investment principals and partners, and property. He has written 13 protecting the intellectual bestselling books on real estate, property which makes the which have been translated into business unique in its market. numerous languages including With thousands of South African investors buying up property in the UK, Japanese, Bahasa (Malaysia and REIM the experts to examine this growing trend and offer advice on Indonesia) andasks Greek.
how you can benefit too.
EVENT MC
HEAR FROM SOUTH
AFRICANS WHO HAVE AS WELL AS NEALE PETERSEN BOUGHT IN THE UK PLACES ARE LIMITED – EXPERT ADVICE Neale is the Founder and Editor-in-Chief of Real Estate Investor SECURE YOUR PLACE TODAY “The UK property market has Magazine (REIM). Published since September 2007 REIM has already YOU WILL a stable, reliableawards and growing Call us on: won numerous for top property features magazine in 2012 and LEARN: rental market that delivers +27 21 761 3848
> Where the best locations are in the UK to invest right now > The process of investing as a non-UK resident > The property investments that are going to offer you the highest yields
recently won awards for Property publication of the year in 2015 and in healthy returns and offers some or email: 2013 as best awarded bytoSAPOA. of the locations invest inReal Estate Investor has already expanded events@reimag.co.za within Africa to Namibia, Botswana, Zimbabwe and Mozambique. globally.” “The pound is long established as a hedge against the rand and provides a strong and attractive investment currency for overseas investors.” ANDREW HOSACK, 38, JOHANNESBURG
selectproperty.com
reimag.co.za reimag.co.za
28/07/2015 12:36
An international INVEST IN UK PROPERTY property investment masterclass
SEMINAR
Learn why South Africans are rushing to invest in UK property and why experts believe you can’t afford to be left behind When: Thursday, October 22nd 2015 Where: Radisson Blu Sandton, Johannesburg Time: 09:00 to 09:30 – Registration 09:30 to 15:00 – Seminar 15:00 onwards – Networking with the speakers TIME 09:00 – 09:30 09:30 – 09:45 09:45 – 11:00 11:00 – 11:15 11:15 – 11:45 11:45 – 12:30 12:30 – 13:40 13:40 – 14:10 14:10 – 14:40 14:40 – 15:00 15:00 onwards
RUNNING ORDER Registration Welcoming address Keynote address – Why Property? Why the UK? Ask the expert – Q&A with Dolf de Roos Tea break Identifying high-performing UK markets Lunch How to buy in the UK as an international investor Opportunities with Select Property Group – The UK’s leading property investments Panel Discussion: Ask the experts Q&A Networking and individual consultations
REAL ESTATE INVESTOR MAGAZINE CEO NEALE PETERSEN LEADS AN ENGAGING AND THOUGHTPROVOKING EXPLORATION OF THE REASONS WHY MORE AND MORE SOUTH AFRICANS ARE RUSHING TO INVEST IN UK PROPERTY. HEAR FIRSTHAND FROM GLOBAL INDUSTRY EXPERTS WHY YOU CAN’T AFFORD TO BE LEFT BEHIND AND HOW TO MAXIMIZE YOUR INVESTMENT FUNDS. • Dolf de Roos – Internationally renowned investor, author, educator and entrepreneur • Andrew Rissik – Expert in forex and international projects and Managing Director of Sable Group • Giles Beswick – UK property market expert and Director of Select Property Group
KEYNOTE ADDRESS – WHY PROPERTY? WHY THE UK? – DOLF DE ROOS • What makes property a secure investment • The current situation in the South African economy and the implications for the domestic property market • What to consider as a property investor when your domestic currency is weak • Spotlight on the UK: Why the UK is a secure investment opportunity
IDENTIFYING HIGH-PERFORMING UK MARKETS SPEAKER: GILES BESWICK, DIRECTOR OF SELECT PROPERTY GROUP
Giles Beswick shares with us Select Property Group’s vast experience of dealing with international investors in over 117 countries, and the insight they are collecting from the massive increase in its South African customer base over the past 18 months. Giles will also explain what makes Select Property Group leading UK property investment experts, including: • Identification of prime opportunities and the key markets and locations in the UK right now • Understanding that there is no ‘one size fit all’ solution to property investment • Why the Group advise investors to look outside London for the best returns
HOW TO BUY IN THE UK AS AN INTERNATIONAL INVESTOR SPEAKER: ANDREW RISSIK, MANAGING DIRECTOR OF SABLE GROUP
A homegrown South African himself, Andrew Rissik is a forex expert specialising in the transfer of money out of South Africa into multiple international markets on a daily basis for his clients. Andrew will address the high-level technicalities international investors need to consider when moving their money into the UK.
OPPORTUNITIES WITH SELECT PROPERTY GROUP - THE UK’S LEADING PROPERTY INVESTMENTS SPEAKER: ADAM PRICE, GLOBAL SALES DIRECTOR FOR SELECT PROPERTY GROUP
Having been with Select Property Group for over a decade Adam has seen the company evolve into the UK’s leading property investment experts. Adam will explore Select Property Group’s unique end-to-end model and explain how this enables Select Property Group to cater for their global customer base, covering: • • • •
Select Property Group: We Build. We Sell. We Manage Why Select Property Group’s model suits an international audience Our success in delivering returns to our investors Select Property Group Brands o Vita Student – A proven investment model o CitySuites – An investment opportunity in the UK’s top investment location o Affinity Living – Coming soon
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GREEN BUILDING CONVENTION Date: 2 – 6 November Venue: CTICC, Cape Town Register: http://www. greenbuildingconvention. org.za/
SELECT INTERNATIONAL PROPERTY MASTERCLASS Date: 22nd October Venue: Radisson Blu Sandton, Johannesburg Register: events@reimag.co.za
CONSTRUCTION ESTIMATING Date: 26 – 27 Oct (Jhb), 28 – 29 Oct (Dbn) Venue: Wanderers Club Jhb, Coastlands Umhlanga Hotel Dbn Register: faith@alusani.co.za
MEET AND DEAL INDABA Date: 30th October Venue: TBC, Johannesburg Register: events@womenup.co.za
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