November/December Issue

ARE AGENTS A DYING BREED?

THE MAINSTAYS OF PROPERTY MANAGEMENT ADAPT OR DIE

NOVEMBER/DECEMBER 2013

To give our clients all they want, we give our agents all they need.

In our fast paced world we constantly strive to make things a little easier. That’s why we ensure our agents are equipped with the latest digital tools so that they can deliver a convenient and pleasurable real estate experience to our clients.

These include our Property Search app, our Augmented Reality app, our dedicated Mobi-site, our On Show Mobi-site and an in-house QR code creation facility. In addition our bespoke CRM system, Alchemy, and associated app, Showcase, provide our agents with instant access to properties and information to help them do what they do best: meet our clients’ property needs simply and effectively.

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ED ITO R ’S N O TE

PUBLISHED BY THE PROPERTY ADVERTISING JOINT VENTURE 6 Beach Road, Old Castle Brewery Woodstock 7925 021 447 7130

EDITOR’S NOTE

I cannot believe we have come to the end of another year – and it has been quite a year for both the magazine and the industry! The Property Professional title changed hands, its look and feel, and we broadened its scope of content. Each issue, it seems, we have brought you a new content element – from profiles of new agents on the block and the industry’s top performing agents, to the Property Platform, where we glean some insight into the views of industry leaders.

This issue, I am thrilled to say, heralds the launch of our very own website, www.propertyprofessional.co.za, which will complement the print version of the magazine by offering readers online access to all of the property news, views and in-depth insight on current issues along with agent profiles, interesting statistics and a downloadable version of the magazine. In addition, the website will feature standalone content covering current industry news and issues as well as features such as regular opinion polls so we can get your view on burning industry topics. Be sure to check it out and let us know what you think.

Big issues in the industry this past year have included getting to grips with the Consumer Protection Act and its repercussions for agents, credit amnesty, which was recently approved

by Cabinet, over-indebtedness of consumers, poor consumer confidence and ongoing tough economic trading conditions, amongst others. But, despite these challenges and hurdles, it seems as if real estate has continued to cruise along the plotted course of recovery. Development – both in residential and commercial space – has seen an uptick, with new developments launching in key areas with, by all accounts, great success. Property prices have, for the most part, seen reasonable growth, as have bank approvals on home loans, according to recent reports from the country’s leading mortgage originators. Overall, it looks like the South African property market has managed to achieve a sustainable level of growth, for now.

Property, however, is not an easy industry in which to operate, and who knows what hurdles, curve balls and exciting developments await. In the year ahead, it seems as if rate hikes might become a reality. But, more of that next issue, when we hear what some top real estate folk think 2014 holds for the property industry in our Property Platform feature. In the meantime, aside from the regular features, this issue focuses on whether or not agents are an important part of the property transaction process, and what value they bring to the table. We explore blue chip tenants, meet the new breed of property buyers and find out how much the truth can be stretched before it becomes an outright lie. And, in preparation for the unpredictable events that may lie ahead for property professionals, we look at how to ‘adapt or die’.

As usual, I look forward to hearing your views and news and feedback on this issue.

MICHELLE FUNKE

michellef@propertyprofessional.co.za

www.facebook.com/PropertyProfessional https://twitter.com/Property_Prof CEO - PA MEDIA Shaun Minnie 083 629 6081 shaun@pamedia.co.za EDITOR Michelle Funke 011 462 8959 michellef@propertyprofessional.co.za ADVERTISING SALES Sarah Steadman 082 334 4367 sarah.steadman@pamedia.co.za ADVERTISING PRODUCTION & SUBSCRIPTIONS Nikki Barnard nikki@propertyprofessional.co.za ACCOUNTS & FINANCE Nicolette Lubbe 011 476 6293 PRINTING Paarl Media

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

CO N T EN T S

CONTENTS 0 4 I N D US T RY NEW S

24 LIES , DAMN ED LIES AN D S TAT I S T I C S

1 0 A R E E S TAT E AGENT S A DYING B REED?

28 THE MAIN S TAYS O F PRO PERTY MAN AG EMEN T

1 4 T H E B E ST ST RAT EGY FOR

B L UE - CHIP T ENANT S

1 8 M A R K E T S HA RE:

P R O P E RT Y FINANCE IN SOU T H AFRIC A

2 0 T H E M I L LENNIALS

30 FI NANCE & FI GURES:

HO W DO HO MELO AN S MEAS U RE UP?

32 ADAPT O R DIE

36 PRO PERTY PRO FE SSI O NAL

N EW AG EN TS O N THE BLO C K

40 PRO PERTY PRO FE SSI O NAL

TO P PERFO RMIN G AGEN TS

46 DEV ELO PMEN T UPDATE

48 TEC H TO O LKIT

52 WO RD O N THE S TREET

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INDUSTRY NEWS Attacq Limited JSE listing provides a unique investor proposition Attacq Limited, previously Atterbury Investment Holdings, today formally announced its plan to list on the main board of the JSE under the ‘Real Estate – Real Estate Holdings and Development’ sector. Attacq will provide investors the opportunity to share in a long-term sustainable real estate capital growth fund with a successful track record as a public company.

Since inception eight years ago, Attacq has delivered an average compound annual return exceeding 20%. Morne Wilken, Attacq CEO, says: “Listing Attacq will create a foundation to grow the business further.

It enables Attacq to access capital efficiently, raise its profile and expand its investor base, all of which should enhance Attacq’s prospects.” He adds: “Attacq’s focus on long-term sustainable capital growth distinguishes it from other JSE-listed property entities, such as REITs, that predominantly focus on rental income distribution. When considering Attacq’s listing, we assessed the investor benefits of various structures, including REITs. But, our established structure and business model of delivering sustainable longterm capital appreciation has proven successful and delivered excellent results to our investors. The timing of the listing also places Attacq in an ideal position to invest in excellent development opportunities, especially those at Waterfall Business Estate.”

Attacq will optimise long-term sustainable capital growth and enhance total returns to shareholders through its strategic weighting of investments to developments. It will also reinvest profits from rentals or occasional disposals and retain completed developments, rather than selling them, to realise development profits. Subject to regulatory approvals, Attacq is anticipated to come to market on 14 October 2013. Investment in Attacq will be made available by private placement, which aims to raise up to R800-million at a price per share determined by the book build, managed by Java Capital. The private placement is expected to open on Monday, 7 October and close midday on Wednesday, 9 October 2013.

Besides raising equity, the private placement is also designed to increase the spread of shareholders for Attacq. “For our existing over-the-counter shareholders, who played such an important role in establishing Attacq’s

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successful track record, their investment in Attacq shares will be tradable on the JSE from listing. This will ultimately enhance liquidity for our shareholders,” says Wilken. Attacq’s assets comprise two focus areas: Investments and developments. Its portfolio strategy is to hold 65% investments and 35% developments to optimise long-term sustainable capital growth, enhance total returns to shareholders and mitigate risk.

Wilken explains: “Our investment in completed buildings provides stable and growing income and balance sheet strength to responsibly secure and fund high-growth opportunities within developments. In turn, the group’s developments create a pipeline of high-quality investment properties that grows the investment base, as developments are retained rather than realised.” “Our long-term strategy is to achieve an optimal portfolio balance of 70% of our assets by value in South Africa, 20% in other countries on the African continent and 10% internationally outside Africa,” says Wilken. “We are already making good progress on this objective and will continue to seek opportunities to further this goal as well as expand our development pipeline to grow long-term prospects.”Attacq holds a 25% interest in Atterbury Property Holdings, the successful property development company with which it shares a common history. Atterbury has developed most of Attacq’s investments.

“This is a strategic holding for Attacq and positions us to access and participate in the opportunities and deal flow generated by this dynamic developer,” says Wilken.

The respected driving forces behind the company’s proven delivery capability will continue to drive Attacq with their unique experience and knowledge. Attacq’s executive team comprises Wilken as CEO, Atterbury Property Holdings CEO and co-founder Louis van der Watt and Melt Hamman as FD. Wilken has played a key role at Attacq since 2009.

Attacq’s independent non-executive chairman is Pierre Tredoux, who has served on Attacq’s Board of Directors for the past six years. Attacq’s board also benefits from the skill and experience of Atterbury Property Holdings co-founder Francois van Niekerk, as a non-executive director.

R814-BILLION The South African Revenue Service (SARS) collected more than R814-billion in taxes for 2012/13, beating projections forced downwards by a tough economic climate, in what finance minister Pravin Gordhan nonetheless described as a “remarkable achievement”.

SouthAfrica.info - South Africa collects R814bn in revenue

CHECKLIST

BEFORE YOU SELL OR BUY A HOUSE Having your personal paperwork in order at the time you enter into a property transaction will go a long way towards reducing many of the common causes for delays in transfers. Here’s a guideline: 













Are your latest tax returns filed and tax affairs in order?

If these are outstanding, delays will occur when application is made for a transfer duty or VAT receipt.



As the seller you will need to pay all arrear, and a preestimate of future, rates and/or levies. Late payment results in a delayed issue of the rates clearance certificate.

Are you and your Home Owners Association (HOA) or body corporate disputing whether levies are outstanding?

When there is such a dispute, a body corporate or HOA may refuse to issue the required clearance certificate.

Are your rates and levy payments up to date? If it is outstanding with a large amount, you may need to arrange for bridging finance to settle the debt owing as clearance is required before transfer can be effected.

Married? You’ll need a copy of your marriage certificate and antenuptial contract, if any.

Divorced? Have a copy of your divorce order and settlement agreement at hand.

Company, close corporation or trust? Have your resolution, founding documents and FICA papers ready. In the case of a Trust, remember that you also need a copy of the Letter of Authority.

Available cash:

As the purchaser, you must pay Transfer Duty as well as the costs of the transaction (the transfer and bond registration, if applicable) and failure to do so results in delays. 



If the home is not bonded, the seller must provide the original title deed. If it is lost the conveyancer must apply for the issue of a Registrar certified copy, which adds days to the turnaround time of the transaction.

If the property is part of a deceased estate, the executor will need to comply with the terms of the will and the provisions of the Administration of Deceased Estates Act before the transaction can be concluded.

We are highly valued for our conveyancing expertise, so contact us to assist you in your transaction at info@stbb.co.za.

If you are selling and have an existing bond over the property, give the bank 90 days notice or provide the loan account number to your conveyancer upfront so that they can notify the bank.

INTERPRET NEW LEGISLATION WISELY WITH THE PAPERWORK.

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SA Credit Amnesty Announced: What are the consumers’ responsibilities?

The recent announcement from Cabinet on the approval of a credit information amnesty has been a controversial topic in the South African financial arena. Although many financial institutions objected to the amnesty due to its negative effect on their capability to evaluate risk, as well as it sending the wrong message to an already over-indebted public, it appears that the amnesty will go ahead regardless of the surrounding controversy. In short, the amnesty appears to approve the removal of paid-up adverse and judgment information from the credit bureaus as a once-off and thereafter ongoing process. There will be another month for public consultation, following which there will be clarity on whether the amnesty will further apply to adverse and or judgement information for which debt is still outstanding. Michelle Dickens, founder and managing director of registered credit bureau, TPN, warns: “Consumers take heed; the amnesty applies to deleting adverse and judgement information on the credit bureau. What the amnesty does not mean is that the obligation to settle any unpaid debt falls away. On the contrary, you will still be held 100% liable for any monies still owed.”

It is widely agreed that consumer spending drives the economy; credit healthy, credit active consumers should be encouraged. The question is then raised as to what steps consumers can take to ensure their own credit health and protection. Dickens has the following advice for credit users: “There’s a difference between healthy credit and avoidable or expensive credit. For example, taking out a loan for an appreciating asset, such as a house, enables the consumer to buy now, pay off at lower interest rates and enjoy the benefit of the value of the property increasing over time. In contrast, taking out a R100 000 loan for an oversees holiday would be considered as avoidable credit.”

Dickens advises that one does need to have some form of credit in order to have a discernible credit profile. “Consider if you approach a credit provider and they can see no credit history (good or bad) on your profile; it makes the job of assessing how likely you are to repay the loan a lot more challenging and might even result in the rejection of your application. Consumers can build a healthy credit profile by responsibly paying off credit — late or missed payments will only impair the consumer’s personal credit profile, potentially making them an unattractive candidate for credit lenders,” warns Dickens. “Debit and

checking accounts are also unlikely to have any impact on your credit profile.” It is also vital for consumers to understand the terms of their credit: “Different types of credit carry different sets of responsibilities.

Lending is conducted in the form of secured, unsecured, short-term and incidental credit. Each category has a maximum prescribed interest rate, as set out by the National Credit Act. And these rates can differ vastly — from around 8.5% up to 60% per year — so it is important that you’re aware of the rate applicable to your lending option before signing a credit agreement. Different lenders will charge different interest rates, depending on individual cases, up to the maximum.” According to Dickens, consumer credit health in South Africa has been deteriorating steadily, and the country’s consumers have developed a worryingly irresponsible credit culture. As the number of impaired accounts rises, Dickens urges consumers to be aware of the consequences of impaired credit health and take steps to rectify the situation.

Dickens suggests that the all-too-common ‘instant gratification’ mentality among South African credit consumers could be largely to blame for the high levels of indebtedness, and advises consumers to take a more informed, restrained approach to credit consumption. “It is wise to only take out credit when you’re 100% sure you can handle the payments, with any and all monetary eventualities that may arise taken into account,” she says, “We’re experiencing the best possible interest rates at the moment, and they will only rise in the coming years. Make sure you have gotten to grips with responsible credit behaviour now to avoid serious problems later.”

Indeed, debt can be a debilitating situation for many people, not only financially, but mentally and emotionally as well. “The power that money problems can hold over a person should not be underestimated,” says Dickens. “People who are drowning in debt often experience social stigma, as well as prolonged and damaging emotions such as panic, fear, anger, depression, denial and stress. You could even go so far to say as it ruins lives – imagine losing your family home due to a judgement against you, or having to spend your kids’ education funds on repaying creditors.

Rather avoid this potentially devastating situation and take practical steps to get your personal finances into a stable position. It may seem daunting, but with discipline and planning, it is possible to get out of financial debt and regain a healthy credit profile,” Dickens concludes.

PDE preparatory workshops continue Even though the deadline has been extended to 2015 for some estate agents to write their PDEs (Professional Designation Examinations), it would be wise to get it done now, and not wait until the eleventh hour to complete it, says Annette Evans, regional manager for the Institute of Estate Agents, Western Cape. It is important that agents and

principals are aware that the Estate Agency Affairs Board (EAAB) sent out notification to extend the deadline only for those agents who were licensed prior to July 2008. There have been many questions as to what to expect and some have battled with the content, she says, and to assist those in getting ready to write their PDE, preparatory workshops

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will continue to be held regularly by the Institute of Estate Agents (IEA), Western Cape. This will assist estate agents in preparing fully by knowing more or less what time allocation will be needed for each question, to receive coaching from an assessor as to what to expect in the interview and how to tackle the open book aspect of the exam. The PDE level 5 workshop will be on 4 October, and the cost is R550 for members and R650 for non-members. The PDE level 4 workshop will be

held on 11 October and will also cost R550 for members and R650 for non-members. In both cases the venue is the IEA Western Cape offices in Sheldon Way, Pinelands and the workshops will run from 9am to 2pm.

Agents who will be attending either of these workshops must bring their study guides provided by the Estate Agency Affairs Board as well as Post-It notes for marking pages. It is also necessary to have a separate notebook.

REBOSA gears up to tackle property sector transformation Real estate business organisation, (REBOSA) says it is ready to start tackling some of the challenges facing the sector. Chief executive officer Roy Leigh says that one of the most immediate tasks on REBOSA’s agenda is the Property Sector Charter Council (PSCC), an integral component of BEE legislation that is to be enacted in the next year. “Our task is to work with our members, stakeholders and government to find a workable solution with legislative measures that will give effect to meaningful transformation that enables rather than hampers the sustainability and growth of the sector,” says Leigh. “As an industry, real estate is grappling with a number of challenges, not least of which is the introduction of around 10 new pieces of legislation that affect property businesses quite dramatically. The prolonged economic downturn and low mortgage lending landscape has, of course, had a significant impact on the industry, with overall sales volumes, agent numbers and the GDP contribution down by about 40% since 2007/8,” says Leigh. The real challenge, therefore, is how to adapt and incorporate all of these new measures while still sustaining, never mind growing, current businesses to accommodate the aspirations of the previously disadvantaged. The reality is a global and national market that is growing extremely slowly or in a decline with an outlook that is, at least for the foreseeable future, rather uninspiring, he adds.

While fully supportive of the need for transformation, Leigh says that there are a number of priorities that need to be debated and resolved.

The first is what level of turnover is appropriate for an estate agent to fall under the definition of an exempted micro enterprise (EME). Under the previous Codes of Good Practice (BEE guidelines), an EME had to have a turnover of less than R2.5-million, a QSE (qualifying small entity) less than R35-million and a large entity, a turnover in excess of this. Government proposes raising this to R10-million for an EME and to R50-million for a QSE. While there is overwhelming support for transformation, it needs

to be borne in mind that about 80% of real estate businesses are, in effect, small to medium-sized enterprises; quite often one- and two-man operations. Raising the level will have a significant impact, Leigh says.

The Code of Good Practice covers six essential elements (ownership; management control and employment equity; skills development; preferential procurement and enterprise development; socio-economic development; and economic development) and, while still ‘just codes of good practice’, the real fear is that these become mandatory. This will be a significant challenge for small and medium-sized businesses that, more than likely, will have to close their doors as they just do not have the resources to handle such onerous obligations. Leigh says that rather than introducing what amounts to a ‘top-down’ approach to transformation, REBOSA urges a ‘bottom-up’ approach. For most sellers and buyers, transformation unfortunately ranks as a rather low priority; they are more concerned with the selling and buying of a property and working with a professional estate agent that is credible and skilled. The job of an estate agent is also one that is vastly misunderstood, he says. While government subsidies assist in drawing candidates to the industry and providing training, it needs to go much deeper than that.

School leavers are often attracted to the industry under the misguided notion that they can earn huge commissions for very little effort. In fact, right now, the low levels of mortgage granting is severely impacting the financial position of estate agents and is certainly not conducive to attracting top class candidates to the industry, adds Leigh. Statistically, over 90% of all estate agents fail within the first year as they were not suited to the profession in the first instance, nor did they grasp what it takes to succeed. We need to develop a culture that recognises that estate agents are entrepreneurs and not mere wage earners. For transformation to succeed in delivering sustainable long-term outcomes, the focus should rather be on attracting graduates who have a strong entrepreneurial flair.

SAPOA ensures South African input on global property standard The South African Property Owners Association (SAPOA) is at the vanguard of a new initiative to create global property measurement standards for property investors and users alike as part of the International Property Measurement Standards Coalition (IPMSC).

Established in 2012 at a meeting in New York hosted by the World Bank, SAPOA is one of 20 founding members and the only African organisation represented. As a first step towards achieving its goal of global property measurement standards, the IPMSC set up its Standards

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Setting Committee (SSC) with 19 property experts covering property sectors in 50 countries across five continents. As an independent body, its mandate is to define a global standard for measuring property. South Africa is represented on the SSC by Tony Gebhardt, principal at Hamlyn Gebhardt and a member of SAPOA’s Method of Measuring Floor Areas Committee. Once the SSC has completed its work (this may take some months), it will make a recommendation to its constituent bodies, including SAPOA. “The next step will be for SAPOA and other local organisations to undertake a separate process to consult with its members,” explains Gebhardt. “For SAPOA, the discussion will be about the advisability of

progressively amending the SAPOA Method of Measuring Floor Areas to incorporate the international recommendations.”

Global investors and occupiers have long grappled with the fact that consistent, international property standards simply don’t exist. “Property assets are measured differently in different places, and methods can vary widely, making accurate comparisons virtually impossible,” says SAPOA CEO Neil Gopal. “In this way, we can help drive a more transparent and stable property market worldwide by enhancing public trust and building investor confidence,” says Gopal. Other positive spin-offs include improved valuations and financial reporting for property holdings worldwide.

Six of the best property developers unpack green trends More and more property developers are opting for sustainability, not only as an alternative building initiative, but as a unique selling point to discerning buyers. Why green? What value does it give to property developers as a company and does it help with a company’s bottom-line or public perception?

In a ‘power talk’ concurrent session that forms part of the upcoming Green Building Council of South Africa Convention, happening from 1618 October at the CTICC, six of the leading local property developers will engage on green trends and what their motivations have been to integrate them into the way they do business. On this charged discussion panel is Rudolf Pienaar of Growthpoint, Richard Thomas from Nedbank, David Green from the V&A Waterfront, Jurgens van Huyssteen from Menlyn Maine, Martin Evans from the Brydons Group and David Savage from the Abland Property Group.

“There are clear environmental benefits for building green as well as a compelling business case. Going green is not just about the environment, the bottom-line benefits of building and operating green buildings are particularly important considering South Africa’s rising energy costs and water scarcity – coupled with lower risks, improvements to employee productivity and, ultimately, better investment returns and higher property valuations,” says Brian Wilkinson, CEO of the Green Building Council of South Africa. Globally, property owners and developers face the challenge of ‘future-proofing’ their buildings. Going green is now broadly regarded as the smart choice that takes account

NUMBERS TO KNOW

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of sustainability, responsible investment requirements, aesthetics and, critically, profitability.

Both the Code for Responsible Investing, which most of the major asset managers have signed up to, and the King Code of Governance require that organisations record and report on their actions in respect of, amongst others, environmental sustainability. The effects of this will be long reaching and profound – an organisation that performs badly in respect of their sustainability initiatives will be punished in terms of the ultimate measure – their share price. Asset managers are including so called ESG (environment, social and governance) requirements in their investment mandates and, by definition, poor performers will suffer as investment moves to better performers. So, there is a wonderful ‘virtuous triangle’ in respect of commercial property development and management. By adopting environmentally sustainable practices in their property portfolio, i.e. green building practices, they benefit in three major ways: • They are being responsible in terms of the bigger picture of climate change mitigation.

• They are being shrewd investors – green building has a proven and significant economic business case.

• Their share price will attract a premium as investors shift to the better performers in respect of ESG. “Could there be a more compelling argument?” concludes Wilkinson.

Tenants can expect to dig deeper into their pockets over the next 12 to 18 months with rentals on the rise and a shortage of rental stock developing in many areas. The strongest demand nationally is for two-bedroom units around the R4 500 to R5 500 per month bracket, and insufficient stock is providing further support for rental growth.

Fin24 – Demand pushes up property rentals

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ARE ESTATE AGENTS A DYING BREED?

The number of practising estate agents may have dropped significantly over the past few years, but does this mean that they could completely become a thing of the past in an ever-increasingly technical world?

A journalist for the Washington Post recently asked the question: “Why do real estate agents still exist?” On the face of it, it is a bit of an insult to even ask the question. However, one has to wonder if there are those who are indeed surprised to see that estate agents are still around and who expected technology to play a part in the demise of estate agents. Let’s be honest here, there are industries that were basically put out of business when the Internet took off.

Making travel plans without the expertise of a travel agent, for example, became a walk in the park. Airlines around the world took full advantage of the situation and instead of offering perks to travel agents in an attempt to lure travellers to take to the skies, they focused on the customers themselves. It didn’t take long for people to realise that they could save a great deal of money by going directly to the source and travel agencies across the world started closing down.

“Selling a home is an extremely laborious and time-intensive task.

Someone who is working in a regular job, running their own business or maintaining a household simply does not have the time to effectively market a home,”

How long it will be before bookshops face the same fate? Remember the days when bookworms were forced to take an additional suitcase filled with books along for the trip if they wanted to have a good read while away? No more. E-book readers, iPads and the like have put paid to this practice and even if the consumer is a diehard ‘real’ book fan, it is often cheaper and certainly more convenient to order books online.

a living and according to those in the know, will continue to do so for the foreseeable future. The question that needs to be asked is why? Why do the majority of buyers and sellers choose to use estate agents? After all, in theory, a great deal of money could be saved by selling privately. That, it seems, is the problem, ‘in theory’ remains just that: A theory.

Why then are estate agents still around? The web is used extensively to advertise property, buyers can take virtual tours and get a seriously good idea of what the property looks like inside and out, do-ityourself sales agreements are available at most good stationers and, if the pundits are to be believed, cutting out the agent saves the seller a small fortune in commission.

The fact that the number of practising estate agents has dropped significantly doesn’t appear to have had anything to do with the fact that listings now offer more information, better pictures or indeed a virtual tour of the home. Yes, the numbers have dropped significantly, but this has more to do with the economy than anything else. Unlike other industries, the Internet has benefitted those who sell homes for

says Rawson.

“At a first glance, one would immediately think that a buyer would save money by buying through a private seller, but this is not the case,” says Bill Rawson, chairman of the Rawson Property Group.

“Most private sellers, being unaware of market trends and the value of similar houses in their area, tend to overprice their homes by up to 30% in today’s climate. Without an estate agent showing them the facts, these sellers are often unwilling to reduce their price and this often results in the home sticking on the market or being sold for far more than it is worth. A buyer is therefore more likely to get a market-related price when dealing with an estate agent rather than the individual who owns the home.”

Then there are the complexities involved in buying a home. Obviously buying an airline ticket is far less complicated than buying bricks and

Page 14: A R E ES TAT E AG EN T S A D Y I N G B R EED ?

mortar. Apart from the costs involved, there is a very real danger that the buyer is not going to get what he paid for. There are still sellers who truly believe that the voetstoots clause gives them the right to sell a home with a number of undisclosed faults and that because the home is sold ‘as is’, it is the buyer’s bad luck if something goes wrong once he has moved in and discovered the problem(s).

“Using an agent not only streamlines the process, the agent offers knowledge of prices, marketing and market expertise, negotiation skills and helps to make the complex legal and bond process easier,” says Rawson.

Time is pretty much money in anyone’s book and it is no different in the world of real estate. Selling a property privately entails far more than taking a few snaps, putting them on the Internet and waiting for the buyers to roll in. Pricing is always going to be a huge issue and while there are certainly some who read and understand the market closely, there are many who don’t. Selling a beloved possession like a home is fraught with emotion. Agents often bring up the fact that some sellers (particularly those in their golden years) try to add sentimental value to a property. While the seller may not disclose this to the buyer, it is going to hurt if and when the buyer discovers that he has paid more for the property simply because the previous owner believed that his personal memories of the home added some sort of value.

As an interested outsider, agents have the ability to cut through the emotional aspects and focus on what really is important – getting the home sold with the least amount of fuss in the shortest time possible at the right price.

“Using an agent not only streamlines the process, the agent offers knowledge of prices, marketing and market expertise, negotiation skills and helps to make the complex legal and bond process easier,” says Chris Tyson, CEO of Tyson Properties. “The majority of buyers (and sellers) are not familiar with the legal aspects and are not skilled negotiators. It is also a challenge to be objective and unemotional when selling one’s home. Pricing one’s home correctly is always first prize in achieving optimal value.”

Pricing aside, there are other aspects that can severely hinder the average man in the street who decides to go it alone. “Selling a home is an extremely laborious and time-intensive task. Someone who is working in a regular job, running their own business or maintaining a household simply does not have the time to effectively market a home,” says Rawson.

“The skill set required to sell a home within a fixed period of time is another factor that needs to be considered. An estate agent with years of experience in the area, knowledge of the property market and many contacts in the industry is far more equipped to sell a home and achieve the desired price than someone who is unfamiliar with the whole process. There is also much more paperwork and admin than the man on the street realises.”

The good news is that neither Rawson nor Tyson have witnessed an increase in private sales. However, Tyson does note that agents in his company have been called upon to help with the paperwork involved in a private sale. Rawson says that his group has had a fair number of these cases crop up. “Feeling out of their depth, several sellers have come to our group for advice and/or to take over the marketing of the property completely.”

The other problem and perhaps the most important issue that those selling property privately face in South African is security. Crime is a major problem in this country and allowing all and sundry to walk through a home could have severe implications. There have been a number of reports in the press about cars being hijacked when being test driven by criminals. Homeowners who allow un-vetted people to view their home are putting themselves and their possessions at risk and in a crime conscience society, this could well work in an estate agent’s favour. Even if the seller is willing and indeed has the knowledge to sell his own home privately, the risks involved extend far further than in other countries. Utilising the services of an estate agent may not guarantee that nothing untoward may happen, however it certainly removes some of the risk, allowing the homeowner to feel safer in the knowledge that the person coming into the home has been assessed on both a financial and personal level. Think about it. There are very few agents out there who, upon smelling a rat, will allow a potential criminal within kilometres of any of their listings.

BY LEA JACOBS

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Page 16: T H E B ES T S T R AT E G Y F O R B LU E - C H I P T EN A N T S

THE BEST STRATEGY FOR BLUE-CHIP TENANTS THE MAKE-UP OF A BLUE-CHIP TENANT REVEALS QUALITY AT ITS CORE

Growthpoint Properties’ office park in Midrand: 44 on Grand Central Blue-chip tenants associate themselves with the same values as other blue-chip entities, who all proudly uphold stable track records through economic ups and downs. Their contributions as tenants and occupants of buildings owned by large companies not only reflect in the financial results of property owners, but also directly into the hands of shareholders.

Model tenants have access to sound yet costly management strategies. This traditionally comes as the result of an association with commercial property owners in the listed sector. Highly rated tenants play a major role in the lives of property managers responsible for maintaining low vacancy rates while containing lease expiry periods.

Broll Property Group divisional director, Asset Management Heidi Rix says well structured lease agreements is the most important business operating principle with which to achieve long-term capital appreciation of properties. “Leases need to be structured to offer the best possible business case to both parties is maximise tenant retention. Especially when considering blue-chip tenants who are often ‘hunted’ by competitor landlords for new developments.” She says flexibility within return and risk constraints on the part of both

parties is also essential. This highlights a risk factor, since losing a blue-chip tenancy often means a large vacancy, in particular in the case of purpose-built spaces.

Rix says Broll values strong tenant relations through applying flexibility and proactivity in meeting ongoing business growth requirements.

Another added benefit ,says Rix, is that building valuations are less conservative when a secure blue-chip tenant occupies the majority, if not all, of a property. “Tenant rotation and shorter term leases are often avoided with blue-chip tenancies, as they too prefer security of tenure for their business operations, which improves risk factors and capitalisation rates applied during valuation,” says Rix. While guarding corporate images and bottom lines, blue-chip tenants have many reasons for accommodating top rated staff in superior quality buildings, be it offices, mixed use, industrial or retail facilities.

They have reputations for demanding high quality management and products, which fit in with their own company philosophies. Common trends among those occupying top rated buildings in prime locations include premium class working environments for building occupants.

Page 17: T H E B ES T S T R AT E G Y F O R B LU E - C H I P T EN A N T S

occupied by blue-chip tenants with long leases, to have limited potential for capital growth. As a result, these are not necessarily the target market of large property owners.

For Vunani Property Investment Fund, A and B+ grade properties offer wider investment choices because not only do they attract lower rentals, but also offer greater potential for redevelopment and improvement over the long term.

Establishing energy savings strategies and early implementation to boost bottom line earnings are increasingly becoming highly rated among exclusive tenants. Another trend observed among employees of blue-chip tenants is consultation processes between management and staff regarding building improvements. Following the latest developments of sophisticated energy saving measures, occupants and owners are now able to retrofit old buildings to reduce utility costs. In some cases, the implementation of green building practices is considered to impact positively on productivity levels of employees, due to a healthier working environment.

Blue-chip tenants are typified by driving up demand for rentals in prime locations at multinational levels. They take pride in retaining 100% occupation records, early renewals of long leases and show a preference for properties with internationally recognised star ratings.

Both green building and reduced energy consumption practices provide prestigious rental space for businesses that are held in high regard among industry peers.

Broll’s Rix says blue-chip tenancies show a tendency to lead the market in aspects like greening, building efficiencies and image, all of which can dictate the design of new as well as refurbished buildings in providing leading world-class assets. “The challenge, however, is whether the tenant is willing to pay the increased premium, which is often shared between landlord and tenant, marginally reducing the initial yields.” She says these high building costs could drive rentals considerably higher than market to cover loan repayments.

However, some property investment funds view buildings that are in high demand, such as AAA graded properties that are typically

What blue-chip tenants also have in common with property owners and managers is seen both from an occupational as well as an operating perspective. They are required to motivate and justify high rental expenditure to discerning decision makers, while those placing them into buildings have to answer to equally demanding boards of directors and shareholders. Both sides are required to maintain the highest standards of management to accommodate every need of those whose priorities are dominated by income growth. On a global scale, these tenants are a sought after commodity in the competitive world of property. Their actions are typified by long-term planning, stringent capital expenditure and management control, in particular in the case of owner occupiers, who have the added responsibility of maintaining income distributions to shareholders.

Added corporate status is derived as the result of blue-chip tenants who are able to prove confidence in managing financial risks for optimum profits. They employ the services of highly paid property management experts to control operational costs and long-term forecasts. This, while protecting the well-being of carefully selected teams of employees worth a fortune in intellectual property.

However, one of the biggest threats to those who compete for the attention of valued blue-chip tenants is new property development in popular business nodes. It is said that when growing pools of landlords compete for the same number of blue-chip tenants, rental prices are driven upward. Central geographical locations close to business nodes are one of many marketing highlights of blue-chip rented properties.

Areas high in demand include Sandton, where the Gautrain station is in close proximity to the workplace, and others near main traffic areas close to freeways. Rivonia Boulevard and Hyde Park near William Nicol Drive enjoy 100% occupancy rates. In Cape Town, central city locations attract top tenants in particular at mixed use developments.

High occupancy rates and long leases held by blue-chip tenants are seen at the V&A Waterfront, Canal Walk and Century City, where prime office space is located close to retail facilities.

BY ANNA-MARIE SMITH

Congratulations to our all our top performers!

National winners include (seen from left to right) • • • • • • • • • •

Administrator Of The Year - Marlé Rossouw - Bloemfontein Icebreaker Of The Year - Robbie de Vos – Polokwane (absent) Leapfrogger Of The Year - Eugen Jordaan, Pta East Best Young Office - Johannesburg North East Smile Award - Anastasia Wilkinson Rental Team Gross Comm - Harry Vd Linde, Pta East Rental Agent by Gross Comm - Antoinette Green, Milnerton (absent) Partnership Highest Comm % - Tracey & Kim, Milnerton Agent Highest Comm %- Jeanette Wearing, Gordon’s Bay Country Partnership Unit Sales & Value - Petra & Patricia,Melkbos

• • • • • • • • •

Metro Partnership Unit Sales & Value - Elna & Marietjie, Pta East Country Agent Sales Value - Kevin Wearing, Gordon’s Bay Metro Agent Sales Value - Steven Van Rooyen, Milnerton Country Agent Unit Sales - Linde Mocke, Midvaal Metro Agent Unit Sales - Bernie Muller, Edgemead Country Office Unit Sales & Value - Gordon’s Bay Metro Office Unit Sales & Value - Pretoria East Country Franchise Of the Year - Gordon’s Bay Metro Franchise Of the Year - Milnerton

The Awards, Achievements and the Fun...

The Table Bay Hotel in Cape Town will likely never be the same again as it was painted green last week during the annual convention. So much so, that not even the Two Oceans Aquarium remained unscathed. The 2013 Convention was a swanky affair opened by a brilliant performance from the Gugulethu Tenors and a thought provoking talk delivered by futurist Clem Sunter. The train didn’t stop there though as events flowed through to the Awards Ceremony where numerous franchises, principals and agents were honoured for their achievements thus far

Convention 2013

Page 20: M A R K E T S H A R E

PROPERTY FINANCE IN SOUTH AFRICA

Property Professional speaks to some of the leading industry statistic and insight providers to find out the highest and lowest areas within each province according to sales value

Top areas in each province according to sales value R1 800 000 000 R1 600 000 000 R1 400 000 000 R1 200 000 000 R1 000 000 000 R800 000 000 R600 000 000 R400 000 000 R200 000 000 REASTERN CAPE: FREESTATE: BEACON BAY LANGENHOVENPARK VALUE

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Page 22: T H E M I LLEN N I A L S

Page 23: T H E M I LLEN N I A L S

THE MILLENNIALS

Born roughly between 1985 and 2010, Generation Y or the millennials as they are called are the new face of property buying. Who are they and what do they want? The millennials are the tech-savvy generation; having grown up in the midst of constantly changing and evolving technology, they consume information at a rapid pace and are always on the go. So, when it comes to property, what do the millennials want?

To fully understand the needs of the new generation that is currently entering the market, it’s important to understand where they come from.

Having been born to the baby boomers, who are now retiring and making way for the millennials, some grew up surrounded by white picket fences in a fixer-upper in the suburbs, while many millennials grew up in a society that was vastly different to that of their parents.

The previous generation was a fractured one, segregated, violent and at odds with one another; there was an education system in place only for those of a specific race and information was limited to newspapers, TV and radio. The landscape of the 1960s was a far cry from the landscape of the 1980s. The children of the millennium grew up with cell phones, information that was a click away, with an education and a desire to do better. Social networking and media has always been a way of life for this generation, they are connected and in the know, with more choices than their parents ever had. This generation doesn’t want to wait; if they want something, they want it right now.

The millennials’ childhood has set the stage for what they want out of their property. Millennials want to own houses close to work and close to the city, they work long hours and don’t want the long commute to and from work. Socialising is a key factor for them and life close to the city means not being left behind. Urban housing near shops and mass transit is becoming increasingly popular, and this will bring a shift in the real estate market. Carol Reynolds, Pam Golding Properties’ area principal in Durban, Durban North and La Lucia, comments about her

MEET THE NEW PROPERTY BUYERS

areas, “Today’s purchasers are diverse and generally astute. With the huge technological advancements that have been made in the past decade, today’s purchasers are able to find information for themselves at the click of a mouse or the touch of a smartphone. We are therefore finding that buyers come into the marketplace having done some of their own research, generally requiring a professional agent to assist them with the specifics.” Armed with technology, the millennials know what they want and how to get it.

So what do they want in a home?

GREEN FEATURES Jonathan Skeen of Emergent Energy explains, “Green concerns are an increasingly important component of the property buyer’s evaluation criteria. In the past, cheap and abundant electricity, water and waste services meant that the motivation to ‘go green’ was largely a personal decision driven by the desire to reduce one’s personal environmental impact. In the present, however, green or sustainable building designs and management practices are directly linked to very real, long-term economic concerns.” Millennials are very eco conscious, they are aware of their environmental surroundings and they want to reduce their carbon footprint, and at the same time save money on living costs, particularly with the cost of electricity on the rise.

READY-MADE Millennials don’t want fixer-uppers; they want to move into homes that require little to no maintenance. They don’t want the hassle and timeconsuming process of refurbishing an older house and making it into their dream home; this generation wants to move right into the dream

Page 24: T H E M I LLEN N I A L S

Armed with technology, the millennials know what they want and how to get it. home. Tony Ketcher, managing director of Seeff Randburg, says, “One of my concerns is that the buyer of today (and tomorrow) is looking for a product that is not readily available now – for example, big homes are not as popular as before, so we have sellers wanting to retire or move on but the buyers are not necessarily looking for that type of home.

It sort of makes sense if you think how our environment, lifestyles and affordability have changed over the past 20 years.”

SIZE MATTERS “Many young professionals are buying and they seem to be most focused on sectional title/apartment/cluster living. Busy jobs mean there is not much time to worry about gardens and home improvement and they want to get away at weekends or holidays so the lock-up-and-go concept works for them. I find that a free-standing home does not even come into the thoughts of many of them,” says Ketcher. With busy, onthe-go lifestyles, the next generation of buyers doesn’t want big homes; they want homes that are small and easily adaptable. Millennials want homes where the rooms are multipurpose, and can be used as an office, a guest room or a future baby room. Cosy and flexible is what they are looking for; gone are the days of a room for every need.

ENTERTAIN ME Entertainment makes up a great portion of the millennials’ lives. If they are not out and socialising, then they want the option of a ‘chop and dop’ at their home. An outdoor area, albeit a small one, is quintessential for the millenial’s style of modern living.

TECHNO LIFE Having grown up in the technological era, the millennials don’t just want homes that are technologically compatible with their lifestyles, they demand it. Hi-tech is a high priority and they look to their homes to integrate their lifestyles with the technology available to them, whether it’s Wi-Fi or smart homes. Adrian Goslett, CEO of RE/MAX, comments, “While in the past this was reserved for the more affluent homebuyers,

advancements in technology and devices that use Wi-Fi or other wireless connections have made this home feature increasingly more accessible.

With the right installations, homeowners can control aspects of their home through applications on their smartphones and tablets. These are the kind of things that younger buyers have in mind when searching for their ideal home. Each generation makes buying decisions based on the trends and technology that are available to them and the current generation has the world’s cutting-edge technology at their fingertips.”

With this technology the new generation of property buyers is far smarter and savvier than their older counterparts. They have sufficient information at their fingertips to make informed decisions about buying a house when they enter the market. They know what they can afford, they know what they want and they know how to make a deal.

While the millennials are the current buyers of property, they are not the only ones; along with the millennials there is the black middle class (BMC). According to Seeff, earlier this year the UCT Unilever Institute of Strategic Marketing reported that the BMC had more than doubled over the last eight years to around 4.2 million in 2012, up from 1.7 million in 2004. Home buying amongst this group is also improving according to the latest FNB Estate Agents Survey. It indicated that previously disadvantaged buyers now account for more than half of all homebuyers, with BMC buyers making up about 32%, up from about 23% in 2005.

“A survey of Seeff’s more than 200 branches nationally confirms that there is a notable shift in buyer demographics in the more affordable and middle class suburbs in the main metropolitan areas. In some instances, more than half of all buyers are now from the BMC demographic group,” says Seeff chairman, Samuel Seeff. “The most active price band is between R500 000 and R1-million and most buyers look for neighbourhoods with good infrastructure, including transport and access to schools.” It is interesting to note the difference in their buying needs; while the millennnials focus on technology and living in the now, making their homes meet current and future needs, the black middle class look to the suburbs and property close to schools.

In essence they are looking for secure lifestyles. David Shevil, GM of Just Property group, says, “Today’s property buyers are the young, up and coming professionals (yuppies) who are being headhunted by top companies; there is also the black diamonds factor, a group that is getting heavily involved in the property world.”

With millennials altering the needs of the property market, this could lead to an interesting shift in demand and supply. Green, small technological capable homes will be more in demand and older, fixeruppers will lag behind, creating a surplus of older homes and demand for new, modern housing. Even with the black middle class taking up some of that surplus of older homes, it is the millennials who will dictate the demand and indeed the supply of new residential property.

BY COLLEEN MAY

Page 26: LI ES, DA M N ED LI ES A N D S TAT I S T I C S

LIES, DAMNED LIES AND STATISTICS Lying to clients about how many properties you’ve sold and inflating the selling price in an effort to impress can lead to all sorts of problems

Page 27: LI ES, DA M N ED LI ES A N D S TAT I S T I C S

There are unscrupulous agents and agencies out there that appear to thrive on hype and inflating things beyond reality. The seemingly innocuous statement “We sold 10 properties last month”, possibly made on an expectation, legitimate or otherwise, has the potential to slip between the high bar of truth and the low bar of misrepresentation.

gives all estate agents a bad name once it becomes clear that the agency in question has lied. We cannot allow these cowboys to continue – they continue to give our industry a bad reputation. Their Fidelity Fund certificates should be revoked.”

Adrian Goslett, CEO RE/MAX of Southern Africa, says that the company

Exaggeration, often referred to as ‘puffing’ in the world of advertising, plays a role in most business dealings. This fairly harmless practice of generally embroidering the facts may often be innocuous. We have all seen these sorts of property adverts, the ones where they describe a three-bedroom, two-bathroom suburban home in such glowing terms that the average man in the street could be excused for thinking the queen is selling Windsor Castle. This practice is pretty easy to see through as a quick visit to the home in question puts things into perspective. It’s fairly obvious that this type of puffing doesn’t mislead a potential purchaser – it is mere bait in the water, so to speak.

However, there is a line that cannot be crossed. If an agent exaggerates to the extent of misrepresentation, there is the potential that someone will act to their financial detriment, potentially giving rise to fraud. For instance, exaggerating the number of properties that have been sold in any given period may sound innocent at first blush, but if the motivation behind the sales has been a recent crime wave, this puts a different perspective on the matter. The other side of the numbers coin is a statement like “We are really ripping the local property market, we have sold 90 properties in the past eight months” is innocent when uttered to an acquaintance over lunch, but takes on more dire consequences when directed at a purchaser who is hesitating about buying in a certain area. Whilst your average Joe doesn’t have any easy way of checking those statistics, someone with access to online Deeds Office records can soon verify whether or not there actually have been 90 sales over that time frame. Perhaps even more sinister are those who inflate the prices of the properties that they have sold. Again, this may appear harmless, but unfortunately it can, and often does, raise sellers’ expectations. So what is the general view regarding this practice? We asked some industry leaders to comment.

“Agents who inflate their sales figures and the prices they have attained adversely affect the market,” says Marsha Haupt Cooper, the principal of Links Living in the Eastern Cape. “It sends out the completely wrong message and although exaggerating both the amount of homes sold and the price attained may be a ploy to attract buyers and sellers to a particular agency, I consider it totally unprofessional and believe that the perpetrators should be brought to book. In my opinion, this practice

not only disagrees with the practice, but is actively running a campaign entitled ‘Facts not Fiction’ on a national level and is encouraging its membership to do the same on a local level.

When asked whether the recently introduced educational standards could help stamp out this practice, Goslett says, “No. I don’t believe it’s an education issue. It’s an integrity one. I don’t agree with bolstering numbers with misinformation. However, it may be very difficult to police unless there is complete transparency in real estate with respect to figures. In the USA, you can use software (publicly available) to gain access and drill right down to the sales of an individual agent in a particular area.”

“Agents who inflate their sales figures and the prices they have attained adversely affect the market” Roderick Williams, head of operations, training and business development at Chas Everitt International, says, “We discourage puffing since it is misrepresentation and does not convey the correct facts and information. We also discourage the same in light of the Consumer Protection Act (CPA) and the Estate Agency Affairs Board (EAAB) Code of Conduct.”

He says the CPA is very clear on this and that marketing methods will have to comply with the various chapters in the CPA, keeping in mind the following: A the consumer is entitled to equality and privacy; B the right to disclosure of information; C the right to fair and responsible marketing; D the right to honest dealings.

Page 28: LI ES, DA M N ED LI ES A N D S TAT I S T I C S

Section 40 of the CPA deals with unconscionable conduct. The CPA clearly states that a supplier or an agent of the supplier may not use: A physical force against the consumer; B coercion, or undue influence; C pressure; D duress or harassment; E unfair tactics relating to any of the marketing of the goods

or services or the supplier of goods or services whether it is

in the negotiation, conclusion or execution stage of

an agreement.

Section 41 deals with false, misleading and deceptive representations and states that no supplier or agent of a supplier by words or conduct may: A directly or indirectly express or imply a false, misleading or

deceptive representation concerning a material fact to a consumer; B use exaggeration, innuendo or ambiguity as to a material

fact, or fail to disclose a material fact if that failure amounts to

a deception.

Andrew Golding, CEO of Pam Golding Properties, says that there are a number of reasons why the practice is not acceptable and adversely affects the market. “Apart from the fact that this information is spurious, it’s also fraudulent, potentially gives the industry a bad name, confuses or misinforms the public and is fundamentally misleading. If it were widespread, it could create an artificial market.”

“We have an entrenched policy and philosophy that simply reports accurately the sales we have concluded and the prices that have been achieved. If an agent were to be found misquoting or inflating their sales figures, we would view it in a most serious light,” he says.

Real estate is always going to be a competitive arena and Golding says that agents are utilising all tools at their disposal to persuade sellers to choose them in the important decision of the sale of their home.

“Hopefully this is always conducted within the bounds of acceptable practice and within the code of conduct that estate agents have subscribed to, but naturally there are probably some exceptions to this, which is unfortunate.”

Outselling and outperforming the opposition is obviously key in real estate, however, trying to gain the upper hand by essentially telling untruths is not the way to go. It stands to reason that the perpetrator is going to be caught out sooner or later, however, the chaos that they cause in the local market can prove to be incredibly damaging. Sellers who receive misinformation regarding prices achieved in their areas are going to want to base their own price on what they have heard.

“Agents often overinflate prices to get mandates to sell properties”, says Jaco Rademeyer of Jaco Rademeyer. “Unfortunately they also often use the overinflated prices to sell other properties in the same area that are more realistically priced. Every suburb has a ceiling for its asking price and any agent worth his salt is going to utilise a comparative market analysis in order to sell the property in the quickest time.” Unfortunately, he says, the practice of puffing creates an unrealistic expectation among sellers because it’s not just the seller of the property in question, but other sellers in that area who in turn overinflate their asking prices after seeing the overinflated prices in the press.

Interestingly enough, hardworking, successful agents do not allow their egos to get in the way of their jobs. They don’t have to; their results have a voice all of their own. They don’t need to feel threatened by the competition – the competition tends to feel threatened by them. They don’t need to boast or speak half-truths, the proof of their success lies with the large number of happy clients who return to utilise their services time and time again.

The question is, however, should it play a role in real estate? We all tend to have a rough idea of what has been sold at what price in the areas in which we work.

How many agents do you know who live in this grey area of half-truths?

BY LEA JACOBS

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Page 30: T H E M A I N S TAY S O F P RO P ERT Y M A N AG EM EN T

THE MAINSTAYS OF PROPERTY MANAGEMENT Investors in property portfolios are lured by potential growth in income distributions as well capital growth on assets, whereas occupiers of buildings prioritise management strategies as expenditure impacts bottom line earnings.

However, the livelihood of property managers depends on the vision, skill and performance of above average management teams in cohesion with equally skilled clients. Prudent management strategies, as highlighted in annual financial results in the listed property sector, provide sufficient evidence of how competence impacts on all-round performance. Some operators within specialist entities offer one-stop shops, while many large property owners retain management services in-house. Others may enter into combined service agreements, where, depending on the levels of expertise required for different parts of investments, specialists are best able to render skilled services.

RENTAL INCOME The most noted attribute for excellent financial results is rental income.

This was singled out by Norman Sasse, CEO of Growthpoint, whose annual results to June 2013 showed investors an outperformance of the company’s original forecast, with distribution growth at 7.2%.

Growthpoint’s positive results as owner and manager of 393 properties locally, Sasse says, are attributed to the all-round higher performance of the company’s property portfolio. “Growthpoint’s distributions are based on sustainable rental income.”

OPERATING COSTS Another vital management strategy is the reduction of operating costs, although challenging in view of ever rising utility costs. A case in point is Vunani Property Investment Fund, whose portfolio includes predominantly large buildings with national and some blue-chip tenants, which managed to outperform the sector amid tough trading conditions for the year to June. CEO Rob Kane attributed the fund’s sterling performance to “an innovative approach of maintaining solid growth in rental income, the containment of operating costs and retention of tenants.” He said upward pressures on administration and operating costs, i.e. municipal rates and utilities, electricity, water and waste, had been successfully

managed and controlled through a combination of greening initiatives and prudent management.

Also advocating stringent cost management practices within outsourced property management services is Excellerate Property Services (EPS), which owns a stake in JHI Properties. EPS offers integrated services across the different segments of the property market. CEO Marna van der Walt says, “Through leveraging on group synergies we are able to provide market leading, integrated service offerings at competitive costs – a key imperative in today’s challenging economic environment where rising operating costs are a factor of concern for landlords and tenants alike.” She says increasingly property owners with investment portfolios of varying size and stature seek to outsource property and facilities management to professional organisations that are proficient and experienced in providing high levels of service in a cost-effective manner.

Leasing strategies are prioritised at specialist management company ERIS Property Management. Director Scott Thornburn says in-house expertise is essential at all levels as skilled management teams are required to act on behalf of landlords or tenants at different operational levels. He says customised facilities management comes into play, depending on contractual service agreements with clients, as it relates to owner occupiers, single tenants or multi-tenanted buildings.

Contractual rental escalations require forward planning. The early renewals of leases, regular increases of rental incomes, the reduction of vacancies, minimising of operating expenses and timely rental collections are essential. Other influencing factors impacting on end results occur in high demand geographical areas where top graded buildings located in prime positions show slow turnover, despite attracting exceptionally high rentals. “Long-term leasing strategies are vitally important to extend the leases of exemplary tenants prepared to pay a premium for exclusive office space,” says Thornburn.

RISK MANAGEMENT The mitigation of potential risk through strategic intent as identified by the audit and risk committee of Vunani points to above average cost inflation from utilities, local councils and other property related expenses.

Page 31: T H E M A I N S TAY S O F P RO P ERT Y M A N AG EM EN T

Greenstone Office Park – a recent acquisition of Vunan Property Investment Fund

Kane says that risk management has to be viewed in the context of reduced net property directly related to income. “This may occur when rental escalations no longer cover cost increases, possibly leading to defaulting tenants and vacancies. The risks associated with the increased cost of assessment rates, electricity, water and sewerage are transferred to the tenant in terms of the lease agreement. The non-recoverable component is managed by negotiating contracts with service providers.”

FACILITIES MANAGEMENT THROUGH TENANT LIAISON IS CORE TO THE PROPERTY MANAGEMENT BUSINESS Thornburn says, regarding Eris Property Management’s portfolio, which comprises 5 000 tenants, that the positive impact of constant tenant liaison is particularly notable in the event of non-payments. Managing the risk of vacancies requires ongoing operational strategies since tenant failures are known to increase during volatile market conditions.

Other essential services at Eris include legal teams, which offer in-house services for the protection of landlords, tenants and employees. He says although specialist legal cases are outsourced, Eris oversees contractual

affairs as it relates to tenants as well as service providers. Skilled management teams offer assistance with regard to major legislative issues, such as health and safety aspects of SETAs and the labour industry.

FACILITIES AND TACTICAL MANAGEMENT Quality facility management services apply equally to owner occupied, single or multi-tenanted buildings on a national or regional scale.

However, in addition to general building management services rendered, is the need for preventative measures to facilitate long-term maintenance and replacement programmes.

An essential role of good property managers, says Thornburn, is to incorporate heavy capital expenditure items in the long-term planning of property clients. This is due to high replacement costs of fixtures in large buildings, such as elevators, lifts and air conditioning systems, which mostly have a predictable lifespan.

BY ANNA-MARIE SMITH

Page 32: F I N A N C E A N D F I G U R ES

HOW DO HOME LOANS MEASURE UP? WHAT PERCENTAGE OF HOMEOWNERS APPLIED FOR FURTHER ADVANCES IN THE PAST YEAR?

%

Property Professional gathered information from one of the country’s leading mortgage originators to provide some insight into what percentage of homeowners applied for further advances in the past year as well as what the average percentage is of home loan applications made by firsttime buyers over the past year per region. In addition, we asked what percentage of buyers are applying for bonds to purchase holiday homes or investment properties. We compare statistics from October 2012 to end-September 2013:

An average of 1.9% of home loan applications made each month is for further advances.

PERCENTAGE OF BUYERS APPLYING FOR BONDS TO PURCHASE HOLIDAY HOMES OR INVESTMENT PROPERTIES:

THE AVERAGE PERCENTAGE OF HOME LOAN APPLICATIONS MADE BY FIRST-TIME BUYERS OVER THE PAST YEAR PER REGION Province

% First-time buyers

E CAPE

58.75

FREE STATE

33.3

Reporting month

% Second property purchase

GAUTENG

34.85

APRIL 13

14.43

KZN

38.83

MAY13

14.5

LIMPOPO

62.08

JUNE 13

15.44

MPUMALANGA

30.85

JULY 13

15.68

N WEST

51.73

AUGUST 13

15.93

N CAPE

34.24

SEPTEMBER 13

16.48

W CAPE

36.64

** Information supplied by BetterBond

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Page 34: A DA P T O R D I E

ADAPT OR DIE THE TIME TO DIVERSIFY IS RIGHT NOW

Page 35: A DA P T O R D I E

Since 2008, the world and South Africa have experienced a recessionary climate, the result of which has been a drop in property transactions over the years. People have had to be more cautious with spending and the dramatic rise in the last few years of the cost of living, coupled with a weaker rand, has hit the real estate industry the hardest.

It is in these tough times that the need to diversify and create new revenue streams has become a necessity. So how can you ensure that you don’t end up as a casualty of the economic times?

Francois Staples, joint CEO and co-founder of Galetti Knight Frank, says, “Staying relevant means adding value, whether this is recent and regular market updates and industry news or an intimate knowledge of the area in which you want to be located. Businesses also need to be 100% up to date with new industry regulations and legal changes and trends as well as marketing trends, both on and offline.” In order to sustain your business and thrive, not just survive, you need to think about creating new avenues and altering existing ones. Selling property is the bread and butter of an estate agent but the means by which you make the sale need to be updated. Gone are the days of relying on advertising property in the papers and showing houses to sell property.

Show houses, yay or nay?

Are show houses out of date or still a necessary part of the selling process? With the advent of technology and virtual viewings, the importance of show houses has diminished somewhat, but people still want to see what they are buying. Sometimes even after viewing the property virtually, it is the show house that seals the deal. But show houses today need to stand out; it’s not just about filling the space with some furniture and a flower or two, you are selling someone a dream, and the property needs to reflect that.

Seasoned interior designer Natasha Lockwood of NL Global Interiors has some advice for creating the perfect show house. “For a development, from my experience one needs to consider a variety of factors: Location, target market, style of development or property/house, style of internal finishes as offered by the developer, possible areas that need to be camouflaged, and areas or views to be highlighted so that a potential buyer’s attention is drawn to them.”

For example, if the development is an urban, loft type of apartment aimed at the under 35 sector, then one would decorate it to appeal to the market and highlight the architectural style. “Think contemporary fabrics and furniture: Chrome, leather, and suede in neutral colours with shots of accent colour. Generally, larger statement furnishings make a space appear bigger and, of course, good lighting and large mirrors always enhance an interior. Accessories such as throws, scatter cushions and flowers are always important,” says Lockwood. The interior,

however, should not be too individual so that the style puts off a potential buyer — it’s a fine line between neutral and boring, she advises. The buyer must be able to easily imagine living there.

With a private home, one needs to take the existing home from an individual, lived-in space to a place in which all potential buyers can visualise themselves, according to Lockwood. “Anything special, such as a view or kitchen, needs to be displayed to its best advantage. If the walls are looking tired, then freshen them up with one coat of paint in the same colour. However, if the walls are painted in an individual colour that might not appeal to the general populace, rather repaint them with a neutral colour.” An example is a south-facing apartment that had been painted a very dark blue-green. Lockwood says that this is a cold colour, and it made the south-facing apartment even darker and colder than it really was. “Eventually, after it had been on the market for some time, the seller agreed to re-paint the apartment and just painted it white. It sold at full asking price very soon thereafter.”

While a show house is a valuable tool when it comes to ensuring success in selling your properties, it’s not enough to just focus on one stream of revenue. In order to thrive, you need to think about other avenues of business in the property industry. Jonathan Smith of Courtwell Consulting outlined the following as new ways to diversify within the property market: Auctioneering, property development, value-added services, student accommodation, property management and low-cost housing development. So how exactly can you make these avenues work for you?

Auctioneering Despite the knock the auction industry took following the scandal of the Auction Alliance kickbacks, auctions are still a viable and smart way of selling properties in a short amount of time. There is less fuss and fanfare, with the property being sold to the highest bidder. So how can you take advantage of this? If you wish to enter the auctioneering service, it is vital that you formulate your marketing approach to stimulate and inform the bidders. They know what they are bidding on but you want to create a buzz and get people bidding, and the way to do that is through innovative marketing, making the property stand out from the rest.

New development letting Existing homes and sectional title complexes generate income but is it enough? Not everyone is looking for a lived-in home, some people want newly built homes. An innovative alternative to sell homes is to work with residential developers and assist them in the pre-letting of planned new developments. How, you may ask? In order to obtain a new development mandate you need to impress the developers with a cutting edge selling

Page 36: A DA P T O R D I E

and letting strategy. You need a comprehensive marketing strategy across the media mix, websites, social media marketing, radio advertising, print media advertising and the right show house strategy

Value-added services

looking to diversify. All you need is a number of blocks of flats and houses to let that meet the needs and demands of the student population.

Jonathan of Courtwell Consulting explains, “Student beds command a rental of approximately R1 800 per month for 10 months of the academic year. A well-administered student residence can create a viable and sustainable business opportunity for an investor.”

By adding value to the property transaction, you can become a one-stop service source for sellers and purchasers; someone whom landlords, homebuyers and tenants can rely on. The added benefit of creating a good name for you and your company is the word-of-mouth effect; you cannot pay enough for the free advertising word-of-mouth will provide. People who are impressed with your services and the

Low-cost housing

value you add to them will be quick to recommend your services to people they know, who, after using your services, will do the same.

And the best part is, you can charge for these services. By offering a broader selection of services you are able to diversify while still remaining in the property field.

well-planned estates is a new stream of revenue that should be considered. There is an urgent need for more than 2 million low-cost homes and that number is growing daily. That being said, this is a slightly more risky avenue to pursue as it is difficult to co-ordinate. To date the building process has been rife with scandals of corruption and sub-par homes being built. Should you decide to pursue this avenue, ensure that your partner is a reputable one.

These services should include: • Credit profiling and rating of prospective purchasers and tenants.

• Bond facilitation for purchasers.

• Assessing tenants on their ability to pay rental by obtaining employer – and bank – documentation.

• Assisting purchasers and tenants to arrange furniture removal and, if necessary, temporary storage facilities.

• Obtaining a standard purchase agreement or lease agreement from an attorney and using this standard agreement to facilitate a contract.

• Assisting the seller - or landlord - to refurbish a property under sale – or letting – in order to make it attractive.

• Collecting the rent from tenants so that the landlord does not have to incur this effort.

Another value-added service that you could venture into is property management. While it is not the easiest method of creating a new stream of income, for a savvy and organised estate agent, this could be a profitable business undertaking.

Student accommodation This is a booming market, with demand outstripping supply. Student housing is a profitable avenue of income for estate agents who are

A neglected aspect of property transactions, low-cost housing is also one of the fastest rising needs facing the South African property industry. The development and sale of low-cost housing within

Technological age Technology is not so much a method of diversifying, as it is a method of staying relevant in today’s property market. JP Farinha, CEO of Property 24, says, “Technology permeates all aspects of the current savvy consumer’s life, including the way that they search for property. With the technology available, and the vast quantity of information accessible at the consumer’s fingertips, the online environment is most often the first port of call for house hunters and property investors. This makes for a well-researched and tech-savvy property buyer, armed with all the details to make contact with an estate agent and take their property search to the next step. Technology has brought consumers to where we are today, and we are certain that it will continue to play an enormous role in developing the property buyers of tomorrow. Estate agents who keep their finger on the pulse, and stay close to property portal technology leaders and innovators, will certainly gain an advantage in tomorrow’s world.” In order to thrive in the property market today and tomorrow you need to ensure you are technologically relevant to your customers.

The age-old adage – adapt or die – is quite relevant in the changing landscape of South Africa, but that changing landscape also offers opportunities to create a business that will be relevant and thriving 20 years from now. Take advantage of the opportunities now and avoid ending up as another casualty of the economic climate.

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Page 38: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

PROPERTY PROFESSIONAL

NEW AGENTS ON THE BLOCK

NERINA LE ROUX

GEORGE KERBY

C H A S EV ER I T T I N T ER N AT I O N A L EAST LONDON

R EN P RO P CO M M ERC I A L

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? Every year I set a goal and a new challenge for myself, and when my friend Sharon Karatamaglou, who has been an estate agent for the past 14 years, asked me to join her in a partnership, I grabbed the opportunity with both hands. I had some doubts about being able to do the job, but have found that I love every second of it!

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? My entry into the commercial property industry came after observing a personal friend trading as a commercial broker. I came to understand that the industry he was in was consistently invigorating, multifaceted, financially rewarding and offered an ever-changing opportunities landscape.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? I love people and I find the different personalities that you meet and mix with every day extremely interesting. The most satisfying aspect of the job is to have a happy client – that smile after you have clinched a deal is wonderful to see! For me, the most challenging aspect of the job is to find stock.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? The most enjoyable and challenging aspect of commercial property broking are inter alia each working day offering up various new opportunities, consistently meeting new people from all walks of life, the daily presentation of new challenges and opportunities, chasing and closing the deals with financial reward following close behind.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? A good estate agent needs to have a strong, positive personality.

You need to be a good listener and motivator with good negotiation skills. You also need to be able to ‘read’ people and be sensitive to their needs. I feel that honesty, loyalty and respect is very important.

That is, respect for yourself and all the people around you.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? The characteristics required to become a successful broker are, in my opinion, the ability and discipline to work both independently and as a team player, as well as deal with people from all walks of life and age category, remain focused, disciplined and knowledgeable regarding the specific sector and trading node in which you are working.

WHAT ARE SOME OF YOUR CAREER GOALS? My personal goal is to sell my first 40 properties and make my first million! On a serious note, I would love to keep growing as a person and enjoying the new challenges in my life, and if I could mean something to each person that crosses my path it would be a huge bonus. Life is beautiful and we need to embrace it!

NUMBERS TO KNOW

11.8%

WHAT ARE SOME OF YOUR CAREER GOALS? The industry offers myriad career goal opportunities for a commercial property c broker. My personal career goals are to fully master specialising in my sector and allocated trading node, deliver unsurpassed service and piece together a long-term relationship client portfolio.

Middle-segment house price growth came to 11.8% year-on-year (y/y) in March 2013‚ after rising by a revised 10.9% y/y in February. Real price growth was recorded at 4.8% y/y in February after adjustment for the effect of consumer price inflation‚ which was 5.9% y/y in the month. The average nominal value of homes in each of the three middle-segment categories was as follows in March 2013: Small homes (80m²-140m²) at R752 600, medium-sized homes (141m²-220m²) at R1 079 500 and large homes (221m²-400m²) at R1 609 600. Fin24 – House price growth ‘near turning point’

Page 39: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

ANDRIS THEART

SANDRA WESSELS

R E / M AX O N E H U N D R ED F O U RWAY S

H U I Z EM A R K S A S O LB U RG

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? I have always had a passion for architecture, interior, decor and working with people. By becoming a property professional, I have the ability to combine all my passions into one career and I can share this with my seller or buyer to give them the best advice and opportunities possible.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? Most enjoyable is definitely working with people, and the most challenging aspect is to get the public to know you, because they don’t know your abilities and capabilities.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? The ability to communicate and to listen and understand people’s needs, and through this to build a relationship with your buyer or seller, so that they have confidence in you and would want to refer you to other possible buyers and sellers in the future.

WHAT ARE SOME OF YOUR CAREER GOALS? Start at the beginning, learn everything I can about what I am doing now and then move to the next step in my path. You will never be successful if you cannot accomplish and understand fully what your task at hand is.

CHERYL VAN KERCKHOVEN

EN G EL & VÖ LK ER S B RYA N S T O N

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? I am fascinated with architecture and interiors and the real estate industry is the perfect opportunity for me to make a career out of something I am passionate about.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? As an individual I am very creative and naturally respond to an environment that lends itself to creativity. This is how I see every house – it was created by someone, built by people and inhabited by families! A career in property makes me part of an ongoing evolution through generations, taking on the challenge of finding the perfect house for each client.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? The most enjoyable aspect is to be spot on when choosing a property for viewing. The client’s admiration is visible.The most challenging aspect for me is getting a mandate on the one property everyone wants to have!

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? A great estate agent or broker needs to be honest and real about what they put out on the market – with integrity, people will always remember your name.

WHAT ARE SOME OF YOUR CAREER GOALS? I would like to qualify further as a property professional in all areas of the property spectrum, and to establish a positive vision to change certain neighbourhoods into safer areas for families to grow and live!

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? Most enjoyable has to be seeing different homes. Challenging, on the other hand, is seeing the home through the eyes of a buyer. You need to put yourself in their shoes and experience their emotional needs together with the structure and layout of the property to find the perfect home.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? To be able to see the best aspects of a property and to project this to a buyer.

WHAT ARE SOME OF YOUR CAREER GOALS? To always be top of mind and have the largest market share in my area.

Page 40: P RO P ERT Y P RO F ES S I O N A L N EW AG EN T S O N T H E B L O C K

• Negative sentiment, political instability and the tightening of banking policies have resulted in poor investor confidence and a drop in house prices.

• Difficulties arising from trying to educate sellers to market their homes at realistic and achievable prices.

• Delays in obtaining rates and taxes clearances from municipal councils result in lengthy transaction processes and delays in the payment of commission to agents.

LYNNE BAKER JAW I TZ P RO P ERT I ES PA R K H U R S T

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? I am a qualified teacher by profession but realised when I got divorced that I would not be able to support my children on a teacher’s salary.

I have a genuine interest in and love for people and I wanted a career in which I could use the nurturing skills I had developed as a teacher. I also wanted to be involved in a business that would be both lucrative and allow me the flexibility to care for my children and be a strong influence in their lives. As an independent contractor with a strong work ethic, my income as a real estate agent is controlled by the time I invest in my work. A career in real estate has enabled me to set my own work schedules and grow a business without compromising my parenting and grand-parenting standards.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB? Enjoyable: • As an independent contractor, I am able to ‘be my own boss’ – I can set my own work schedule, develop a client base, select preferred marketing methods and grow my business according to

my principles • Being able to develop relationships with all types of people and assisting them to achieve a level of security and realise personal and financial ambitions.

• Set targets for myself and develop strategies to reach them.

• Negotiating at high levels to bring a deal together.

Challenging: • Having no fixed income creates a stressful financial lifestyle.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? • Unbridled enthusiasm. This is important as it is a difficult industry and both sellers and buyers need to feel that you are excited and positive about property and their needs.

• Trustworthiness. It is vital that all parties involved in the transactions have faith in the ability of the agent and trust the agent implicitly. A home is an important asset and trust plays a vital role in the relationship between all parties in an agreement.

• Compassion and empathy. More often than not a property is sold or bought during a difficult period of a person’s life, such as divorce, death, transfer or financial difficulty. The agent must be empathetic to all parties involved.

• Diligence. Real estate is not an easy industry. Selling property in tough economic times requires diligence and sheer hard work on the part of the agent. It also requires a degree of tenaciousness – an ability to keep going when difficult times are experienced.

WHAT ARE SOME OF YOUR CAREER GOALS? • To achieve a degree of financial security.

• To have a high percentage of market share in Parkhurst.

• To achieve respect and loyalty from buyers and sellers, as well as agents affiliated to other companies in the area of my expertise.

• To earn the respect and admiration of my colleagues so that they are happy to refer buyers and sellers to me.

• To reach a level of financial stability by the time I reach retirement age so that I can afford to retire to the coast and be able to live comfortably.

South African industries generated an estimated total turnover of R1.69-trillion in the

NUMBERS TO KNOW

R1.69-TRILLION

second quarter of 2013, up 3.7% from R1.63-trillion in the first quarter, Statistics South Africa reported. The largest increase in turnover was recorded for electricity, gas and water supply (up 20.8%), followed by construction (14.7%), real estate and other business services excluding financial intermediation and insurance (5.9%), transport, storage and communication (3.7%), manufacturing (3.3%), trade (2.5%), and community, social and personal services excluding government institutions (1.2%).

BDlive - South African industry turnover increases

Page 42: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

PROPERTY PROFESSIONAL

TOP PERFORMING AGENTS

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

NELIS BEZUIDENHOUT R E A LN E T P R E T O R I A

The Internet. The way buyers look for property has changed dramatically in the past decade and currently around 90% of our buyers first see a listing on our web page. It again ties in with visibility.

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

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? Be consistent in all you do and focus on a specific area. Be consistent in your operation – canvass every day and take clients to view properties every day. Consistently improve your visibility through boards, media adverts and the Internet.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? If at all possible, live in the area you serve. As part of the community your visibility will increase exponentially. Sellers will get to know you and buyers will notice that you practise what you preach.

NICOLINE GROBLER H A RCO U RT S VA A LDA M

It was a townhouse in Silverton. The buyers wanted a second view and, while waiting for them, I sat in my car nervously studying the pro forma offer to purchase. I was sure they were going to make an offer and did not want to fumble or appear inexperienced when it came to signing.

After all that preparation, it was smooth sailing.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY? Focus on a small area and become the specialist in that segment of the market. As your reputation grows you will become an agent of choice.

Many young agents who try to cover too many areas end up receiving only expired mandates of property that has gone stale in the market.

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Your database. Without it you are flying blind and can waste a lot of valuable time that could have been spent on your core business.

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

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? Know your product and keep your end-goal in mind; persevere in difficult circumstances; and stay dedicated to your clients.

I actually sold three undeveloped stands at the Vaal on the same day.

I had just started as an agent and was still in the process of finding a suitable office. All three offers to purchase were signed on the boot of my car.

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

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY?

Keep your admin straight from day one. Your database should always be up to date – it is the basis of your business.

Realise that it is a full-time job that requires total commitment.

The bottom line is that you get out what you put in.

F RE S H

Page 44: P RO P ERT Y P RO F ES S I O N A L T O P P ER F O R M I N G AG EN T S

NICKY VAN DER WESTHUIZEN S EEF F P R E T O R I A E A S T

Day, Father’s Day, Easter, and Christmas etc.

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Weekly drops that show your sales and achievements. Know what is happing in and around your area, and the Internet. Ensure your web pages look good and are not full of ‘sold’ stock.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

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

Work, work, work 24/7.

Yes, it was a friend’s house in Lynnwood. She was going smaller.

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

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY?

To be very visible in your area and know every property. To be ‘on show’ every Sunday and to use adverts, such as ‘pole-ads’, for greater visibility. And, to remember important days such as birthdays, Mother’s

Be prepared to work 24/7. Be available to clients at all times; be punctual and eager with lots of energy. This is a great job, but you must love what you do and must be able to work with people.

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

PETER COLLINS J H I P RO P ERT I ES

Internet marketing. More and more companies use the Internet as their first port of call to ascertain the market and who the service providers are to meet their specific needs. Mobile connectivity is crucial to an agent in the field, aiding response time to inquiries and providing quality service to clients while in the field.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

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

1. Work a full day: Self-discipline is the key to success. Be organised and plan carefully to make the most of your productive time.

Yes, it was a shopping centre in Durban called Price City; an excellent deal as we moved it into a fund listing on the JSE, and achieved an excellent price for the seller while adding value to the centre for the purchaser. A quality transaction for all parties!

2. Connect with people; truly enjoy learning from people and understanding what makes them tick, what the seller and purchaser truly want. Networking is critical to our business.

3.

Love the land; drive or walk areas, be conscious of property opportunities. Property is a physical asset and people’s businesses must flourish in the sites. Understand both the macro and micro trends in your areas of specialisation.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? Time: Property works in long cycles. It takes time and dedication to put a deal together, even longer than you think.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY? My advice to new kids on the block is to be patient, professional and focused; property moves in long cycles and the deal cycle is now longer than ever. Be thorough and professional in your approach and you will succeed. Choose an area of focus that suits your skills, such as office, commercial or investments, and specialise so as to make a career out of deal-making. Don’t forget the basics, this is a networking profession and information is everything; the people aspect, and building lasting relationships is crucial. Good luck out there!

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client. You will also get a better understanding of the process and how the legalities unfold.

BYRON THOMAS PA M G O LD I N G P RO P ERT I ES

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? An iPad as it has all the information at your fingertips. One can access market related comparables, other agents’ stock and even your suburb database if you have compiled your own one.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT. 1.

2.

3.

Persistence beats resistance.

Always give your best.

Don’t be scared to make mistakes.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? I think every agent should experience selling their own home and moving first so they can understand just how stressful the whole process is for the

Yes, it was an apartment in London. It was in an old mansion block, two bedrooms with one bathroom, and it sold for more than a house would sell here in a top area. I couldn’t believe I had done it.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY? The simple and honest truth is, knock on doors, every day.

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

LUZ DIAS C H A S EV ER I T T I N T ER N AT I O N A L B ED F O R DV I EW

An extensive personal network. I am constantly in touch with key people in my area who have lived there a long time and with my past sellers and buyers, and I get most business from their referrals and introductions.

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

To really succeed as an agent you need to be highly self-motivated, clear about your goals and prepared to persevere even when things go wrong.

Oh, yes I do. It was back in March 1994 and the property was a house in Bez Valley, which was my learning suburb. I sold it for R121 000, which seemed like a fortune to me at the time, and was the second offer I had on the property after the seller had turned down the first one.

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

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY?

That it takes huge amounts of tolerance and patience to be a good agent. Dealing with people is a much more pleasant experience – for them and for you – once you understand that people often delay or change their minds when faced with a huge decision like buying or selling a house. You have to learn to go with the flow of their emotions while not letting them lose sight of their goal.

This really resonates for me because my daughter has joined me in my business. First of all, believe in yourself and what you are doing. Then do all you can to stay focused and positive and don’t let difficult or negative people put you off your stride.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

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

KASS BUNKELL LEW G EF F EN S O T H EB Y ’ S I N T ER N AT I O N A L C R A I G H A LL

As many sophisticated means of communication as possible, which should be utilised efficiently with far reaching effects.

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

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? Hard work, perseverance and understanding your client’s needs so you can deal with issues in a calm, unruffled manner. In my case, 30 years with the same company and working in the same areas has led to stability and good relationships with clients that have been cemented over the years.

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

The first property I sold was as a result of a show day and my partner at the time and I closed very quickly, leaving us with the impression that every sale would be that straightforward!

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY? To have respect for both buyers and sellers and remember that a residential home purchase will, for most, be their most important financial commitment.

Possibly that it is not easy to really make a success of your career, and that perseverance and persistence are what make the difference.

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

NATASHA WILKEN EN G EL & VÖ LK ER S WAT ER K L O O F

It is important to stay on track with trends and changes in technology as a marketing tool. To be a frontrunner in the industry you need to be up to date with any new developments in this field.

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

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? To be successful in the real estate industry you need to be disciplined and maintain good client relationships. Most importantly you need to have a passion for and an in-depth knowledge of the industry.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN YOU FIRST STARTED OUT IN PROPERTY AND WHY? Don’t lose focus and don’t lose hope. The early days of being an agent can be challenging and trying, but with perseverance comes success.

I had been trying to list a certain property for a while and it was on the market with a few other agents. When I had the opportunity to list the property, I sold it within two weeks. Being my first sale, this gave me a good confidence boost.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS OF THEIR CAREER IN PROPERTY? Make sure you are entering the real estate world because you are passionate about it and want to build a successful career in the field.

You need to become a brand in your area and this requires a lot of hard work, networking and determination.

Page 48: D EV EL O P M EN T U P DAT E

DEVELOPMENT UPDATE a heat recovery system, which translates into no wasted energy,” explains green building consultant, Marloes Reinink from Solid Green.

“Electricity conservation means there are no geysers at the health club, a plate heat exchanger will ensure there is hot water for the showers and spa areas. We are also ‘harvesting’ the backwash water from the pool as grey water, which will be used to flush the toilets and urinals.”

NEW HEIGHTS FOR HEALTH CLUB The latest in the Virgin Active Classic Collection, Alice Lane Health Club, is poised to take health and wellness – and busy executives – to new heights! The construction of a new luxury ‘blue-chip’ health club situated in Sandton, Johannesburg at an investment of around R150million is set to change the face of health experience. The challenge was to create a classic club facility with top end amenities and finishes – factoring in customised joinery, lighting and furniture – that was also environmentally sensitive.

“Alice Lane boasts a number of industry firsts with its dedicated rooftop training area, state-of-the-art equipment, contemporary finishes, time zone lighting and five-star service, which makes it an ideal choice for captains of industry, busy executives and discerning individuals,” says Jacques Jacobs, construction project manager, Virgin Active South Africa. The project team was given a fairly tight brief: Build a health club adhering strictly to green principles without compromising on world-class amenities. This includes the most technically advanced training equipment in a setting that is calm, tranquil and welcoming.

A decision was made to make use of the beautiful Johannesburg evenings and the first rooftop training facility was designed after negotiations with developers Abland. This presented its own set of challenges, one of which was the need for an additional lift and, of course, safety for the training facility which is 50m above street level. Clear safety glass, 1.8m high, around the perimeter ensures an uninterrupted view and all-weather equipment allows for training all year round. The dedicated lift will be fitted with AstroTurf for a seamless transition from the downstairs club area to the two lane 20-metre demarcated sprint track.

Jacobs says that there has been minute attention to detail in the design and construction as well as the services available at this health club.

“Nothing has been overlooked,” he says, “from an on site biokineticist, training equipment that’s a first for South Africa, anti-gravity yoga and a full service restaurant to a shoe shine bar.” He adds that “the concept was about redefining the wellness and exercise experience and Alice Lane Health Club will deliver on this.”

Set in the heart of the Sandton business district, the Alice Lane multiphase project, within which the health club is being constructed, comprises three office blocks designed around a large public piazza, with an extensive parking basement.

To keep the interior as eco-friendly as possible, materials were meticulously sourced and selected to ensure the project upheld a commitment to the Green Buildings requirements. Initiatives included sourcing sustainable local timber, recycled and recyclable materials as well as the installation of LED lights and other energy efficient systems. “The air conditioning unit was custom designed and has

AFFORDABLE HOUSING HAS GREAT SOCIAL, ECONOMIC AND HEALTH IMPACT Globally, various researchers have been auditing the social and economic impact of affordable housing developments. In the USA,

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the Economic Policy Institute examined the Department of Labor’s Consumer Expenditure Survey to determine whether spending on food, clothing, health care and other necessities differed among families in affordable housing versus those in unaffordable housing.

It found that households paying more than half of their income on housing costs commonly spent substantially less on essential expenses such as food, clothing and health care. Last year a 10-month study by a team led by Francois Viruly of the University of Cape Town showed that affordable housing that is designed to ensure healthy, integrated communities, rather than just to provide dwellings, results in an improvement in the quality of life for children and health. The study found that most respondents who had taken up such housing agreed that their access to public transport, the quality of their children’s lives, leisure, social life and health had all improved. More than 50% of households had also seen improvement in access to education and employment, while developers and users agreed that the units also had a positive impact on neighbourhood safety and security.

MSP Developments’ flagship affordable housing estate, Belladonna Estate in Blue Downs, is setting the pace for innovative affordable housing in South Africa. Riaan Roos, CEO of the MSP Group of Companies, says, “I am only too aware that affordable housing such as that which MSP provides gives the residents and their families benefits that go well beyond the mere provision of housing. We aim to – and are successful in – creating sustainable human settlements.”

Roos brings us up to date on progress to date: “Belladonna Estate will include a total of 740 homes (a combination of free-standing and semi-detached homes and apartments) once complete. At this stage, all civil services are complete, as well as the perimeter wall and electrified fencing. Of the homes, 232 have already been built, with another 63 currently under construction. It is currently envisaged that all construction within Belladonna Estate will be complete by the end of 2014.

The estate is conveniently situated close to the R102, R300 and N2 routes, as well as 500m from the planned Blue Downs rail corridor connecting Mfuleni, Blue Downs and Blackheath to the PhillipiKhayelitsha and Strand-Bellville railway lines. It is only 1km from shops and schools, making it ideal for young professionals and families. It also has its own ‘central park’ area with children’s play equipment, as well as security features not normally associated with affordable housing, including a dedicated security patrol and fitted alarm in each home. In addition, all of the apartment complexes within the estate have their own remote-controlled access control gates and electrified fencing.

Roos says that the property market appears to be 15 to 20% livelier than last year, and that the unchanged interest rate bodes well for prospective purchasers. “Property ownership remains the cornerstone for healthy, well-balanced communities, and there is no better time than the present to invest in your family’s well-being.”

SOUTH AFRICA’S TOP RETAIL DEVELOPMENTS AND DESIGNS TAKE ESTEEMED AWARDS Newcastle Mall triumphed to win the sought after Spectrum Award for the best overall development in 2013 in the South African Council of Shopping Centre’s (SACSC) Retail Development and Design Awards (RDDA) 2013. Nedbank Corporate Property Finance sponsors these prestigious awards announced at the 17th Congress of the SACSC held in Sandton recently.The RDDA recognise exceptional shopping centre design and economic successes of projects within the South African property industry. They consider new shopping centres and the upgrade of existing centres, as well as the design of retail stores and restaurants.

Amanda Stops, CEO of SACSC, says, “Retail design is a science and an art. It is about more than shops, inviting stores and vast shopping centres. It’s a creative and commercial discipline that brings architecture, interior design, graphic design, ergonomics and advertising together in the design and construction of retail space.”

Besides taking top honours overall, Newcastle Mall also beat finalists Nicolway Bryanston Shopping Centre and Platinum Square Shopping Centre in the shopping centres over 20 000m2 category. Zenprop Property Holdings developed Newcastle Mall and it is designed by Vivid Architects. Blue Route Mall was victorious in the renovation and expansion category. Blue Route Mall is owned by Redefine Properties and designed by Louis Karol Architects. Finalists in this category also included Tygervalley Centre and Randburg Square.Leading retail store aesthetics in South Africa, Superga Footwear in Sandton, won the store design category. It is designed by Robyn Self of Plan-It Design for Michael Joseph. Other finalists considered in this class included the Polo Flagship Store in Sandton City and Factorie in Woodlands.

Doppio Zero (Pineslopes Shopping Centre) topped the category for best restaurant design. Finalists in the category included Piza e Vino Midrand (Carldsworld Décor Centre) and Koi Restaurant (Lynnwood Bridge Shopping Centre). The restaurant was designed by Emma Spengler of Design Partnership for Miki Milovanovic and Paul Christie of Doppio Zero. A panel of recognised and respected retail and property professionals judge the RDDA Awards. They are challenged to select the best of the best from developments of the highest calibre in the South African retail property industry. In doing so, they consider the complete package: Excellent design resolution, overall development objective, response to environment and market, innovative solutions and sustainability.

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TECH TOOLKIT The Samsung Galaxy Gear smartwatch AVA I L A B LE F RO M : R4 599 (the recommended price for South Africa) L OV E I T: The first of its kind, the Samsung Galaxy Gear smartwatch is attractive, comfortable and makes it easy to see incoming calls.

This unique little gadget lets you take calls, send texts and perform compatibility in the near future, however Samsung has yet to confirm a date. Additionally, the Gear seems to lack functionality, thereby creating an expensive gadget without much practicality.

various other tasks from your wrist without touching your phone.

Without any SIM card or data connection of its own, the Gear links to your phone via Bluetooth, acting somewhat as an external display so you don’t have to take your phone out every time it rings.

NOT SO MUCH: In order for it to be moderately useful, the watch needs a phone to make it work and, to make matters worse, it will only work with the Galaxy Note 3 and the new Note 10.1. More TouchWiz phones, such as the Galaxy S III, GS4 and Note 2, will be updated with

I N A N U T S H ELL : The Gear has some potential, however it appears to be all puff and no thunder. With limited functionality, there is only so much one can do with this very pricey device.

Homes4Me AVA I L A B LE F RO M : For free! Download from sahomeloans.com/apps or from the application stores of most smartphones L OV E I T: Homes4Me is a clever new mobile application from SA Home Loans. The app removes the stress from home hunting by simplifying the process and doing all the remembering for you. It is used to record all the details of each home you visit – together with photos, GPS co-ordinates, price and comments. Then the app automatically ranks them according to your personal list of key criteria, so you can see immediately which one really is the ideal home for you. In addition, it also allows you to calculate your likely bond instalment and offers the option of sharing your list of favourites with others by email.

NOT SO MUCH: It is a clever and unique app that has been missing in the market for a while, so it’s impossible not to like.

I N A N U T S H ELL : There’s no doubt about it: Searching for your next home is an exciting process. But it can also be quite daunting. Experts advise you to look at as many properties as you can before you settle on one, so having a useful little app like this one may prove to be rather helpful.

720p HD Digital Ballpoint Pen with tiny spy camera AVA I L A B LE F RO M : R399 L OV E I T: The Swann HD PenCam Mini 720p Video Camera & Recorder is a stylish ballpoint pen one minute and a high-tech spying device the next, allowing you to capture both videos and images. You can use the HD PenCam to shoot AVI video files at 720p resolution (1 280 x 720 pixels) or JPEG still images at 1 600 x 1 200 photo resolution. It has a memory card slot which allows you to swap MicroDS cards each up to 16GB capacity (not included), ensuring that you never run out of recording space.

NOT SO MUCH: Nothing to say here – what a cool pen!

I N A N U T S H ELL : It’s useful and awesome with amazing spy/secretagent/undercover capabilities.

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Boogie Board RIP Paperless LCD Writing Tablet AVA I L A B LE F RO M : R1 299 L OV E I T: The Boogie Board RIP from Improv Electronics is an electronic clipboard that will save handwritten notes and drawings to Adobe‘s PDF format for later transfer to a PC via USB. You draw or write with the included stylus on the pressure-sensitive 9.5" dark monochrome LCD screen, which results in light coloured lines and writing. When you want to save your work, simply press the ‘Save’ button at the top. To start over, the ‘Erase’ button wipes the screen. It’s that easy. The RIP has 8MB of storage, and that’s enough space for thousands of single page PDFs (each is about 2KB in size).

NOT SO MUCH: Look, it doesn’t have all the bells and whistles of the latest smartdevices – what you see is what you get.

I N A N U T S H ELL : If you are either not a tech savvy kind of person or the greatest tech wizard in all the land, this nifty gadget could bring you great delight. Simple and useful, don’t underestimate the Boogie Board RIP, it has the tendency to surprise. ** All prices are approximate.

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HOME LOANS APPROVED IN LESS THAN FIVE HOURS Nedbank’s revolutionary, fully automated online home loan channel has dramatically reduced the waiting time for home loan approvals. Launched in 2012, the channel continues to make home ownership a reality, having enabled over 10 000 clients to apply for finance for their homes online since its inception. The exasperation usually associated with mortgage bond applications has now been made a thing of the past because the home loan channel provides easy access and convenience through a seamless online interface.

Most impressively, the online offering is a huge timesaver – a critical benefit nowadays, given the increasing number of hours many people in South Africa are required to devote to their occupations and other pursuits. Time is money, and this realisation prompted Nedbank to introduce the online channel, which is proving to be an invaluable benefit to its clients.

Ultimately, fierce competition in the banking sector has seen all banking institutions upping their game. With clients becoming more discerning, banks are pulling out all the stops to retain and expand market share. Convenience is a prime deciding factor for many homebuyers, and more so for firsttime buyers. Recognising the need, Nedbank has streamlined the application process to the extent that it is able to offer a turnaround within hours, with the shortest application approval to date – from start to finish – having taken no more than 45 minutes. The online channel is a logical extension Timothy Akinnusi Head of Sales and Client Value Management Nedbank Home Loans

Nedbank has streamlined the application process to the extent that it is able to offer a turnaround within hours of the bank’s ongoing drive to broaden its digital banking capabilities. It therefore continues to innovate and to deliver a choice of distinctive banking experiences for new and current clients Online security is another vital factor – which is why the new home loan channel, while designed to be user-friendly, is studded with leading-edge security features to ensure that the client’s personal data is kept secure. Clients are guided through the entire process, being furnished with key information they require to finance and purchase their dream home. An added benefit for current home loan clients is that they can apply for a further loan through the online channel and thus gain quick access to the capital they have already paid off.

“As a bank for all, we are committed to increasing the pool of homeowners in our society through innovation and insight. We are therefore delighted with the meaningful difference the home loan channel has made for buyers thus far. This demonstrates that practical advice and solutions have eased the application process so that clients are readily able to drive and manage the entire exercise securely online. We are confident that homebuyers will continue to find our platform user-friendly and convenient,” says Timothy Akinnusi, Head of Sales and Client Value Management for Home Loans at Nedbank.

True to Nedbank’s sustainability accolades, the channel supports the bank’s green philosophy and has, in the last 12 months, reduced its carbon footprint by saving: • a total of 293 330 A4 sheets of paper thanks to its paperless application process; and • a total of 44 487 hours of clients’ time – equivalent to a saving of 4.3 hours per online application.

Akinnusi says that, as a caring organisation, Nedbank strives to make home buying exciting, seamless and convenient.

“Knowing what your clients want and expect from a service provider is salient. The entire process has been extremely efficient, with clients obtaining credit approval for completed applications within a few hours. The bank prides itself on making good on its promise of making bond approval within hours happen.”

“So what are you waiting for?” he asks. “The dream of a new home is only hours away from being realised. Take the pain and frustration out of outdated bond application processes and move to a safe online facility. At Nedbank we make it happen for you.”

Page 54: WO R D O N T H E S T R EE T

WORD ON THE STREET “As prime minister I am not going to stand by while people’s aspirations to get on the housing ladder are being trashed… If we don’t do this it will only be people with rich parents to help them who can get on the housing ladder - that is not fair, it is not right.”

David Cameron, British Prime Minister (BBC News: David Cameron brings forward Help to Buy scheme)

“Highly risk-averse investors should be cautious of listed property. Prices can be volatile and the sector is expensive on a short-term view.”

“There is a fair section of South African society that will forever be outside of the formal employment system, simply because they do not have sufficient capabilities to participate in the economy.”

Even Robins, Old Mutual’s listed property head (Financial Mail: Caution sets in property listings)

Standard Bank economist Goolam Ballim (Sowetan: ‘Some South Africans will stay marginalised’)

“The South African household sector cannot always blame global events for its own inadequacies. We proved about a decade ago that if our own ‘fundamentals’ are in place, we can sail through these periodic shocks relatively unscathed, but if they aren’t we will pay the price.”

John Loos, FNB household and property sector strategist (FNB Blog: ‘Household and consumer weekly’ – 30 August 2013)

“It’s becoming evident to us that, when it comes to the potential for economic returns that can be unlocked for any business through a green building commitment, we’re really just scratching the surface in South Africa. But even so, it is widely accepted that a property built or retrofitted using truly green design principles has the potential to deliver reduced operating costs of about 30% per year.”

Ken Reynolds, Gauteng regional executive for Nedbank Corporate Property Finance (BDlive: ‘Green buildings can deliver unexpected savings’)

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