Property Professional - July/August 2014

AGENT EDUCATION: ALL SYSTEMS GO GOVERNING BODIES ADD VALUE

RENTAL HOUSING AMENDMENT BILL: HELP OR HINDRANCE?

NEW GLOBAL STANDARDS OF MEASUREMENT FOR OFFICE SPACE

JULY/AUGUST 2014

CONGRATULATIONS TO OUR NATIONAL GOLDCLUB AGENTS: Byron Thomas, Peter Spencer, Brian Gradner, Rose-Marie Marais, Sue Ralph, Daniel Joubert, Brenda Gilbert, Jean Markham, Andrew Golding, Paul Levy, Doug Gurr, Farrel Kelman, Marion Nolan, Peet Strauss, Dawid Smit, Audrey van Niekerk, Jackie Rosenberg, Vickie Francis, Deanne Kriel, Mariel Burger, Carol Truter, Kimberly Dods, Heather Turner, Barbara Rogers, Shelly Schoeman, Melanie Truss, Minette Munitz, Leanne Santana, Janice Toay, Ellmarie Spencer, Tony Santana, Peta Tongs, Lynn Pinn, Annette Hepburn Absent: Christopher Nel, Jean Bekink, Myrna Duveen, Sandra Colas, Shirley Finnemore

IT WAS WITH GREAT PRIDE THAT WE RECENTLY HONOURED OUR 2014 TOP NATIONAL AGENTS’ AND MANAGERS’ OUTSTANDING ACHIEVEMENTS. HOSTED AT ARABELLA HOTEL & SPA, THE ANNUAL GOLDCLUB GALA BANQUET WAS A MAGICAL EVENING OF CELEBRATION.

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

NATIONAL REFERRAL AGENTS OF THE YEAR Lynn Pinn & Paul Levy - Atlantic Prestige, Western Cape

AGRICULTURAL AGENT OF THE YEAR Daniel Joubert - Elgin, Boland & Overberg

DEVELOPMENT AGENT OF THE YEAR Peet Strauss - Hyde Park, Gauteng

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

“If you are determined, have integrity and passion… it will lead to success.”

Pam Golding, Life President

NATIONAL AGENT OF THE YEAR: CATEGORY B Deanne Kriel - Stellenbosch, Boland & Overberg

NATIONAL AGENTS OF THE YEAR Kimberly Dods & Carol Truter - Hyde Park, Gauteng

Gold club status is awarded to those agents Who have achieved and maintained a consistently High level of service excellence and adhered To the strictest principles of ethical conduct.

They have also contributed outstanding efforts To real estate far greater than the expected norm And shown the utmost pride in their profession.

Resulting in sales worth millions of rands Within a specific time period.

AGENT OF THE YEAR AFRICA Marion Nolan - Botswana, Africa

NATIONAL BRANCH MANAGERS OF THE YEAR AND NATIONAL BRANCH OF THE YEAR - LARGE CATEGORY Jonathan Davies & Rupert Finnemore - Hyde Park, Gauteng

NATIONAL BRANCH OF THE YEAR – MEDIUM CATEGORY Basil Moraitis - City Bowl, Western Cape

ED I T O R ’ S N O T E

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EDITOR’S NOTE

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It seems that there are a lot of questions asked in this issue of Property Professional. Do governing bodies add value to the property industry? Is enough being done by the City of Johannesburg to aid those who work tirelessly and face many challenges to transform the

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inner city into the hub it once was? What are the three top challenges that the modern estate

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agent faces?

Shaun Minnie

Perhaps one of the most topical questions in this issue is around the Rental Housing Amendment Bill, which proposes some critical changes to the current Rental Housing Act 50 of 1999. The question is: Will these changes protect the landlord or the tenant? In our lead feature this issue, industry comment on this topic features words such as problematic, draconian and skewed. Please let us know if you think the proposed Rental Housing Amendment Bill will be good for the industry by participating in our poll on Facebook and on our website.

083 629 6081 shaun.minnie@thecreativegroup.info EDITOR Michelle Funke 011 462 8959 michellef@propertyprofessional.co.za

For the first time in a very long while, Property Professional has some good news from the

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Services Sector Education and Training Authority (SSETA) and the Estate Agency Affairs

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Board (EAAB) in-between these pages! It looks as if the drama around the issuing of

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qualification certificates from the SSETA is being resolved. In addition, the EAAB put on

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record that “to avert the possibility of any innocent learners being prejudiced by the deaccreditation of real estate education providers, the Board of the EAAB resolved to grant

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an extension of time until 30 June 2015 to enable such persons to be duly certificated

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in terms of the required NQF real estate qualifications. It is felt that this extension is

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sufficient to enable those learners who might still require remediation prior to being found competent and certificated for the NQF real estate qualifications to do what is necessary

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for certification purposes”.

Nicolette Lubbe 011 476 6293

There is more good news for property development in this issue, with an uplifting article looking at opportunities in Africa, including reports of investors tracking high growth products as new African market opportunities emerge, while others evolve and mature.

PRINTING Paarl Media

Internationally there has been some standardisation, too. Property — from residential to retail, office to industrial — has been measured inconsistently around the world. In this issue, Property Professional takes a closer look at the massive industry initiative to mobilise the implementation of global office measurement standards that has come to fruition.

Remember to subscribe to our electronic newsletter, visit our website, www.propertyprofessional.co.za, like us on social media and share your thoughts, views and news with us.

MICHELLE FUNKE

michellef@propertyprofessional.co.za

Disclaimer: The publisher of this magazine gives no warranties, guarantees or assurances and makes no representation regarding any goods or services advertised within this edition. © Copyright 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 04 INDUSTRY NEWS 14 RENTAL HOUSING AMENDMENT BILL

14

20 ALL SYSTEMS GO 24 REAL ESTATE INVESTMENT GROWTH IN AFRICA 28 GOVERNING BODIES

20

00377 BETTERBOND DREAMS LOTTERY PROPERTY PROFESSIONAL - EAR PIECES RP.indd 2014/06/0 1

34 THE TOP THREE CHALLENGES THAT AGENTS FACE 38 THE GLOBAL OFFICE MARKET NOW SPEAKS A UNIVERSAL LANGUAGE 42 MARKET SHARE 44 BREATHING NEW LIFE INTO JOHANNESBURG’S INNER CITY 48 FINANCE AND FIGURES

50 TOP PERFORMING AGENTS 54 NEW AGENTS ON THE BLOCK 58 TECH TOOLKIT 60 DEVELOPMENT UPDATE 64 WORD ON THE STREET

44

Page 4: I N D U S T RY N EW S

INDUSTRY NEWS TENANTS SQUEEZED FOR MORE AS NATIONAL RENTAL AVERAGE INCREASES

Louw Liebenberg, CEO of PayProp, says that tenants are finding it

housing capacity – resulting in off-the-charts rentals when compared to

increasingly difficult to raise additional sums of money to cover the rising

the rest of the country,” reveals Liebenberg.

rental rate as well as meet demands for higher deposit collateral. Based on the analysis of just over 2.5 million transactions in South Africa, the

Liebenberg says that the growth in Limpopo seems to be halting: “We

PayProp Rental Index showed the weighted average national rental at

are seeing the first signs of a slowdown, with growth rates dropping

the end of the first quarter of 2014 was R5 934 – up from R5 867 in

from 14.5% in the second quarter of 2013 to just 4.4% at the end of the

the fourth quarter of 2013. “In line with international trends, we expect

first quarter of 2014.”

economic circumstances to remain tight for the foreseeable future, which leaves landlords and tenants caught in a stand-off between cover and

Mpumalanga, on the other hand, has kept up a solid growth rate of

available capital. Based on current growth rates, we can reasonably

around 7% on average throughout all three quarters since the second

expect the national rental average to exceed R6 000 by the end of the

quarter of 2013. With the stability in the growth rate in this province, it

second quarter of this year.”

could remain in the leading position for possibly the remainder of this year. Gauteng is hot on Mpumalanga’s heels with the past two quarters’

In the final quarter of 2013 the Tenant Profile Network reported

growth rates both measuring more than 10%. However, this province has

worsening tenant payment performance for residential rentals. The

to make up a lot of ground before its average rental exceeds the R6 765

percentage of tenants in good standing dropped from 86% to 85%

of Mpumalanga.

in the last two quarters of 2013, and there has been a greater deterioration still in the percentage of tenants who have paid their rentals

At the end of 2013 PayProp predicted strong growth in the Northern

in full. “This is likely the result of over-indebtedness. We do not expect

Cape rental market and this appears to be spot on. While growth

this trend to improve in the foreseeable future, as the rental growth rates

dropped slightly from 14.8% at the end of last year to the current

(although lower than last year) are still well above inflation and occur

12.6%, it is still the fastest-growing province in South Africa for

within an economy that is characterised by increases in essential costs

rentals. A concern is the province’s ability to sustain this level of growth

coupled with extremely low growth rates,” says Liebenberg.

with the slowdown in property prices in the region, as recorded in the ABSA house price index.

Liebenberg says that his advice to estate agents is to focus on screening tenants before entering into lease agreements. Most importantly, they

Another province that the Index has highlighted is the Eastern Cape.

should not only rely on the historic credit data of a tenant, but take a

“When we look at the long-term dataset we see a province that has

more forward-looking view, placing more emphasis on aspects such

emerged from a negative growth rate in average rental values in 2011

as affordability.

to one now growing at 10.7%. Granted, this growth is from a much smaller than average base, with the current average rental standing at

The PayProp Rental Index tracks the rental averages across provinces in

R4 808, but nonetheless it is an impressive performance from a province

South Africa and Limpopo has topped this list over the past nine Index

in which the rental market is starting to recover,” says Liebenberg.

readings. “From our first PayProp Rental Index in December 2011, we were amazed by the extremely high rentals that have been achieved

“While the rental market is still growing at healthy levels, our caution

in the area. We were particularly impressed by the town of Lephalale

to the market remains that tenants are under increasing pressure, which

and how it stood as an example of what happens when industrial

calls for far more in-depth screening prior to the signing of leases in

development comes to an area that does not have adequate rental

2014,” concludes Liebenberg.

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THE NEDBANK HOME LOAN ONLINE APPLICATION GETS AN UPGRADE Online banking is increasingly being adopted by South African consumers, as an easier and more convenient channel. With the convergence of communication platforms, consumers now have access to information at their fingertips, with innovation, convenience and simplicity as vital commodities in a fast everchanging world where clients are spoiled for choice. As such, Nedbank continues to innovate to deliver a choice of client banking experiences and channels of choice. Nedbank’s first to market and fully automated online home loan channel launched in 2012, has been enhanced with several enhancements to simplify and improve the experience for new home buyers as well as existing clients wishing to access additional funds.

As a result, the new enhanced online application is now web enabled making it even easier for clients to apply for their home loan from any device.

Timothy Akinnusi, Head of Sales and Customer Value Management at Nedbank Home Loans says that the improvements also mean that clients can access the application from anytime, anywhere, using their tablet, laptop or personal computer, whilst the online save functionality means users can save an incomplete application and continue at their convenience. Existing home loans clients also have the added benefit of applying for a further loan or re-advance Timothy Akinnusi Head of Sales and Client Value Management Nedbank Home Loans

“Clients can now upload all supporting documents for a fully completed application, making the whole process paperless from start to finish and helping to ensure a quicker response on an application.” through the online channel, thus enabling them to quickly access the capital balance already paid off.

Clients can now upload all supporting documents for a fully completed application, making the whole process paperless from start to finish and helping to ensure a quicker response on an application. The easy-to-navigate form also guides users through every step of the application, providing useful tips to make the process as easy as possible.

According to Property Switch, approximately 80% of potential buyers start their search for a home on the internet, most often visiting well established property portals.

Akinnusi says: “We are pleased with these new enhancements building on this ground breaking tool which continues to enrich the client experience through its rapid turnaround application process. We believe consumers are no longer just looking to do banking, they are looking to do banking in a unique, simple and fulfilling environment. Therefore the channel was developed to also drive buyer advocacy to empower aspirant homeowners to make informed decisions, by providing them with information and ensuring much needed understanding of the application and on-boarding process.“

Since inception, Nedbank has received more than 16000 applications through this channel, with over R1.8 billion in home loans being taken up by clients. The average turnaround time for credit approvals has been achieved within just two hours, with the fastest in a mere 45 minutes.

He adds that with online security becoming increasingly important, users can rest assured knowing that all of their details and personal information remain completely confidential. ‘The channel was built with leading security features to ensure that all personal data is kept completely secure, with clients guided through the entire process from the comfort of their home, office or work. These enhancements are a logical extension of the bank’s on-going expansion and broadening of digital banking capabilities to enable clients to do their banking and access their home loan finance – anytime, anywhere,’ concludes Akinnusi.

The online home loan channel forms part of Nedbank’s wider strategy to lead in digital banking, through various first to market innovations such as the Nedbank App Suite™, Approve-it™ and MyFinancialLife™.

Apply online for your home loan today by visiting Nedbank.co.za/homeloans.

Each member duly elected to this board brings a wealth of experience and proven business leadership to help steer and implement REBOSA’s strategy and are well positioned to serve the membership.

In delivering his first opening address at the AGM, chairman, Andrew Golding reiterated the importance and need for an unquestioned unified voice of the industry, fully representative of all interest groups and fully inclusive.

“I believe the need for an organisation like REBOSA has never been more relevant. The Real Estate industry is a multi-billion Rand sector governed Andrew Golding, Chairman

REBOSA : READY FOR ACTION

by a wide range of legislation and regulations that have far reaching effects on real estate agency owners. Today’s real estate business owners must adopt new approaches to address and apply these regulatory requirements while meeting the challenges of running their everyday business operations. This is just one of the reasons that membership to REBOSA as a collective lobbying body is crucial. By way of one such example of this, in the coming months REBOSA will seek high level professional opinion and lodge submissions to interrogate the legislative framework and provide a clear legal analysis and commentary to our members on the impending Property Practitioners Bill which will govern

Real Estate Business Owners of South Africa (REBOSA), an independent,

the way estate agents operate in future and which, if allowed to proceed

non-profit company (NPC), representing the best interests of business

unchecked, could have fundamentally negative effects on our industry

owners and principals in the real estate sector, announced its new board

and individual businesses. If REBOSA does nothing else but ensure a fair

following the Company’s first AGM held on Friday, 20 June 2014.

and reasonable new Property Practitioners Bill, it will have justified its existence.”

T H E 1 0 - M EM B ER B OA R D I N C LU D ES :

The full transcript can be found on REBOSA’s website, www.rebosa.co.za

•

Andrew Golding, Chairman

•

Jan le Roux, Chief Executive Officer

While the first priority of REBOSA is to look after the best interests of

•

Adrian Goslett

business owners with emphasis on lobbying government and policy

•

Andile Ben-Mazwi

makers and interrogating relevant pieces of legislation, there are other

•

Bryan Biehler

issues that are equally important.

•

Dina Porteous

•

Jan Davel

The most prohibitive expense in any estate agency is possibly still the cost

•

Samuel Seeff

of print advertising. After many years, agents have ultimately succeeded

•

Tony Clarke

in managing this expense, if not nationally, at least in the main centres.

•

Vinesh Ramdass

Today, the publications in the major centers are largely controlled by estate

“I BELIEVE THE NEED FOR AN ORGANISATION LIKE REBOSA HAS NEVER BEEN MORE RELEVANT. “ agents, rendering them more affordable. This works well and offers no

Also notable, is the subject of industry centred software. The larger

competitive advantage to anyone. How agencies advertise and portray

agencies have customised software but the majority of the industry relies

themselves provides that competitive edge.

on market place products. It became abundantly clear during the REASA/ Property 24 narrative, that Property 24 was desirous to establish Prop

Times have changed and traditional print advertising spend has shifted to

Control as the leading software package in South Africa, clearly benefiting

other platforms. The internet has evolved and most estate agencies now

Property 24. Consequently, agents have been able to negotiate the

have a presence on the web through their unique branded websites.

ownership of Fusion and thereby enabling agents to own their software

Inevitably portals were created and are now predominantly the manner

and improve same over time according to their own requirements. There

in which consumers search for properties to buy. Unlike the printing

are currently 220 users who all have a good experience with this software

business, estate agents have absolutely no control over the leading portals.

at an affordable cost. All subscribers to Fusion obtain a share in the

Property portals have more property stock listed on their websites so

owner company, ensuring democratic control in the best interest of the real

search engines like Google will reward them by ranking these websites

estate industry.

higher than the smaller real estate agencies with niche stock in their areas that they operate in. Agencies, therefore, increasingly find themselves at

This is a perfect example of future opportunities for portals in the sector.

the mercy of these portals.

In other matters discussed at the AGM, the board disclosed that an application to sign a bilateral agreement with the National Association of

The concerns around property portals were addressed in a previous

Realtors (NAR) had been submitted; to foster and build relationships with

edition of the Property Professional Magazine iro a company called

realtors in the USA.

REASA (Real Estate Agents of South Africa) that was formed and which entered into a joint venture agreement with Property 24. This venture

REBOSA staff working within the offices of the EAAB will continue in their

came to nought but the negative impact was that it lead to the formation

efforts to assist with the challenges around Audit Compliance etc. The

of Property 24 now established as the leading property portal in South

team have made significant inroads and it has been a major advantage to

Africa. Being in a dominate position they determine the advertising rates.

the membership that REBOSA has its own people on the ground.

An increase in rates takes effect in August this year and are bound to increase significantly over time. It is not inconceivable that they may derive

In summation, the REBOSA board of directors were pleased to report that

revenue from agents as well as consumers depending on the degree of

membership is growing daily. 23 national groupings and 230 individual

domination they achieve.

agencies have joined REBOSA, indirectly encompassing more than 9 000 estate agents.

“This being said, the subject of portals was discussed with extraordinary seriousness at REBOSA’s AGM. Members unanimously expressed

The overarching objective of REBOSA is to achieve collectively what real

immense concern and have undertaken not to enter into any long term

estate business owners cannot attain on their own. To add your voice

agreement with any portals until a better solution can be reached.

to the collective betterment of the real estate industry, sign up today by

REBOSA’s board of directors have subsequently been sanctioned to

completing your membership application form electronically by visiting

investigate the issue and provide proposals and guidelines for a long term

www.rebosa.co.za

solution which can be negotiated on behalf of the industry.

Obtaining a serious stake in a portal or establishing an industry owned portal is certainly on the agenda” says Jan le Roux, CE of REBOSA.

JHI PROPERTIES MENTORS ASPIRING ENTRANTS TO THE PROPERTY INDUSTRY

A level 3 BBBEE

Property Owners Association (SAPOA), who

Framework (NQF) level 4 courses, which are

contributor and

spent several weeks at JHI Properties, benefiting

registered with the Services Sector Education

scoring in excess

from mentoring and hands-on experience.

and Training Authority (SSETA), and was the

of 65% against the

Nomzamo Radebe, MD of JHI Properties

first to provide SETA-accredited training for

five-year Property

“We welcome enthusiastic new talent into our

the recently introduced Facilities and Property

Charter targets,

organisation to share this knowledge. We believe

Management Diploma, which is also an NQF

JHI Properties

they can benefit considerably by experiencing

level 4 qualification. In addition to furthering

– a member

first-hand what we do as it will stand them in

the professionalisation of the property industry

of Excellerate

good stead in their future careers. We encourage

and enabling valuable skills transference, once

Property Services

a work ethic infused with mutual co-operation

obtained, this new qualification will enable

group – has stepped up its focus on helping

and mentorship. In other words, this is very much

applicants to enter the property industry as a

fresh young talent gain entry into the commercial

an inclusive team effort,” says Radebe.

portfolio manager or facilities manager. For

property industry by providing them with invaluable experience and skills.

those already in the industry it will enable them At JHI Properties, human resources plays a key

to enhance their skills and broaden their careers,

role in development of staff, including women

while adding value to the services offered by the

Says Nomzamo Radebe, managing director

and gender empowerment, through a variety

property management sector.

of JHI Properties: “At any given moment we

of training initiatives at all levels, and the

have 30 to 40 learners and interns, mainly from

organisation focuses on skills transfer, learner

Adds Radebe: “We will continue to play

previously disadvantaged backgrounds, who

and mentorship and employment equity, as well

a role in assisting those from previously

receive practical experience and mentoring

as helping foster entrepreneurs who seek to enter

disadvantaged backgrounds enter the

within the organisation. Most of these become

the industry.

property industry and further their careers,

employed within our organisation after the

and also continue to contribute to a changed

year of practical training, while others find

Kgodisa Training Academy also forms part of the

perception in the industry towards women in the

employment within the industry. Last year we also

Excellerate Property Services group. This learning

workplace. Currently our workforce comprises

took on a group of interns from the South African

institution provides National Qualifications

approximately 60% women.”

SHOULD REAL ESTATE PRINCIPALS SELL AND COMPETE WITH THEIR AGENTS?

BY ANTHONY VAN DER RIET, BUSINESS PERFORMANCE COACH

A selling principal should always employ

This is where agents should be encouraged

principal looking to poach agents in the area.

the best admin and finance people for the

to network with each other as they often have

Principals should also make time to go out on

job and pay them well. If you can’t afford good

the buyer and the seller among them, but an

appointments with their agents as this is still

support staff, you won’t keep good agents.

opposition agency does the sale.

the best way to gauge their competence.

followed up properly and say it is because they

Most importantly, principals who sell should

Don’t get me wrong. I’ve got nothing against

are only focused on their own deals.

make time to be at the office at specific times

a selling principal at all. In fact, it is often a

of the day. This is to give agents time to

good place for new interns to start as these

A selling principal should make it clear to all

discuss problem deals or give general advice.

principals talk the talk and are also in touch

agents if they are selling as well as managing

The principal should also do a monthly one-

with market trends. My only reservation is

how leads are distributed in the office. If a

on-one meeting with each agent to look at

when the number of agents exceeds the

selling principal works in a closed area, it

activities and results. This will also give agents

time a principal has available to run the

is fairly simple to control, but in open areas

an opportunity to open up about any concerns

business effectively. This is the time to consider

or multi-listing a ‘free-for-all’ system is often

or problems.

managing full-time or, alternatively, appointing

Agents will blame the principal if deals are not

where various agents could be working with

an office manager, whichever will is best for

the same buyers and sellers just as though

Agents need attention, and if they don’t get it

they were competing with other agencies.

from their principal, they’ll get it from another

the company.

Page 11: I N D U S T RY N EW S

ASSET MANAGERS HAVE MORE TO OFFER THAN ‘OUTPERFORMANCE’ Today’s obsession with the need to

Locally, the picture looks very similar. There

‘outperform’ has resulted in asset managers

are currently 108 domestic general equity

losing sight of clients’ needs. By pursuing

funds with five-year performance track

a strategy aimed at helping investors to

records. It would be reasonable to assume

realise their goals, as opposed to remaining

that, over this period, the primary objective of

anchored to the generic and tired strategy of

the majority of these funds was to outperform

‘beating the market’, active asset managers

the All Share Index. However, an analysis

have a meaningful role to play.

of the funds’ returns reveals that only 20%

The key is to align the experience and

managed to achieve this goal. The statistics

expertise of investment professionals with the

are even worse for active property fund

needs of investors and to charge a reasonable

managers. Over the past five years only one

fee for this service. Active management refers

actively-managed property fund has been able

to a portfolio management strategy where

to outperform the South Africa Property Index.

the manager makes specific investments with the goal of outperforming a benchmark

Whereas 20 years ago, asset managers

typically referred to as ‘beating the market’.

adopting an active management strategy had

The opposite of active management is called

reasonable prospects of success, in today’s

passive management, better known as

intensely competitive security markets, very

‘indexing’ or ‘tracking’. The primary benefit

few active managers consistently outperform.

of passive management is low fees and

Consequently, the continued relevance of

guaranteed market performance as opposed

active management has been questioned

to the primary benefit of active management

with more and more investors settling

being the promise of ‘outperformance’.

for the ‘Index’.

Over the years, active management has come

With the odds stacked against

to dominate the South African market, with

outperformance, does this mean that the

investors willing to pay more for the hope

passive route is the best way for investors

of superior returns. Unfortunately, however,

to achieve their financial objectives? Those

there is mounting evidence suggesting that the

at asset management company Marriott

pursuit of outperformance is an endeavour

disagree. What is required, they believe, is an

where the probability of success is far too low

adaptation to the interpretation of the phrase

for asset managers and investors alike.

‘active management’ to one that places

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the financial objectives of clients In the US, even before fees, beating the

as the benchmark.

market is still difficult. Charles D. Ellis, a consultant to large institutional investors,

At Marriott, when managing portfolios, they

discussed the challenge that the profession

start by asking the question: “What does the

faces in a 2011 article in the Financial

client require?” They have to look first at the

Analysts Journal called ‘The Winner’s Game’.

needs of investors, or groups of investors: Do

He noted that, “Most investors are not beating

they require a monthly income? If so, at what

the market; the market is beating them. ... And

level? And do they require their income and

it’s much, much harder to beat the market after

capital to grow?

costs and fees.” Ellis found that the percentage of mutual fund managers who lag their relative

Once they have ascertained the clients’

index, after fees, is 60% in any one year, 70%

needs, they are in a better position to satisfy

over 10 years and 80% over 20 years.

them and will construct a portfolio that seeks

www.leapfrog.co.za

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

to address those needs rather than trying to

volatile. The same could be said about

acceptable level of income and capital

outperform an index.

companies that do not pay dividends or

growth. The end result is a portfolio that will

companies trading on very low dividend

look nothing like an index but rather consist

The first step in this process is to assess all

yields. Having filtered the investable universe

of investments best suited to the needs of a

available financial instruments in terms of

for suitable financial instruments, you then

particular investor or group of investors.

client suitability. For example, if you look at

analyse – on an individual basis – the ability

the JSE All Share Index, you will see that some

of those instruments to generate a consistent

By putting aside the desire to outperform

30% is comprised of resources stocks.

income stream and establish at what rate that

and instead aligning the benchmarks of its

income is likely to grow.

portfolios with the financial objectives of

For clients such as retired investors, who

investors, Marriott is able to increase the

require a steady income stream, these

With this information you are then able to

likelihood of clients’ expectations being

investments are inappropriate as their

determine a sensible price to pay for each

met. This, the company feels, is the essence of

dividends and capital values are notoriously

investment – a price which will ensure an

active portfolio management.

INSTITUTE OF ESTATE AGENTS, WESTERN CAPE, LAUNCH TRAINING PLAN TO ASSIST LOCAL BLACK AGENTS Annette Evans, regional general manager for

these learners need to be taken in by agencies

property professionals in the areas where it is

the Institute of Estate Agents, Western Cape,

in order to provide the required mentorship

needed and to provide a programme of skills

recently announced that the Institute in the

and resulting workplace learning.”

enhancement, motivation, property induction

Western Cape is working on a training plan

and introduction to those not yet selling

specifically geared towards estate agents

The Services Sector Education and Training

property. Through this initiative, we will, in turn,

in the Khayelitsha, Gugulethu and Langa

Authority (SSETA) has pledged its support,

assist in protecting the public who might up

areas. This is on the back of a recent Estate

in principle, in terms of financial assistance.

until now have been dealing with unregistered

Agency Affairs Board (EEAB) announcement

The project is currently being planned by the

agents, and who will then be able to deal with

of the launch of a programme to fast-track

steering committee that consists of delegates

members of Institute of Estate Agents of South

the transformation of the property sector. The

from the EAAB, SSETA, the Department of

Africa (IEASA) instead.”

EAAB has launched a ‘One Learner – One

Human Settlements,the National Skills Authority

Agency’ programme, and the aim is to get

and the Department of Labour.

10 000 new entrants into the industry over a three-year period.

IEASA is a non-profit organisation and requires the support of all agents in the area in order to

The Institute supports this initiative and

work together, says Evans. “Sponsorship from

wants to assist property professionals by

local businesses is much needed and would be

“This may be somewhat ambitious,” says

holding information sessions and talks in the

very welcome, and in return we would offer

Evans. “However, those who have a tertiary

Khayelitsha, Gugulethu and Langa areas,

exposure,” says Evans.

education will be able to apply for exemption

further details of which will be announced

from the qualification and will only have to

at a later stage, as soon as they are finalised,

Anyone interested in attending should email

do the twelve-month internship with the EAAB.

says Evans.

their full name/ID number/company details/

Support from real estate agencies is crucial in ensuring that this worthy initiative succeeds, as

NUMBERS TO KNOW

80%

email address/cell number and office number “Our aim is to offer better support to the

to janine@cape.ieasa.org.za.

Foreign direct investment (FDI) in sub-Saharan Africa is on the rise, according to Ernst & Young’s 2014 Africa Attractiveness Survey. While FDI projects in North Africa declined by nearly 30% in 2013, projects in sub-Saharan Africa increased by 4.7%, with sub-Saharan Africa’s share of FDI projects exceeding 80% for the first time.

SouthAfrica.info – Foreign investment in sub-Saharan Africa on the rise

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

BREAKTHROUGH IPAD APP GOES STRAIGHT TO THE TOP

After just two weeks in the market, the new

quality full-screen images, detailed descriptions

Property24 iPad App shot to number 1 in the

and a convenient bond calculator, buyers have

iTunes Lifestyle category. Created by a team

the opportunity to picture the space and find out

who understands the importance of buying a

all the necessary details before contacting the

new home, the breakthrough iPad App offers an

Estate Agent directly through the App, ensuring

unrivalled user experience with everything South

the highest-quality leads.

Africans need from a property search tool.

Filtering a search is simple by selecting the desired Using the new iPad App, house hunters are able to

features of a home, and these settings and recent

search for properties for sale or rent, and be sure

searches can be stored so that only view relevant

they are viewing the most up-to-date listings from

properties are seen each time the App is opened.

top South African estate agents.

Being able to save and share property listings also means that it never takes more than a few clicks

What’s more, with the constant refrain of “location,

for house hunters to share the experience with a

location, location” firmly set in the minds of

partner, family or friends, making the experience

buyers searching for property, the Property24 iPad

even better.

App has created the easiest way of finding the perfect home in the perfect area. The interactive

JP Farinha, CEO of Property24 says: “We

map search allows users to select one or multiple

understand how significant buying a home is,

suburbs on the map and view all properties for sale

and how overwhelming the experience can

or rent in those areas. This means potential buyers

sometimes be. That’s why we have created

can be sure the property results they are seeing are

a tool that not only takes the stress out of

the ones that are in the right area for their work,

searching for properties, but makes

nearby schools and local amenities.

the process enjoyable.”

With the new App, potential buyers can enjoy

The new Property24 App for iPad and iPhone is

hours of exciting property browsing. With high-

available for download from the iTunes store.

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Page 14: R EN TA L H O U S I N G A M EN D M EN T B I LL

Page 15: R EN TA L H O U S I N G A M EN D M EN T B I LL

World Class

training for all associates

RENTAL HOUSING AMENDMENT BILL Will the changes be for better or worse?

At present the Rental Housing Act 50 of 1999,

will go a step further in protecting tenants

section 5, stipulates that a lease between a

from unscrupulous landlords. One aspect

tenant and landlord need not be in writing or

of the Amendment will also be a pro forma

be subject to the provisions of the formalities

lease developed in all 11 official languages.

in respect of the Leases of Land Act, but this is

This can only be a positive from both the point

set to change with an Amendment Bill before

of view of the landlord and the tenant and will

Parliament. The Amendment Bill proposes some

ensure there is no confusion on either side as to

critical changes to the current Act, but will they

what the responsibilities of both parties

protect the landlord or the tenant?

are. In addition, it will benefit the Rental Housing Tribunal, which hears and rules on

The current Act stipulates that while a lease

rental disputes.

need not be in writing, a landlord must reduce a lease to writing if the tenant requests this, and

A clear and understandable lease written

the Amendment provides that the landlord must

in a language both the landlord and tenant

reduce the lease to writing. This means that

can understand will assist the Rental Housing

while a verbal lease is still binding, there must

Tribunal, but the amendment will also propose

be a written lease, but the Amendment does not

changes to the Rental Tribunal. Arno Botha,

impose a penalty if this is not done.

the current chairperson of the Rental Housing Tribunal in the Western Cape, says, “Currently

This proposed change supports both the tenant

there is no appeal against a ruling by a

and the landlord. Rights and obligations will

Tribunal. The amendment provides for an

be easier to prove with a written contract and

appeal, although the exact mechanism has not

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Page 16: R EN TA L H O U S I N G A M EN D M EN T B I LL

“... THE BILL IS PROBLEMATIC AND THAT THE GOVERNMENT IS ONCE AGAIN ASSUMING THAT TENANTS DESERVE MORE PROTECTION THAN LANDLORDS.”

been spelled out and will have to be done by

the services at Tribunals are free,” says

and allowing more experienced tenants to

way of regulation.”

Botha. The right of appeal will actually

take advantage of less experienced landlords?

lengthen the dispute process and, while The Western Cape Rental Housing Tribunal

the exact nature and process for this

Swain’s answer is yes, and he highlights

(WC RHT) opposed the Amendment for inter

appeal process has yet to be released, it

several proposed and problematic

alia the following reasons:

will not help tenants or landlords. It could

changes that will, in effect, see landlords

see a simple case being appealed and

disadvantaged in favour of tenants by

•

At the WC RHT, more than 90% of the

dragged on for months, costing both the

cases are in relation to the failure to

tenant time and the landlord money.

refund the deposits, of which the majority •

•

•

the legislator: 1. On termination of the lease it is now

are for amounts less than R10 000.

Bruce Swain, managing director of the

the landlord that must arrange for a

It needs to be mentioned that in the Small

Leapfrog Property Group, believes the Bill is

joint inspection, it is no longer a joint

Claims Courts, which has a jurisdiction

problematic and that the government is once

responsibility. There is no reason or

of R15 000, there is no right of appeal

again assuming that tenants deserve more

explanation why there should be a bigger

either.

protection than landlords. He is referring to

onus on the landlord to do this than the

The majority of tenants who claim for a

the cooling-off clause that was legislated and

tenant, and until now there was ensured

refund of their deposits are people who

saw purchasers below a certain price bracket

co-operation and participation by

cannot afford to pay a deposit for the

given the option of a seven-day cooling-off

the tenant.

next lease before being refunded the

period to decide whether to proceed with the

current deposit. The right of an appeal

purchase agreement or not. Swain says, “The

a criminal offense and a landlord can

will extend the dispute for at least two to

assumption, then and now, is that purchasers

therefore face a fine or imprisonment

three months longer than at present. It will

deserve more protection than sellers. This is

exceeding two years. This does not

work against the poorer people.

blatantly untrue as one could have an instance

apply to the tenant. This is really hard

The WC RHT believes that Rental

where a purchaser with years of experience

to understand. In most cases a tenant

Housing Tribunals should be given

in buying and selling could make an offer to a

views a property, decides to enter into

the power to order evictions. “We see

seller who is selling property for the first time.

an agreement of lease and occupies into

many instances where tenants are not

In this case, the more experienced party could

exactly what was anticipated. On the

paying rent knowing that it is difficult

take advantage of the inexperienced party just

other side the landlord does not know if

and expensive for landlords to obtain

because the legislator erroneously thought that

the first month’s rental will be paid. I am

eviction orders in other courts where

the seller needs less protection that the buyer.”

not aware of any statistics but I am pretty

the landlords need attorneys, whereas

Could the Amendment Bill be following suit

sure that more contracts of lease are

2. Failure to heed the tenant’s rights is now

Page 17: R EN TA L H O U S I N G A M EN D M EN T B I LL

broken by tenants than by landlords.

3. The Bill states that the landlord “must

into? One should not forget that the only agreements that, in legal terms, must

provide the tenant with accommodation

be reduced to writing are antenuptial

that is fit and suitable to live in...”. There

contracts, sale of land, suretyships and

is, however, not a definition of what

wills — hardly as potentially insignificant

“suitable to live in” is. One could argue

as a three months’ contract of lease.

that reasonableness should apply but

6. There is also the onerous proposal that

then one can also argue the landlords

the Department will make available

and tenants could, by definition, be

standard agreements of lease in all 11

equally unreasonable.

languages — an incredible cost and

4. The Bill states that the landlord must

a situation that might lead to a seller

facilitate the provision of facilities where

signing in one language and the tenant

possible — a vague clause that, once

in another.

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again, can build contention into an agreement that wasn’t there before.

5. The legislator probably has good intent

“Looking at the first point above — it is in the best interests of both the tenant and the

by determining that all the agreements

landlord for an inspection to be done as

should be in writing — surely that would

fast and effectively as possible; the landlord

limit misunderstanding. One must,

needs to repay the deposit and needs the

however, not forget that this clause

tenant to vacate the premises for a new

complicates matters for all. It sounds as if

tenant and in many cases the tenant needs

in congress you can buy many things for

the deposit for a deposit on a new rental.

millions of rands on a verbal agreement

But, to place the responsibility on only the

but a lease agreement for as little as

landlord does seem short-sighted. Surely the

R500 per month has to be reduced to

onus of the joint inspection should be jointly

writing. Of course it also raises the

shared?” says Swain.

question: What happens when both landlord and tenant neglect to do this

“The second point seems rather draconian

in writing? Is the tenant in that case not

in reality, and is very open-ended, when

less protected? Should it then be argued

the amendment says failure to heed the

that no contract of lease was entered

tenants’ rights. What right exactly does the

www.leapfrog.co.za

Page 18: R EN TA L H O U S I N G A M EN D M EN T B I LL

Amendment refer to? Should the Amendment

department to ensure that this task is done,

possible and preventing their being exploited,

be passed with such a vague term for a

which begs the questions: Should the

the magistrates have inclined, in the opinion

very serious punishment, it would be to the

Amendment be passed? Will the leases be

of landlords, to be too soft on non-paying

detriment of the property industry. Why would

done timeously? Will there be provisions that

tenants, especially if they have, as is often

anyone want to become a landlord with such

ensure there is no confusion if the tenant does,

the case, become unemployed and appear

severe and rigorous laws that, if broken,

in fact, sign in one language and the landlord

to have no alternative accommodation. It

could see them in jail for up to two years? The

in another? Another aspect that could muddy

is sometimes forgotten that many buy-to-let

draconian web of laws will put off potential

the waters are leases that have special clauses

investors have bonded their property heavily

buy-to-let investors.”

and exceptions, leases that vary from the

and rely on monthly bond payments that they

standard — will these also be translated into

can only meet if their rents are paid.”

“The fourth and fifth points, again, seem very

the language of the tenant and landlord?”

contentious. While it is a positive step towards

concludes Swain.

The amendments that are being proposed

ensuring that when things break or need to

seem skewed in favour of the tenant and

be repaired, they are done timeously, it also

Bill Rawson, chairman of Rawson Property

place a lot of open-ended responsibility on

allows for a lot of leeway in interpretation.

Group says, “The changes in the act will, in

the landlord. While there is no doubt that

Should there be a definition of what ‘suitable

the long run, probably be good for property

evening the buy-to-let field for both tenants

to live in’ encompasses and what facilities

owners because it could close many loopholes

and landlords can only be in the best interests

must be provided, then this clause could work

in the act which, at the moment, landlords

of the property industry, the Amendment Bill

towards bettering the rental landscape.”

sometimes, on the advice of unscrupulous

needs clarification before it can be seen as a

lawyers, have been able to exploit. The

positive piece of legislation.

“While having a rental agreement in all

Rental Housing Act is widely considered a

11 official languages is a positive step in

good piece of legislation. However, as a

ensuring that every person in South Africa

result of the growing trend towards helping

is represented, it will fall to a government

previously disadvantaged people wherever

BY ANGELIQUE REDMOND

The proposed Rental Housing Amendment Bill has significant improvements to assist landlords and, likewise, tenants. Penny Chenery, partner in the real estate team at International law firm Hogan Lovells, gives an overview of the amendments:

Among the various amendments, are the

description of the property to which

following noteworthy changes:

they relate, whether for rental or

upon proof of such expenditure.

•

arrear rental or deposit payment which period payment is made

The onus will be on the landlord

and received.

to do so.

•

obligations for both tenants and landlords.

unreasonably withheld.

or otherwise, and also stipulate for

1. Leases are to be put in writing.

2. The addition of certain rights and

•

The right to request written proof of

LANDLORDS •

to be invested in an interest bearing

The right to privacy, which includes

account with a financial institution at

the right not to have the property

an interest rate not less than that on

by a court or tribunal.

T EN A N T S

•

•

•

that include dates, address or

The deposit received from a tenant is

interest accrued on the deposit paid.

searched or seized without a ruling

The right to request written receipts

Consent to sub-let may not be

a savings account.

•

Various time frames have been

The right not to have

set out that must be adhered to by

communications infringed.

the landlord relating to inspection

Costs not included in the lease

of a property and/or refunding

agreement can only be deducted

of deposits.

BUYING/SELLING PROPERTY AND YOUR TAX AFFAIRS One of the documents that must, in most instances, be submitted to the deeds office when a transaction for the transfer of ownership in property is submitted, is a transfer duty receipt. This certificate confirms that the tax on the acquisition of the property has been paid.

For example, if the seller’s affairs are not up to date, SARS can instruct the conveyancers to act as its agents, withhold parts of the sale proceeds and to pay it to them in respect of the seller’s outstanding tax liability, or may make other arrangements with the tax payer.

The application to SARS for the issue of such certificate requires confirmation of the income tax numbers of both the seller and purchaser, as well as that of the estate agent (where applicable). Apart from collecting the duty payable in respect of the transaction, the information presented to SARS offers an ideal opportunity for the Receiver to check that the parties’ tax affairs are in order. Should all not be in order, it may result in delays.

To avoid delays, many sale agreements nowadays include a provision that parties warrant that their tax affairs are in order.

Whether or not this is specifically included in the agreement, it is prudent to do so to avoid potential delays. It is further recommended that parties ensure that their personal details (ID number, Income Tax/VAT number) on SARS’ systems are correct as any disparity will also cause delays.

For assistance with all aspects of your property transaction, contact the expert conveyancers at www.stbb.co.za

st

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Page 20: A LL S Y S T EM S G O

ALL SYSTEMS GO

Page 21: A LL S Y S T EM S G O

Despite all of the challenges, it appears that SSETA and the EAAB are making headway by ensuring that all agents who have completed their respective NQF qualifications will be certified before the cut-off date

You could almost hear the collective groan echoing around the country

There is, however, some good news. By all accounts it looks as though

when it was announced that all estate agents would have to go back to

SSETA has finally got its act together and has started issuing the

school in order to become qualified if they wanted to continue selling

necessary certificates to those who were affected by all the red tape.

property. There were many who decried the need, arguing that they had been in the property game for 10, 20 or 30 years and who truly believed

Bryan Chaplog, CEO of the Estate Agency Affairs Board (EAAB), backed

that there was nothing more for them to learn. The agents who started off

this up recently when he stated: “The EAAB does not think that it will be

as loud opponents of the whole idea of additional education slowly started

necessary to consider the granting of any further extensions of time to

to quieten down after attending courses and realising how much they

those learners who were registered with real estate education providers

either didn‘t know or how much they had forgotten over the years.

which were subsequently de-accredited by the Services SETA. The EAAB is confident that the Services SETA has made every possible effort to

Raising the bar and attempting to re-educate thousands of agents was

accommodate negatively affected learners. Many of these learners

never going to be an easy task and there were times when the entire

have, in fact, already been certificated for the National Qualifications

saga seemed to be doomed to failure. Training schools

Framework (NQF) real estate qualifications for which

popped up like mushrooms. At times it seemed that every

they initially enrolled.”

Tom, Dick and Harry thought they had what it took to train agents up to the required standards. Indeed, there was a fortune to be made from unsuspecting ‘students‘ and many agents ended up paying for and attending lectures from a number of so-called training institutions.

Even those who went with big names were burnt and,

“EDUCATION IS THE MOST POWERFUL WEAPON WHICH YOU CAN USE TO CHANGE THE WORLD.”

although they completed the courses, they struggled to receive the required certificates from the Services Sector

Nelson Mandela

Education and Training Authority (SSETA) when the

He singled out the Development Institute and Training Academy of Southern Africa (DITASA) as being one of the real estate education providers affected and noted that some 2 400 certificates of competence had been issued by the SSETA to learners while a further 700 certificates of competence were presently being processed.

“It should again be underscored that to avert the

body announced that it had withdrawn the accreditation from some of the

possibility of any innocent learners being prejudiced

largest, well-known training companies in the real estate sector.

by the de-accreditation of real estate education providers, the Board of the EAAB resolved to grant an extension of time until 30 June 2015 to

To make matters worse, those who had innocently been caught in the

enable such persons to be duly certificated in terms of the required NQF

crossfire weren’t getting answers as to what was going to happen and if

real estate qualifications. It is felt that this extension is sufficient to enable

and when they would receive the required certification. One agent who

those learners who might still require remediation prior to being found

approached the Property Professional magazine had registered and paid

competent and certificated for the NQF real estate qualifications to do

for the same qualification at three different training schools and was at his

what is necessary for certification purposes.”

wits’ end. It seemed no one was listening and, perhaps more importantly, no one was commenting on if and when he would receive a certificate

He also noted that the EAAB enjoys a much-valued, warm and fraternal

reflecting the qualification he had spent a small fortune trying to achieve.

reciprocal working relationship with the Services SETA. “Representatives

He wasn’t alone of course: Hundreds upon hundreds of agents were

of the two bodies meet frequently to discuss and, where necessary,

caught up in the mess and at one stage there was a genuine fear

resolve matters of mutual concern and interest. It is anticipated that,

among agents that they would lose their licence to practise

while not in any way negatively impacting on the essential quality

as an estate agent.

assurance function and role necessarily played by the Services SETA, the

Page 22: A LL S Y S T EM S G O

turnaround times for the issue of certificates of competence to qualifying

granted to estate agents who have continuously held a valid fidelity

estate agents by the Services SETA will soon be substantially reduced.”

fund certificate, whether as principal or non-principal estate agent, for a

Kevin Mullins, CEO of the South African Real Estate Academy (SAREA)

period of not less than five years as at 15 July 2008 (during the period

says that while SSETA has put measures in place to reduce the backlog

between July 2003 and July 2008).

in certification, these measures are starting to take effect and the system is working, albeit less than optimally. “However, we had our last external

Chaplog states that approximately 7 500 statutory exemptions against

moderation visit from SSETA in November 2013 and the certificates for

the PDE have been granted to estate agents who meet this criterion. This

those clients have been printed and received by SAREA.”

figure includes the 497 statutory exemptions that were considered and granted during the financial year ended 31 March 2014. He says that an

When asked if he believed that there were still large numbers of agents

educational exemption may also be granted to currently practising estate

who were struggling to become accredited and, if so, did he believe

agents who are aged 60 years and over. To qualify under this exemption

that SSETA was going all out to ensure that these problems were being

category candidates must not only be aged 60 years or older but also:

addressed and resolved, he noted: “One needs to understand that agents and/or principals have known since 15 July 2008 that they

•

Have held a valid fidelity fund certificate issued by the EAAB for a

needed to comply with the new standards of training. More than five

continuous period of at least five years;

years later there are still agents and principals that have not registered

•

Hold a valid fidelity fund certificate for the current year;

for the requisite qualification. In many cases, the crisis has been caused

•

Have no previous criminal convictions or convictions in respect of

by agents and principals waiting until the last possible moment to

any estate agency related offences.

comply. One cannot fairly blame SSETA for the situation in such cases.

SAREA has been warning agents and principals for more than two

During the financial year ended 31 March 2014, 190 ‘over 60s’

years that they need to enrol to avoid exactly the crisis

applications were considered and approved. A

that some may be facing.”

recent review of the EAAB’s database revealed that

The EAAB stated that things are also progressing well with the Professional Designation Examination (PDE).

Chaplog said that it was encouraging to note that an increasing number of candidates are registering for,

“YOU CAN NEVER BE OVERDRESSED OR OVEREDUCATED.”

and passing, this examination. “This is probably due

Oscar Wilde

to the greater awareness that has been inculcated by EAAB amongst estate agents for the necessity for them to comply with the mandatory education and training processes.

approximately 4 000 currently practising estate agents might well qualify to apply for the grant of an ‘over 60s’ educational exemption. The EAAB is, consequently, presently gearing itself up to expedite the consideration and finalisation of these possible applications.

Chaplog notes that those seeking exemption are required to submit an extensive Portfolio of Evidence

to the EAAB for review and thereafter to appear before an interview panel for purposes of assessing their knowledge, competency and

It does seem, however, that many estate agents have decided to

skills. A decision will then be taken as to whether such applicants are

postpone writing the PDE as a result of the extension of time granted

fit and proper persons for the granting of the educational exemption.

by the Board to those estate agents who were registered as such on

In many, but not all, cases the applicants will have already been

15 July 2008 (the effective date of the implementation of the Education

certificated against one or both of the NQF real estate qualifications

Regulations) within which to complete all educational requirements. Such

and, consequently, will be applying only for an exemption against the

persons were granted until 30 June 2015 to be certificated against the

appropriate PDE, whether for non-principal or principal estate agents.

NQF real estate qualifications and, correspondingly, the PDE.” He notes, however, that the number of people who wrote and passed the PDE

It remains to be seen how many agents will qualify before the cut-off

during the financial year ending 31 March 2014 are: PDE four 1 428,

date — however, one thing is abundantly clear, the required educational

PDE five 397 — a total of 1 825 agents and principals.

standards are not going to go away and those who are still sitting on the fence in the hope that the initiative will fail, had best get their act

These numbers, while encouraging, are nowhere near as high as they

together sooner rather than later. The time for excuses has passed and

should be. While it could be argued that there is still plenty of time to

those who wish to continue to carve a career in the real estate sector

complete the PDE, as with the NQF qualification, those who write and

should ensure that they are geared up and qualified to face the future

pass the exam long before the deadline are going to be in a far stronger

challenges in the industry.

position than those who leave it to the last possible moment.

It is worth remembering that a statutory exemption against the PDE is

BY LEA JACOBS

OVER THE PAST 30 YEARS WE’VE MADE OUR HOME IN NEIGHBOURHOODS ACROSS SOUTH AFRICA.

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Page 24: REAL ESTATE INVESTMENT GROWTH IN AFRICA

REAL ESTATE INVESTMENT GROWTH IN AFRICA

Page 25: REAL ESTATE INVESTMENT GROWTH IN AFRICA

South Africa and its sub-Saharan neighbours are described as ripe for new

This annual assessment enables investors to track property trends, both

development and growth. Investors are tracking high growth products as

historically and predicted, across key African market sectors including office,

new African market opportunities emerge, while others evolve and mature.

retail, industrial, leisure and residential. “Listed property is also scrutinised, as are new approaches to core disciplines like property management.”

Recent manifestations of ‘Afro-optimism’ are associated with the continent’s

Multi-sector reports on the property markets in Ghana, Kenya, Malawi,

fast growing middle classes. A preference for Western lifestyles is

Mauritius, Nigeria, Rwanda and Namibia form a key section of the report.

developing as growing economies provide increased business and employment opportunities, resulting in growth across commercial sectors, most notable in the office and retail segments.

KNIGHT FRANK AFRICA REPORT 2013 This report reveals that international investors’ involvement in the property

However, fund managers, banks and developers advise investors to focus

sector remains limited, despite Africa seeing an increase in overall foreign

on destinations that boast good track records of political stability, sound

investment. Growing demand for property investments is seen from South

infrastructure and ideally where English law is practised.

African funds looking to gain exposure to sub-Saharan African markets. Key drivers behind demand outstripping supply for office space in West African

Mixed demand for African real estate assets, including retail investment out

markets is seen across multinational sectors within the technology, banking,

of South Africa, is mostly seen from institutional and pension fund investors

oil and gas industries.

through rand-denominated feeder funds, such as Sanlam’s Africa Equity Fund. Investors in sub-Saharan emerging market economies can access

Some of the highest office rents in the world are seen in Luanda and Lagos

prime commercial real estate funding through the African networks of

due to increased demand and a lack of supply of prime quality office

banking experts including Rand Merchant Bank, Standard Bank Corporate

space required by international occupiers. Prime office rents in Luanda are

and Investment Banking and Old Mutual Investment Bank.

currently US$150 per square metre per month, which exceeds prices in London, Hong Kong or New York, while prime monthly rentals in Lagos are

NIGERIA

US$85 per square metre.

The growing Nigerian economy, whose wealth is mostly due to the country’s

LOCAL INVESTMENT

rich oil reserves, remains at the forefront of South African investors said to be keeping company with billion dollar US investors. Diplomatic ties are

Investment funds are noting that the commercial market is enormously

keeping the oil flowing notwithstanding the country’s disturbing embroilment

underserviced, with a shortage of quality A grade space to service

in terrorism. “Nigeria now tops the list of investment destinations for

international blue-chip owners and tenants.

American investors due to its unique positioning on the African continent,” said United States Secretary of Commerce Penny Pritzker days after the

Locally based investor confidence in Africa has steadily gained momentum,

latest spate of bombings.

and became notable in 2012 when Atterbury and Sanlam’s 85% stake in Accra Mall was followed by various property investments outside

Investment experts say global hype driven by reports based on

local borders. A focus on office and retail projects in Ghana, Nigeria

unprecedented demand for retail development such as in Nigeria

and Angola continued as a number of funds such as RMB Westport

could affect rational investment decisions as markets become priced on

raised US$250-million for its Real Estate Development Fund in 2012. The

emotional reaction, rather than logic. The not-so-distant global economic

Sanlam Africa Core Real Investment Fund caters for low development risk

crises, led by the US real estate market and global herd mentality, is best

through completed, investment grade assets in sub-Saharan African’s core

reiterated by Warren Buffett, who lost a fortune at the time: “We simply

commercial real estate market.

attempt to be fearful when others are greedy, and to be greedy only when others are fearful.”

Property owners and developers Atterbury Property Holdings, whose earlier venture into Africa saw the development in 2012 of the Accra Mall

BROLL REPORT 2013/2014

in Ghana, continues to expand its African footprint in this region. James

Evidence of Africa’s internationalisation is reported in the recently launched

centres coming to fruition in less than one year is the soon-to-be-opened

Broll Report 2013/2014. Says Broll Group CEO Malcolm Horne: “As new

27,700m2 West Hills Mall also in Akra, Ghana, a joint venture between

markets open up in Africa, and others evolve and mature, access to the

Attacq, Atterbury and Hyprop. Atterbury will also be opening The Grove

latest market data is crucial for optimal decision making.”

Mall of Namibia, which is a joint development venture between the Frontier

Ehlers, MD of Atterbury Property Developments, says one of eight shopping

Page 26: REAL ESTATE INVESTMENT GROWTH IN AFRICA

Accra Mall in Ghana developed in 2012 by Atterbury Property Group

The courtyard area of the Mall of Mauritius, owned by South Africa’s Atterbury Property Group, in the burgeoning island nation

Property Trust and Demushuwa Developers. The mall constitutes the largest

largest GDP contributor, Mauritius largely depends on tourism, property

commercial property investment ever within Namibia.

development, hospitality and financial services.

Johann Erasmus of Standard Bank Corporate and Investment Banking says

The Broll Report shows office space in Mauritius expanding by 13% per

more developed African markets such as Zambia, Tanzania and Ghana are

annum over the past 10 years, with a doubling of stock between 2010 and

experiencing rising wealth of growing middle classes, which is impacting

2012. The retail sector has also seen consistent growth of 8.8% per annum

on the number of shopping centres being developed. He says the main

over 10 years, with an oversupply of retail space currently noted.

driver behind both direct and indirect investment is the certainty of workable property rights and is more prevalent in some African countries than others.

The island’s first regional shopping centre, which opened in 2011, the

He says retail investment traditionally follows good infrastructure, where

Bagatelle — Mall of Mauritius, was built by South African developer

governments and business stimulate economic growth to generate increased

Atterbury Property Group and attracted tenants including Mr Price,

disposable income for shopper support.

Truworths, Woolworths, Spur and anchor Pick n Pay. Other South Africanbased companies actively involved there include Aspen Pharmacare,

Although there is a tremendous demand for West African property

Investec, developers and real estate companies such as Pam Golding and

investments, complex administrative processes such as taxes and title hold

Seeff Properties.

require professional real estate management expertise, says Sanlam’s Thomas Riley. Essential to entering this market, he says, is a common legal

Indirect investment opportunities are accessible through dual listed offshore-

perspective as in Anglophone countries where English law is supplemented

focused property funds, while business and retailers are increasingly

by African legal policies to facilitate applications for arbitration of

becoming anchor tenants. Traditional fund managers are also entering the

legal agreements.

game, such as Sanlam, which earlier this year announced the Mauritian listing of its own fund.

THE STABLE INVESTMENT PORTAL OF MAURITIUS

Liberty’s Stanlib recently launched a R28-billion Mauritius-based fund which

Investors looking for stable as well as high growth funds with international

will draw on the skills of Liberty Properties, with a focus on Nigeria

real estate spreads have many options through which to access this global

and Kenya.

and local investment favourite. Forbes magazine recently voted Mauritius as one of the top 30 places for doing business worldwide and the highest ranking African economy out of 47 countries. With manufacturing as its

BY ANNA-MARIE SMITH

A career in real estate is a good choice

It is clear from our country’s unemployment rates that many people are hungry for meaningful employment, but how many South Africans actually consider a career as real estate practitioner a favourable career option?

Historically our industry was branded a poorly regulated environment inundated with “fly-by-night” operators; and more than often reference was made to unqualified estate agents, unethical estate agents, etc. In some instances, estate agents were even treated as the outcasts of society – at times with good reason.

However, in recent years the real estate industry has been metamorphosing to a much more professional environment.

We believe that the local industry has embarked on a detox and diet programme - not only because the Estate Agency Affairs Board has been trying to shape up after being under scrutiny for the past few years, but also because today’s real estate practitioners recognise the unlimited scope and excellent business opportunities that the real estate arena offers. The mere fact that you are reading this magazine means that you agree with our notion – the new South African real estate industry offers very favourable career options, as well as long term business opportunities.

Working in this multi-disciplined industry, practitioners need to acquire skills and practical knowledge of several related disciplines such as the legal, financial and marketing sectors – it is not only about real estate. This changing and competitive

This is where real estate franchisors play a significant role. Experienced franchisors will consider factors such as geographic features, demographics, psychographics, socio-cultural variables, use-related data, brand awareness, brand loyalty, convenience and security.

Thorough analyses of these factors provide a better understanding of consumer behaviour and marketing plans can be altered accordingly.

By allowing the business owner to concentrate his resources on the greatest opportunities available in a particular segment and thereby increasing sales without necessarily increasing the overhead costs, the implementation of a tailor-made South African franchise solution can result in a substantial competitive advantage.

The next beckoning question is how do you choose a franchisor? As in any marriage, selecting the right partner is important to landscape necessitates strategic thinking, the success of the union. If a prospective careful observation, exceptional business franchisee chooses the wrong franchisor, plans and very importantly, relentless the typical “benefits” associated with implementation. One has to ask whether the buying a franchise may prove to be an average independent real estate business illusion. How compatible a prospective owner, or the prospective real estate franchisee is with the franchisor as well business owner, has the ability and the as the existing franchisees is an aspect capacity to continuously gather information, that requires careful consideration before keep an eye on real estate trends, entering into a franchise agreement. competitor intentions, human resources, Prospective franchisees must remember corporate governance, risk and compliance that every franchise model is unique and related issues. These can be daunting and all options should be carefully investigated. time consuming We suggest considering tasks; and the independent opinions and ... the implementation of actual statistics, as well worst of all is that these are a tailor-made South African as speaking with existing not the most franchisees for each brand. critical business franchise solution ...

Reputable franchisors show drivers yet. their commitment to their franchisees through proper disclosure, To add to the complexity, we are experiencing continued transparency, insight into tried a brand new “consumerism”. In this era of and tested business practices, knowhighly informed, price conscious and rights how, efficient systems and tailor-made IT savvy consumers, staying up-to-date is solutions, as well as standard operating no longer optional. One has to consider procedures, continuous training and the holistic consumer behaviour in regard development, marketing support and good to aspects such as affordability, lifestyle, business practices. Unfortunately not all safety, status, return on investment, franchisors show such commitment. migration patterns, retirement and estate planning. Any real estate business owner For more information on RealNet’s who is serious about his business will be franchise opportunities visit www.realnet. mindful of consumer behaviour and other co.za or contact us on 0860 460 460. external influences that could impact his business and as a consequence, continuous research and development is inevitable. How does one stay abreast of relevant research results, new technology, changes in legislation and regulation, social media marketing trends and the like?

Page 28: GOVERNING BODIES

GOVERNING BODIES Do they add value to the property industry?

Page 29: GOVERNING BODIES

As a member of the property industry, you will have come across many

membership is not negotiable —

governing bodies and regulatory bodies that are meant to enrich and

this board is the main regulatory

better the industry they serve, but do they really? One only has to look at

body for the property industry and

the embattled Estate Agency Affairs Board to see that not all governing

estate agents must belong to it. The EAAB

and regulatory bodies are well run and serve the industry they are meant

is tasked with being the industry regulator, to

to effectively. So, who are the key players and what do they do for the

look after the interests of the industry and drive

property industry?

transformation. Despite some bumpy starts with regards to the Fidelity Fund Certificate deadlines and issues of

The four main players in the property industry are the Estate Agency

non-compliance with audits resulting in some estate agencies

Affairs Board (EAAB), the Institute of Estate Agents of South Africa

not having Fidelity Fund Certificates and needing to apply for a

(IEASA), the Real Estate Business Owners of South Africa (REBOSA)

special application before the EAAB board, the EAAB has made some

and the Rental Housing Tribunal (RHT). Firstly, what does the EAAB

solid steps with regards to transformation.

do? It was established in 1976 in terms of the Estate Agency Affairs Act 112 of 1976 (the Act), with the mandate to regulate and control

In May this year, the EAAB began with its own continuing professional

certain activities of estate agents in the public interest. The EAAB is

development (CPD) Training Workshops around the country. The EAAB

tasked with ensuring that all estate agents are trained and are

is also in the process of acquiring suitable providers for CPD software

registered with the EAAB through a Fidelity Fund Certificate, which has

to assist with the programming of workshop training and to improve

to be renewed annually and is confirmation that the

00377 BETTERBOND DREAMS LOTTERY PROPERTY PROFESSIONAL - EAR PIECES RP.indd 2014/06/0 2

the programme initiatives. They are also planning

person to whom the certificate is issued is legally

regional EAAB offices in specific provinces to

entitled to carry out the activities of an estate agent.

enhance effectiveness and efficiency. With regard to

Bill Rawson, chairman of the Rawson Property Group, says: “The Estate Agency Affairs Board has traditionally established the rulings and code of ethics under which estate agents operate and which in recent years has made a high level of educational qualifications mandatory for any estate agent – a move that has been widely applauded.

Any estate agent failing to obtain these qualification levels at the end of his or her first year of internship

ANY ESTATE AGENT, NEW OR EXPERIENCED, CAN BENEFIT FROM ORGANISATIONS AND BODIES THAT ARE, AT THE END OF THE DAY, ATTEMPTING TO BETTER THE PROPERTY INDUSTRY.

transformation, there have been some tentative steps taken by the EAAB, and while not all of them have been met with approval from estate agents in South Africa, the EAAB has launched a transformation policy called the ‘One Learner – One Estate Agency’ programme, which will be administered by the EAAB. Through the programme, the EAAB and its partners are planning to recruit 10 000 new entrants to the sector over a period of three years, commencing April 2014 and ending on 31 March 2017.

cannot apply to be registered with the EAAB and will, therefore, not be issued with a Fidelity Fund

This means over 3 300 new entrants will be recruited

Certificate, which means that he or she cannot

to the sector every year. While the transformation

operate legally as an estate agent. The second deregistration of agents

is laudable it has also had some backlash from agents who see it as

who have misbehaved in some way or other has also helped keep many

harmful to saturate the property industry with so many new estate

in line when they may have been tempted to break certain rules.”

agents, especially given the tough conditions and realities of the job.

Jeanne van Jaarsveldt, president of the Institute of Estate Agents South

ES TAT E AG EN C Y A F FA I R S B OA R D

Africa, believes there is room for improvement in the running and

The EAAB was originally under the control of the Minister of Trade and

2014 has been ripe with huge frustrations and confusion. This seems to

Industry (since 1976), but on 17 May 2012 it was transferred to the

be a recurring problem that the EAAB can’t get on top of.”

government of the EAAB: “The issuing of Fidelity Fund Certificates in

Department of Human Settlements. The move to transfer the EAAB was lauded by many estate agents due to its critical role in maintaining a stable, strong and effective property industry. The EAAB suffered

T H E R EN TA L H O U S I N G T R I B U N A L

under the department of Trade and Industry and was notable for poor

The Rental Housing Tribunal is a body that has court powers to rule in

leadership and an inefficient leadership structure, which led to a total

favour of a landlord or tenant and even to impose penalties. Its main

lack of confidence in this regulatory board. When it was taken over and

function is to settle disputes between tenants and landlords. Formed in

a new board of directors appointed, the real estate industry was hopeful

2001, the tribunal comprises five members (including a chair and vice

of real and meaningful change in the industry.

chairperson) appointed by the Provincial Minister of Human Settlements,

The board is currently led by chief executive officer Bryan Chaplog and

each of whom have expertise in property management, housing

Page 30: GOVERNING BODIES

development and consumer matters pertaining to rental housing.

relevant to the agents around the country via our six regional offices.

The tribunal seeks to:

WHICH BODIES ARE YOU A PART OF AND WHY?

•

Harmonise relationships between landlords and tenants in the rental housing sector.

Van Jaarsveldt: First and foremost, IEASA is the longest standing affiliate

•

Resolve disputes that arise due to unfair practices.

of the National Association of Realtors (USA) outside North America.

•

Inform landlords and tenants about their rights and obligations in

This enables IEASA to form part of various international groups and

terms of the Rental Housing Act.

offer these products and services directly our members. Closer to home,

Make recommendations to relevant stakeholders.

IEASA is involved in various industry bodies, and forms part of the

•

directorship of the EAAB, as well as the Property Sector Transformation While this tribunal is not one that estate agents can become members of, it

Charter, to name but a few.

is nonetheless an important regulatory body in the property industry and one that informs landlord-tenant relations.

DO THESE BODIES COMMUNICATE AND WORK WITH ONE ANOTHER OR ARE THEY SEPARATE?

I N S T I T U T E O F ES TAT E AG EN T S S O U T H A F R I CA

Van Jaarsveldt: IEASA has been working with REBOSA for over three

The Institute of Estate Agents South Africa has been part of the property

years to try to establish a sound working relationship between the two

industry landscape for 75 years. It is a labour organisation and provides

parties. Early in 2014 REBOSA got their organisation off the ground

two distinct services to its members, the first being to provide principals

and this is the ideal platform on which IEASA and REBOSA can work

and agents through the regional structures with training sessions by top

toward common industry matters that will affect the industry as a whole.

speakers; and the second and equally important set of services include engaging with the various Industry stakeholders, guiding and steering

WHAT WOULD YOU SAY TO SOMEONE STARTING OUT IN THE PROPERTY

the organisation and its members through legislative requirements and

INDUSTRY IN TERMS OF WHICH BODIES AND GOVERNING INSTITUTIONS TO

engaging positively with other industry stakeholders like the major lending

KNOW ABOUT AND BE ACTIVE IN?

institutions, the EAAB, the Services Sector Education and Training Authority (SSETA) and various government sectors.

Van Jaarsveldt: It is important to be active in these institutions. It forms a sound ground for the new recruit to form part of the bigger picture of

IEASA president Jeanne Van Jaarsveldt answered some questions on what

the industry and a sense of belonging enables the new entrant to the

the institute does for the industry:

market to feel that they can rely on support and positive input into their career or business. Lastly, new entrants into the marketplace are, in all

DO ANY OF THE GOVERNING AND AFFILIATE BODIES IN PROPERTY AFFECT

probability, not aware of the legislative requirements and the continual

GOOD CHANGE IN THE INDUSTRY?

changing landscape we as an industry are finding ourselves in – it gives assurance that the overarching body looks out for him/her and will

Van Jaarsveldt: IEASA and REBOSA look after the labour (agents) and

effectively communicate to the new member on a regular basis. IEASA

businesses (principals) section of the industry, who in turn are very

uses the various social media platforms effectively to ensure that we

involved in industry bodies and lobby groups in South Africa.

communicate to the real estate sector as a whole and this has enabled us to get information out in a quick and consistent manner.

HOW IMPORTANT IS IT TO BELONG TO AND BE A PART OF THESE STRUCTURES?

R EB O S A

Van Jaarsveldt: IEASA has a rich history of over 75 years of service

REBOSA is an independent, non-profit organisation launched in March

to the real estate industry. We offer our members a vast number of

2012. It represents the interests of small, medium and large South African

supportive services like training, events and awards. In March we

business owners, principals and employers in the real estate sector.

conducted 39 events around South Africa and will continue to be

The key focus of the organisation, as stated on the homepage of the

Page 31: GOVERNING BODIES

REBOSA website, is to ‘unite, transform, uplift, empower and develop

the industry was important, it is now. A vast number of

the real estate profession across all areas of the market, achieving an

bills that will affect real estate are in the pipeline, and

environment for business to thrive in and expand while contributing to a

quite a few of the laws over the past few years were enacted

vibrant economy’. Membership is voluntary and the fee is relatively small

without the real estate industry having had any real impact

to join this organisation. One of the positive aspects of REBOSA is their

thereon. The Consumer Protection Act, the Protection of Personal

communication with other governing bodies — they work together with

Information Act and such like come to mind.”

IEASA towards common industry matters.

SHOULD AN AGENT BE AFFILIATED WITH A GOVERNING BODY? Dr Andrew Golding, chief executive of Pam Golding Properties, is a member of REBOSA and answered a few on the organisation:

Dr Golding: I think the answer is an unequivocal yes. It is impossible, time and impact wise, for an individual agent to interact with

00377 BETTERBOND DREAMS LOTTERY PROPERTY PROFESSIONAL - EAR PIECES RP.indd 2014/06/0 3

IN YOUR OPINION ARE THESE INDUSTRY ORGANISATIONS WELL

government on bills like the Property Practitioners Bill. Change can

RUN AND GOVERNED?

only be effected by a concerted joint effort - well researched, motivated and presented - something a well organised governing body can do.

Dr Golding: I can only speak for REBOSA; it complies with the high

REBOSA serves exactly this purpose and will ensure that the Property

standards of governance and compliance.

Practitioners Bill is studied properly and responded to.

DO ANY OF THE GOVERNING AND AFFILIATE BODIES IN PROPERTY AFFECT

Any estate agent, new or experienced, can benefit from organisations

GOOD CHANGE IN THE INDUSTRY?

and bodies that are, at the end of the day, attempting to better the property industry. By belonging to these organisations you can gain

Dr Golding: By representing a large constituency and specific interest

valuable information and actually affect change in the property industry;

group, bodies like REBOSA are able to act in unison and lobby for

only by real conversation and working together with governing bodies

changes that they believe are in the best interests of their organisation.

can property professionals and government work together to create legislation and codes and practices that benefit not just agents but

HOW IMPORTANT IS BELONGING AND BEING A PART OF THESE STRUCTURES

consumers. The bridge between the agent and the legislation procedure

TO YOUR BUSINESS?

is governing bodies like the EAAB, IEASA and REBOSA. So, when it comes to a question of should you or shouldn’t you join, the answer

Dr Golding: In order to make meaningful stakeholder representation

will always be join and become an active member, research the right

to government and quasigovernment organisations, it is particularly

organisations for your business and make sure you are an active

important to be able to lobby effectively and this can only be done with a

member of the organisation that will help you.

representative voice.

Jan le Roux, director of Leapfrog Property Group, also believes it is vitally important to belong to governing and regulatory bodies: “If ever there was a time when affiliation to a representative governing body in

BY ANGELIQUE REDMOND

It is argued that there is a huge discrepancy between the e-toll rates charged on Gauteng NUMBERS TO KNOW

R0.30

freeways as opposed to billing for other tolled freeways. The average R per kilometre billed on the Gauteng freeways (e-tag) is about R0.30 per kilometre or in some cases higher if you look at individual billing points, whereas the rate billed on other freeways is approximately R0.05 or lower per kilometre. *This is based on sedan rates.

Fin24 - Gauteng residents pay more per km, e-tolls

BetterBond

Page 34: T H E T O P T H R EE C H A LLEN G ES T H AT AG EN T S FAC E

THE TOP THREE CHALLENGES THAT AGENTS FACE

There can be no argument about the fact that selling real estate has become more challenging in recent times. However, embracing change and making it work for you is going to enhance your chances of success

Every industry, regardless of its function, faces certain challenges. Some of

We asked three leading real estate companies for their thoughts on what

these have been there from the very start and will always play a role in any

they believed are the three top challenges that the modern estate agent

individual’s career. However, estate agents and those involved in the real

faces, and while we would have thought that issues surrounding the

estate sector have had to face an inordinate number of new challenges over

amount of commission paid would have played a role, this, interestingly

and above those that they have faced during the last couple of years.

enough, doesn’t seem to feature on anyone’s list.

A property market that seemingly slumped to all-time lows, a crackdown

Gerhard van Rensburg, the national franchise sales and training executive

by the banks on bond approvals and dramatic changes in the required

at Leapfrog Property Group, says that in his opinion the three top

educational standards have forced many to leave the industry for good.

challenges that agents now face are:

And yes, while the pie may indeed be bigger for those who remain – the challenges associated with earning a decent living have changed and will continue to change the real estate landscape forever more.

1. Continuous compliance with all the educational regulations as prescribed.

Page 35: T H E T O P T H R EE C H A LLEN G ES T H AT AG EN T S FAC E

2. Continuous compliance with all other industry regulations as prescribed.

3. Earning a good living at the same time.

3. Convincing the 30% to 40% of home sellers who insist on trying to overprice their home to accept a realistic market related price.

“Any estate agent worth his salt will have access to statistics on sales in his area,” says Rawson. “He can use this data to show sellers

“We believe that the sooner agents embrace the challenges that form

similar transactions that have taken place and to show them the true

part of their business and adjust their abilities to make room for those

market value of their home. The agent can also show the seller that

challenges and find solutions, the sooner those challenges won’t appear

overpriced homes will almost always stick on the market – a fact

nearly as big as they seemed in the beginning,” he says.

that will deter anyone who is selling to buy elsewhere. All Rawson agents can have access to a variety of statistics and data which will

So how does Leapfrog Property Group assist its agents on the ever-

assist them in determining the true market value of the homes they

changing playing field? “We provide our agents with maximum support

are marketing. One of the most powerful tools that our agents are

in meeting all the educational requirements, and to ensure compliance

provided with in this respect is our Rawson in-house information

with all other industry regulations as prescribed. Our group’s learning

portal, which has Deeds Office figures for most properties in the

programmes assist our agents to incorporate all these matters into their

country and can give agents many market comparisons with which

daily operations so as not to distract them from their main goal, which, of

to work.”

course, is to earn a living,” he says.

Bill Rawson, chairman of the Rawson Property Group, notes that while a

CHALLENGES, WHAT CHALLENGES?

great many challenges face estate agents in property marketing, thorough

Harry Nicolaides, CEO of Century 21, says that he has been asked this

training does help agents overcome what he believes are the three most

same question countless times in the 25 years that he has been in the

common challenges faced by those selling property in this country:

industry and his answer will always be that besides challenges faced in the ordinary course of business, there are no real challenges facing estate

1. Continuously finding enough stock at a time when stock shortages are

agents except for one and that is with whom they choose to do business.

the order of the day. “We teach our agents to frequently canvas the area by walking from door to door with leaflets, by phoning potential

“Policies, requirements and procedures change regularly and adapt to

sellers, by doing free valuations and by making their name known

external factors, including legislative requirements, marketing trends,

through adequate signage in the area whenever they have a home

systems and many other dynamic changes. This, however, is true for all

for sale or are doing a show house. The good agents today will

industries across all markets and all the players across all these industries

make use of the Internet to advertise themselves through blogs and

adapt and continue in growing their businesses and markets. Why then

social media.”

should it be different for estate agents? Sure, new laws are promulgated to reflect current situations and current inadequacies, new standards

He believes that the best way that agents can market themselves, and

are introduced as well as new technologies and it is the function and

in the process generate more leads, is by establishing a trusting client

requirement of any professional agent who wants to succeed to embrace

base whose word-of-mouth recommendations to others will lead to

these changes, get updated and continue offering the best service, product

more business. On the other hand, one of the biggest mistakes agents

and advice to their clients.”

make is to fail to keep contact, if necessary on a daily basis, with all prospects they are dealing with at any one time — even if they have

He states that the property industry is not immune to new requirements

nothing new to report, it is still important to keep in touch.

and standards being implemented regularly and just like in the financial, medical, mining, education and manufacturing industries (to mention just

2. Pre-approving bonds and getting buyers to meet the banks’ lending criteria. “The banks’ lending criteria are strict at the moment and,

a few among thousands), estate agents are also subjected to these in our very own industry well.

in many cases, they are asking for deposits of 10% to 20%, which can be quite an issue for many buyers and in turn estate agents.

Nicolaides says: “Having said that, if we want to talk about the popular

To overcome this, the agent can use a reputable bank originator to

topics that are being defined as ‘challenging’ for estate agents, my views

help him lower the deposit or eliminate black marks on his credit

are as follows:

record and get the bond approved. If this fails, then the agent will have to try and show the buyer that he needs to settle for a more affordable home.

1. Estate Agency Affairs Board (EAAB) accreditations – in principle, there is nothing wrong with getting accreditation via the various

Page 36: T H E T O P T H R EE C H A LLEN G ES T H AT AG EN T S FAC E

EAAB NQF and RPL programmes as the net result of all these is the

accreditation with the EAAB, current general market conditions and

gaining of knowledge and training for the agent and these can only

marketing techniques, home loan application facilitation and updated

add to the professionalism of the agent who ultimately benefits from

tools and systems with regards to technology for optimum marketing of

them via their offering to clients. This is not a ‘challenge’ facing estate

their services. Only this way is their effort being complemented by the

agents, but rather a requirement that has a fantastic consequence of

brand and principal and they are rewarded by making relevant

uplifting their capability to become market leaders. In other words, it

profit for themselves.

is also for their own benefit and they should embrace these.

2. The ever-changing and sometimes restrictive bond lending and

MAKE YOUR BRAND WORK FOR YOU

qualification criteria coupled with rising interest rates – well, exactly

“My advice to estate agents is to ensure that their brand and principal,

what do we estate agents expect? Do we expect that banks grant

whoever they are, are relevant, updated and doing all they can to

bonds on every single application at any given time in any given

ensure their agent’s success,” says Nicolaides. “The days of the brand

cycle? All industries across all fields have their downward and

or principal being solely responsible for their success are long gone and

upward cycles and the property industry is not some special category

in fact it is now the estate agent who is the most important aspect of

that must be excluded from these trends. In any case, we are fortunate

whether a brand or principal is going to be successful or not. The profile

because in our case when banks become restrictive on home loans

and market demand for a qualified estate agent has grown tremendously

or interest rates rise, the price of properties

in the last decade, and especially right now with the

generally decreases accordingly, resulting in a

new EAAB criteria, and agents must never under-sell

favourable consequence that should not have a diverse effect on a professional agent’s ability to retain market share; and vice versa, when home loans are less restrictive or interest rates drop, house prices generally go up. So, there is a balance. This is not a ‘challenge’ facing estate agents, but a simple adaption to changing market conditions. The ‘challenge’, if there must be one, should be remaining professional and passionate at all times and in any cycle so that a true professional agent will always succeed and maintain their market share in any downward or upward cycle.

“THE ‘CHALLENGE’, IF THERE MUST BE ONE, SHOULD BE REMAINING PROFESSIONAL AND PASSIONATE AT ALL TIMES AND IN ANY CYCLE SO THAT A TRUE PROFESSIONAL AGENT WILL ALWAYS SUCCEED AND MAINTAIN THEIR MARKET SHARE IN ANY DOWNWARD OR UPWARD CYCLE.”

3. Technology advances – again I do not believe

solely responsible for the success of a brand or a principal.”

He makes an extremely valid point when he notes that agents should ensure that they join a brand or a principal that can deliver on all these ‘challenges’ to ensure they have a profitable and rewarding professional career.

“Agents are now spoilt for choice of where to offer their services and they should investigate opportunities carefully before decisions are made.

My advice further is that their decision should never be based on percentage commission split solely

that this is a ‘challenge’. It is simply a new way

because, more importantly, it should be based on

of marketing properties and a new form of communication in our industry and agents should embrace it and

themselves or their services as it is they who are

relevance and continuity for their own long-term career and financial security,” adds Nicolaides.

become updated on these new systems and tools and use them for their own professionalism and for the benefit of their clients. Life

So there you have it — and while it’s interesting to note the differences

is easier and richer now with the advent of television, personal

in opinion one thing has become abundantly clear, regardless of what

computers, smartphones, emailing and websites so agents must not

you regard as a challenge, the time has well and truly come to face those

fear new technology. Most property searches by prospective buyers

challenges head on and remain focused on what should have always

start with Internet searches; this is a fact that cannot be ignored and

been a top priority - being the best you can be in an ever-changing real

the ‘challenge’ for agents is to make sure that they are represented

estate landscape.

on the Internet and again, if there should be a challenge, it should in fact be ‘challenging’ their own principal or their own brand to ensure that they offer these new technologies to them.”

Nicolaides says that Century 21 resolves these seemingly ‘challenging’ issues that agents have by providing them with relevant motivational courses, training programmes and guidance with regards to getting

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Page 38: T H E G L O BA L O F F I C E M A R K E T N OW S P E A K S A U N I V ER S A L L A N G UAG E

THE GLOBAL OFFICE MARKET NOW SPEAKS A UNIVERSAL LANGUAGE A massive industry initiative to mobilise the implementation of global office measurement standards has come to fruition. For more years than the property sector would care to remember, there has been a fundamental problem, says Ken Creighton, chair of the International Property Measurement Standards Coalition (IPMSC) Board of Trustees and RICS Director of Professional Standards.

Property, from residential to retail, office to industrial, has been measured inconsistently around the world. “Of course, the units of measurement differ, including feet, metres and, in the case of Japan, the shakkanhō, but there is also a huge difference in exactly ‘what’ is included in the quoted size of a property.”

In some parts of the Middle East, hypothetical floors are included in a measurement. In India, property measurement can include off-site parking

for measuring property from one market to the next. Whilst it will not

spaces and in some parts of the United States air-conditioned space is

affect property valuations, which are set by the market, it will also offer

used as the basis of a measurement and not floor area. Research by

transparent and reliable space information to underpin International

global property specialists Jones Lang LaSalle suggests that depending on

Valuation Standards (IVSs).

the measurement methodology used, a property’s size can deviate by as

much as 24%.

IPMS for Offices has been in development for a year, conceived

during a meeting at the World Bank in Washington in May 2013.

The resultant problems are multiple, says Creighton. Increasingly,

The office measurement standards will be implemented by all members

international investors, owners and occupiers have to spend large sums

of the coalition.

of money converting local measurements into a consistent international

format in order to benchmark their property portfolios. “Businesses are

SAPOA’S STANDARDS SETTING COMMITTEE

also suffering from sorely lacking information when setting up offices in new markets, often where new acquisitions are inadequate for the

Members of the South African Property Owners Association (SAPOA) are

intended use.”

represented by SAPOA, who participated in this initiative as a Standards

Setting Committee (SSC) member, among many global professional and

All this changed in June this year upon publication of the new International

non-profit real estate organisations. The Standards Setting Committee is

Property Measurement Standard (IPMS for Offices). Created by a coalition

an independent body of property experts with first-hand knowledge to

of more than 40 standards bodies from around the world, including the

complete its mandate in defining a global standard for measuring property

RICS and SAPOA, and supported by global organisations such as JLL,

and the use of reliable data across worldwide markets,” says SSC

CBRE and Vodafone, the new standard will offer a common language

chairperson Max Crofts.

Page 39: T H E G L O BA L O F F I C E M A R K E T N OW S P E A K S A U N I V ER S A L L A N G UAG E

SAPOA CEO Neil Gobal says: “Increased asset ownership between countries as well as to local property owners and members of SAPOA

GLOBAL INDUSTRY OPINION

will be the most important benefit, and will enable uniform reporting

This collective of diverse industry intelligence and expertise will be

procedures from the earliest building stages to leasing and management

most beneficial when considering the sharp rise in transnational and

of properties, as well as long-term protection of assets.”

international property transactions over the past 15 years.

Tony Gebhardt, principal at Hamlyn Gebhardt and a member of

This initiative continues to attract high levels of confidence from global

SAPOA’s Method of Measuring Floor Areas Committee, represents local

business and industry leaders, as was demonstrated during running

property owners on the IPMSC Standards Setting Committee to make

comment at the final acceptance conference in Dubai.

recommendations to its constituent bodies, including SAPOA. “As a measuring document, and not a valuation tool, the recent agreements in

Vodafone Global Property Director Billy Davidson said the new universal

Dubai now facilitate the bridging of standards, which will facilitate the

language now allows for different codes to be introduced into global

process of global property bodies bridging between various international

investment portfolios. “This will impact positively on how a property deal

frameworks,” says Gebhardt.

looks when pulling it into a common currency.”

RESIDENTIAL AND INDUSTRIAL TO FOLLOW SOON

Commenting from the construction sector was Ken Gibson, on behalf of Building Owners Management Association (BOMA)

Upcoming standardisation of the residential and industrial sectors will see a considerable impact on global markets. Examples of inconsistency are seen globally where varying measurement methodologies in some countries may include outdoor swimming pool areas or hypothetical maximum number of floors to be built on existing foundations of a building. This is set to eliminate major issues such as outdoor parking spaces not adjoining properties.

Creighton says the shortly to be introduced IPMS

International, who said: “The initiative will reduce

“CORRECT IMPLEMENTATION WILL REDUCE DISTORTION OF PROPERTY VALUES AND ELIMINATE CONFUSION AS TO WHAT CONSTITUTES ‘SPACE’ IN THE REAL ESTATE BUSINESS.”

collision and inconsistencies which have been tracked globally, especially within emerging markets.’

The upholding of professional ethical standards was reiterated by Dr Francis Plimmer of the International Financial Institutions Group. “The recent proliferation of varying global standards has resulted in the principles of ethics increasingly becoming critical to the profession’s credibility”, said Plimmer.

for residential, retail and industrial property types is

Comparative measures will be simplified by this

currently undergoing consultation processes and will

universal business principle, said International Monetary

be published before August, with the final standard

Fund director of International Real Estate Scott McMillan.

scheduled for January 2015.

“Especially when considering specific and far-reaching real estate concerns, such as the working space for employees, when it would be

INVESTOR CONFIDENCE

unfair to apply inconsistent measurement standards.”

Creighton says correct implementation will reduce distortion of property

This initiative has been described by BOMA International as the

values and eliminate confusion as to what constitutes ‘space’ in the

collaborative efforts, dedication and passion of all coalition partners, who

real estate business. He says erroneous financial reporting impacts

through a collective of global intellectual and industry expertise, will be

investor confidence in specific geographic areas. As Chairman of the

practising at global levels of understanding.

Commonwealth Association of Surveying and Land Economy, Croft says that its membership stretches outside the UK across most developed

News of International Construction Measurement Standards (ICMS) being

countries. He says members with a focus on pension and insurance funds

next on the cards was welcomed in May. This followed the Council of

require the confidence that global standards apply to all investments

European Construction Economists’ appointment of RICS’s Ken Creighton

across the globe.

and associate director Built Environment Matthew Saunders’ to form a new coalition for ICMS.

International measurement standards will not only complement international financial reporting and valuation standards, but will also enable effective collection of property taxes, says Croft.

BY ANNA-MARIE SMITH

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Harcourts Rising Star Office - Harcourts Select Harcourts Select business owner Etienne Labuschagne receives his award from Richard Gray (CEO Harcourts Real Estate SA).

Nicoline Grobler (Harcourts Vaaldam), Joey Maritz (Harcourts Maritz), Tiffiny Hancock (Harcourts Greenacres), Jason Hutton (Harcourts Platinum) and Tessa Enslin (Harcourts 1-Vision) accept their award from Richard Gray (CEO Harcourts Real Estate SA). .

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Page 41: E A S T ER N CA P E I N V ES T O R S EM B R AC E E CO N O M I C D EV EL O P M EN T O P P O RT U N I T I ES

CONGRATULATIONS!

Mauro Mosca (Harcourts Rhino) Harcourts Chairman’s Award

Jean Field (Harcourts Maynard Burgoyne) Quest for Knowledge Award

Harcourts Greenacres Liezl Heerschap Top Harcourts Office (Harcourts Platinum) (Revenue Per Sales Consultant) Harcourts Rising Star Agent Award

Julian Buckmaster (Harcourts Head Office) Employee of the Year

Tessa Enslin (Harcourts 1-Vision) 1st - Top Sales Consultant (Units Sold)

Harcourts Capital Award for Online Excellence

Simon Smith (Harcourts Full Circle) Living the Harcourts Way Award

Bronwyn Scholtz (Harcourts Select) Office Administrator of the Year

Tiffiny Hancock (Harcourts Greenacres) 2nd - Top Sales Consultant (Units Sold)

Daphne Mackay (Harcourts Kosmos) 3rd - Top Sales Consultant (Units Sold)

Harcourts Maynard Burgoyne Edgemead Top Referral Distribution Office of the Year

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Page 42: M A R K E T S H A R E

PROPERTY FINANCE IN SOUTH AFRICA

Property Professional speaks to one of the leading industry statistic and insight providers to compare property finance in South Africa in 2012 versus 2013. These statistics include what types of property have been most popular among residential buyers; and who the buyers and sellers are, according to the various age groups.

WHAT TYPES OF PROPERTY (EST/FH/SSU) HAVE BEEN THE MOST POPULAR AMONG RESIDENTIAL BUYERS IN 2012 VS 2013?

FREEHOLD (FH)

SECTIONAL TITLE UNITS (SSU)

ESTATE (EST)

2013

2012

24% 74 223 223 74

27% 85 255 66% 204 071

11% 32 32 948 948

32 948

TOTAL - 311 242

NUMBERS TO KNOW

R1.5-BILLION

11% 34 468

63% 201 317

TOTAL - 321 040

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Page 43: M A R K E T S H A R E

B U YE R S

WHO A RE T HE B UYER S , A C C O R D I NG T O A G E G R O UP, I N 2012 V S 2013?

80 000 75 000 2013 TOTAL 321 040

70 000 65 000 60 000 55 000 50 000 45 000 40 000

2012 TOTAL 311 242

35 000 30 000 25 000 20 000 15 000 10 000 5 000

VALUE

0 - 20

21 - 30

31 - 40

41 - 50

51 - 60

61 - 70

71 - 80

80

674 939

32 394 40 282

79 706 81 009

62 558 62 542

42 865 43 336

23 059 22 504

9 531 8 967

3 226 2 730

S E L L E RS

WHO A RE T HE S EL L ER S , A C C O R D I NG T O A G E G R O UP, I N 2012 V S 2013?

40 000 35 000 30 000 25 000

2013 TOTAL 321 040

0

15 000 10 000 5 000 0

VALUE

0 - 20

21 - 30

31 - 40

41 - 50

51 - 60

61 - 70

71 - 80

80

184 165

7 798 7 872

38 490 38 815

41 093 43 411

32 919 35 557

25 738 29 006

15 970 17 545

10 392 10 739

Credit: Information supplied by Lightstone, www.lightstone.co.za

2012 TOTAL 311 242

20 000

Page 44: B R E AT H I N G N EW LI F E I N T O J O H A N N ES B U RG ’ S I N N ER C I T Y

BREATHING NEW LIFE INTO JOHANNESBURG’S INNER CITY

Inner city refurbishment is needed to breathe new life into buildings that

Clairehaven as everyone is happy with the outcome. We have also

have become an eyesore in Johannesburg. And while there are people who

turned around other buildings and intend doing the same with yet more

have stepped up to the challenge and taken on these neglected buildings

as well. However, it is tiring to work on a shoestring budget.”

and, with the help of the community, transformed them, is enough being done by the City of Johannesburg to aid those who work tirelessly and

The work they do is not without difficulty. Joyce describes some of their

facing many challenges to transform the inner city into the hub it once was?

battles: “We have worked on places like Lorina Court, Brenthurst and others although we are still battling with some of the people in some of the

Clairehaven in Johannesburg was once considered to be the worst

buildings who make it difficult for us to do the work of turning buildings

building in Johannesburg and there was even a documentary made

we manage around. For example, at Highveld there is a policeman who was

about it in 1992 by a British journalist. Joyce Ebrahim of Prohab Property

dismissed for corruption and he is investigating some owners because he

Services describes how all the windows of this 20-storey building were

wants to get his hands on the finances of Highveld after we worked hard to

broken, the plumbing and electrics were in a mess and sewage was

turn things around. The administrator is working with an attorney to evict

running into the street. It was inhabited by hijackers and the Hawks used

him.” So why continue to do this work? For Joyce and Prohab the reason is

to raid it over weekends. However, since Prohab started refurbishing the

simple. “Because everyone wants to live a better life and the poor need to

building, some of the hijackers are now working for Clairehaven. Joyce

be assisted to help themselves. We cannot ignore them. It’s very comforting

says: “It is truly amazing how multi-skilled and creative they are. Without

to see that where we upgrade a building, other similar buildings start doing

scaffolding they plastered, painted and fixed the plumbing and windows.

the same and some even approach us to do work in their building. Moreover,

They are even now paying their levies. The Hawks have not been there

iThemba Properties has done great work in the inner city and we mould our

for nearly three years and good tenants are now fighting to get into

work on theirs.”

Page 45: B R E AT H I N G N EW LI F E I N T O J O H A N N ES B U RG ’ S I N N ER C I T Y

Despite their pleas to the Mayor’s office and the City of Johannesburg,

debt capital from lenders and other providers of debt. The Inner City

no one has offered Prohab any assistance in the work they are doing,

Property Scheme was one of the most far-reaching broad-based black

and this would appear to be the case across the board for companies

economic empowerment transactions yet introduced in South Africa –

who work on rejuvenating areas that have fallen into decay and

and definitely the biggest in the property field. So what became of it?

become crime hotspots. Joyce says: “I strongly believe the Department of Human Settlements should come to the party as well as the City of

While I hate to use the word ‘predictable’, it simply was predictable that

Johannesburg. I love the vision of the mayor, Mpho Parks Tau, and I pray

the transformation expected by the Inner City Property Scheme did not

often that it will materialise.”

materialise. An article by The Sunday Times in April this year described a report given on the Inner City Property Scheme, which outlined that: “The

The City of Johannesburg in 2011 launched the Inner City Property

inner city is still beset by severely indebted buildings that are taken over

Scheme, which aimed at addressing urban decay. The parameters of

by squatters and reduced to slums; the shortage of housing has resulted

the scheme, which was developed by the Department of Economic

in overcrowding; infrastructure is in poor condition; and the city is unable

Development, were that it would transfer expropriated properties into

to trace the owners of dilapidated buildings.”

an Inner City Property Portfolio in the process of passing these onto a new company. It was expected that broad-based black economic

The report said: “Residents and property owners owe the city R1.63-

empowerment (BBBEE) participants would hold the controlling shares in

billion in rates. So severe are the problems that very few financiers are

this ‘Newco’. The participating entities were selected through a Request

prepared to bankroll large-scale inner city development. So the city

for Proposal (RFP) process and were required to provide a minimum

has had to spend vast amounts of money to fix the problem – but with

equity contribution of R5-million. In addition, Newco would also raise

little to show for it.” The vast amounts of money mentioned amounts to

Page 46: B R E AT H I N G N EW LI F E I N T O J O H A N N ES B U RG ’ S I N N ER C I T Y

R36.3-million. Despite its lack of success, the city plans to forge ahead

With the gentrification of certain areas, there is sometimes a worry that

and is poised to continue with “the acquisition of 28 properties, including

the tenants themselves will be negatively affected and priced out of their

sectional title schemes, abandoned land parcels, and illegally occupied or

own building. Is this a reality? Yes and no is the answer, depending on

hijacked buildings, yielding nearly 450 units for social housing.”

the category of tenant. Renney says: “Many tenants pay market related rents in poorly managed and rundown buildings. In this case, there are

Surely it would be easier to simply aid companies like Prohab, TUHF,

only benefits. In cases where tenants or occupiers are paying little rent,

iThemba Property or Afhco, which are already doing great work and getting

sometimes to a hijack gang, yes there is a negative impact on them. For

results in the inner city?

a building to be redeveloped, those occupants will need to vacate or possibly be evicted. The obligation falls on the Joburg City Council to

When I asked Joyce what would help her the most to enable them to

provide alternate low rent accommodation for those who cannot afford

continue to do this work, she replied: “Funding for our projects and to pay

the rent that the private sector needs to charge, and this has been

our fee as it is difficult to make ends meet and I love the work and would like

confirmed all the way to the Constitutional Court. However, delivery by

to continue doing it and teaching others to do the same to transform our

council has been abysmal.”

inner city.”

Without proper rental charges the refurbishment cannot happen, but Another company that is helping to transform the inner city is Afhco.

if it does happen, it can sometimes price the current tenants out of the

I chatted to their COO about the work they do and how government

building and area. There is little doubt that refurbishment in Joburg’s

could be doing more to aid them. When asked about finance options for companies that are involved in inner city refurbishment, Renney Plit said: “The only existing assistance is the UDZ (Urban Development Zone) tax allowance. This enables an investor to write off the project cost against his taxable income over a five-year period. The problem with this incentive is that the investor would benefit many years down the line in his investment when he starts making profits on his investment.

“Redevelopment and converting inner city buildings is not a ‘get rich quick’ scenario. In the early years (typically up to five years), an investor sees little return on his

inner city is essential. And it’s not all bad news, there is

IT IS THANKS TO THE TIRELESS WORK BY PROPERTY COMPANIES AND ASSOCIATIONS THAT JOBURG’S INNER CITY IS BEING TRANSFORMED DAY

BY DAY.

dialogue on the best way forward and organisations that work tirelessly to see that transformation takes place.

Renney says: “The private sector is driving the creation and legislation of Improvement Districts throughout the inner city and these are having a significant impact on rejuvenation.”

Active associations involved in inner city housing include JPOMA (Johannesburg Property Owners and Managers Association), which represents most credible investors and developers with about a combined R10-billion of

investment and in some cases needs to subsidise the

investment and about 50 000 housing units, housing

cash flow until net rental increases build up the return.

about 200 000 residents, and CID (City Improvement

So ideal government assistance would be to provide help in the first five

District) Forum – an association representing the combined CIDs in the

years of a project, when cash flows are problematic. There have been

inner city which acts as the interface with council.

several attempts at addressing both council and government on the need for assistance in the delivery of low income housing, but thus far little has

It is thanks to the tireless work by property companies and associations

been forthcoming.”

that Joburg’s inner city is being transformed day by day. Despite the uphill battle they face with very little to no government help, they are continuing

With the government spending millions on its scheme for inner city

to shape the future of the inner city one building at a time. And the hope

transformation and having very little result, it seems ludicrous that the

is there that one day government will enter the conversation and aid them

only option available for companies that want to make their city a better

to do more and to eradicate crime and derelict, falling down buildings that

place is a tax allowance. And while there is always the private loan

have contributed to the slum-like conditions in which some people in the

sector to consider, with the economic downturn in South Africa, loan

inner city find themselves living. For the time being, companies like Prohab,

to value or gearing amounts have dropped significantly. What is the

Afhco, TUHF and iThemba will continue their battle to turn the inner city into

biggest frustration about doing this work with so little help? Renney

the vibrant and beautiful centre of Joburg it once was.

says: “Our biggest frustration and risk is city council. Poor service delivery, no Service Level Agreements, huge billing problems, poor consultation and transparency and, in many cases, a disregard for the law and the courts.”

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Page 48: F I N A N C E & F I G U R ES

HOW DO HOME LOANS MEASURE UP?

Property Professional gathered information from BetterBond, one of the country’s leading mortgage originators, to provide some insight into various statistics comparing data from

FEBRUARY 2012, 2013 AND 2014.

FEB

AVER AG E P U RC H AS E P RI C E

AV ER A G E P U R C HA S E P R IC E O F F IR S T TI M E B U Y E R S

AV E R A G E A P P R O VA L B O N D

AV E R A G E DEPOSIT ( AS % O F P U R CHASE PR IC E)

2012

R739 590

R548 446

R623 691

19.4% (R143 724)

2013

R790 751

R578 935

R708 262

18.9% (R149 547)

2014

R882 445

R627 633

R739 239

18.6% (R164 119)

FEB

EFF EC TI V E AP P RO VAL RATI O

I N I T IA L D E C L IN E R AT IO

D E C L IN E D B Y O N E L E N D E R B U T A P P R O V E D B Y A N O T HE R

AV E R A GE A GE

2012

67.8%*

37.8%

25.2%*

36

2013

68%*

37.5%

33.8%*

37

2014

76.5%*

33.2%

38%*

37

*Trailing approval ratio which takes into account approvals received after month-end for applications submitted in that month.

Information supplied by Betterbond Home Loans

NUMBERS TO KNOW

2ND

According to the Open Budget Index 2012, South Africa has the 2nd most transparent budget in the world. In 2010, SA was ranked 1st. (International Budget Partnership) South Africa Good News - Fast Facts & Quick Stats About South Africa

Page 49: F I R S T-T I M E B U Y ER S

Page 50: 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? Technology – make sure you and your company have the best website that there is, and also partner with other ways of Internet exposure. That is almost like the window to your showroom. Also,

EUGENE JORDAAN LE A P F RO G PRETORIA EAST WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? • Be visible! Being a secret agent makes no business sense.

• Keep your clients informed at all times.

make sure you keep up with changes in your industry.

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT. Like it happened yesterday... I was still working my notice month at my previous employer, and scheduled my appointment to take the buyer out during my lunch hour. They signed immediately. It has now been 12 years since, and I have sold that unit three times.

• Be available!

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

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN

Treat this career with respect. There is a lot of money to be made, but,

MAKING A SUCCESS IN THEIR CAREERS IN PROPERTY?

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

like in any industry, you must be prepared to work for it.

Managing your income stream; even if you are not working for yourself, you should treat this career as if it is your own full-on business from the word go. So, strategise and budget!

YOU FIRST STARTED OUT IN PROPERTY AND WHY? How to stay positive when dealing with let-downs, especially when a sale doesn’t work out. Try not to become despondent. Remember, if at first you don’t succeed, keep on trying.

GAVIN PETERS JAW I TZ P RO P ERT I ES, SEA POINT

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Make sure you update your sellers’ and buyers’ databases. This allows you to stay in touch and keep your clients informed of new properties coming onto the market and the latest property trends.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

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

• Make sure you are associated with an agency or brand

The first property I sold was a two-bedroom apartment in Alma Court,

that has ongoing and the latest marketing, training and

Green Point. I was so nervous I had to write the document out three

sales support.

times before I got it right.

• Stay in constant touch with your buyers and sellers.

• Always be honest and ethical when dealing with clients and conduct your business with integrity.

WHAT ADVICE WOULD YOU GIVE TO NEW KIDS ON THE BLOCK ABOUT MAKING A SUCCESS IN THEIR CAREERS IN PROPERTY? It is very important to source new clients while servicing current

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN

buyers and sellers.

Page 51: A DV ERT O R I A L

Jeanne van Jaarsveldt, IEASA National President

IEASA SUCCEED IN MAJOR RULING IN FAVOUR OF ESTATE AGENTS

Unfair practices by Home Owners Associations stopped in their tracks Just over four years ago estate agents started to experience a practise by

IEASA is extremely proud of this momentous achievement, which is for the

HOA’s whereby they were charged accreditation fees. This was brought to the

betterment of the industry of Real Estate Agents.

attention of IEASA and was taken up seriously as it affected our members and the industry in various ways i.e. charging exorbitant fees to agents, limiting

To find out more about what IEASA can do for you, please join IEASA,

number of agents, allowing mini- monopolies to exist, etc. in estates. On

in partnership with SA Home Loans at the IEASA 2014 Roadshow. With

the other hand, it took away the right of an owner to deal with an agent of

six venues around South Africa, we offer the opportunity for agents and

his choice. This matter was headed up and driven by Werner Eksteen, vice

principals to enjoy a day of learning and motivational inspiration. With

chairman from IEASA North who relentlessly pursued many different avenues.

charismatic keynote speaker, Jan Myburgh, you will be challenged, with

After months of negotiations with the EAAB on these issues IEASA has finally

profound results, as to how you should run your career as a real

made a breakthrough for the Real Estate Industry!

estate agent.

A Practice Note was released by the EAAB, back dated to 28 February 2014 regarding the dealings of Home Owners Associations. (This Practice Note is available for Public view on the EAAB website, under Disciplinaries – Compliance Practice Notes.)

A few highlights from the Practice Note: The purpose of the Practice note is to prohibit unlawful practices and promote acceptable standard of conduct within HOA’s in the rending of Estate Agency services.

Some of the unlawful practices include, amongst others: Paying accreditation fees in return for exclusive marketing, restricting home-owners to utilize

22 July 2014

KZN & Pietermaritzburg region

Suncoast Conference Centre

23 July 2014

Western Cape region

The Pavilion, V&A Waterfront

24 July 2014

Border region

The Guild Theatre, Selborne

25 July 2014

South East Cape region

Greyvensteins Attorneys

30 July 2014

North region

Union Caterers, Pretoria

31 July 2014

Gauteng Central region

Killarney Country Club

services of accredited estate agents and penalty levies if an accredited agent is not used and HOA’s claiming a percentage of the commission as earned by an Estate Agent.

Legal consequences for agents involved in the payment of accreditation fees to HOA’s may be subjected to a disciplinary process which may result in a fine up to R25 000.00 or appropriate sanctions. HOA’s involved in unlawful practises may also be subjected to disciplinary process of the Estate Agency Affairs Board.

For more information or bookings please contact IEASA National at 021 531 2074 or BOOK ONLINE ON IEASA’S NEW LOOK WEBSITE www.ieasa.org.za

Page 52: 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

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS SHOULD HAVE AT THEIR DISPOSAL IN TODAY’S MARKET AND WHY? Definitely good marketing platforms. Websites and the Internet allow you to showcase your listings to a wide audience — and professional photographs are vital in this regard — while print

WENDY REDL H A RCO U RT S MIDRAND

media is an excellent way to keep your agency and personal profiles visible to your local market.

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT. Indeed, and it was a happy experience. It was more than two decades ago — and I am still good friends with the sellers. The property was a relatively new, free-standing home and I was so

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

green that I had no idea what the size of the home was or even

Always give clients excellent service and maintain contact — this is

what a square metre was. I soon learned, however!

a great way to do repeat business with loyal clients. Be reliable and honest at all times; and cultivate an intimate knowledge of your

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

local market.

A SUCCESS IN THEIR CAREERS IN PROPERTY? Stick to your preferred franchise area, and if at all possible, live

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN YOU

there yourself. In this way, you build a strong local profile and client

FIRST STARTED OUT IN PROPERTY AND WHY?

base and can meaningfully contribute to community affairs. Avoid

I wish someone had told me to maintain a database from the word

the urge to jump from area to area or from company to company —

go. It took me a while to do that, which meant that I lost touch with

if you change areas or agencies frequently you stand to lose your

many clients in the early days of my career.

client base and all the local goodwill you have established.

To be technologically adept in order to communicate effectively with the new generation of customers.

BEVERLEY GURWICZ

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

LEW G EF F EN S O T H EB Y ’ S I N T ER N AT I O N A L R E A LT Y

who had been in theatre school with me in Cape Town called and

Yes I do. It was a little house on the busiest road in Brixton and I thought I would never find a buyer, but to my utter surprise, a lady asked to see it. She had gone into business after theatre school and bought the property for R63 000. That was in September 1985, and three years later, I resold it for her, for R95 000.

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

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

MAKING A SUCCESS IN THEIR CAREERS IN PROPERTY?

Relationships, relationships, relationships.

Embrace empathy and really put yourself in your client’s shoes. When I was a buyer myself, I realised that the agent had no idea what I

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN

was feeling – sheer anxiety! – and that was my biggest lesson in

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

real estate.

That I would never be a regular in the yoga class and that I would always either be late for the dinner party or not arrive at all.

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

Page 53: 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

Never wait until tomorrow — always follow up and be quick to respond. You only have one chance to impress a buyer.

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

FRANCIS CASE

• A good smartphone – we live in an ‘instant society’.

EN G EL & VÖ LK ER S S O U T H P EN I N S U L A

• My first month in real estate was a rollercoaster ride -

• Do you remember the first property you sold? Tell us about it.

I sold seven properties.

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

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS?

MAKING A SUCCESS IN THEIR CAREERS IN PROPERTY?

• Customer service – going the extra mile.

• Have some money in the bank.

• Honesty and integrity.

• Get to know your area and your competitors as fast as you can.

• Know your market.

• Never give up - work…work…work…

• Always remember that if you control the stock, you control

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN

the market.

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

eventually run their own business within the company. RE/MAX has a business model unlike any other real estate company I have seen to date.

WHAT IS THE MOST VITAL BUSINESS TOOL THAT ESTATE AGENTS

DAVID GRANT

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

R E / M AX 2 0 00 RO O D EP O O RT

use a lot of technology and it really helps, but nothing beats connecting

To engage with people, face to face, voice to voice, on a daily basis. I with people — it is the most important part of the business, and all you really need is a telephone! Also the will to engage with people; it is strange really, the more things change as technology and time goes on, the more they stay the same.

WHAT ARE YOUR TOP THREE SECRETS TO SUCCESS? • Customer service: Building a relationship with your clients, staying in touch with past clients.

• Ongoing training. After being in this business for 18 years, I still attend seminars and training courses on a regular basis.

DO YOU REMEMBER THE FIRST PROPERTY YOU SOLD? TELL US ABOUT IT. I clearly do , any estate agent remembers every single sale. I sold it in 1996 for R125 000 in Strubens Valley on the main road and to this day I drive past this home at least three to four times a week. My

• Change with the market. Change is crucial in today’s fast-paced

take-home commission was around R1 300 after tax and shared with

world; you need to be able to adapt and change quickly. If

another agent and my agency. I sold it to a personal friend and it was

consumers get what they want, they will give you what you want.

a tough deal to close.

WHAT IS THE ONE THING YOU WISH SOMEONE HAD TOLD YOU WHEN

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

YOU FIRST STARTED OUT IN PROPERTY AND WHY?

MAKING A SUCCESS IN THEIR CAREERS IN PROPERTY?

I have worked for medium real estate companies as well as owned

Never give up! Never give up! As I said before, you need a passion

my own real estate company for seven years. I wish I had joined a

for sales. In this industry, if you are going to do it for the money

company like RE/MAX from day one; the business model in RE/MAX

only, you won’t be very successful, but if you have a passion for this

enables an estate agent to work their way up through the ranks and

business, the sky really is the limit.

Page 54: 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

getting well-priced sole mandates is the most challenging, yet most vital aspect of the job.

KIM BAILEY

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

S EEF F V & A WAT ER F RO N T, CA P E T OW N

I put my clients first. I go the extra mile for them and have an

AGENT/BROKER AND WHY? excellent after-sale service record. I keep in touch with them constantly. I always send my sellers feedback after every viewing and assure them of my commitment and professional service.

When dealing with my buyers, I look after their interests, offer them

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

excellent advice and keep them updated all the time on all new

My father is a developer and while growing up I was exposed to

listings. I always listen to what my buyers want, but at the same time

the property market. Before becoming an agent, I sold two houses

give them sound advice and offer information so they can make an

myself by advertising privately and loved the whole experience.

informed decision. I am also very friendly to all the clients I deal with as I do believe this business is about relationships – I believe that if

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

they like me, they will buy from me.

CHALLENGING ASPECTS OF THE JOB? Being a people person, I love dealing with clients and closing the

WHAT ARE SOME OF YOUR CAREER GOALS?

deal. The most challenging is finding well-priced stock and getting

To become a top agent within Seeff and become the best-known

access into the apartments. I do believe buyers will find you, so

agent selling in the V&A Waterfront within a year.

In both cases the answer is working with people. Closing a deal for happy clients can be euphoric but, on the other hand, it can be quite a challenge to find just the right solution for exacting clients.

ZAANDRE CAMPHER

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE

H A RCO U RT S B L O EM F O N T EI N

industry and sometimes it takes weeks to clinch a deal. A great

AGENT/BROKER AND WHY? Stamina, perseverance and enthusiasm. It is a very competitive agent will never lose courage and will keep going even when the going gets tough.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

WHAT ARE SOME OF YOUR CAREER GOALS?

I’m mad about sales and a career in property combines my aptitude

My immediate goal is to become the top agent in my region and in

for marketing with the prospect of earning a good living.

the longer term I aim to become one of the top agents in the country.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB?

Page 55: 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

and identifying the different temperaments and behaviors of the people that come your way. Humans are fickle. You have to learn how to handle situations on a daily basis. The most enjoyable part

HELEEN AND ROB NYSCHENS C H A S EV ER I T T I N T ER N AT I O N A L , L O N EH I LL

is when we find the right home for a buyer and see the joy on the faces of both seller and buyer at the conclusion of the transaction.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/BROKER AND WHY? You must know to deal with people and be a complete professional.

We believe that ‘service is not an option but a must’. Secondly, honesty and integrity is essential in all dealings. Thirdly, you must

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

always work towards increasing market share. Fourth, ensuring

We became estate agents because we love working with people

customer satisfaction to both seller and buyer is very important.

and love the challenge involved as well as the potential to earn

Lastly we believe you should work for a real estate company that

substantial incomes. Heleen initially worked for an estate agent part

gives you the best technology and tools to be effective in the market

time as an admin assistant and loved the work so much that she

and the support and expert advice you need to make your

decided to become an estate agent full time to create a stable and

career successful.

lucrative career. Rob was involved in the logistics world for many years and, after retiring, joined Heleen when he realised that the

WHAT ARE SOME OF YOUR CAREER GOALS?

property business was dynamic and a people business.

Our vision is to be the preferred estate agents in our marketing area with a good reputation; to provide the best service to our clients; to

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

be professional and knowledgeable in all our dealings; and to be

CHALLENGING ASPECTS OF THE JOB?

caring, friendly and supportive to all our clients.

The most challenging part of working with people is recognising

I find real estate to be such a rewarding job. The highs are high and the lows can be low, but there is never a dull moment and no day is the same. The enjoyable aspects can also be the most challenging at times and real estate is an emotional thing. Sometimes you feel

LIZANNE FOURIE PA M G O LD I N G P RO P ERT I ES S T ELLEN B O S C H

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY? I didn’t choose this career. It kind of chose me! Property is in the family, with my mother also being an estate agent. I was pursuing a career in fashion when she needed a personal assistant and I offered to help out on a part-time basis for three months. I am now a fully qualified agent, working separate from my mother, and loving every second!

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB?

like the attorney, psychologist, best friend and worst enemy in just one day, but somehow it is all very exciting and lively!

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT ESTATE AGENT/ BROKER AND WHY? Passion for the job, the properties and the people, as well as friendliness, honesty and staying motivated and driven. It is a stressful job and some days can be tough — you have to love and embrace it or you might just not make it!

WHAT ARE SOME OF YOUR CAREER GOALS? Well, besides the obvious being closing a few deals a month and making a success of my career, I want to have plenty of happy clients, repeat business, stay motivated and positive, be open to learning more and constantly evaluate my capabilities.

Page 56: 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

The enjoyable part is concluding a deal when all parties are happy and satisfied with the end result. The challenge is to stay in tune with the needs and emotions of everybody involved and to keep the transaction alive and vibrant until conclusion and eventual registration.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT

LOUIS VISSER R E A LN E T PA A R L

ESTATE AGENT/BROKER AND WHY? It is of vital importance to be professional, ethical and to look after the wishes of your client, who has given you a mandate to sell one of his or her biggest investments; to be sensitive to the needs of everybody involved and avoid a clash of interests; and to be patient and respect

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

the fact that this will be the biggest transaction some people will ever do.

I have been a conveyancer for 20 plus years and decided to change my life — and satisfy my love for wildlife — by leaving the corporate

WHAT ARE SOME OF YOUR CAREER GOALS?

world and living in the Zambian wild for a few years. But the

To be involved in and conclude some of the biggest property

excitement of being able to conclude property transactions lured me

transactions in the Western Cape as a property professional rather than

back to the corporate environment after three years. That says a lot

a real estate lawyer. To be trusted by each and every one of my clients

for this career!

and colleagues, and to maintain a reputation for being professional and for adding value wherever I am involved.

WHAT DO YOU FIND TO BE THE MOST ENJOYABLE AND THE MOST CHALLENGING ASPECTS OF THE JOB?

It makes everything so worth it. And it is such an honour when my sellers trust me implicitly and I remain friends with them — it’s lovely.

WHAT CHARACTERISTICS, IN YOUR OPINION, MAKE FOR A GREAT

BEV WHITE PA M G O LD I N G P RO P ERT I ES E A S T RAND

ESTATE AGENT/BROKER AND WHY? • The ability to really engage with your clients, to understand how they are feeling. This comes with life experience and a certain amount of knowledge, I think. By earning their trust, we must never lose sight of this honour and act accordingly.

• Be humble.

• Have patience, empathy and speak the truth.

WHY DID YOU DECIDE TO PURSUE A CAREER IN PROPERTY?

• Act immediately and respond straight away.

My best friend made the appointment with our area principal and I did not want to let her down… I knew nothing about selling

WHAT ARE SOME OF YOUR CAREER GOALS?

houses. I realised quickly that the harder I worked, the higher

• To be respected as a professional who has worked hard under

were the rewards. I used my first commission to stop the bank from

difficult circumstances.

repossessing my house.

• To always be financially independent. I never ever want to rely on a

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

• To take my daughter to Paris for her 10th birthday and on an

partner for my finances.

CHALLENGING ASPECTS OF THE JOB? Challenging: Human nature is unpredictable and we experience

overseas holiday every year after that.

• People may forget what you said or what you did, but they will

extremes, including incredible joy and everything in between.

never forget how you made them feel. To me, that is the

Enjoyable: Oh wow! I get goosebumps and go all tearful when I see

Pam Golding difference.

how happy my clients are when their offer to purchase is accepted or when they move in or show their children around for the first time.

Leapfrog Now Operates in East London and Cullinan Since its launch in 2007 Leapfrog Property Group has steadily increased its reach across the country with offices in all of the major cities. Looking further afield two new franchises are now opening in East London in the Easter Cape and in Cullinan, a small town 30km east of Pretoria.

Cicilia Janse van Rensburg

Nerina Wright and Senette Phitides

A New Agent in Town Originally from Limpopo, where she worked under the leadership of Ashley and Ilanga Lovell at Leapfrog Polokwane, Cicilia Janse van Rensburg and her family recently relocated to East London. Cicilia elaborates; “My husband’s work relocated us from Limpopo to East London and since then we never looked back. East London is a friendly city with lots of potential and there is a high demand for property with the city catering for all types of buyers”.

Cicilia believes that East London has much to offer home buyers as well as those looking for buy-to-let properties. According to Lightstone the average price for a free standing property in the centre is around R 2, 826 000 and around R3 600 000 on the coast.

“Having already gotten to know Cicilia while she worked at Leapfrog Polokwane we were delighted when she opted to open Leapfrog East London”, says Bruce Swain, MD of Leapfrog Property Group, “we’re looking forward to big things from this office in future”.

At present Cicilia and her small, but dedicated, team are focused on delivering professional service with the aim of growing both the Leapfrog reputation, and the business through hard work. “We’re ready for the challenge and making use of Leapfrog’s ongoing training sessions, we believe that your level of expertise and service will continue to increase”, she says, “Ultimately we want to be known as the real estate experts in East London”.

A Mother and Daughter Duo Experienced agent Nerina Wright and her daughter Senette Phitides are spearheading the Cullinan franchise together; “I always knew that I wanted to go back to the real estate industry. When I retired from Absa I took the leap to running my own business again. Having Senette as my partner just made it so much easier as she has been running her own, very successful, hospitality business in Cullinan for the past 11 years,” explains Nerina.

The team are very positive about the area; revealing that Cullinan, with its quaint streets and historical landmarks, is becoming increasingly popular with people working in Pretoria, but wanting to live in a smaller town. “In Cullinan you really get the best of both worlds; country living on the edge of a city,” reveals Senette.

“At Leapfrog we’re very selective when it comes to our franchisees and are confident that Cicilia in East London and Nerina and Senette in Cullinan will enrich their areas with their real estate experience and high levels of professionalism”, believes Swain.

To find out more about franchise opportunities or to join South Africa’s only truly agent focused property group, contact:

www.leapfrog.co.za

Gerhard van Rensburg 082 375 9343 or Valerie Kritzinger 082 568 7060 Tel 021 671 4880 info@leapfrog.co.za

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

TECH TOOLKIT Microsoft Office for iPad AVA I L A B LE F RO M :

For free… to download and have the basics, that is. It will, however, cost you a hefty subscription fee if you would like the full package.

L OV E I T: Microsoft Office Mobile is the official Office companion

optimised for your iPhone/iPad/Apple computer. You can access, view and edit your Microsoft Word, Microsoft Excel and Microsoft PowerPoint documents from virtually anywhere across all your devices. Documents look like the originals, thanks to support for charts, animations, SmartArt graphics and shapes. When you make quick edits or add comments to a document, the formatting and content remain intact.

N O S O M U C H : It is a bit laborious to save your documents as they need

iShower

to be saved in a Microsoft account in order to access them. Also, the annual

AVA I L A B LE F RO M :

and whistles.

subscription fee is quite pricy if you would like the full app with all the bells

R1 299

I N A N U T S H ELL : It is a handy app to have if Microsoft Office is what

L OV E I T: iShower lets you listen to tons of artists and playlists from

you use and it will make working remotely much easier, however, it comes at a

your favourite music apps. You can also tune in to the radio, conveniently

cost and may not be worth it if it is something you would only use every now

stream podcasts and listen to books by your favourite author. It is simple

and again.

to use and can pair up to five different devices, which will then enable any audio on your iPhone (or iPad or other Bluetooth device) to play through the iShower. Being able to jam to some great music while in the shower is sure to brighten up an average day and, just in case you get a little carried away, there is a clock display on the iShower to make sure that time doesn’t get away from you.

N O S O M U C H : It goes without saying that you need more than just

an iShower in order for this fun shower accessory to be useful. Also, the iShower is not completely waterproof, so you wouldn’t want to go deep sea diving with it, but it is water resistant and is designed to get wet.

I N A N U T S H ELL : It is fun and ideal if you like to listen to music or

the news while you are getting ready for work each morning.

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

GPS Log Book AVA I L A B LE F RO M :

R899

L OV E I T: This genius little device plugs into the cigarette lighter socket of your

car and tracks the use of your vehicle, automatically measuring the distances you travel and can generate South African Revenue Service-compliant logbooks. The device features a high sensitivity GPS and intelligent logging software allowing it to accurately record the time, position and speed of a vehicle at any point in a journey.

The GPS Log Book device automatically detects the beginning and end of your trip without you having to remember. And never fear, you can still charge your phone/ USB device simultaneously with the use of the extension cable.

N O S O M U C H : Nothing to say here, we have no doubt that this is exactly what

many have been waiting for, for quite some time.

I N A N U T S H ELL : It is smart, highly functional and eradicates the hassle of

maintaining a paper logbook. Additionally, the fact that it is SARS compliant makes it an absolute winner.

Logitech Washable Keyboard AVA I L A B LE F RO M :

R599

L OV E I T: Washable, waterproof and

spill-proof – in other words, the ideal

keyboard for those who tend to be a bit on the clumsy side or for all those clean freaks out there. The K310 is compatible with Windows7,WindowsVistaandWindowsXP, and with plug-and-play functionality, there is no need to download special software.

Setting up the Logitech K310 is as simple as plugging it in, with no extra software to download or settings to fuss with. In addition, Logitech covers the K310 with a three-year warranty.

N O S O M U C H : Some have said that

the keys are a bit mushy, but that may be down to personal preference.

I N A N U T S H ELL : It is a great idea,

and if you knew what germs encrusted our keyboards, you would most likely order one of these squeaky clean keyboards immediately! ** All prices are approximate.

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

DEVELOPMENT UPDATE venues to a 300-seat facility, are unable to keep up with demand and have had to turn away business, particularly for larger conferences.”

He said the CCCC, in partnership with Century City Connect, Century City’s open access fibre optic network, will offer delegates and guests world-class fibre optic and wireless connectivity.

Deans said over and above the CCCC and hotel, the mixed use development will include offices, showrooms, residential apartments and service retail and a five level parking garage with direct access to the CCCC. The entire NEW CONFERENCE CENTRE, HOTEL FOR CENTURY CITY

development will be set over a super parking basement, which, together with the structured parking, will provide a total of 1 300 bays.

A conference centre, with a total capacity of 1 900 in 20 venues, and a 125room hotel are to be built around a new public square in Century City as part

Anchoring the development will be a bustling, multifunctional square onto

of a R1-billion mixed use development in the Bridgeways precinct.

which restaurants and the other hospitality elements will flow.

“Every city should have at least one public square that offers a dynamic,

Greg Deans, a director of the Rabie Property Group, said the development

vibrant and safe environment for the public to enjoy. CCCC is one of

was in response to soaring demand for conferencing and hotels in the

three buildings that will form the focal point of The Square, a beautifully

burgeoning precinct and had been designed to complement Cape Town and

proportioned space that will offer users the opportunity to socialise, relax,

Century City’s existing facilities. “Not only will it fill a gap in the market, but

dine and be entertained.”

we believe it will help cement Cape Town’s established attractiveness as a conference destination.”

“It has been designed as the hub and pivotal node of this precinct that will influence and generate future planning of its surrounds. The strong

The Century City Conference Centre (CCCC), he said, would offer flexible

architectural form and aesthetic of the conference centre has been taken

configurations. Three adjoining halls will have a total capacity of more

through to the Century City Hotel to form an L-shaped footprint that is then

than 900 delegates cinema style with a fourth hall able to accommodate a

offset by the more sculptural and whimsical sheer glass façades of the

further 480 delegates cinema style. The multifunction venues will also be

seven-storey free-standing office building that forms the balance of The

available for banqueting and exhibitions while a large pre-assembly area will

Square. This environment is further enhanced by the introduction of the

be available for exhibitions, product launches and the like. It will also offer

extended canal system of Century City and bold landscaping themes.”

12 meeting and breakaway rooms and a business lounge on the first floor able to accommodate around 200 delegates. Deans said the average hotel

Murray & Roberts have been appointed contractors and have moved on site

occupancy at Century City, which currently has a total of 460 rooms in five

with all components of the development scheduled for completion by end

hotels, was running at over 73%.

2015 and the first conferences expected to be hosted in early 2016.

Century City’s popularity as a hospitality node, he said, has grown

The architect for the project is Vivid Architects while Source has been

phenomenally in recent years in tandem with the growth of the precinct,

appointed interior decorators for the CCCC and Origin for the Hotel.

which is now home to more than 500 businesses and with more than 260 000m² of offices is currently the third largest commercial precinct in

For further details contact Greg Deans on 021 550 7000 or visit

Cape Town. “And the existing conference facilities, which range from 20-seat

www.centurycityconferencecentre.co.za.

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

VAL DE VIE DEVELOPMENT HAS SET NEW STANDARDS FOR

However, the features that give Val de Vie its signature and upmarket

RURAL ESTATE PROJECTS

image, and which have drawn many buyers from far afield, are the international standard polo grounds, which have 80 stables, and the Polo

Paarl and its surroundings are today known for the many luxury residential

Club Restaurant & Wine Bar in the Polo Pavilion at the main polo field —

retirement and lifestyle estates that have sprung up in this beautiful part

which has a first-class reputation. The Pavilion also serves as a popular

of the Western Cape in the last two decades: Oude Renbaan, Pearl Valley,

venue for corporate and social events such as weddings.

Boschenmeer and Val de Vie Estate.

The estate also has a Sport and Leisure Centre, located in the heart Many of these estates, says Lizette Joubert, the Rawson Property Group’s

of Val de Vie. It has two squash courts, a fully equipped gym, two outdoor

franchisee for the Paarl precinct, set new standards in home and landscape

tennis courts, an indoor, heated 25m swimming pool and outdoor pools.

design. However, it is quite likely, she says, that Val de Vie, which she describes

The indoor swimming pool is home to the Ryk Neethling

as one of the boldest and most upmarket of all the recent developments, will

Swim School.

be the most successful and the fastest selling of them all.

Security at Val de Vie has always been a top priority. It is covered by a Situated in the fertile Berg River valley betweena Paarl and Franschhoek,

‘military specification thermal blanket’ that has become a benchmark for

the development, which started in 2006, is being handled by the property

other estates and the 8km perimeter is protected by a 2m-high iron rod

developer Elements Development Projects for which the Olympic gold

fence that is fully electrified. Throughout the project the developers have

medallist swimmer, Ryk Neethling is the marketing director.

installed security booms between various precincts. The estate

Val de Vie covers 250ha in all. Prior to being developed it was used primarily

borders onto two kilometres of the Berg River with beautiful picnic areas

for general and dairy farming, vineyard cultivation and wine production. Most

for the residents.

of the dams (six covering 12ha) associated with these have been retained as have many sections of the vineyards, pastures and orchards. Today, the

As mentioned, Val de Vie was launched in 2006. A glance through its

development can offer most homes not only mountain views to the Groot

latest online resale figures will show that once plots have been built on,

Drakenstein, Paarl Rock, Simonsberg and the Franschoek ranges, but also

the average value of a home sold here today is R4.8-million. In total

vistas of cultivated, open agricultural land. More than 70% of the estate

there are 532 plots and 500 of these have been sold. By the end of the

consists of vineyards, farmland, wildlife camps, paddocks and polo fields.

year it is estimated that 350 homes will have been built on the estate.

Those for sale vary in price from R850 000 to R4-million, but the bulk of

In one section, a complete 2ha small Cape nature style game reserve with

demand is around R1.2-million. The plots vary in size from 600m²

several varieties of buck and zebras has been created and the homes

to 1 400m².

overlooking this, it is said, are among the most prestigious in Val de Vie. Buyers have to choose one of the builders on the carefully selected building panel and all homes have to conform to certain design guidelines. These, says Minette Bezuidenhout, one of Rawson Paarl’s two agents working with the developers on this project, are not too stringent, but they do ensure that no one home can clash stylistically with others or lower the standard of the development as a whole.

“Val de Vie presents the perfect balance between nature and stylistic modern living. It achieved a five-star award for the Best Multiple Unit Development in South Africa in 2013 and the award for the Best Single Unit Development in Africa for its Polo House,” says Bezuidenhout.

For further information contact Lizette Joubert on 083 469 8946 or email her at paarl@rawsonproperties.com. The Val de Vie estate can be contacted on 021 863 6100, info@valdevie.co.za or visit www.valdevie.co.za.

Page 64: WO R D O N T H E S T R EE T

WORD ON THE STREET “South Africans are still paying 76% of their income on debt repayment, which does not augur well for savings. People have become dependent on expensive personal loans to fund their lifestyles.”

Estelle Scholtz-Mare, Momentum head of financial wellness (Fin24: ‘Property debt levels to jump, warns expert’)

“Evaluating longer term performance‚ compared with August 2003‚ 10 years ago‚ the index is up 37.99% in real terms and 139.48% in nominal terms‚ still suggesting that the full price effects of last decade’s residential demand boom have far from worn off ‚ despite a significant downward real correction since late-2007.”

“For now, a lacklustre economy and the damper it places on the growth in employment will most likely continue to be unsupportive of households’ financial position. The outcome of this will be continued modest growth in residential rentals.

It’s all about affordability.”

John Loos, FNB household and property strategist (SA Commercial Prop News: ‘FNB house price index up 6.4% y/y in August’)

Erwin Rode, CEO of Rode & Associates (Fin24: ‘Rental market offers good growth pockets’)

“All that consumers can do is prepare for rate hikes in advance, to ensure that they don’t encounter any financial setbacks and budgetary challenges. The focus for all consumers should be to bring down their level of debt and these increases won’t help that goal.”

Gary Palmer, CEO of Paragon Lending Solutions (Fin24: ‘Prepare your budget for rate hike’)

NUMBERS TO KNOW

6%

A few premier office nodes in some of the SA’s major cities are showing decent growth. In the fourth quarter of 2013, Menlyn (+12%) in Pretoria, Century City (+10%) in Cape Town and the Sandton CBD (+8%) in Johannesburg were examples of nodes where nominal rentals were able to beat building cost inflation (+6%).

Fin24 - Rental market offers good growth pockets

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