 27 January 2012, 08:11:13
 One of Upper Constantia’s grandest and most lavishly fitted out homes has come onto the market at a price of R28,5 million. Fleur Lee, of Anne Porter Knight Frank, who has been given the right to market the property, says that it is one of only four or five houses in Constantia that set the benchmarks by which other big landmark homes in the valley are judged.
Sited just off Price Drive, the property is close to the boundary of the Groot Constantia vineyards and has direct access to these. The home has views across the Klein Constantia and Steenberg vineyards and Tokai Forest to False Bay as well as backwards to Vlakkenberg and Constantiaberg. The home, which has no less than 1,000 m2 of floor area (roughly five times the size of a conventional big home), is double storey with large balconies and four big bedrooms, all en suite. There are six reception (living and dining) rooms as well as such ‘extra’ facilities as a gymnasium, a study cum library, a home theatre/cinema, a scullery (with a glass door), a temperature controlled wine cellar and servants’ quarters. The kitchen floor area covers close to 150 m2. All rooms are air-conditioned and many have underfloor heating. A central vacuum system ensures that all vacuuming is done with great efficiency. A separate flat with a high measure of privacy is sited in the garden and four garages and ample parking space enable the home to be used for large-scale entertainment. The garden has been partially landscaped to have a formal French Provencal appearance with olive trees, herbs and lavender. It is watered by an automatic irrigation system fed by its own borehole and a mountain stream tumbles through the property, giving sustenance to four water features and a koi pond. The security measures, says Lee, are of the highest standard and include an electrified boundary fence, CCTV and a burglar alarm. Lanice Steward, Managing Director of Anne Porter Knight Frank, says that homes of this quality are rare “anywhere in the world” and this one has the huge additional advantage of being not just opulent but also thoroughly modern and wholly appropriate to its setting, because it has a clearly identifiable Mediterranean feel to it. “One hesitates these days to describe any home as really beautiful,” says Steward, “but that description would be justified in the case of this very superior residence.”
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20 January 2012, 12:47:31
 RealNet franchisee Nelis Bezuidenhout has been named by the Institute of Estate Agents (IEASA) as its Agent of the Year 2011 in the category for agents working with assistants.
He was also recognised at the recent RealNet national awards as the Agent of the Year in the units sold category.
Nelis is the owner of the RealNet Wapadglen franchise, which specialises in selling townhouses in the eastern suburbs of Pretoria, namely Faerie Glen, Garsfontein, Olympus and Wapadrand.
An accountant by training, he has been involved in the real estate industry for the past 14 years and for the past few years has concentrated on Sectional Title units.
Congratulating Nelis on his achievement in winning the coveted IEASA award, RealNet Holdings MD Jan Davel said the property market was definitely not the easiest industry to be operating in during 2011 and further that sales figures such as those notched up by Nelis in the past year, as well as in previous years, did not just “happen” by themselves, no matter what the state of the market.
“They are the result of great perseverance and diligence, insight and an unfailingly positive attitude and we applaud Nelis for having all those and for his exceptional performance. Our group is always appreciative of this type of effort and example.”
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12 January 2012, 16:22:37
2011, says Bill Rawson, chairman of Rawson Properties, is likely to be remembered in the property sector as the year in which improper conduct and misappropriation of funds by several of the industry’s leaders did much to tarnish their reputations and that of the industry in general.
This, he said, was doubly regrettable because many of those who had been implicated had spent years establishing their reputations and building good brands. The damage to themselves and their companies, he said, had been increased by the general public’s ability to comment and communicate to the world on these matters via the electronic media. In one case a dedicated blog had been started just to air grievances about one operation.
Also damaging to the industry, said Rawson, had been the lack of efficiency, the changes and staff suspensions in the Institute of Estate Agents and Estate Agency Affairs Board. Fortunately, he said, these are being dealt with.
It would, however, help greatly, said Rawson, if the Department of Trade and Industry communicated with the industry leaders rather than implementing new legislation without much consultation.
In the circumstances, he said, those brands with clean images are attracting clients and staff formerly linked to the “damaged” groups – but, he warned, it will require continual vigilance to ensure that one or two operators within those groups do not let the side down.
“2011 has shown again that the independence and flexibility of the franchise system do attract the bold entrepreneurial types that real estate marketing needs. However, it is also clear that a franchisee who is not properly trained and mentored and who is possibly able to operate on systems of his own and without much feedback to his head office can be dangerous. The strength of good franchising lies in its ability to provide the franchisee and his agents with systems that simplify and speed up their work while at the same time revealing quickly to the head office any area where there is weakness or misconduct.”
Any agency operating a trust in its own name, added Rawson, should be questioned.
“The golden rule is that trusts in which clients’ money is held should be independent and preferably associated with attorneys. Even these have on occasions proved vulnerable but it is always safer if the trustees are not directly linked to the agency.”
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12 January 2012, 16:16:04
RE/MAX of Southern Africa is pleased to announce that Kevin Jacobs will be joining the team in January as National Franchise Development Manager.
“With more than 19 years of experience in the financial sector of the property industry, of which 15 years were in management positions heading up successful sales teams, Kevin brings a wealth of knowledge, experience and understanding of real estate into the RE/MAX fold,” says Peter Gilmour, Chairman of RE/MAX of Southern Africa.
Gilmour says that the growth that the RE/MAX brand has experienced over the past year, both in terms of sales figures and market share, is largely attributed to the high calibre of people that work within the group. “Kevin is passionate about property and people, and through the experience he has gleaned in the industry to date, he has a good understanding of where the industry has come from and where it is going to and will no doubt be an asset to the RE/MAX brand.”
Jacobs, who has spent most of his career developing and fostering relationships within South Africa’s real estate network, says that he is honoured to join the RE/MAX team. “This is a fantastic opportunity to be a part of the inner workings of South Africa’s leading real estate brand. It is a brand that is well-known and trusted by consumers around the world, and it is a brand that has a strong business focus – from the Broker/Owners to the estate agents, everyone within the group is an entrepreneur and I look forward to adding value to the operation.”
As National Franchise Development Manager, Jacobs will have a big focus on developing and nurturing stronger relationships with new and existing partners in the real estate industry as well as adding value to all of the RE/MAX franchises. “I am looking forward to growing the RE/MAX business even more, as well as developing new business and strengthening the brand. While the property market is expected to remain tough during 2012, I believe it will be a good year of growth for RE/MAX.”
Gilmour notes that brand focus, lead generation and offering a quality service will be the drivers of success in 2012. “RE/MAX of Southern Africa welcomes Kevin to the team and looks forward to a long and fruitful relationship with him. We have geared up to take advantage of the opportunities that the market will present during 2012, and with a strong foundation of key personnel, we are sure to achieve even greater success in 2012,” Gilmour concludes.
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15 December 2011, 08:15:26
Many people are irked by the fact that 100% home loans are no longer freely available, but on the other hand it must be said that the bigger the cash deposit that potential homebuyers can make, the more benefit they will derive, even when interest rates are low.
That’s the word from Berry Everitt, MD of the Chas Everitt International property group, who notes that the latest statistics indicate that the average deposit now required by the banks has fallen from an average of around 18% a year ago to about 12%.
“This does of course make it easier for new buyers to get into the market, in the sense that they no longer need to have as much cash saved up and can buy now while prices are still low. However, the long-term implications may actually not be as positive, because no matter what the purchase price, a smaller deposit means a bigger loan, which means, firstly, that the borrower must earn more in order to qualify, and secondly, that the minimum monthly repayments will be higher.
“This, in turn, will restrict the borrower’s ability to pay the loan off faster and save a large amount of interest – a situation that may be exacerbated by the fact that the banks often charge higher rates of interest on low-deposit loans.”
Taking the example of a home costing R800 000, he says a 12% deposit would equate to a loan of R704 000 and a minimum monthly repayment of just over R6300, at the current prime interest rate of 9%.
“The buyer who pays an 18% deposit, however, will require a loan of just R656 000, and face a minimum monthly repayment of under R6000. He may well then be in a position to pay an additional R300 a month off his loan capital, which would enable him to pay off his home two years earlier and generate interest savings of about R108 000 – or more than twice the additional amount of deposit cash paid (R48 000).
“In short, it always pays to put down the biggest deposit you can muster, even when interest rates are low and there is an urgency to get into the market.”
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14 December 2011, 14:28:13
Many people are irked by the fact that 100% home loans are no longer freely available, but on the other hand it must be said that the bigger the cash deposit that potential homebuyers can make, the more benefit they will derive, even when interest rates are low.
That’s the word from Berry Everitt, MD of the Chas Everitt International property group, who notes that the latest statistics indicate that the average deposit now required by the banks has fallen from an average of around 18% a year ago to about 12%.
“This does of course make it easier for new buyers to get into the market, in the sense that they no longer need to have as much cash saved up and can buy now while prices are still low. However, the long-term implications may actually not be as positive, because no matter what the purchase price, a smaller deposit means a bigger loan, which means, firstly, that the borrower must earn more in order to qualify, and secondly, that the minimum monthly repayments will be higher.
“This, in turn, will restrict the borrower’s ability to pay the loan off faster and save a large amount of interest – a situation that may be exacerbated by the fact that the banks often charge higher rates of interest on low-deposit loans.”
Taking the example of a home costing R800 000, he says a 12% deposit would equate to a loan of R704 000 and a minimum monthly repayment of just over R6300, at the current prime interest rate of 9%.
“The buyer who pays an 18% deposit, however, will require a loan of just R656 000, and face a minimum monthly repayment of under R6000. He may well then be in a position to pay an additional R300 a month off his loan capital, which would enable him to pay off his home two years earlier and generate interest savings of about R108 000 – or more than twice the additional amount of deposit cash paid (R48 000).
“In short, it always pays to put down the biggest deposit you can muster, even when interest rates are low and there is an urgency to get into the market.”
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14 December 2011, 08:23:15
To earn commission, an estate agent must do more than introduce a willing and able buyer to the property seller or finalise a binding agreement of sale.
He or she, notes Jan Davel, MD of the RealNet estate agency group, must be the “effective cause” of the sale. “In other words, the buyer must be attracted to the property, or alerted to the fact that it is for sale, by that estate agent’s own marketing efforts – including, for example, the placement of advertisements or the holding of showdays.
“However this principle, which has been upheld by the courts many times over the years, can easily lead to home sellers having to pay ‘double commission’ if they do not take great care when they change their mandate from one agency to another or allow their homes to be marketed by several agents at a time.”
It also quite often happens, he says, that a seller whose property is being marketed by one agent or agency will be contacted by another agent offering to “deliver” – for a lower commission - a buyer who has become interested in the property as a result of the efforts of the first agent.
“But if a sale materialises in such a situation, the first agent will be in a strong position to claim that he or she was actually the ‘effective cause’ of sale and to claim the commission on the sale - even if the second agent has negotiated the actual sales agreement, and even if the seller has already paid commission to the second agent.”
And the ‘effective cause’ concept goes even further, says Davel. “If a person who views a property through an estate agent then tells someone else about the property and that person buys the property through a second agent, the first agent may still be regarded as the ‘effective cause’ of the sale, and the seller will most likely still be liable to pay him or her a commission on the transaction.”
The proper course of action in such instances, he says, is for the second agent to first reach an agreement with the first agent about how they will divide the commission – and to then indemnify the property seller, in writing, against any further commission claims or claims for damages by the first agent.
Indeed, any agent who does not follow this procedure and thus exposes his or her client to the risk of a ‘double commission’ claim will be contravening the statutory Code of Conduct for Estate Agents and subject to disciplinary action by the Estate Agency Affairs Board.
“In most cases, though, property sellers would be much better off if they just award a sole mandate and refuse to allow anyone else to interfere with this, or failing that, make sure that they have a written indemnity and a copy of the commission split agreement before they sign any offer to purchase where there are multiple agents involved.
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13 December 2011, 11:03:55
Adults aren’t the only ones whose lifestyles have changed dramatically in the past 10 to 20 years – children also live very differently now and their changing needs can have a big influence on home purchasing decisions and trends.
The most obvious result, says Berry Everitt, MD of the Chas Everitt International property group, is of course the growing preference among those who can afford them for homes in gated estates where children can safely play outdoors.
“Another is the rising demand for apartments and townhouses in complexes that have their own playgrounds, pools and perhaps even a crèche. And even in the suburban context, parents are increasingly looking for homes that are not only close to good schools but will also accommodate the need for their children to spend more of their leisure or play time at home.”
Writing in the Property Signposts newsletter, he says some features that are likely to appeal to these parents include a safe back garden, spacious, sunny bedrooms, and an extra play space or “media room” where children can have their computers and play their own music without disturbing the rest of the household.
“And in cases where both parents of young children work away from home, additional accommodation for an au pair or a nanny is also a plus.”
Meanwhile, says Everitt, many families are having to deal with the fact that grown children now tend to stay at home longer than before. “It is often simply unaffordable for them to live elsewhere while they study, or in rental accommodation while they save up for homes of their own.
“Consequently, homebuyers with teenagers now often choose homes with an eye to accommodating these young people at a later stage in a self-contained suite or garden cottage.”
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13 December 2011, 11:02:57
With about 3000 students a year living off-campus, the demand for suitable rental accommodation close to Rhodes University in Grahamstown is alive and well – but the demand for houses on sale not so hearty.
So says Steve Birt, managing principal of the Lew Geffen Sotheby’s International Realty franchise in the Eastern Cape town that is also home to several of the country’s top schools, who notes: “Despite a rash of new developments aimed at students since 2008, the student buy-to-let market here is still delivering good returns.
“There are a few new units still unsold at the moment, but this is only because the local investor market is saturated, and we are sure they will be swiftly taken up when they receive some outside exposure before the start of the next academic year.”
Family homes for sale, however, are likely to stay on the market much longer, unless the owners urgently adjust their asking prices, he says.
“For many years, people just accepted that Grahamstown house prices were high relative to other areas because of a shortage of non-student related development. Parents who decided to move here because of the excellent schooling available were prepared to pay a bit of a premium, and many academics were happy to rent rather than buy because they expected to have to transfer somewhere else after a year or two anyway.”
Now, though, things are different. “Since the recession of 2009, potential buyers have become increasingly price conscious and extremely resistant to any hint of overpricing. Added to this is the fact that the banks will simply not grant loans to buy properties where they don’t see a certain margin for future value growth,” Birt says
“Consequently, even homes that are well-priced in terms of the Grahamstown market are currently taking five to six months to sell – and even then may only achieve around 85% of their original asking price.”
The best-selling homes in Grahamstown currently, he says, are those priced between R700 000 and R950 000. The student flats that are available range from around R380 000 to R850 000, and monthly rentals currently start at around R2000. House rentals start at around R6000pm for a three-bedroom house.
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12 December 2011, 14:31:13
The “consumer” in the real estate sector (i.e. the buyer and seller) now has rights to open and full disclosure and these rights have been more clearly recognised by and enhanced in the new Consumer Protection Act, says Bill Rawson, chairman of Rawson Properties.
“The industry,” says Rawson, “has no problem with the more stringent transparency concepts now enforceable and by and large its leaders have expressed a wish to comply with them but there is still much ignorance among both estate agents and consumers as to how the principles of the CPA will actually work in day to day property transactions.
“Just how far, to take one example, will they impinge on the voetstoots clause?”
At this stage, says Rawson, consumers recognise that they have full disclosure rights but they too are vague as to how these can be enforced.
“No doubt the whole scene will change in the next two years,” said Rawson, “but as so often happens with groundbreaking legislation, it will take some time for a body of case law to be built up which will define more clearly the way in which property transactions have to be handled. We are pleased, however, that we in the real estate industry will be enabled through this legislation to improve our service and regain the confidence of the consumer.”
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12 December 2011, 14:31:13
The “consumer” in the real estate sector (i.e. the buyer and seller) now has rights to open and full disclosure and these rights have been more clearly recognised by and enhanced in the new Consumer Protection Act, says Bill Rawson, chairman of Rawson Properties.
“The industry,” says Rawson, “has no problem with the more stringent transparency concepts now enforceable and by and large its leaders have expressed a wish to comply with them but there is still much ignorance among both estate agents and consumers as to how the principles of the CPA will actually work in day to day property transactions.
“Just how far, to take one example, will they impinge on the voetstoots clause?”
At this stage, says Rawson, consumers recognise that they have full disclosure rights but they too are vague as to how these can be enforced.
“No doubt the whole scene will change in the next two years,” said Rawson, “but as so often happens with groundbreaking legislation, it will take some time for a body of case law to be built up which will define more clearly the way in which property transactions have to be handled. We are pleased, however, that we in the real estate industry will be enabled through this legislation to improve our service and regain the confidence of the consumer.”
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12 December 2011, 14:30:02
Any review of the year now ending in the residential property sector would have to highlight the fact that in 2011 new developments dropped off by some 70% compared to the levels of 2006/2007.
This was said by Bill Rawson, chairman of Rawson Properties, in a staff briefing in which he covered many factors affecting the residential property sector in 2011.
“Many developers took a hiding in 2011,” said Rawson, “and some big names that were prominent throughout the greater Cape Town are now either temporarily or permanently out of action.”
This, he said, was due not so much to a lack of demand which, at least in the lower middle and lower brackets, is still strong, but to bank finance difficulties.
“There are,” he said, “two sides to this: many developers can now no longer get finance unless they have the resources to mount massive sales campaigns and to achieve 70 to 80% sales prior to their bond application being approved – any many potential buyers (some of whom previously could get finance for two or three buy-to-let opportunities) are now finding that they no longer qualify for loans under the National Credit Act criteria as implemented by the banks.”
A further obstacle in the developers’ path, said Rawson, is the fact that in 2012 and thereafter new developments will have to conform to a list of “green” building regulations which, although highly commendable, will add a further 15% to the basic costs. These, he said, will affect the glazed areas (which now will have to be shaded or be more effective), roofs and slabs (which will have to better insulated) and energy supplies, which will increasingly become solar and wind powered.
“It has to be recognised,” added Rawson, “that the already serious shortage of housing is being made worse by the slowdown in delivery. In this context, the banks’ “new, more reasonable approach” to lending needs to be re-evaluated by the State, who, some people think, is not placing housing as high on their agenda as it should be.”
The only people benefitting from the current situation, added Rawson, are the landlords who are now finding that improved demand for dwindling stock enables them to raise rents.
Asked how it is that in this difficult situation Rawson Developers were able to report recently that they have projects in the pipeline for three years, Rawson said that they had had the foresight to acquire land well ahead of their work load in areas ripe for new projects – and, even more importantly, he said, they have been able as a result of having their own construction teams to pare down building prices and work only on a building (not a building and development) profit.
“In today’s market,” he said, “the independent developer employing an independent contractor simply cannot come out in the black unless he is able to offer something very special such as a perfectly positioned site.”
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12 December 2011, 14:29:06
2009 – 2011 will go down in property history as a time in which certain trends gained momentum at a pace not seen before, said Bill Rawson, chairman of Rawson Properties, in a review of the past year – and the most noticeable of these trends, he said, has been downscaling.
“At all levels in the property sector,” he said, “we saw a call for less expensive, smaller units with a concomitant falloff in the value of the more expensive homes.”
This, said Rawson, has resulted in some lower and sectional title units being developed with less than 40m² of floor area and in new lower middle bracket homes now coming onto the market with as little as 60m² of floor space. Units this size, he said, can sell for anything from R450 000 to R1,2 million and the demand for this accommodation can only increase.
Upper middle and upper bracket homes, said Rawson have been through a period in which price drops in excess of 30% were the norm – and in this market it is still possible that the price drops will be seen but no longer at the levels experienced in 2010/2011.
This situation, he said, hits the retiree hard: he too wants to downscale but he cannot sell his existing home at a price acceptable to him and is often forced to stay on in the larger home.
By contrast, in the lower priced categories, said Rawson, signs of price stabilisation are now evident, with price growth beginning to match the inflation rate.
The dire economic conditions, added Rawson, have greatly increased the tendency to share homes.
“What we are seeing in SA was, I found, also happening in the USA: offspring will stay on in their parents’ home for five or six years. Young couples will also spend the first years of their married lives with parents – and renting out rooms to all comers is now a common practice.”
A spinoff of the current situation, said Rawson, is that rentals are rising and rent increases, he estimates, are now around 8% per annum and investors in areas like Table View are finding that they can often get 7 to 10% return from day one. There have, he said, even been cases where a 12 to 13% return is achieved from the outset.
Farsighted buy-to-let investors are, therefore, once again building their portfolios and are often faring better than those who stuck to stocks or the money market.
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12 December 2011, 14:20:27
When the history of the SA residential real estate industry comes to be written, the period through which it has just passed could, says Bill Rawson, chairman of Rawson Properties, become known as the era in which the banks treated the general public and bond originators poorly.
“Huge damage to the residential property sector has been caused by the banks’ ultra-strict application of the National Credit Act,” said Rawson, “but in view of their previous big losses in the housing sector that has become partially accepted - subject to the proviso that the Act could be more leniently and flexibly interpreted.
“However, no one accepts or condones the banks’ treatment of bond originators.”
Certain banks, said Rawson, had “declared war” on bond originators and refused point blank to accept a bond application from them. The banks also punished clients by applying a far stricter credit scoring model against those who applied for home loans via independent mortgage originators than those who came directly to them. This resulted in many not being able to secure home loan finance.
“Double standards like this,” he said, “are difficult for the industry and the consumer to understand. It could be said that this strategy was fuelling the recession and helping to create unemployment.”
The banks’ conduct was, he said, an abuse of power and their almost monopolistic control of bond finance.
One of the banks’ arguments given for this practice, said Rawson, was that it would enable them to reduce their risk but, he said, there is absolutely no evidence that the credit and qualification testing done by bond originators has been any less effective than that done by the banks – indeed, with their years of experience, many bond originators could be better qualified to assess an applicant than newly appointed staff working to a rigid scorecard system.
The banks then made life even more difficult for those bond originators with whom they did do deals by cutting their commissions by 50% – which in many cases forced them to go out of business – their earnings were simply too low to continue this valuable service to the industry.
There is, however, hope for the future.
“Recent good news,” said Rawson, “is that the bond issuers seem to have eased up on their credit scoring and are now granting loans more generously than for some time. This is extremely positive as it could bring a lot of life into the property market in 2012.
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12 December 2011, 14:19:14
If right now you are looking for encouraging news about the state of the property market worldwide, three bits of information picked up by Lanice Steward, managing director of the Cape estate agency, Anne Porter Knight Frank, could be appropriate.
The first is that, according to Anne Porter Properties’ UK associates, Knight Frank, there has been a marked shift among investors into property. This, said Steward, appears to be the retreat to safe haven bricks and mortar which takes place every time a big financial crisis hits the world’s stock markets and at the moment, she says, European asset holders are exceptionally worried about the future of the Euro and of the Eurozone.
“So, once again, property is proving its value and attraction in difficult times.”
The second surprising fact, said Steward, is that the US housing market is now turning over homes at 80% of its previous levels.
“If you read the less well informed reports,” said Steward, “you might get the impression that sales are down by at least 50% but that is not the case. Furthermore, although average values dropped by ±45%, they are now back to within 32% of previous values – again, therefore, property is showing a resilience that other asset classes cannot match.”
The third encouraging fact, said Steward, is that in top-flight cities like London, Paris, Munich, New York and Toronto, the prime central business district residential properties have completely shrugged off the impact of the recession.
“Knight Frank report that in central London prime property prices,” said Steward, “have risen 12,5% in one year and 38,2% since March 2009. Market prices are now 5,2% above those of March 2010 and have in fact never been as high as this before.”
Liam Bailey, head of Knight Frank’s residential research team, predicts further price growth in 2012 in central London but at a slower pace.
Footnote: the Knight Frank prime central London index, established in 1976, is the longest running and most comprehensive ongoing monitor of housing prices in Belgravia, Chelsea, Hyde Park, Knightsbridge, Kensington, Marylebone, Mayfair, Notting Hill, parts of the Thames South Bank and related outlying areas such as Canary Wharf, Hampstead and Wimbledon.
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12 December 2011, 14:17:08
The Western Cape Institute of Estate Agents ladies’ breakfast held recently at the Atlantic Imbizo in the V & A Waterfront was addressed by five leaders in the real estate sector – and, says Dianne Brock, general manager of this branch of the Institute, although this was a lighthearted end of year function, much the same message came though from every talk.
That message, she said, was that today’s property professional has to “come to the table” armed with market and economy data, legal knowledge and other relevant facts.
“We are no longer in an era where negotiations can be conducted largely by emotion,” she said. “Today’s professionals need well-researched data to support their statements.”
The speakers at the breakfast were:
- Lanice Steward, managing director of Anne Porter Knight Frank and vice-chairman of the Institute, who asked the question, “Are we insane?” in relation to the knowledge agents “give away”.
“We need,” said Steward, “to value the time and the knowledge we have acquired and be more careful about how we make both available to clients for no reward. There is a regrettable tendency among the public to get all the information they can from us and to give nothing back in return.”
Steward joked that estate agents should now adopt the current practice of toy-toying when they feel hard done by and dance outside the doors of SA’s banks in protest against their reluctance to issue mortgage bonds.
“Regular vigorous toy-toying,” she said, “might even enable us to cancel our gym memberships.”
- Vivien Marks, CEO of the rental training and assessment group, and a board member of the Housing Rental Tribunal.
“Marks,” said Brock, “emphasised the need to continue training, raising the standards of all agents still further. What has been achieved in the last few years is admirable but training has to be ongoing. The new high levels of knowledge and skill have to be raised still further.”
In today’s property market, said Marks, a knowledge of tenants’ rights is especially important. These have been given a new dimension by the Consumer Protection Act.
She then discussed cases taken to the Tribunal in which tenants’ rights had been upheld against ruthless non-compliant landlords.
- Melanie Coetzee of the legal firm, Smith Tabata Buchanan Boyes. Coetzee spoke of the alternative ways of generating business in today’s difficult market.
“Again,” said Brock, “the message was that knowledge opens doors and enables the agent to add value to his service. The agent with an extensive knowledge base on which to draw is more likely to be able to build long term relationships based on trust.”
- Janine Barry of Remax. She, too, said Brock, stressed that a database of statistics and an in-depth understanding of both property and national economics are essential in dealing with today’s market.
- Pam Snyman of Pam Golding Properties. She affirmed that in today’s market it is essential to offer more than what was previously acceptable. The ability to do this, she said, depends largely on the knowledge that the agent has assimilated.
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12 December 2011, 14:16:12
“There is a clear intent in businesses (including some labelled as “unsustainable”) to take the necessary steps to ensure environmental sustainability - and many companies are already doing incredible work at promoting sustainable business practices.”
This was said by Gunstons Attorneys director, Garth Watson, on his return from the COP17 conference in Durban.
“It was,” he said, “refreshing, after listening to hours of debate on the complexities of climate change law and policy to hear many encouraging reports from companies which are just “getting on with it”, finding creative solutions to their environmental problems. Meeting the challenges of climate change and environmental degradation will, it seems, to a large extent be in the hands of individuals and the private sector collaborating to take responsibility on behalf of the global community and, more particularly in Africa.”
Gunstons Attorneys, said Watson, is determined to be one of those generating new solutions to environmental challenges. It has, therefore tied up a strategic partnership with an environmental legal compliance business, The Environmental Law Consultancy (The ELC), one of the oldest firms of its kind in South Africa.
The ELC now operates from offices in the same building as Gunstons’ offices in Steenberg Office Park, Tokai and will liaise with and draw closely on the expertise of all Gunstons’ departments, especially the commercial, environmental and property divisions.
Grant Gunston, Senior Director at Gunston Attorneys, said that the already-defined intention is to grow the ELC's business and this, he believes, should be relatively straightforward because "there is a huge need for informed and responsible advice on environmental matters generally as well as health and safety law".
Peter Flynn, ELC’sBusiness and Systems Manager, said that the backing of Gunstons Attorneys would enable the ELC to provide new services and technology and to widen the range of products that they offer.
“Clients,” he said, “will have to have competent legal compliance assistance across all areas of their business operations, covering the full spectrum of South African legislation. This will be especially necessary as new legislation begins to have significant impacts across traditional company verticals.”
The ELC, said Flynn, has been in existence for 20 years. It focused on environmental legal compliance in its early years before expanding into occupational health and safety and, more recently, other areas.
"Our goal has always been to assist any company or organisation whose activities impact on the natural environment. We try to see that they do so in a legally approved, responsible and sustainable manner."
ELC’s clients, he said, have tended to be mines and manufacturing entities such as processing, packaging, canning and bottling plants as well as property developers. Most already have “massive” operations in South Africa and are continuing to expand and/or to upgrade.
“No company is too small for us to help. We have shown that we can be useful to entities of all sizes.”
The ELC's clients, added Flynn, tend to have two motives for partnering up with them.
"The first is a genuine desire to avoid harming the planet and/or their work place or community. The second is the growing realisation that the penalties for non-compliance imposed by the state can be onerous in the extreme: they often run into many millions of rands. For example, a Witbank based materials producer was recently fined R3 million for contravening the National Environmental Air Quality Act even though in virtually every other way the company was already legally compliant."
Flynn commented, too, that many of the 'green' companies offering specialist advice and services (for example in the retro-fitting of buildings) are themselves often not fully compliant and, in fact, ignorant of much of South Africa's environmental legislation.
Watson added that the steadily increasing prosecutions of businesses for not complying with environmental laws have compelled companies to become more aware of these laws but, he said, many have shown a willingness to “go beyond statutory compliance” and adopt best practice management systems and the use of creative new technologies and systems to ‘green’ their companies.
“Many companies are well down the road of sustainability”, he said.
Trudie Broekmann, Gunstons Attorneys Commercial Law Director, said that there is a growing need for a 'one-stop' legal service to ensure compliance not only with Environmental, Safety and Health matters but also with the growing body of other law affecting business operations such as the Companies Act, the Competition Act and the Consumer Protection Act, where, she said, the penalties for non-compliance can also be very high.
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12 December 2011, 14:15:25
A recent article in the UK’s widely read “Daily Telegraph” had the following first paragraph:
“The Euro is in crisis. Stock markets are in freefall. Two prime ministers have been sacked. Italian debt is at record levels and Spain is about to have an early election. Across the pond, America’s annual deficit is now measured in trillions.”
The article then went on to ask where, if anywhere, the beleaguered First World investor can find a safe property haven investment suitable for holiday use. The answer to the question was given in a survey done by the same newspaper. Guess what? South Africa is ranked sixth in the world in this “Daily Telegraph” survey.
Top of the list was Canada, second was Hong Kong, third was Switzerland, fourth Mauritius, fifth Gibraltar and then came South Africa, followed by Barbados, St Lucia and the Cayman Islands.
Those conducting the survey were quite frank that they regarded the regular use of English as a bonus point in assessing their destinations. Also looked at by the survey was how seriously the host country respected free enterprise and property rights and whether the areas under discussion offered easy access to First World facilities such as banks, legal firms, medical centres, airports, hotels and restaurants.
South Africa is praised for having “endless countryside, unspoilt villages, a burgeoning wine culture and a wonderful year-round climate”. Everyone, said the report, speaks English (of some sort?) and the economy is seen as having been less volatile and less affected by Europe and the USA’s economic problems than much of the rest of the world.
Most important of all, however, says the survey, the prices of homes in South Africa are exceptionally reasonable given the fact that the exchange rate is heavily skewed in favour of the First World investor: a three room home in the vineyard encircled Oakwood Estate in Hout Bay, a gated security development, can, reports the survey, can be bought for £333,000. This would be a low price for the average high net worth individual buying internationally.
Lanice Steward, Managing Director of Anne Porter Knight Frank, who is quoted in this article, said that the survey simply confirms what APKF has been saying for some time.
“The simple truth,” she said, “is that for an English speaking holiday property investor South Africa - and more particularly the Cape Peninsula - offers virtually everything that the typical overseas property investor is looking for.
“Once an overseas visitor arrives in this country, despite our crime or negative image,” said Steward, “persuading them to buy is seldom difficult and APKF is looking forward to being contacted by at least 50 potential overseas buyers this summer season.”
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12 December 2011, 14:14:09
There has never, says Tony Clarke, Managing Director of Rawson Properties, ever been a time when the inexperienced property buyer could get as much good advice from the media as he can at present. Property newspapers and the sector’s online media, he said, are literally packed with good information and useful data - but, it seems, much of this is overlooked by those who are on the hunt for homes.
Asked what advice he regards as particularly important in today’s market, Clarke said that the first and best advice is ‘beware of the difficulties that await the go-it-alone buyer’.
“Time and again,” he said, “I have seen people going this route get into difficulties.”
Dealing directly with a private seller may appear to be a shrewd move, he said, but experience over many years has shown that it is almost always essential to call in the services of a professional valuer (or an agent whose valuations are known to be totally trustworthy), an attorney and, if possible, a construction expert.
“Almost weekly,” said Clarke, “we find ourselves having to counsel those who have paid too high or agreed to difficult conditions in the sale. We are also regularly confronted by people who have bought a home with a serious latent defect of which the seller was quite possibly genuinely unaware. It pays every time, therefore, to spend a few extra rand on hiring experts so as to avoid mistakes of this kind.”
The second important tip, said Clarke, is ‘find out in advance the size of the bond for which you qualify’.
This, he said, can best be done by talking to a qualified bond originator or your bank, if you have a good relationship with it. Those who do not do this frequently waste much time in researching and looking at properties that are, in fact, beyond their means.
Tip three, said Clarke, is ‘do not take on burdens that may later prove too heavy’.
“Quite frequently,” he said, “the prospective buyer will find that his bank is willing to lend slightly more than he anticipated. He then goes looking for a more luxurious and expensive home than he originally budgeted for - but in the process he often fails to tot up other expenses such as food, clothing, schooling, transport, electricity, rates and levies, all of which combined are likely these days to increase his household expenses by 10% to 15% per annum.
“He probably also makes no allowance for an unforeseen drop in income, e.g. the non-payment of a bonus or additional cheque, which in the present economic conditions is also a very common occurrence.”
Conservative budgeting, said Clarke, is therefore the only assured road to peace of mind.
His fourth tip, said Clarke, is ‘to try to avoid being too much swayed by emotion in the purchase process’.
“Often a buyer will walk into a house, get an extremely good feeling about it and immediately want to own it. At Rawsons we encourage prospective buyers to take a second visit and we then try to get them to list their needs and their wants, ticking off each box as and when it is met. Lists of this kind can show that the house is, in fact, inadequate.”
It is, added Clarke, always a good idea also to check the neighbourhood: unruly teenagers, drug related problems, traffic congestion or poor schooling might all be valid reasons for looking elsewhere.
It is also important, he said, to check the zoning of any vacant plots nearby.
“Sadly,” he said, “beautiful views can quite legitimately be wiped out by major new developments making completely legal use of the ground to erect multi-storey blocks.”
When signing for a property, advised Clarke, it definitely pays for the buyer to have a lawyer on hand and ensure that every clause is explained. It is also, he said, wise never to make an unconditional offer. There should always be some conditions that in the deal give the buyer room to “move”.
In the agreement itself, he said, every possible detail should be specified in writing.
“South African property law dictates that a property transaction must be in writing, documenting the names the names and addresses of the parties concerned and the price. However, it is important to make sure all involved are agreed on such other matters as the date of occupation and/or the date of the owner’s departure (all specified in writing). Details regarding which fixtures and features are to be left in place are sometimes agreed only verbally and this can lead to serious problems.”
Once you have bought, said Clarke, do not indulge in buyer’s remorse -an all too common experience.
“Typically,” he said, “the buyer will go through a euphoric phase, followed by a downturn in which he finds reasons for disliking his new home - it may have blemishes and faults of which he was not aware at the time of purchase. This downturn must be recognised as a normal process - and worked through. Before long, the factors that made the home attractive to the buyer will reassert themselves in his mind and if he is at all mature he will find himself grateful for having acquired an asset which in the long run will always be an appreciating one.”
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12 December 2011, 14:07:44
One of the subjects on which Bill Rawson, chairman of Rawson Properties, touched in his recent comprehensive year-end review of the real estate industry was the stringent educational criteria which now have to be met by the aspirant agent or franchisee who moves into real estate marketing for the first time.
Rawson was one of those who previously always stressed the need for qualifications but, he says, the problem now is that over-regulation is strangling the industry. Already, he said, it has caused a declining intake, fewer jobs becoming available and those who are already there could become an “elite” in the industry.
“The government’s declared aim of creating more jobs has been completely overlooked in the property marketing sector,” said Rawson. “The number of agents now employed has dropped from 96 000 to 32 000 and there are no signs of a pickup as yet even though we at Rawsons know from the ongoing franchise applications that property today is seen as a suitable career for a far wider spectrum of people. There is a marked reluctance to step forward and do such intensive training.”
The intern mentoring system, said Rawson, has two defects: it can result in a highly qualified person such as a lawyer or a former schoolmaster having to report to a qualified agent who in most respects may be less intelligent and less competent then the newcomer and who may, therefore, lose his respect.
“Secondly, the system requires only a year’s continuous employment, irrespective of any outcome, positive or negative.”
It can, therefore, said Rawson, allow a completely incompetent agent (who is nevertheless quite good at passing examinations) after his first year to become fully qualified even though he may not be suitable for the job.
The same tendency to over-regulate, said Rawson, was seen in the State’s arbitrary promulgation of new property laws without any consultation with those in this sector, whose ability to function effectively can be easily hampered by inappropriate legislation.
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12 December 2011, 12:24:55
Property buyers and tenants who wait too long to make up their minds are losing out on good deals.
"In our experience," says Nelis Bezuidenhout of the RealNet Wapadglen franchise in Pretoria, "properties that are priced right and offer good value sell within a week and dithering buyers are losing out on good opportunities."
Bezuidenhout, who specialises in townhouses in the eastern suburbs of Faerie Glen, Garsfontein, Olympus and Wapadrand, adds that the Internet is a double-edged sword in this respect.
"The ‘Net has certainly made it easier for prospective buyers to source properties for sale but, at the same time, many buyers are so overwhelmed by the number of listed properties that they find it difficult to narrow down their search.
"And some buyers are so confused by the perceived abundance of properties on offer that they cannot even settle on a realistic price bracket. For instance, buyers will want to view properties in the range between R500 000 and R1m and then find it very difficult to compare value. This leads to further delays - and often when they do make up their minds the property of choice has already been sold."
Bezuidenhout advises prospective buyers to sit down and carefully weigh up what type of property they want at what price before they start viewing properties. "It is easier to make a sound decision if you are very clear about what you really want and what you can afford. You will also save a lot of time and effort if you do not view unsuitable properties."
He has the same advice for prospective tenants. “A few years ago, townhouses in Pretoria East were predominantly targeted by investors who let their properties. "However, most current buyers are buying property for own use, which has put rental stock under pressure. Prospective tenants who dawdle to sign a lease often find that someone else has beaten them to it."
He adds that now is a good time to buy townhouses in this area since they have generally held value and even showed small year-on-year price escalations since 2009.
First-time buyers and parents who have children attending tertiary institutions in Pretoria are currently active in the market. Student accommodation in the area has grown more popular among out-of-town buyers because it offers better value than suburbs close to campuses. Bezuidenhout says a one-bedroom flat in Hatfield, for instance, now costs virtually the same as a two-bedroom unit in the eastern suburbs. "And many parents also prefer to let their children stay in quieter suburbs further away from campus."
Stack units in Olympus are especially popular at the moment. Two-bedroom units of 85sqm on the first floor now sell at prices ranging from R530 000 to R550 000 while similar units on the ground floor sell from R550 000 to R590 000, he says.
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12 December 2011, 12:24:02
Difficulty in obtaining home loans, distressed selling and a lack of new development have combined, over the past two years, to create a shortage of rental property in many parts of the country.
On the other hand, says Berry Everitt, MD of the Chas Everitt International property group, there are many empty-nesters and others with large family homes who would like to downscale now to smaller properties that are less costly to run, but are doubtful about getting the price they want in the current market.
“And one solution to both these problems is for the homeowners to convert some of their extra space into a flat (or even two) that they can let. The extra income will help to offset the recent increases in municipal rates and electricity tariffs, and help them to keep their homes in good condition until they think the time is right to sell.”
Writing in the Property Signposts newsletter, he says that an added benefit of this decision, especially worth considering for older homeowners, is that having additional people living on the property, and coming and going at different times, tends to improve security.
“Homeowners do need to take especial care, however, with two aspects of this plan, the first being the selection of contractors if they need to make alterations to create their rental units.
“Secondly, it is vital that they let only to suitable tenants, and this is where the help of an experienced estate agent is invaluable.”
Everitt says it is imperative to keep the rental arrangement on a businesslike footing – even if you are renting space to friends or family - and that having the backup of an independent party that can check creditworthiness, deal with the conditions of the lease and collect the monthly rental will relieve you of a lot of strain and possible family friction
“A local agent will also, of course, be able to advise you what a realistic rental in the current market would be.”
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09 December 2011, 08:55:06
Lack of affordable housing and tight credit have boosted the residential rental market in the Mpumalanga mining town of Witbank.
Demand for small units is particularly high, says Sharlene Doogan of the local RealNet estate office. "Once again, cost is a factor and with the cheapest units now commanding rentals of just under R4000 a month, tenants tend to shy away from family homes and target flats, apartments and townhouses instead."
Although there is steady demand among prospective buyers for homes in the R600 000 to R900 000 price range, not many sales are concluded because most buyers struggle to come up with the required 10% deposit to obtain home loans - and find it difficult to save enough additional cash for related costs such as bond registration and transfer duty, Doogan says.
Bachelor flats are currently the cheapest rental units. Monthly rentals start at around R3800, while more upmarket one-bedroom apartments achieve average rentals of R4200 a month.
Two-bedroom apartments are rented out for around R5000 a month while rentals for two-bedroom townhouses range between R5000 and R8000 a month, depending on location.
The tenant profile is diverse and includes entrants to the labour force, young couples and retirees, as well as upgraders and downgraders who rent while shopping around for good value before they buy new property.
Doogan says the high demand has pushed rentals up by between 6 and 8% in the past year and adds that the trend is likely to continue, unless conditions change to allow more own buyers to enter the market or more developers to launch new units. "As it is," she says, "rental stock is scarce and available units are usually taken up within a week.
"This creates long-term investment opportunities for prospective landlords. Purchase prices of rental units in high demand currently start at about R400 000 for one-bedroom apartments and from R620 000 upwards for two-bedroom townhouses."
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02 December 2011, 08:59:51
Nestled between towering mountains in the beautiful Cape winelands Franschhoek is an area that is world renowned for its spectacular beauty, superb Cape wines and world class restaurants. Originally settled in 1685 by French Huguenots who fled their homeland, Franschhoek was originally named Elephant’s Corner after the vast herds of elephants that roamed there. But soon after the French settled, the area changed its name to Franschhoek (French Corner). The heritage of these first settlers lives on today through the Huguenot monument situated at the top of the village. While Franschhoek is not generally considered as a holiday destination by South Africans, it remains popular with overseas guests especially those from the UK, Netherlands and Germany. This is according to Peter Hager, Broker/Owner of RE/MAX Prestige Country Properties, which services Franschhoek. He notes that Franschhoek has, and always will be, a sought after and desirable location for both local and foreign property investors. “In the past, investment in Franschhoek was divided equally between local and foreign buyers. However, that demographic has changed and we now have more local investment entering our market than foreign. A large number of buyers in the area are parents whose children are going to Stellenbosch University as they want to be close to the university but don’t want to reside in Stellenbosch,” says Hager. Speaking particularly of the leisure property market in Franschhoek, Hager says that it has performed well as far as demand is concerned; however, property appreciation and selling prices have dropped due to the global downturn. Adrian Goslett, CEO of RE/MAX of Southern Africa, notes that since the South African property market has resumed to normal conditions, it is anticipated that demand for leisure properties will slowly increase. “However,” he says, “it should be remembered that the leisure property market always lags behind the property cycle by about a year to 18 months. Therefore, while noteworthy recovery is not expected in this sector for some time to come, there are great leisure investment opportunities available to buyers.” The most popular leisure properties that Hager currently has available are two-bedroom cottages with swimming pools, or apartments in secure complexes with pools which are priced between R1,5 million and R4 million. He says that overseas investors often place their holiday homes in a letting pool. For example, Hager is currently marketing a two-bedroom, two-bathroom cottage with a country kitchen and lock up garage for R2,5 million. This home has, in the past, provided its owners with R250 000 per year in rental income from holiday lets. “This home would usually sell for R3,5 million, which would be the price we would expect to achieve as the market improves.” Full title properties, which account for close on 60% of the area’s total properties, according to Lightstone, a property data provider, are in higher demand among leisure buyers as the sectional title levies and increased care costs often put leisure investors off. “While not a typical seaside holiday spot, Franschhoek holds the lure of culture and history, exceptional cuisine, a solid property investment market, along with excellent wine tasting and wine farm visits. The appeal lies in the fact that it is away from the crowded mass of beach holiday makers but close enough to go to the beach and Cape Town for all the tourist attractions should one so wish,” Hager concludes. For more information contact RE/MAX Prestige Country Properties on 021 876 3147.
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02 December 2011, 08:58:38
Many of the 19 Rawson Properties franchisees who returned recently from the USA’s National Association of Realtors (NAR) conference in California have, says Bill Rawson, Chairman of Rawson Properties, faced a barrage of questions on the state of the US economy. But, what are the facts about the US housing market, as Rawson sees them? “The first point to be grasped,” said Rawson, “is that although our residential market was not so long ago at its lowest point since the 1976 riots, we did not feel the impact of this latest debt crisis quite as severely as the US market did. This means that our recovery will almost certainly be ahead of theirs.” At the peak of the recent boom, i.e. in 2006, said Rawson, US realtors sold five to six million houses in one year. By 2010 the figure had dropped to 3,5 million. The number of homes currently for sale is around 4,5 million, but, he said, sales on an annualised basis have now increased to over 4,9 million, a sure sign that an improvement is taking place. “Those who read only the less informed reports,” said Rawson, “have often picked up the idea that the US housing market is completely dead. However, as the figures quoted show, it has continued to have considerable activity and, what is more, sales are now rising month-on-month by a rate of almost 2%.” It is, said Rawson, especially interesting to note that the average age of homebuyers has risen considerably from 39 to 43 years and that the US housing investment market, as in South Africa, is definitely showing signs of a revival. “From the conversations I had in the USA this time,” said Rawson, “it seems that the older generation has retained its faith in property. Those with cash resources are often climbing into the housing market: no less than 30% to 35% of recent sales have been to cash buyers. This is an even higher proportion than we are seeing currently in South Africa.” Does this mean that the younger US buyers are losing out? “The NAR figures reveal that some four million potential younger buyers are currently still living with their parents, a situation not dissimilar to that which we see in many parts of South Africa. However, it has also been estimated that this situation will be greatly relieved within four to five years.” As in South Africa, said Rawson, the steady return of investors to housing appears to be driven by fast increasing rentals (up 8% in one year), by still low prices (some 33% off the 2006 peak), by the nil or minimal interest rates paid in the current money market and by the fact that bonds can be had at interest rates as low as 4,1%, i.e. only 0,1% above the current US inflation rate. The popular Jumbo mortgage bond does, however, also involve transferring one’s bank and saving accounts (if you have them) to the bond issuer. “If the same policy was adopted in South Africa,” said Rawson, “mortgage bond borrowers here would be getting bonds at ± 6%. For obvious reasons this is unlikely to happen, but a significantly lower rate of interest rate specifically for mortgage bonds – possibly state subsidised – is a possibility that should, I believe, remain open for discussion.” Another option, said Rawson, could be to issue 100% bonds to a special category of ‘reputable’ borrowers. In the US, he said, any war veteran can qualify for a 100% bond, provided he has a satisfactory income stream. To date four million Americans have already availed themselves of this source of bond finance. US residential developers (again, as in South Africa), said Rawson, have temporarily almost gone out of business. “The rate of development is at a 40 year low. This, of course, is disastrous for those involved in the development sector, but the lack of new stock, coupled to the steady take-up of repossessed properties, will help prices to achieve ‘normal’ levels quicker than was expected. The NAR estimates that this will probably take another two years. “This speed-up could, I believe,” said Rawson, “be faster if the government grasped the nettle and made a more determined effort to reduce the amount it owes. This would involve further cutbacks on defence lending, welfare and infrastructural development, while at the same time imposing higher taxes all round, especially on the super rich. However, the Americans to whom I spoke almost all agreed that they would accept this. It is the government’s lack of courage in this respect, they told me, that is preventing firm action here.” Asked if his meetings and discussions in the USA had changed any of his well-known views on property, Rawson said, “The simple answer is no.” “What is taking place in the USA is that those who can afford it are building their portfolios in expectation of better times. In South Africa we are witnessing much the same trend - but the good news is that in both countries today’s investors are conservative, well resourced people acting responsibly within their financial limits. In both centres, therefore, a new stability is being imparted to the housing sector and this will pay investors handsomely down the line.” Particularly good buys in the USA, added Rawson, are taking place in the holiday/retirement areas such as Las Vegas and Florida. Here, too, he said, there are similarities in South Africa. “Properties on the South Coast of KZN and along the Cape West Coast are currently offering excellent buying opportunities that will not be available in one to two years’ time.”
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02 December 2011, 08:56:46
Aida National Franchises has acquired a new office in Fish Hoek with the conversion of an existing estate agency to the tried and trusted South African brand. Co-owner Maggi-Mae Vidas says the office, established in 2008, has built up a sound market presence and she looks forward to introducing Aida's expertise and solid reputation to the existing client base. Aida Cape Lifestyle Homes will serve the whole Cape Peninsula market. Maggi-Mae says investors are still buying holiday properties in the area although sales are slower as investment buyers take their time to source good value. "Our core market remains local buyers who are attracted by the comfortable lifestyle offered in Fish Hoek and surrounds. "The area is still very popular among retirees who prefer a comfortable seaside lifestyle within reach of a host of amenities. And then, of course, the more temperate climate here clinches the deal for many retirees as well as family buyers. Superb views are an added bonus for many." The area has a wide variety of properties on offer, including entry-level flats at prices from R500 000, comfortable family homes starting at about R1m and luxury homes with price tags of up to R10m. Maggi-Mae adds that the peninsula offers price advantages to buyers. "Properties here offer better value than similar areas closer to Cape Town's city centre while office workers can comfortably commute to workplaces by train. "Another factor favouring Fish Hoek is that the area is very family-friendly. Good schools, a hospital, several banks offering forex, and a host of excellent restaurants are some of the conveniences that residents enjoy. "And then there is the family-sized beach with lawns for comfortable weekend outings, while the local sailing club launching off the beach adds a touch of glamour. A resident Great White Shark has become something of a local mascot and attraction - but lifeguards make sure that swimmers remain safe when the predator puts in an appearance," she says.
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02 December 2011, 08:55:49
The government and business should pay much more attention to franchising and give it a bigger role in their planning for economic growth and employment creation through the development of the small business sector. So says Jan Davel, MD of the RealNet national estate agency franchise group and chairman-elect of the Franchise Association (FASA), who believes franchising is one of the most important keys to solving some of the country’s biggest problems including lack of education, unemployment and poverty. Quoted in the latest issue of Be Your Own Boss, he says that with regard to job creation, for example, almost 500 000 new businesses will have to be created if government is to meet its target of 5m new jobs by 2020. “And franchising has already proved that it can fulfil the criteria for small business expansion and job creation. While formal sector employment fell alarmingly in the two years from 2008 to 2010, the franchise sector, which represents 17 different industries, created 2300 new business outlets and more than 28 000 new jobs. “Indeed, franchising can go a long way in stimulating entrepreneurship and helping people to establish the successful small businesses that are the backbone of the economy and job creation. It provides inexpensive, measurable mechanisms to provide training, facilitate skills transfer and unlock opportunities in local communities.” Consequently, says Davel, it is important for both the banks and more would-be business owners to understand that once a franchise system has been tried and tested, one can take well-informed decisions based on realistic financial projections – and subsequently mitigate risk far better than in the case of independently-owned businesses. “A franchise business is simply a much safer option for both the borrower and the lender than an untested new business, no matter how good the business plan.” Having said that, however, he does not believe that the biggest challenge facing franchising at the moment is the current economic climate and banks’ conservative lending policies. “The biggest challenge now is to get the message across about the very important role franchising can and does play in the economy, and to expand the concept to other industries. “Countries such as Australia, Brazil, the UK and US have far more franchised industries than we do, and just looking at some of our country’s current challenges, I think energy and water saving solutions, waste-recycling, health care options and education, for example, all offer excellent opportunities for franchise development now, and that we will possibly also see the development of public-private franchise systems for the delivery of government services in the not too distant future.”
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11 November 2011, 08:07:33
 The full title units at the new Twee Fonteine retirement village near Hermanus in the Western Cape will all have two bathrooms and two or three bedrooms plus a single or double garage, as well as a spacious veranda. The units are being marketed by Aida Onrus and prices range from from R1,325m to R1,8m. |
With its combination of seaside tranquillity and modern convenience, Onrus is a perfect retirement location, and soon now it will also have a purpose-built retirement village where residents can fulfil their dreams of a “cottage by the sea”.So says Deon Esterhuyse of marketing agency Aida Onrus, who notes that groundworks for the development, named Twee Fonteine, have already been completed and that the community centre at the heart of the village is due for completion by the end of next year. “Meanwhile, although building has just started on the first free-standing home in the village, which will serve as a showhouse, six of the homes have already been sold, and enquiries are being received daily.” There will ultimately be 75 full title homes in the development, as well as 42 sectional title units, he explains. “The full title units, ranging in size from 128sqm to 183sqm, will all have two bathrooms and two or three bedrooms plus a single or double garage, as well as a spacious veranda. There will also be the option of an added braai room at a cost of below R4 000/sqm. “Sited on stands ranging in size from 252sqm to 498sqm, these homes are being sold on a plot-and-plan basis at prices from R1,325m to R1,8m, and buyers will have 12 months from the date they purchase the stand to start building.” The sectional title units, ranging in size from 28sqm right up to 83sqm, will be incorporated in the central building housing the community centre, which will also contain a kitchen, dining room, ladies’ bar and lounge, assisted living and frail-care facilities. Prices for these units currently range from R560 000 to R1,66m. All prices include VAT. Esterhuyse says this is an ideal investment opportunity for those who would like to rent their units out prior to their own retirement in future. He notes that the whole development will enjoy a high level of security, with a single guarded access point and a perimeter wall topped with electric fencing. “Each home will also be equipped with a panic button connecting it to the nursing station in the community centre, and Elcare, which operates in many retirement villages around the country, will provide professional medical care.” Finance is available for qualified purchasers. *For more information about Twee Fonteine, contact Aida Onrus on 028-316-3393 or aidaon@mweb.co.za, or Deon Esterhuyse on 083 284 0027.
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11 November 2011, 08:06:45
“No corporate or other board in SA could have had better service than the Institute of Estate Agents’ Western Cape branch has received from its directors over the past year,” said Ivan Neethling, Chairman of the Institute, at its recent AGM which was held in the Imbizo Conference Centre at the V & A Waterfront, attended by 97 members. “The defining characteristic of all the board members,” said Neethling, “has been a willingness to “go beyond” what would normally be expected of them and give generously of their time, despite being busy and despite directors never being remunerated for their time. This dedication in turn has given me additional motivation to serve.” The good news, added Neethling, is that all the current board members have made themselves available for the coming year. The list includes: Michael Bauer, GM of IHFM, Vice Chairman of the Board and in charge of the board’s finances; Bill Rawson, who, said Neethling, has recently received a Nedbank Lifetime Achievers Award for service to property; John Nurse, who has more than ten years service to the board, in the past term serving on ethical queries and events; Mark Marks, one of the longest serving committee members with over 25 years service to the Institute; Anton du Plessis, CEO of Vineyard Estates, who oversees the Institute’s advertising and marketing efforts as well as ethical enquiries; David Beattie of Chorus Letting, who is responsible for overseeing financial administration; Lanice Steward, MD of Anne Porter Knight Frank, responsible for the events and fundraising portfolio; Kevin Wynne, owner of Kevin Wynne Valuers and whose primary responsibility is ethical and legal matters; Howard Markham, GM of Pam Golding Properties, who has been responsible for the Institute’s IT/website and the PropStats data service; Emil Weiss, a Rawson Properties franchisee in Saldanha Bay area, who acts as the liaison link to the West Coast. One new board member was elected to the board AGM - Michelle Lister of Pam Golding Properties. Neethling said that the Western Cape Institute of Estate Agents controls a network of committees and sub-branches throughout the area it serves and is providing valuable ongoing training (e.g. with legal updates and the NQF4 and NQF5 qualifications). Certain members, he said, have now qualified as far as NQF5. “The Institute’s online property sales statistical database, PropStats, has,” he added, “now recorded 27 000 transactions totalling R50 billion since 2007 – an excellent achievement.” “The Institute’s finances are satisfactory and membership is solid.”
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11 November 2011, 08:02:38
Family buyers are making their presence felt in the property market and are finding their ideal home in Durban North, says Grant Gavin, Broker/Owner of RE/MAX Panache, whose two offices service La Lucia, Durban North and surrounding areas along the KwaZulu-Natal north coast.“Demand along the north coast has always been strong among family buyers, and remains so largely due to the fact that there are excellent schools in the region ranging from pre-primary school all the way up to senior level. The schools, who often prioritise their intakes based on the family’s residential address, offer an extremely high level of education, which is what many of the family buyers are looking for,” says Gavin. Adrian Goslett, CEO of RE/MAX of Southern Africa, says that when buying property, location is always going to be one of the most important aspects to think about. This is because location will impact on the potential return on investment and lifestyle the property offers. But perhaps more importantly, aside from the convenience of being close to amenities such as shops and medical facilities, proximity to good schools plays a major role in how buyers choose where to live. According to Gavin, other influences that have ignited buyers’ interest in the region is that it is so well positioned and central to both the Durban CBD and the Umhlanga Ridge business district as well as Gateway. The Umhlanga Ridge business precinct has continued to grow dramatically, which has opened up more employment opportunity and brought more and more business men and women to the area. “Property buyers will often purchase homes that are close to their place of work, especially if their business is relocated. Durban North is conveniently situated outside of the CBD node, but is a close enough commute for those who work in the business district,” says Gavin. Gavin says that family buyers in the area are looking for homes that feature large, level stands which measure around the 1000m2 mark with three or four bedrooms and have staff accommodation on the premises. He says that the average price that buyers are paying for these family homes across all suburbs in Durban North, Umhlanga and La Lucia is around the R2,2 million bracket. “There are some really good value-for-money homes in the region that will be perfect for a family to live in and they will be a good investment over the long term. Given the current market, growth in terms of the property’s value is fairly conservative, however, Durban North homes remain fantastic long term assets.” says Gavin. A four-bedroom, three-bathroom home is currently being marketed by RE/MAX Panache at R1,790 million. This family home features a study which could be used as a fifth bedroom, an entertainment area with a swimming pool and a separate large self-contained flatlet on the property. For more information regarding family homes in Durban North, Umhlanga or La Lucia contact Grant Gavin at RE/MAX Panache, on 031 564 9202.
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04 November 2011, 07:53:49
Estate agents, be they experienced or inexperienced, who do not have regular ongoing training will almost always perform less proficiently than those of similar ability who are regularly updated with property matters and sales techniques by a good training division.“This,” says Rawson Properties’ KwaZulu Natal Skills Coordinator, Richard O’Brien, “is the basic assumption on which I and all other Rawson Properties group trainers operate. “For many years, but especially since Rawsons began its expansion drive five years’ ago, our group has claimed that one of the main factors setting it apart from its rivals is the importance that it places on training and our insistence that this must be an ongoing exercise.” The foundation of all this training in KZN, says O’Brien, is the initial Rawson Proficiency Course that he and his colleagues provide monthly. This is attended by both experienced and rookie estate agents and in KZN lasts eight days followed by prolonged field training done back at the agency or at home. The three main subjects covered by course are”: 1. Rawson documentation “All the major agencies”, says O’Brien, “have their own documentation and it is absolutely essential that agents are completely au fait with what is set down here. They must be able not only to fill in the documents without having to pause to consider the meaning or implications of certain clauses but also to be able to explain these to clients “ 2. Property legislation “Every deal or move in property is subject to some legislation and agents have to understand all the relevant law. To take just one example, the Matrimonial Property Act sets out radical differences between the position of those married in community of property and those married with an ante-nuptial contract. The wrong advice here from the agent could cause great difficulties for the couple concerned.” Similarly, says O’Brien, it is essential for agents to be kept abreast of all other legislation that could impact on property, particularly in recent months the National Credit Act, the new Companies Act and the Consumer Protection Act. Without informed legal knowledge here, he says, the agent can be a ‘loose cannon’ in the property world. 3. The sales techniques and inter-personal skills “Even the most accomplished negotiators can improve their skills and all of us can create better working and personal relationships. “It is sometimes assumed by those whom we train that somehow all people understand the need for these skills, but this is not so. Rawsons’ experience has been that in fact all of us need coaching and improvement of our personal skills, particularly sales skills, on an ongoing basis and that attending a course of this kind can very often set up a person to be far more proficient, sympathetic and competent in his work and other relationships.”
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04 November 2011, 07:52:50
The closure of three major estate agencies in Hout Bay/Llandudno, says Bill Rawson, chairman of Rawson Properties, reflects not just the drop in home sales in that area (from ±60 per month to under 20) but also the fact that the agencies which are surviving tend to be those with strong branding and effective ongoing support from their franchisor/head office. In these difficult times, he said, the ongoing training and really effective system of the successful franchisors are helping the franchisees to survive where others cannot. Asked if the success of the Rawson Hout Bay franchise (which is doing well) means that the Rawson franchise “system” equips a franchise to survive any downturn Rawson commented that where Rawson franchises have failed initially they have often been revived quickly under a new franchisee. As a result, he says, very few have “disappeared”. This, he said, indicates that the package offered is almost “recession proof” provided the franchisee is competent. “On the very rare occasions where we have closed down a franchise it has usually been not due to a lack of sales but because the franchisee has adopted practices that did not conform to our model and/or his conduct had tarnished our reputation.” It is, however, difficult, said Rawson, on first getting to know a potential franchisee to predict whether he or she will be a success. Many overrate their own ability – others prove far more successful than expected. However, as the majority of franchise applicants are now coming from already trained and already successful agents in other firms or working independently, said Rawson, it is possible to check on their previous performances and, in particular, their ability to keep good staff.
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28 October 2011, 08:24:23
Bank properties clearance sale Rawson Auctions’ close connection with South Africa’s major banks is paying dividends. As one of the banks’ preferred auctioneers, Rawson Auctions will on 9th and 10th November be auctioning 23 repossessed properties, including apartments, houses and vacant land. “We are, I believe, taking the concept of multiple auctions to a new level,” said Tanya Jovanovski, Rawson Auctions franchisee for the Western Cape. The properties, she said, have been fed to Rawsons by various banks and they are mainly in the Southern Cape region, with one at Atlantis. Five are at Jeffrey’s Bay, five at Hartenbos near Mossel Bay, one (a vacant plot) in Knysna and others are in Ladysmith and Swellendam. “If ever there was a case of properties becoming available at massive discounts it is here,” said Jovanovski. “The reserve prices have sometimes been set at a 75% discount to their original price and every one of those on offer could go for well under R500 000.” Jovanovski pointed out, too, that on repossessed properties the banks pay the auction company’s commission, thereby effectively giving the buyer a further 10% discount. Asked to cherry pick some of the most attractive offerings, Jovanovski mentioned homes and plots in Jeffrey’s Bay priced to sell at R200 000 to R500 000. A home in Swellendam expected to go for R350 000 and a 308m² plot in Knysna which could sell for as little as R100 000. An Atlantis home expected to fetch R75 000, she said, could be the bargain of the year. Full details of the properties available can be obtained from Faeqah Corker on telephone number 021 658 7100 or by email to info@rawsonauctions.com. The auctions will take place in the boardroom of the Rawson Properties head office on the corner of Main and Klipper roads in Newlands. Jovanovski has said that in view of the exceptionally good value on offer here she expects to sell many of these properties pre-auction.
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28 October 2011, 08:23:44
A lack of business and financial experience prevents many South African commercial property brokers from being able to maximise the benefits they offer their clients, says David Hitch, Rawson Properties franchisee of Rawson Commercial in KZN.“The plain truth,” said Hitch, “is that the selling skills which are all important in the marketing of residential property are often of secondary importance in commercial property. Here the ability to structure a favourable deal is vital to success.” For this reason, he said, the Rawson commercial team is led almost entirely by brokers who have held management positions either in their own business or with big corporates or banks. “The decision to invest in a commercial property for one’s own company or on a buy-to-rent basis largely depends on financial viabilities,” he said. “The broker who has come to commercial property ‘off the street’, very often from other or more straightforward forms of selling, is almost certain to be out of his depth here. “At Rawson Commercial we have found time and again that opportunities favourable to both landlords and tenants have not been realised for the simple reason that the broker did not have an understanding of finance and commercial leasing. Fortunately there are firms like ours which can and do offer these skills.” Hitch made these comments while discussing the growth of the current tendency among cash-strapped industrialists who sell their own premises and then lease them back so that they can ride out the next two or three years of low economic growth and limited demand for their products. Rawson Commercial, said Hitch, is honing up its skills in this field and has found that this apparently drastic action can create a survival win-win situation for all concerned and, in the long run, can sometimes result in the tenant being able to buy back his property.
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28 October 2011, 08:23:15
The Cape Town real estate scene is abuzz this week with the news that top Atlantic Seaboard agent Gail Gavrill - and several other “big names” in the industry - have joined forces to re-launch the Sotheby’s International Realty franchise in the area.The new partners in the franchise are Gavrill and her husband Rob McKee of Gail Gavrill International Properties, Brendan Miller of Better Homes and Lew Geffen, who is also chairman of Sotheby’s International Properties in SA. “Gail hardly needs any introduction,” says Geffen. “She is a dominant real estate personality locally and internationally and has been responsible for many of the most important sales along the Atlantic Seaboard over the past 25 years. “At the same time we are delighted to have real estate management expert Rob McKee as the CEO of the new partnership and to welcome Brendan Miller, who has in the past few years built Better Homes into an extremely strong player in the Atlantic Seaboard market. “Indeed, with this dynamic new team at the helm we are confident that the Atlantic Seaboard franchise is now well set to become the company’s flagship operation in the Western Cape. Gail and Brendan intend focusing on the higher price ranges in Fresnaye, Bantry Bay, Clifton and Llandudno - including off-plan developments – and with the backing of Sotheby’s International Realty will be in a position to source high net worth buyers for their sellers from branches in 47 countries around the world.”
Geffen also notes that all the sales agents employed by the previous owners of the Sotheby’s franchise have been retained, and that the re-launched franchise will also absorb Gail Gavrill International Properties and the Better Homes operation in Sea Point.
“Indeed, we will initially be operating from the highly visible – and rebranded – Better Homes location on the corner of St John’s and Main roads in Sea Point, although we will also have brand new offices in Camps Bay shortly.” The re-launch of the franchise follows a High Court decision last week which enabled Lew Geffen Sotheby’s International Realty to immediately terminate its agreement with the previous franchisees, and Geffen says he has been overwhelmed by the industry and public support he has received following this move. “I have to say that the previous operation did not live up to our brand promise, but this new management partnership brings together some exceptional real estate talent and experience, and we are confident that the franchise will now come into its own and really deliver on that promise for our clients.”
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21 October 2011, 14:12:16
Due to the effect that the global recession has had on the property market, the number of active realtors in the US has dropped by around 40% to sit at just above one million, and is expected to drop by a further 100 000 by the end of the year. South Africa, while reasonably protected by monetary policy from the worst effects of the recession, has seen a similar decrease in the number of registered agents. At one time there were approximately 70 000 agents and principles registered with the Estate Agents Affairs Board (EAAB) across the country. Today that number sits at around 31 000. According to Grant Gavin, Broker/Owner of RE/MAX Panache which operates in the KwaZulu-Natal north coast suburbs of Durban North, La Lucia and Umhlanga, the compulsory educational criteria are another reason why many South African agents have exited the industry in recent years. He says that in KwaZulu-Natal at the end of June this year, there were only 2 258 agents registered with the EAAB. “What this means for buyers and sellers of property is that, for the most part, the agents who remain active in the market are those who are dedicated professionals at the top of their game, and therefore are able to offer property buyers and sellers sound advice.” But, Gavin says, more often than not, buyers and sellers discount the advice given from their agents to their detriment. “Given that in the past there was such a low barrier to entry to the real estate profession, the guarded mentality that the consumer now has towards estate agents in general is understandable. However, times have changed and real estate agents across the county have upped their game, their level of professionalism and level of expert knowledge.” Right now with the north Durban market changing fairly rapidly, Gavin believes that being aligned to a real estate professional is more important than ever before. “In our local suburbs the market is changing very quickly from a strong buyer’s market to one where well-priced stock moves quickly,” he says. What this means for sellers is that if their home is priced correctly, there is enough demand for it to sell fairly quickly; whereas over-priced homes are still stagnating on the market. Sellers therefore need to allow the agent to guide them in the correct pricing of their home in order to get the balance right and ensure a fairly quick sale. For buyers on the other hand, the time for cheeky offers is over and passively watching the agency web sites might mean you are two steps behind those buyers who are actively working with agents and viewing properties on the day they hit the listing books. Gavin cites an example where his agency recently had a property sell for the full asking price within 45 minutes of being listed, and he says that such examples are becoming more and more common. Estate agents are now more qualified than ever before to professionally and expertly handle the property sale process and give advice and it’s for this reason that Gavin is of the opinion that buyers and sellers should allow the agent to lead and guide their relationship based on their expertise and knowledge. But, he says, buyers and sellers should also select their agent with care. “There are certain criteria that an agent should meet,” says Gavin, who advises property sellers and investors to firstly select an agent from a reputable company that is well established in the area where they are buying or selling property. Then, in order to ensure a reasonable guarantee of service, buyers and sellers should interview prospective agents and find out the following: · Their past results and what sales they have concluded in the area in the past six months · What company they work for and what tools it provides the agents to assist them in effectively meeting their obligations to buyers and sellers · Assess the effectiveness of their marketing campaigns · Establish their sphere of influence and find out how well known and liked they are in the area · Finding out what buyer qualification process they follow in terms of getting finance approved for the sale
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21 October 2011, 14:11:29
As more and more people gain access to internet facilities, online property listings will play an increasingly bigger role in the property sale process, says Grant Gavin, Broker/Owner of RE/MAX Panache, which operates in the KwaZulu-Natal north coast suburbs of Durban North, La Lucia and Umhlanga.
He points to research released last year in the Internet Access in South Africa 2010 study by World Wide Worx, which stated that South African internet users passed the five million mark for the first time in 2010, finally breaking through the 10% mark in internet penetration for the country. The research also indicated that the country’s internet user base grew by 15% in 2009, and it is expected that internet users in South Africa would grow as much between 2009 and 2014 as it had in the 15 years since the internet became commercially available in the country, taking the internet user population to the nine million mark by 2014.
On a more local level, Gavin points to web statistics for property searches as pulled from the www.remax-panache.co.za website. The number of unique users visiting the site increased by 33% year-on-year with 3000 unique users per month recorded in 2010 compared to the 4005 unique users per month recorded in 2011.
“We rebranded our website with a new look and feel last year, and from the month we rebranded, we noticed a 30% increase in visitors. This goes to show that the look and feel of a website needs to be kept fresh to keep attracting people. Companies who have the same website for years and years are falling behind. It’s not good enough anymore to simply just have an online presence – you need to keep the site fresh and the content up-to-date.”
The number of visits by each unique user per month has also nearly doubled from the 2010 figures, although the number of page visits has dropped by almost half. Gavin says the fact that people are viewing fewer pages per visit is indicative of the market change. “While we had an overload of stock on the market last year, stock levels are lower in 2011 on average than in 2010.”
Gavin notes that in 2010 and so far during 2011, the busiest viewing times were Mondays between 7am and 10am, with the week tailing off quite rapidly, meaning that Thursdays and Fridays are slow viewing days. “Very little property surfing is done after hours,” he notes.
Majority of visitors were South Africans who accounted for around 80% of all pages viewed, with the UK providing the second largest audience with an average of 5% of all pages viewed.
The USA and Germany are always in the top 5 and account for about 4% of monthly page views combined.
Lead generation and the use of integrated technology platforms are two of the 10 trends that will drive the next five years, according to US real estate expert, Steve Murray. Gavin believes that the internet is a key component of the technology platforms that will drive the market and assist in providing agents with buyer and seller leads
“The internet provides an excellent tool for sellers to showcase their property and buyers to search for their ideal home from the comfort of their own home or office. Harnessing the technology and using it effectively will mean the difference between success and failure for many estate agents,” he concludes.
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14 October 2011, 15:18:18
Located just south of Cape Town’s lively city centre, Gardens continues to attract many of the country’s young up-and-coming professionals says Susan Watts, General Manager of RE/MAX Living, who represents offices both in the Gardens and Sea Point areas.
“Gardens has always been seen as an affluent suburb and the place to be as a young professional, especially for those in the creative industry. It is definitely a neighbourhood that speaks to a generation looking to build their careers as well as enjoy the benefits of living in a bustling cosmopolitan city. There are a vast number of chic restaurants, boutique style shops, luxury hotels and New York flavoured loft apartments. Gardens is regarded as Cape Town’s creative hub and is home to a variety of production companies, film studios, modelling agencies and publishing houses,” says Watts.
While still richly entrenched in South African history as home to some of the country’s oldest museums and monuments, Gardens is a far cry from the fresh produce garden it once was in the 1650’s. Although the renowned Government Avenue is still lined with the oak trees planted during the time of Simon van der Stel, today this inner-city suburb is also home to more contemporary attractions such as the five-star Mount Nelson Hotel.
Since January this year general demand for properties in the area has increased, particularly those that are correctly priced. Watts says that correctly priced properties are selling fairly quickly, however, those that are priced too high have run the risk of waiting many months to sell with some properties being on the market for over a year. Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “This once again points to the importance of sellers pricing their homes at fair market value. In this market it is the buyers who are determining what that market value is and not the sellers.”
Watts says that the highest percentage of recent buyers in the area have been between 18 and 35 years of age and are predominately buying sectional title units. Currently, these types of properties are outselling freehold properties by three to one, with most of the movement in the R1 million to R1,5 million bracket. This is largely due to the fact that Gardens is made up of 66,74% sectional title units, with the remaining 33,26% consisting of freehold properties.
Pricing for an entry-level or bachelors unit starts at R450 000, while a one-bedroom apartment is priced from R900 000 upwards, depending on factors such as location and views. Due to the space constraints of inner-city living, one of the main factors affecting pricing is the parking bays available to the unit. This has a large influence on the demand and sale price of the property. In some instances an additional parking bay can cost the buyer as much as R100 000. She says that entry-level freehold homes are selling from R2 million upwards, while mid-level homes are selling from approximately R4,5 million upwards. Top-end homes such as the seven-bedroom, 595m2 restored Victorian Villa that is currently on the RE/MAX Living books, are on the market for R6,3 million.
According to Lightstone, a property statistics and data provider, out of 5180 suburbs nationwide, Gardens fell within the top 50 in terms of the average valuation of a freehold property and was ranked 227 out of 1969 suburbs reviewed for the average valuation of a sectional title unit.
Why is Gardens a good investment option? “Many tend to forget that property is not a short term money spinner, but over the long term it has proven to be a great investment, especially in Cape Town. We have had challenges in our local market but, compared to other regions, they are insignificant. We have a fantastic climate, scenery that ranks us as one of the top cities in the world and the attitude of the locals is positive and upbeat - what more could one ask for?” asks Watts. “It is clear that people are still apprehensive about whether or not the recession is in fact over. We are not immune to global market trends but Gardens has done specifically well in retaining good investment returns over the long term and will continue to do so in the future. Looking at the local market and our growth as a company over the last three years, it is clear that despite the global market conditions the property market here remains buoyant.”
According to Watts there won’t be any major surprises in the Gardens property market in the near future. “I do not expect a huge increase in sales over the next few months but I certainly expect to see a gradual increase over the next few years. I reiterate that sellers in this market will have to be wary of overpricing and should rely on the facts and figures provided by a trained real estate professional in order to price their property correctly in the current market,” Watts concludes.
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07 October 2011, 15:37:31
Research anticipates that close on 10 million South Africans will be retiring in the next 25 years. The results of the Sanlam 2011 Benchmark Pensioner Survey indicate that 80% of pensioners have not completely achieved their pre-determined retirement goals. On average, 31% of the pensioners believe they have not saved enough for their capital to last for the rest of their lives and 33% of members currently have a monthly shortfall between their income and expenses.Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while it has been widely reported that the South African retirement industry is under constant pressure to deliver adequate and sustainable benefits to its pensioners, and local retirement reform is on the cards once more, it cannot be emphasised enough that people need to start working towards their retirement fund as soon as possible. He points to research from the Sanlam 2011 Benchmark Pensioner Survey where pensioners were very clear in their advice to start investing and saving as early as possible, start planning for retirement at an early age and make more enquiries and learn more about investments, investment choices and retirement. “Property,” he says, “has always been a solid performing, long term investment, and therefore could be an ideal investment vehicle for those looking to add another element to their retirement policies and investments.” He explains that if a person had to retire at 65 years of age, they will need 75% of the income earned when working to enable them to live a comfortable life. “Added to this,” he says, “the income stream needs to be sustainable enough to last at least 30 or so years, given the current life expectancy statistics.” While there are many investment options available for those who are looking to start building up a retirement portfolio, including savings mechanisms and various retirement plans, Goslett says that well researched and solid property investments should also be considered as a key element of a retirement portfolio as real estate remains one of the best performing asset classes, despite the recession and its effects on current property prices and demand. “This is because real estate investments offer diversity from the other alternatives that typically make up a retirement portfolio,” says Goslett, “added to which, performance of real estate is not linked to another asset classes which means that property investors can still benefit from their real estate purchase when other asset classes are struggling. Buying a property also offers investors long term appreciation opportunities and the potential for the property to contribute to a regular income stream.” Goslett says there are two ways in which an established property portfolio can benefit retirees. One is that an investment property can be used by retirees to generate an additional income stream. “The buy-to-let market, for example, is currently performing very well considering that rental demand is strong,” says Goslett. “Tenants in buy-to-let properties can provide a stable income stream for retirees, should the property have been bought and paid for in full before retirement age.” Goslett notes that investment properties can also be sold to provide a lump sum cash injection to retirement funds, once again provided that this property has been paid off before retirement age is reached. Added to this, an investment property can also provide extra avenues of equity to tap into, he says. “While all investment options carry a certain amount of risk, a property investment which is well researched, bought for a good market-related price early on enough to ensure that it is paid off by retirement and is situated in a good location in order to retain rental demand and resale value will provide a solid retirement investment,” Goslett concludes.
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07 October 2011, 15:31:37
 The piling at Rawson Developers' The Rondebosch development is nearly complete. |
Confounding those sceptics who have said that Cape sectional title development is in the doldrums, Rawson Developers’ R200 million “The Rondebosch” project has, says Paul Henry, the development company’s MD, “gone well”. Units here vary in size from 43m² to 110m² and have sold from R845 000 to R1 875 000. To date just over 100 of the 166 apartments in the project have been taken and Henry is predicting ongoing sales in the next few months to parents of UCT students now looking for suitable accommodation for their offspring (The Rondebosch is one kilometre as the crow flies from the campus). Over 30% of the purchases so far have been in cash. Henry said that the demolition of the old Porter House office and garage complex which was previously on the site had been handled with commendable speed and with minimal inconvenience to Rondebosch residents. All site operations, he said, have been subject to the strictest environmental controls, particular emphasis being placed on avoiding any form of pollution runoff into the nearby Liesbeeck River. “Considering the route this river follows,” said Henry, “it is wonderfully clean. It must be one of the most unpolluted rivers in SA.” The new seven storey building will have “more than sufficient” under cover parking, said Henry. The main activity in recent months, due for completion soon, has been the driving by Fairbrother of 386 concrete piles – to an average depth of ten metres. Henry said that the soft ground conditions on site had facilitated this activity. Sales enquiries should be addressed to the site sales office at 021 658 7100.
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07 October 2011, 15:25:27
Those who attended the presentation by FNB and the Property Professional magazine to Bill Rawson of a Lifetime Achievement Award (and were impressed by his statement that success depends almost entirely on an ability to create good teamwork) were surprised to hear him also say that transformation in the property marketing sector had become more difficult than ever before. The reason for this, said Rawson, is that the very high educational standards now deemed necessary for both estate agents and their principals have created yet another barrier to entry. “It has,” he said, “been pointed out to me that my group and I pushed hardt for compulsory qualification standards. However, the EAAB and Services SETA have now taken these standards to the point where they are expensive and extremely difficult for many previously disadvantaged persons to obtain.” The new educational qualifications, added Rawson, are also deterring young white people from entering the estate agency world. In 2006, said Rawson, 96 000 estate agents had been registered with the EAAB. The figure is now 33 000. “This far smaller group could, when times improve (as they inevitably will), be seen as an elite monopoly which has taken control of the entire residential market. That will be bad for property – strong competition is needed in all sectors.” Asked what he proposes as a solution to the transformation impasse, Rawson said that it may be necessary to offer PD applicants free tuition in their rookie year and to give them more time to qualify – say, three or four years. “The higher qualifications have undoubtedly raised the standards of SA’s agents, but we must not lose sight of the need for transformation and for avoiding the creation of cartel conditions.”
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07 October 2011, 15:24:21
It is, says Dante Fratti, CEO of D F Properties which focuses primarily on property in the Century City precinct, surprising how often estate agents are appointed by property sellers without the seller even checking on their track record or enquiring how successful they have been.“Contractors, suppliers and even professional designers and engineers are often asked to give referrals before they can expect a job - but for some reason agents are very seldom subjected to this sort of examination.” Fratti himself says that he is always willing to supply a list of recent buyers and sellers with whom he has dealt and in his experience this has proved valuable in boosting the confidence of his clients. The agent, says Fratti, should always be asked to produce his Fidelity Fund Certificate, “There have,” says Fratti, “been several cases where the agent’s certificate was out of date - and one or two cases where he has operated for a year or longer without a certificate being issued at all.” This, Fratti reminds us, can be dangerous for the agent as well as for the seller. If an agent does not have a valid Fidelity Fund Certificate the seller could legally ask the attorneys to withhold the agent’s commission. Similarly, if the agent proves dishonest or inefficient, e.g. if he absconds with a deposit or some other situation deserving sanction arises the seller will have no authority (Estate Agents Affairs Board) to whom he can appeal. This applies to purchasers as well.
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07 October 2011, 15:23:32
Local residents who are upgrading to bigger properties are giving the property market in the Mpumalanga town of Middelburg a welcome boost. Low interest rates and increased affordability have spurred many locals to make the most of the opportunity and buy bigger properties, says René Peyper of the new RealNet Middelburg office. “We are seeing significant activity in all sectors of the market but upgraders are particularly targeting areas such as Aerorand, Robberts Estates, Clubville and Groenkol and buying at prices up to R1,1m. Suburban homes as well as duets are in demand. “And this trend is in turn creating openings for new buyers in the affordable sector, notably Eskom workers who are buying in areas such as Kanonkop and Extension 18. Indeed, the under-R500 000 sector of the market has become very lively. For example, a recent development of 18 one-bedroom units priced at between R430 000 and R460 000 was sold in record time.” Although the top end of the market, where prices reach levels of up to R7m, is currently somewhat flatter than other sectors, luxury homes are still sought-after and developers are catering for this market, she says. “Robberts Estate, a luxury security development, has just released stands in its latest phase. Prices range between R400 000 and R1,2m and stands are finding ready buyers. Owners can opt for building packages or build their own homes.” Another luxury development just outside town is in the planning phase, she adds. RealNet Middelburg, which opened for business in February, fields five agents and, says Peyper, sales in the first few months of operation have been exceptional. “Our turnover is very healthy for a new operation and may perhaps be ascribed to the fact that our agents are trained to pre-qualify buyers and to scout out properties that closely match their requirements.”
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07 October 2011, 15:22:58
The recent formation of a Rawson Commercial franchising division has come at a time when there are big opportunities in this field in selected areas, although these are often not seen by many, says Bill Rawson, chairman of Rawson Properties. Right now, says Rawson, small one or two man commercial operations will find many worthwhile breaks. “Already,” he said, “we can list four or five properties for sale through our first Cape Commercial franchise, which give an annual return of 8 to 12%. This is still the level obtainable in carefully selected properties countrywide.” With interest rates at their present levels and banks relaxing their loan criteria, this type of return is definitely worth investigating. If as is highly probable, he adds, interest rates return to higher levels over the next four years. It is reasonable to predict that rentals will increase ahead of or at least in line with these interest rate rises. “The market is, therefore, right for the investor who has the time (and the correct advice) to cherry-pick good opportunities – and it is these investors who our new franchises will target.”
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30 September 2011, 13:56:53
The Limpopo town of Hoedspruit, which borders the Kruger National Park, was once a small agricultural town situated in the centre of the Lowveld. Over the years Hoedspruit developed to become a pivotal role player in the provision of infrastructure and services to the Central Lowveld region. Today the town supports a large network of farms, businesses, game reserves, lodges and educational facilities. Hoedspruit is part of the Kruger to Canyon Biosphere and the major tourist attractions in the region include The Kruger National Park, Blyde Poort Canyon, Maholoholo Wildlife Rehabilitation Centre and the Hoedspruit Endangered Cheetah Centre at Kapama. Home to the Big 5, Hoedspruit offers investors many opportunities. Subsequently, Hoedspruit has transformed into a tourist hotspot and offers tourists a wonderful array of accommodation and other small town conveniences. Adrian Goslett, CEO of RE/MAX of Southern Africa, says that in light of these developments and expansion, RE/MAX of Southern Africa is delighted to have a presence in this marketplace and notes that property purchasers in Hoedspruit will be spoilt for choice with a range of properties from B&Bs, guesthouses, to game lodges, private game reserves and residential wildlife estates available through RE/MAX Wildlife Properties Hoedspruit, which is due to officially open its doors on 7 October. Annie van den Berg, Broker/Owner of RE/MAX Wildlife Properties Hoedspruit, has worked in the Hoedspruit real estate market for the past 11 years, and hopes that her property expertise will be invaluable to the successful sales of wildlife properties that contribute to the protection of the country’s wilderness. Annie currently has two agents working with her Elise Schuld and Gareth Putter, and reports that to date good progress has been made in the sales and rental market. Looking forward she says that while the property market is still feeling the effects of the economic slump, clear goals have been set for RE/MAX Wildlife Properties Hoedspruit and she looks forward to achieving incredible sales success. In Hoedspruit, Annie reports that the top end properties have retained their value, as with many similar properties throughout the country. “Most of the wildlife estates have also kept their prices with the exception of a few desperate sellers,” she says. Annie says that most of the buyers in the area are leisure investors who are looking to purchase a luxury bushveld retreat or second home and are therefore not as affected by the tight economic circumstances that many consumers have felt. The RE/MAX Wildlife Properties Hoedspruit property profile ranges from basic bush accommodation to luxury bushveld homes in secure, private wildlife estates. Prices start at around R250 000 for vacant land with houses ranging from around R1,2million to R8million. “The buyers are typically those who want to escape the city life,” explains Annie, “as well as pilots, bush lovers, single mothers, young families and retirees, as well as international families and investors. They are mainly people who love the African bushveld and range from young executives looking for lock-up-and-go properties to older couples who want to get away from the rushed city life. The well known nature-based Southern Cross School is situated in Hoedspruit and provides facilities for the children of the many families that have moved to Hoedspruit.” Over the next three years Annie sees the Hoedspruit property market growing from strength to strength, as she believes the worst of the recession is over now.
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30 September 2011, 13:55:52
It’s most important for home sellers to have confidence in their agent – and that’s so much easier when that agent is backed by the marketing expertise and resources of a big national and international real estate group. “No matter where your home is located or what it’s value is, the current market means you should seek out the very best real estate marketing service available so that you can achieve the highest possible price in the shortest time,” says Lindie de Bruin, co-owner and principal of the Sotheby’s International Realty franchise for the northern suburbs of Cape Town. “And yet many home sellers in our areas seem to believe that they can’t avail themselves of our services unless they have a multi-million rand home to sell. This is simply not true as a very large percentage of the homes we market are in the under-R1m price range. “What is more, we don’t discriminate at all as to level of service. Our highly-trained agents apply the same marketing methods and expertise to every property we list, whether it is worth R600 000 or R6m.” Lew Geffen, chairman of Sotheby’s International Realty in South Africa, confirms that more than 30 percent of the homes the company sells locally are priced at less than R1-million, and says: “We obviously have the global reach to market high-end properties to high net worth investors from all around the world, and we do sell quite a number of these multi-million rand homes every year. “But we also recognise that by far the majority of property sales in this country are still to South African buyers, and in the light of the growing trend towards downscaling to smaller, more secure and more manageable homes, most are taking place in the more affordable price brackets. “Consequently, we make the international marketing expertise and the huge resources resident in the Sotheby’s International Realty group available to all our clients, right across the price spectrum – and in every area where we operate.” For example, he says, the ground has one of the most sophisticated and effective internet marketing systems around, “which in addition to our extensive print advertising commitment, ensures that every client’s property gets the maximum possible exposure to potential buyers. “And it’s all part of our standard service offering, so even sellers with smaller, less-expensive properties don’t have to sell themselves short when it comes to choosing an agent.”
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02 September 2011, 08:25:08
Habitatio rights not confirmed by the relevant clauses in the document. Whenever a property is bequeathed or sold to a buyer on the understanding that he or she will allow a third party to occupy the premises in perpetuity (i.e. until that person moves on or dies) – a situation of conflict is possible at some future date, says Anton du Plessis, CEO of Vineyard Estates. “A recent High Court case,” he said, “has shown just how tricky and difficult this can be, especially when the third party lives there free of charge and shares premises with the buyer.” In the case referred to (JJ Jordan v ED Lowery), said du Plessis, the applicant, who had bought the property some years previously, alleged that the conduct of the respondent, who had been give a right to live free in the home with the applicant (but was expected to pay half the electricity costs) was such that it had become unpleasant to have her there. It was alleged that she had abused the applicant verbally and physically, had cut down trees and kept chickens (against the applicant’s wishes) and had not paid her share of the electricity bill – at one stage being ordered to do so by a court. The applicant, therefore, applied to the court to have the respondent evicted. Earlier requests for her to leave having been ignored, The respondent argued that she had a habitatio right to live in the house which could not be ignored or dismissed. The court’s decision depended on whether the respondent did indeed have a habitatio right or whether she was just a ‘non-paying tenant’. After perusing the Deed of Sale and a later addendum to it Justice N G Beshe said it was clear that no right of habitatio had ever been granted or agreed to and that the respondent’s status as a non-paying tenant had been established. She had, therefore, to observe all the rules normally associated with such a position. The court ruled that the respondent had to leave the premises within 30 days and pay the costs of the court application. Du Plessis commented, as has done on previous occasions, “Here again we have a case where the wording of the documents had to be interpreted literally and no alleged “understandings” or even possible verbal agreements could allow the court to place a different meaning on them. “In my career as a property marketer,” he said, “time and again I have found it necessary to get the parties to an agreement to firm up the wording in their documents because as originally drafted it could have been open to more than interpretation. In this case the respondent’s view of her rights simply did not tie in with the written agreements so she did not have a case.”
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26 August 2011, 07:55:25
Rawson Properties Financial Director, Calum Wedge, and Honorata Saar, Brand Manager, donated over R20 000 to the Witsand Sea Rescue station. Receiving the cheque is Leon Pretorius. Top left is Quentin Diener and bottom right Attie Gunter. The three volunteers were awarded a Gallantary Award, Silver class at the NSRI AGM for the rescue of four sailors off the yacht Gulliver during a terrible storm.
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The day following the recent Annual General Meeting of the National Sea Rescue Institute, Rawson Properties’ brand manager, Honorata Saar, and the financial director of the Rawson Property Group, Calum Wedge, handed a cheque for just over R20 000 to the NSRI Witsand, Cape, of which their Witsand franchisee, Leon Pretorius is a member.
The donation which was collected, following an appeal by Rawson MD, Tony Clarke, from franchisees countrywide, is in honour of the outstanding courage shown by Leon Pretorius and his fellow Witsand crew members Attie Gunter (skipper) and Quentin Diener when they went to the aid of the 13m catamaran “Gulliver”, sailing from Stilbaai. This had got into serious trouble on account of appalling weather – and had capsized. The skipper, Greg West and his three man crew had, however, managed to activate their EPIRB (Emergency Position Indicating Radio Beacon) and to inflate and get into their rubber life raft.
The EPIRB signal was picked up by the nearest NSRI Depot, at Stilbaai – but they were unable to help as their 7,3m rescue boat was out of commission. They appealed to Attie Gunter, at Witsand who immediately called out his crew – Pretorius and Diener.
At their base the trio were forced to face two major difficulties – the weather was bad and worsening and their 5,5m boat, Queenie Paine, was too small for an exercise in which they might have to take on several rescued sailors – they also knew that their boat’s fuel capacity would make it difficult to cover the 30km to the EPIRB position and back.
Shortly after launching, the moon went into total eclipse and they had to fire a series of flares to negotiate the big swell and the 500m of waves at the Breede River mouth.
Then they left the shelter of Cape Infanta, and all hell broke loose. The swell had grown to eight metres and the wind, from behind, was now 60kph.
After approximately one hour, the Queenie Paine reached the EPIRB position – only to find no “Gulliver” – but another flare sent up 1 000m showed a small light to the west – and this turned out to be the overturned catamaran.
Anyone who has ever been involved in a situation of this kind will know how difficult it is to transfer a crew, some of whom are hypothermic, from a life raft to your own boat in adverse weather conditions – but the NSRI accomplished it in 15 minutes.
Now they faced the return journey in an overloaded boat – and into the wind. With 25km to go, Attie Gunter decided to rev back so as to save fuel. It was soon clear, however, they would not make it on the supplies they had – so Leon Pretorius put out a radio call, “Please send help.”
This was picked up by the Agulhas NSRI team whose 8,5m Vodacom Rescuer VII, an ideal boat for the conditions, immediately set out to cover the 25km gap to the smaller boat.
In the end they had only to track the small boat, which just 7km from base had been refuelled by a trawler. They stood by while the small boat then went over the treacherous Breede River bar (graveyard of many vessels) and then home.
Tony Clarke said that if ever there was a case where the NSRI men put themselves in danger, this was it: the danger of the small rescue boat itself capsizing, he said, had probably only been prevented by good seamanship and cool heads.
“I am very proud that a Rawson franchisee was part of this rescue and our donation is evidence that we recognise and value the NSRI’s efforts which over the years have saved so many lives.”
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19 August 2011, 08:13:38
Still on the expansion trail it has been following for the past 18 months, national real estate group Aida has just opened three more offices in KwaZulu-Natal – two on the South Coast and one in Ballito on the North Coast.This brings the total of Aida outlets in the province to six, and there are more in the pipeline, says CEO Young Carr. “The KZN property market is beginning to recover from the recession, with prices starting to rise now in response to increased demand. “Indeed, the latest Absa Housing Review reveals that the average home price in the province during the second quarter of this year was 5% up on the first quarter, and that year-on-year price growth is back in positive territory.” However, he says, prices are generally still well below boom levels, and the increased activity in the market is in recognition of the fact that there are many really excellent buying opportunities now for both local homeowners looking to upgrade and out-of-province holiday home buyers and investors. “We believe the timing is thus opportune to establish new outlets that can further showcase these opportunities to a national audience and benefit KZN home sellers.” Carr says home sellers along the KZN coast should also take heart from the latest FNB Property Barometer, which reveals that holiday home purchasing has more than doubled in the past year. “Holiday property buying expressed as a percentage of total residential buying has risen from an estimated 1% in mid-2010 to an estimated 3% by the end of the second quarter this year – which we think is excellent news considering that at the peak of the market in 2007, holiday home buying accounted for just 5% of all purchases.” What is more, he notes, closer analysis of the Absa figures reveals that KZN coastal regions, while coming off a low base, experienced some of the best year-on-year performances in the second quarter of this year, “and we expected these to be sustained by growing buyer interest, especially on the North Coast.”
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10 August 2011, 11:08:37
RE/MAX Property Associates, which services the Cape Western Seaboard and the northern suburbs of Cape Town, is now operating from the Glengarry Shopping Centre close to the suburbs of Bellville and Durbanville. This new upmarket office location will ensure that property buyers and sellers in these and the surrounding areas will benefit from easier access to agents who are known for their customer centricity, professionalism and exceptional service.
Caron Leslie, Broker/Owner of RE/MAX Property Associates, notes that although the Glengarry office is relatively small with only six agents currently, they intend to make a big impact in the area. “This new office has agents with the relevant NQF4 qualifications, as well as agents who are Certified Distressed Property Experts (CDPE). We offer a very highly professional service to the community, as well as covering all the aspects involved with the selling and buying of property,” says Leslie, “We want to make a difference within the community in which we operate and we care about our involvement and how we affect our surroundings. This is why we are proud to be a RE/MAX ‘Green Office’ (eco-friendly). RE/MAX Property Associates is also affiliated with Reach for a Dream and are involved with Blanket Drives during winter as well as providing jerseys for new-born infants in need.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “We have every confidence that the RE/MAX office in Glengarry will flourish in its new location and provide its clients with the excellent service that has become synonymous with the RE/MAX brand.”
Situated in the northern suburbs of the greater Cape Town area, Bellville was originally called ‘12 Mile Post’, since it is located 12 miles (20 km) from the Cape Town CBD. It was founded as a railway station on the line from Cape Town to Stellenbosch and Strand. Bellville’s is centrally located close to the airport, numerous golf courses, wine routes and amenities such as shopping complexes and excellent medical facilities. Bellville is also home to The Cape Peninsula University of Technology and the University of the Western Cape.
“Bellville is an excellent area for astute investors looking for buy-to-let opportunities due to its location. Its proximity to the universities will mean that there will always be an influx of students looking for accommodation in the area,” says Leslie.
Property prices within the Bellville area range in price from approximately R650 000 and go up to the R3,5 million benchmark. Leslie notes that judging from recent activity in the area the most popular property choices among investors are sectional title units below the R1 million mark and freestanding homes in the R1,6 million price range. This falls in line with the country-wide trend of a greater demand for more affordable housing.
“There has been a noticeable upturn in the property market in terms of the sales transactions that have been concluded in the Belville area. Property prices have currently stabilised here and we have seen many first-time buyers to middle income buyers entering the market. The current conditions have opened the property door to many buyers that were previously unable to afford it,” says Leslie, “We still have a long road ahead of us in terms of market recovery, however things are looking up,” she concludes.
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03 August 2011, 14:42:03
RE/MAX Property Associates, which currently has offices in Blouberg, Parklands, Pinelands, Table View and Tygervalley on the Cape Western Seaboard, has opened a new office in Kraaifontein. The new office will service Kraaifontein and the surrounding areas such as Brackenfell and Kuils River. Jose De Abreu, Broker/Owner of RE/MAX Property Assoicates, says: “Over the years RE/MAX has concluded many property transactions in these areas, from stand sales to sectional title units and small holdings. This is why it made sense to establish an office in Kraaifontein and provide a personal service to both sellers and buyers on their doorstep.”
De Abreu adds that there are currently 15 estate agents that are working from the Kraaifontein office. “Our agents are qualified professionals that are able to provide assistance to sellers and finding the right buyer for their property in the shortest possible time. RE/MAX agents are well trained in order to provide an unequalled service to their clients,” says De Abreu.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “RE/MAX continues to grow its share in the market and strives to be the leading estate agency in the country. In the current economic conditions it is the expertise of a knowledgeable and reputable agent that makes all the difference when concluding a successful property transaction.”
According to De Abreu, many sales are currently being concluded in Kraaifontein and the surrounding areas. “Due to high demand, the stock of property we have available to buyers is starting to become less and we could see the market in these areas soon favouring sellers. While currently many offers that are being accepted by sellers are lower than what they originally wanted, the properties are being sold at market related prices. This indicates the importance of correctly pricing a property at a fair market value,” says De Abreu.
De Abreu notes that Kraaifontein offers something for everyone from the first time buyer looking for a start-up home to the most discerning buyer looking for a high-end home. Free standing homes are in high demand in the area and the most popular choice, with prices ranging from a few hundred thousand to multi-million rand homes.
“Currently people feel that our area is predominantly Afrikaans speaking but that is not the case. We have people from all walks of life and ethnical backgrounds. We have great amenities in the area such as medical facilities and shopping centres, and the area is situated just 30 minutes drive from the Cape Town CBD. Buyers looking for value-for-money property and lovely family homes will find them in Kraaifontein and the surrounding areas,” says De Abreu.
According to Lightstone, the average purchase price for a freestanding home recorded in 2011 in Kraaifontein is approximately R500 000. The majority of the current homeowners are between the ages of 36 and 49 years old, while 100% of the recent sellers were over the age of 65 years old. This seems to point to the fact that the demographic of the area seems to be getting younger.
Looking to the next 12 to 18 months, De Abreu predicts that the property market in the area and in general looks promising. “Currently we are in a market where the majority of our buyers still rely on a 100% loan when applying for a bond. Affordability is still an issue and the banks’ lending criteria remains fairly stringent. As time goes on and the market recovers, buyers will become more financially stable and will have the deposits required by the financial institutions. They will also be more familiar with the requirements of the National Credit Act (NCA), which should help us when it comes to reducing the amount of declines we are currently experiencing when it comes to bond grants,” he concludes.
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29 July 2011, 14:42:23
The Monetary Policy Committee’s decision to keep interest rates at their current levels will be welcomed by the property sector, says Tony Clarke, MD of Rawson Properties. “Had they opted for a 1% or even a 0,5% increase,” said Clarke, “an already difficult situation in the property sector would have been made even more difficult.” Clarke said that most property analysts agree that the inflation rate (now up from 4,2% to 5%) is still low enough not to require a further rate increase. “No doubt,” he said, “the time is coming where the big price increases in petrol, electricity and food, exacerbated by wage increases to trade union members that are often double the inflation rate, will call for an interest rate rise – but that stage has not yet been reached.” The recovery in the property sector, said Clarke, is coming about – but only at a very slow pace. “Everything must be done now to keep it going – and there can be no doubt that even a small interest rate rise at this stage would have been disastrous.” Asked in what way it would be harmful, Clarke said that right now “thousands” of homeowners are struggling to pay their monthly bond repayments – and many are “not far off” having their homes repossessed or sold in execution. Even small rises in the rate, he said, could tip the scales against them. “What has to be appreciated,” he said, “is that the large numbers of distressed properties for sale bring down the average price of all property. The quicker we can get rid of this backlog, the better. The below-average interest rate is essential to property’s recovery.” By the first quarter of 2012, added Clarke, further inflation rises will probably make it necessary for the MPC to “normalise” the rates, but this could be held off due to political electioneering. “At the moment,” he commented, “there is still far too much volatility in the SA economy – it jumps around “like a hyperactive rabbit”, overreacting to internal and external factors. Spokespeople in the property sector, he said, would welcome a steady conservative performance which would enable them to plan ahead more easily. Clarke predicted that by 2013 the current slow recovery will be evident to all but, he said, a bull market should not be counted on before 2015.
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22 July 2011, 09:23:02
FNB’s decision to stop issuing any bonds at sub-prime rates will probably be followed by the other banks – but this is not a death blow to the residential property market, says Anton du Plessis, CEO of the Cape Peninsula estate agency, Vineyard Estates. “Right now,” he said, “the rates are low enough to promote a lively housing market. The problem is not the interest rate levels but the high number of mortgage bond applications that are still rejected, especially at the lower end of the market.” In upper middle and upper bracket housing (on which his company focuses), said du Plessis, the average bond is around R3 million. At a sub-prime rate of 1% below prime, (i.e. 8%) this would mean that the borrower would pay approximately R25 000 per month. If, as seems likely, he could only get prime, he would be paying R27 000, approximately R2 000 more per month. “In the market I serve that would generally not be a problem to most buyers,” said du Plessis. Asked if buyers at the lower end of the market would not be seriously affected by a 0,5% or 1% rise in their rates, du Plessis said that almost no borrowers at this level were granted sub-prime rates, so their situation has not been changed by the new ruling. “It has to be added,” he said, “that although a lack of bond finance has been the limiting factor on house sales, this is not as serious a problem in the upper middle and upper brackets as it is in the lower markets.. In general, the potential buyers with whom companies like Vineyard Estates deals have good credit records, and are in good standing with their banks: over 80% therefore do get bonds without undue fuss, especially if they work through a good bond originator and can manage a 10 0r 20% deposit.” Psychologically, said du Plessis, the cancellation of sub-prime lending may give a negative message to potential property buyers. “It might in some quarters be interpreted as an indication that the banks still see residential property as high risk. All the evidence available points to the opposite conclusion – property remains a safe long term investment – but market sentiment might react to the bank ruling negatively.”
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22 July 2011, 09:21:47
“Cape Town’s property planning and approval department has lost touch with the real world. They continue to pat themselves on the back because they are told they are performing more efficiently than other SA local authorities – but that is a meaningless yardstick. The truth is that, employing unqualified and inexperienced staff for jobs which they are not yet competent to handle, the department is causing developers and construction contractors month after month to lose large sums and limiting the number of new projects. Regrettably, ongoing complaints about this have so far had little effect.” These tough words were said recently by Paul Henry, managing director of Rawson Developers, one of the few Cape Town residential property developers which has been able to launch new projects in the last two years. Henry said that by any “normal” standards, the approval of a new development should be completed in three months. In practice, he said, it now takes 18 months or longer. “What the department forgets is that these inexcusable delays all add to the cost and risk of every project. They make the task of the developer already hard hit in these straitened times far more difficult.” Those most frustrated by the current inefficiencies, said Henry, are often the end users who time and again find for no reason that they can identify that transfer has been delayed. Rawsons, said Henry, have encountered delays on every project which they have launched in the last six years but nowhere has this been worse than at their River’s Edge development. Sited in Rondebosch, 50m from the Liesbeek canal, this 84 unit complex was deemed by City Council to be subject to their new Flood Plain River Management Policy. This, says Henry, appears to have been drawn up without any clear directive on how it is to be implemented and enforced. “The impression developers like ourselves are getting is that city officials themselves do not understand the policy and their engineers are still debating it. “In an industry now facing massive unemployment as a result of the available jobs being reduced by over 50%, one could have expected the city officials to do all in their power to keep new developments coming off the drawing boards. However, like the banks they appear to have no real feeling of responsibility or duty in this matter.” Henry’s statements tie in closely with those of Deon van Zyl, chairman of the Western Cape Property Development Forum, who in a recent letter to forum members said: “Where developers do dare to develop, bulk infrastructure constraints, ill-defined development contribution policies and slow building plan approvals are hampering attempts to break ground.” Van Zyl then said that the Property Forum has set for itself the following goals: - to increase its levels of communication with executive politicians and officials;
- to assess what reasonable timelines for approvals should be and to compare these with what is actually achieved by the Western Cape province and municipality planning departments;
- to create a confidence index reflecting forum members’ experiences with the above authorities;
- to lobby forum members to comment on provincial and municipal policy changes and to make constructive suggestions;
- to inform members of legislative and policy changes likely to affect them; and
- to forward all information and members’ questions to the province and the municipalities.
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08 July 2011, 10:10:33
Coming up for auction on Wednesday 13th July is a modern two bedroom apartment in a secure complex at Plumstead.Tanya Jovanovski, CEO of Rawson Auctions, who are handing the sale, says that, like certain other properties which Rawsons has recently auctioned in the Southern Suburbs, this apartment, which already has a tenant paying R4 000 per month (who will stay on if the buyer is an investment buyer or will leave on transfer of the property if the buyer wishes to use it himself), is the perfect buy-to-rent property. She is, therefore, expecting bidding to start at R700 000. In addition to its two bedrooms, the apartment has an open plan living room linking to a kitchen and a balcony, and has its own garage. “This is exactly the sort of secure, reasonably priced flat, close to enough to the suburban rail line and to good local schools, that many tenants are looking for,” said Jovanovski, “and as I have said before, those now building portfolios of such units five to ten years from now will, I believe, be seen as having made the right moves at the right time.” Rawson Auctions do not charge a bidders’ fee but they expect a 10% deposit to be paid on the fall of the hammer and their commission fee is 10%, payable by the buyer. Right now, says Jovanovski, properties of this type in the less expensive Cape Peninsula suburbs are going at 30 to 40% discounts on 2007/2008 prices. Jovanovski can be contacted on 082 411 9599 or Jason Lee, Rawson Auctions’ legal expert, on 082 940 6605.
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08 July 2011, 10:09:51
While there will always be a place for the one or two man real estate marketing teams operating in a specific area of which they have specialist knowledge, the estate agency sector is today being ‘driven’ by two major factors, both of which work in favour of the bigger agencies - and both of which are so expensive that it is increasingly difficult for the small agencies to afford them.This is the view of Bill Rawson, Chairman of Rawson Properties. The two factors to which he is referring are education/training and computer-related technology. “Success in real estate marketing does depend on the agent’s attitude and perseverance - but the history of the Rawson group shows clearly that the performance of an agent can be significantly enhanced if he is regularly trained. A good agent will become even better and an average agent will become a good one. However, training is expensive and demands considerable commitment from the franchisor.” Similarly, said Rawson, IT technology is now a sine qua non in marketing and in the running of a real estate operation – and is costly. “Today’s consumer and potential client is increasingly IT savvy: he wants to do his research away from the agent on his own and preferably before he meets him face-to-face. He expects to be able to use his PC, cell phone or smart phone and iPad to get almost all the information (and pictures) that he needs to help him make his decisions. The information supplied in this way would in most cases cover not only the property but also the area, its facilities, its security and its properties’ economic performance in previous years. For the franchisee running an agency learning to operate sophisticated IT systems is, therefore, essential.” Furthermore, said Rawson, the franchisee running an agency will operate far more effectively if he is given simple, easy to understand systems on which he can track and organise his business, including all the documentation that is such as essential part of property trading. This technology, said Rawson, is improving so fast that these days it has to be updated every few months. This again, he said, is an expensive exercise that the small agencies simply cannot afford. Other factors working in favour of the bigger, more sophisticated agencies, said Rawson, are branding and contacts/referrals. “In groups like Rawsons which have 140 franchises, ongoing exposure and advertising play a huge part in forming and increasing the public’s perception of the company - and with ± 1 000 agents all making, say, four or five contacts per day, up to 100 000 people are kept informed or made aware for the first time of Rawsons each month. The effect of this simply cannot be overemphasised: people will try the well exposed group first, partly because they know that in such a group there is always a more senior person to whom they can refer a problem if their initial contact happens to prove unsatisfactory and partly because success fosters respect.”
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08 July 2011, 10:09:02
Mortgage origination is a tough business at the best of times, and especially stressful in the current tight credit environment - unless you are part of a major group with a high profile national brand, extensive resources and strong relationships with lenders. Which is no doubt why scores of independent origination businesses and bond consultants have already elected to operate under the new MortgageMax banner raised late last year by BetterGroup, the parent company of leading SA originator BetterBond. “MortgageMax,” says CEO Jors van Niekerk, “offers a licence model that enables the smaller originator or independent consultant to immediately ‘plug in’ to the group’s long-established relationships with the banks and to use proven online transaction management and back office admin systems. “There is no upfront capital outlay required as there would be in the case of a franchise, and licensees also save the costs of setting up their own IT and admin support systems. There are also no royalty fees based on turnover, no geographic restrictions and no source or channel restrictions.” In short, he says, MortageMax licensees are able to retain all their independence while enjoying national brand recognition and both business and technology support from a “big brother” with long experience and substantial resources. “And because MortgageMax is part of the same group as BetterBond, our licensees are also able to offer their clients added value in the form of services such as bridging finance (through BetterBridge); credit life and short term insurance (through BetterSure) and personal loans (through BetterLoan).” All of this, says Van Niekerk, adds up to a highly cost-effective package of benefits that is drawing an increasing number of independent operators into the MortgageMax fold. “Our national footprint is increasing rapidly and we now have dedicated relationship managers in most regions. The next step is to convert most of the independents under our existing Mortgage Alliance brand to the group-supported licence model, as this will immediately increase the value and credibility of their businesses. “We are also inviting all independent originators (aggregators) and new entrants to this market to contact our regional relationship managers or myself to discuss our full value proposition in more detail.” ISSUED BY MORTGAGEMAX FOR MORE INFORMATION CONTACT Jors van Niekerk - CEO 082 336 6490 Zelda Killian – Gauteng 083 406 1299 Charmaine du Plessis – Pretoria 082 459 9245 John Goldstone – KZN 084 677 2311 Lindsay de Koker – Western Cape 082 788 6309 OR VISIT www.mortgagemax.co.za
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24 June 2011, 08:29:45
The best time to get into the property market is always right now, says Dorothy Foster, Broker/Owner of RE/MAX Oaktree, which has serviced the Stellenbosch area for the past 12 years.
“Market conditions currently favour buyers who have done their research and are able to make an informed decision about how and where to get their foot in the door. In my opinion, the sooner investors get into the market the better as prices in Stellenbosch have remained the same over the last 18 months and added to that, the lower interest rates are an advantage to any property buyer. For those who currently own property and are selling to upgrade, they must remember that they are selling and buying under the same conditions,” says Foster.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: “With predictions that the interest rate will increase in the near future, buyers should take advantage of the opportunities that the market conditions we have experienced since November last year have brought about.”
According to Foster, Stellenbosch offers a great return on investment due to capital gain and many of the investors currently buying in the area are purchasing as part of their buy-to-rent portfolio. Stellenbosch has always been regarded as a sought-after area by investors, largely due to its unique offering. “Stellenbosch is 35 minutes from Cape Town city centre, 15 minutes from the beach and just five minutes from the nearest wine farm. The area is alive with art and culture and there is so much history here as it is the second oldest town in the country. There is also always a large influx of students to the area every year making a buy-to-rent property viable for investors,” says Foster.
Statistically most types of properties in Stellenbosch have been performing well, however many transactions have been in the under R2 million category. “There seems to be a strong demand for affordable housing in the area. We have sold high-end properties but most of our transactions have been in the entry-level and mid-range price brackets,” says Foster.
Although the property market is still in the recovery stage after the recent recession, described as the worst in modern times, the market continues to improve and the volume of transactions in Stellenbosch have increased year on year from 2008.
“Here in Stellenbosch, its business as usual and the area has been doing really well. Last year many of the agents at the RE/MAX Oaktree office won awards for their achievements and our office ranked as the number two RE/MAX office in the Western Cape, based on total value of sales. Aside from the improvement we have seen in the market, I think this is due to the fact that our agents are self-motivated, business-minded people with years of experience in the industry,” says Foster
There have been many factors that have influenced the property market recently in the last while, such as the introduction of the new Consumer Protection Act as well as the new legislated qualifications that are required for all real estate professionals. “I think that property buyers and sellers in Stellenbosch and across the country can be assured that they are dealing with professionals and estate agents in our area will continue to focus on providing the invaluable service to their clients,” concludes Foster.
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17 June 2011, 09:55:05
As the cold winter weather begins to creep through our country and we dust off our heaters and try to stay warm, there are many who are not as fortunate and do not have the simple necessities such as warmth or shelter that are so often taken for granted. Many in South Africa are unemployed or homeless and the cold winter months will be a harsh reality to contend with. Some seek refuge in caravans, sink houses or tents, while others have nowhere to go at all.
"Now is the time to get involved in our communities and help one another during the cold months that lie ahead. Saturday 11th June 2011 marked one year since the start of the South African Soccer World Cup and we remember how amazing it was to see our country united in one cause. The country was filled with talk about the spirit of Ubuntu and came together as a nation. Wouldn't it be incredible if we could unite again to help those in our communities that need it most," says Neville Brits, Broker/Owner of RE/MAX Dazzle, that services the Kempton Park and Mulbarton areas. Brits says that his office is currently involved with a project to uplift and help 120 people living in the Kempton Park community. "For many their sense of hope is slowly vanishing and whether young or old we could all use a helping hand at times to get back on our feet. The people that we have connected with are in frantic need of our help, as life has dealt with them harshly and their struggle continues daily," he says. The RE/MAX Dazzle team is currently working on finding a safe place to help settle this community of 120 individuals and families. "We are currently looking at different housing options as well as small business opportunities that would generate an income for the residents once we have found premises for them. The goal is to have a facility that will include child-care for babies and toddlers so that they are being looked after while their parents are contributing to the community. Ideally the project needs to be sustainable and help the participants to help themselves. We want these families to be able to live normal and healthy lives while being able to provide for their own children," says Brits. He continues by saying: "We honestly believe that by pooling our resources and ideas together as well as connecting with our business and personal networks we can make a difference, we can change the lives of 120 people for the better. Our aim for the time being is to help them with their primary needs." Brits lists these as: - Food
- A safe, warm place to sleep
- Basic access to clothing and hygiene facilities
- Help them to re-establish their sense of self-worth and self-esteem
- Address basic social issues
- Help cultivate sustainable income-generating opportunities such as employment
This is a huge project but as the saying goes, you can only eat an elephant one bite at a time. RE/MAX Dazzle is kicking off this initiative with a charity event in conjunction with Sonja Herholdt presenting the 'Heartbeat of Womanhood'. This inspirational event will take place on Saturday 20th of August at 9am for 9:30am at Kempton-Hoogland, 85 De Wiekus Way, Van Riebeeck Park. "We would like to get a minimum of a 1000 women together that would like to sponsor, donate or just support us in this regard either in their private capacity or as a part of their business initiative. Any help is appreciated," says Brits. - By buying a ticket of R100, you will take your first step in helping someone change their life.
- Donate one item of non-perishable food, baby food, wipes, nappies etc. (Companies that are able to donate small gifts, samples and magazines will help us in putting together a 'Goodie bag' for all the ladies taking the time to help and support this project.)
Adrian Goslett, CEO of RE/MAX of Southern Africa, says: "RE/MAX of Southern Africa has a strong association with various initiatives that help those less fortunate than ourselves. As a company we believe in community involvement and giving back to the communities in which we operate in an effort to make a difference in the lives of those who need it most." "We can't do this on our own, but we can do it with the help of the members in our community. The more people that are involved with this project the better and we can stand together united to help those in need and move forward to a better South Africa," concludes Brits. For more information about the project or how you can help please contact Cindy Brits from RE/MAX Dazzle on 084 569 9590.
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17 June 2011, 09:53:11
Local agency ERA Alberton has been named as the Franchise of the Year by the ERA South Africa real estate group, while its principal Jacques Louw has been honoured as the group’s Broker of the Year. The accolades were announced at a recent national awards ceremony, where ERA Alberton also notched up the awards for the top franchise in the northern region (for the second year running) and top franchise nationally in the commission-earned category and top franchise nationally in the bank-assisted sales category. The agency was also named as one of the top three nationally in terms of the total number of units sold, and ERA South Africa CEO Gerhard Kotzé says it has turned in an outstanding performance over the past 12 months, especially considering the difficult market conditions prevailing. He also notes that the group is actively seeking more franchisees in Johannesburg and on the East and West Rand. Louw says several factors have worked in the agency’s favour over the year, not least the increasing recognition of the ERA brand in the Alberton area. “In tough times especially, homebuyers and sellers would prefer to deal with a big-name agency that they know is still going to be around tomorrow, and we have invested heavily in advertising and marketing over the past few years to get the ERA brand well-known in Alberton. “In addition, as an ERA franchise, we are on the panels of all the banks for selling distressed properties before they go into repossession, and that has helped to increase our sales volumes in a depressed market.” As for the future, he says the local property market is definitely improving. “Any home priced between R500 000 and R700 000 is selling almost as soon as it is listed, and the R700 000 to R1m sector is also very buoyant. At prices up to R1,5m we are also getting a better response from buyers now. Although sales are still a bit slower above that mark, any correctly priced property doesn’t stay on the market for too long.” This improvement, he believes, could also be attributed to a change of mindset among buyers - with most now understanding that they need a deposit of at least 10% - combined with a somewhat more relaxed approach to lending on the part of the banks, especially at the lower price levels.
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10 June 2011, 08:30:39
THE RIGHT RETIREMENT OPTION One of the most important decisions you will ever make in your 'Golden Years' will be about the retirement property you decide to buy, says Dorothy Foster, Broker/Owner of RE/MAX Oaktree, which services the Stellenbosch area. "South Africa is fortunate in that there are a wide variety of options available to property buyers looking into retirement communities. These range from modest entry-level properties to plush properties which give the potential buyer the opportunity to make the appropriate decision based on their criteria and financial status," says Foster. Adrian Goslett, CEO of RE/MAX of Southern Africa says: "As with any property purchase the first step is to do your homework and access your finances carefully. As a general rule with buying a retirement home, once you have paid for your home, your monthly income after deductions should be four times the amount of levy that you pay. It is best to consult with a professional financial adviser to assist you in correctly working out what you can afford." Statistically most property investors in this life-stage currently own some kind of property, however, the property they presently own no longer meets their requirements and they wish to downsize or move into a more secure environment that is close to amenities such as hospitals and frail-care facilities. Foster says that investors who own property should have it valued by a reputable estate agent; this will help them assess how much they can afford to spend on their new home. "We find that in Stellenbosch secure retirement estates such as Paradyskloof Villas are very popular among property buyers over 50 years old due to the excellent security and frail-care facilities available to the residents. There are not many properties in Stellenbosch that have all of these facilities so there is a great demand, even for clients looking to rent. Many investors at the estate have bought their property and chose to rent it out until they are ready to move into the estate themselves. Rental incomes range from R8 000 to R12 000 per month," says Foster. Aside from the frail-care services available to residents at Paradyskloof, there are other facilities such as a restaurant for residents and their visitors, tennis courts, a swimming pool and a dam with swans.
Foster says that there are 58 sectional-title units on the estate ranging from approximately 124m2 to 260m2. There are two kinds of property options available to investors. The first option is a two-bedroom unit with two bathrooms, main en-suite and a single remote operated garage. The second option is a three-bedroom unit with two bathrooms, main en-suite and a double remote operated garage. Prices of the units differ depending on their location. Two-bedroom units that directly overlook the dam are priced at approximately R3,2 million whereas ones that don't cost around R2,55 million. Similarly the three-bedroom units will cost between R3,5 million and R2,95 million respectively," says Foster. According to Foster, it is important to ensure that buyers choose the retirement complex that suits their requirements and their lifestyle. There are many estate agents who specialise in retirement communities and their expert knowledge can be an invaluable tool to buyers when looking for the right community to meet their criteria. "Buyers should ask whether their lifestyle can fit into the environment that the retirement complex provides. This will ensure a happy transition into this new and exciting phase of their lives," she concludes. For more information about property at Paradyskloof Viilas or others within Stellenbosch contact Louise Brink at RE/MAX Oaktree on 082 578 5085.
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10 June 2011, 08:29:36
The last decade, says Bill Rawson, chairman of Rawson Properties, has shown conclusively that in residential property marketing franchising is far and away the best route to achieving real results and ongoing growth. “In the 20 years or so that we ran with branches controlled and run by a head office team, we had many really good performers – but, almost without exception, they upped their game when they became franchisees.” Even more significantly, said Rawson, once the franchise system had proved itself, “as it did in a short space of time”, it resulted in the group being able to recruit or promote top level independent entrepreneurial leaders who would never have been content under a centralised branch system but who flourished when put in a position of real command. Asked why, if the system is so effective, certain franchise groups have had a fairly high dropout rate Rawson said that a good franchisor will always provide a 24/7 support group, training and systems which enable the rookie franchisee to survive the first year – and indeed, thereafter. “We made some mistakes when we set up our franchising network – but we always understood the importance of real backup. All the groups that give 100% support to their franchisees have flourished. Those who simply sell them the right to operate under their name and to capitalise on their brand without providing significant support have seen high failure rates.” For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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03 June 2011, 09:01:22
Rawson Properties Somerset West franchise is marketing this Tuscan style home in the Spanish Farm area at a price of R9,1 million.
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View site home is a bargain at its price of R9,1 million, says franchisee.
Over the last two years Schalk van der Merwe, the franchisee for Rawson Properties Somerset West, has taken it upon himself to cultivate the high-end market as much as possible. As a result, he reported recently, he now controls some 20% of the mandates in certain areas, one of the most satisfactory of which is the affluent Spanish Farm district near Somerset West.
The Spanish farm area, says van der Merwe, is genuinely acknowledged to be the most elite area in the Helderberg - and, he adds, turnover here has been far better than most property watchers would expect.
Looking at the Spanish Farm sales of the last few years, van der Merwe said that in 2005 13 sales were achieved (with a total value of R36,2 million) and in 2009, in a year which most people regard as the worst in recent property history, there were nine sales with a value of R48,6 million.
These figures, which van der Merwe extracted from the SA Property Guide, indicate, he says, that although prices in the area have not risen spectacularly they have continued to rise.
“This is a factor of which all interested in the area should definitely take note, because it is a safe bet that if price increases could be achieved in such a tough time they will be a great deal more satisfactory when the current recession ends, which I estimate will take another 18 to 24 months.”
Van der Merwe has recently been given the sole mandate for a home on the roller coaster, high level Rembrandt Road which links the Helderberg Nature Reserve with the Helderberg College precinct. This is thought by many estate agents, says van der Merwe, to be one of the most attractive suburban roads in South Africa.
Views from the home for which he now has the mandate take in a panorama that includes the Hottentots Holland Mountains to the south, False Bay and the southern spine of Table Mountain to the south and west.
“It would be very difficult indeed to find a home with more impressive views than this one,” says van der Mewe.
The double storey Tuscan style home was built to German standards (the client was, in fact, German) and has many finishes and fittings that would normally only be found in upmarket, European homes. Many of the cupboards and fittings have been handcrafted and several of the interior walls have been painted by Italian artisans.
The home has five bedrooms, all en suite, three receptions rooms, a bar, a wine cellar, a scullery and a double garage in which the doors open and close in response to electronic controls.
The steep slope of the property has not, says Van der Merwe, deterred the owners from developing a garden, which is irrigated by a computer-controlled system - but perhaps the most attractive feature on the entire property, he says, is a large, rim-flow pool sited in front of the living and dining areas.
The home has no less than 550m2 of floor area, which is three times the size of the average South African middle class home, and is on a plot of 2,425 m2.
Under ‘normal’ trading conditions, says van der Merwe, a home of this quality would sell for a far higher price than the current list price, which is R9,1 million. This, he says, is exceptionally good value, even in a market where upper bracket homes are taking anything from six to 12 months to find a buyer.
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03 June 2011, 08:54:34
They way in which the recent South African elections were run and the trends that emerged in the voting patterns will send a positive message to potential property investors, says Bill Rawson, Chairman of Rawson Properties – and, he adds, he will be relaying the news of this success to the business colleagues he meets in the three week visit to the USA on which he is now about to embark.
“Many in the First World,” said Rawson, “have slapped a Third World African label on South Africa – but Third World countries tend not to have well-run peaceful elections, nor do their voters show a mature understanding of the delivery and economic issues at stake – as a significant proportion of SA voters appear to have done this time.”
Rawson said that the fact that a truly multiracial party, like the DA, had been able to increase its share by 12,37% to 24% and that about 20% of its support now comes from black Africans is “hugely encouraging”.
“There are now signs that the hurts and discrimination of the apartheid era can be forgotten and that young, educated Africans will start to support those parties which best advance their prospects and do not rely purely on racial loyalties for votes.
“The reaction of potential property investors both here and overseas to this voting pattern has been cautiously optimistic. We can only hope that in the next four years those who play the race card will be further shunned by those looking for real efficiency in government.”
One very positive result of the elections, said Rawson, is that they should speed up the delivery of low cost housing and services.
“The lack of delivery has proven so contentious in this election that all responsible for it will now realise that a faster rate is a key to their survival – and more will benefit at last from all parties. The regular chant “we are here for the poor” may become more of a reality.”
In previous statements, Rawson has repeatedly argued that with the money markets and the JSE still showing signs of volatility, property represents a viable, safer investment channel.
“This,” he said, “has been my message for over 40 years and I have yet to find an investor who took our advice who today regrets it.”
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03 June 2011, 08:53:13
When new trustees are appointed or former trustees re-elected in sectional title schemes it often happens that they fail to observe one of the most important clauses of the Sectional Title Act, the rule that trustees must convene within 14 days of the AGM to pass certain resolutions.
Pointing this out recently, Michael Bauer, general manager of IHFM, the property management company, said that Section 37(2) of the Act lays it down that within 14 days of the AGM trustees have to:
- elect a chairman;
- set the levies for the coming year and stipulate when and how they will be paid;
- determine the interest rate to be charged on levy arrears; and
- sign the financial statements for the finances for the past year.
If for any reason the trustees are not able to meet, these resolutions can be signed and confirmed by them in a round robin resolution which they must sign and send back to the management agent for filing in the minute book.
It is particularly important, added Bauer, to decide by what date monthly levies are payable and to remind members that the bank transaction fees are for their account.
“Many members today do not appreciate how onerous these fees can be, especially if levies are paid in cash,” said Bauer.
If these resolutions are not made on time, levy and debt collection becomes very difficult – nor does it help to try and charge an approximate levy which can then be added once the calculations are worked out.
“In these circumstances,” he said, “the member who is called on to pay more will often avoid payment.”
A free copy of a sample trustee resolution is available by going to http://www.sectionaltitlesa.co.za/banner/Resolution of first trustee meeting.pdf
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03 June 2011, 08:51:18
<p>There has been further comment, this time from Michael Bauer, general manager of IHFM, the property management company, on the court case (Swingborne v Newbee Investments) in which the tenant in a block of flats was able to sue the body corporate successfully for damages after he injured himself on a flight of stairs that had no handrail.</p>
<p>Bauer says that in his experience many schemes’ liability insurance specifically excludes any claims for damage to the property and occupant’s possessions but neglect to exclude damages or injury that might happen to people.</p>
<p>“The liability clauses are often inadequate,” said Bauer. “At IHFM we advise having a policy that does cover personal injuries. This has to be complemented by warning signs regarding slippery surfaces or any other hazard as well as regular health and safety inspections.” </p>
<p>Public liability policies, he said, are not required by the Sectional Title Act, but his does not alter the fact that it is wise to have them and ensure they provide sufficient cover.</p>
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03 June 2011, 08:48:50
<p>Investors looking for idyllic coastal property coupled with secure estate living will find it in Sheffield, says John Pechey, Broker/Owner of RE/MAX Dolphin Realtors. </p><p>
With its long history of sugar cane farming, Sheffield is arguably one of the most beautiful areas on the North Coast of KwaZulu-Natal. Given its name in honour of sugar magnate Sir Leige Hulett’s birthplace in Sheffield, England, the area is one of the best kept secrets of the Dolphin Coast.</p><p>
Initially a sugar cane farm, Brettenwood Coastal Estate, situated above Sheffield Beach is set high on a ridge overlooking the Indian Ocean. The estate successfully combines the security and facilities of a gated residential estate with the tranquillity of a sub-tropical coastal lifestyle. “This estate offers the best of both worlds with beautiful ocean views from many of its stands along with a high level of security to the home owners,” says Pechey. </p><p>
Adrian Goslett, CEO of RE/MAX of Southern Africa says: “There is definitely a strong demand for secure lifestyle properties such as Brettenwood Coastal Estate, with more and more buyers requesting to be shown properties in gated estates.” </p><p>
The 104,34 hectare estate, which forms part of the 3000 acres purchased to supply the first sugar mill at Tinley Manor, is being developed by The Hulett Development Company (Pty) Ltd. Approximately 70% of the total land area will be developed with 25% of the development already completed. More than 26% of the estate is private open conservation space. </p><p>
Brettenwood Coastal Estate is the dream and legacy of developer Brett Hulett, a fourth generation Hulett. Says Brett: “I have spent most of my life as a farmer compromising nature with insecticides and poisons in order to earn a living. This is now my chance to give something back by restoring nature and thereby creating a truly special place – Brettenwood Coastal Estate. To date, we have planted more than 3000 indigenous trees on the Estate, 2000 of these along our verges. Our conservation areas on the Estate are lush and full of bird and small wildlife. The stunning sea views a large part of the Estate has to offer as well as our inland views, particularly in the late afternoon when the sun starts to set, are breathtaking – nature at its best”.</p><p>
Brettenwood Coastal Estate is positioned between an indigenous forest on one side and the Indian Ocean on the other. The architecture was specifically selected to enhance the natural beauty and to create homes that are in harmony with the surroundings. There are four individual eco-zones and several well populated catch-and-release dams for the eager fisherman. Picturesque walking trails meander through the estate under forest canopies, making it easy to forget that the estate is situated in one of the fastest developing areas along the North Coast. </p><p>
“When in you invest in property such as this you are making a lifestyle choice as well as ensuring a good return on your investment,” says Pechey. “This estate is in an excellent location, features facilities for all members of the family in different life stages and is close to amenities. What more could a property buyer want?” he asks. </p><p>
Once completed, the estate will boast approximately 300 free standing homes and 400 sectional title units. Pechey says that buyers have the option of purchasing land, freestanding homes, building packages or sectional title units. Land prices start at R650 000, building packages at R2,95 million, built homes at R3,25 million and sectional title units at R1, 925 million. </p>
<p>One of the properties in Brettenwood Coastal Estate that is currently being marketed by RE/MAX Dolphin Realtors is a R3,4 million double-storey freestanding home. It offers four bedrooms, three bathrooms and a kitchen featuring a gas hob and electric stove. Other features include a double garage, six air-conditioning units, solar heating, fibre optic TV and internet connections, mechanised chair lift on the suitcase and a private swimming pool.</p><p>
For more information on this home or other properties within Brettenwood Coastal Estate contact RE/MAX Dolphin in Ballito on 032 946 0881 or Salt Rock on 032 525 4796. </p>
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03 June 2011, 08:47:49
<p>Ongoing reporting on the USA’s massive debt, serious economic problems in at least five European countries, war, revolution and other problems in the Arab world, Afghanistan and Pakistan are said by some to have dampened confidence in property worldwide – and here in SA.</p>
<p>One residential property sector leader who, however, still takes a long-term optimistic view is Lanice Steward, MD of Anne Porter Knight Frank.</p>
<p>“With over 30 years in the marketing of property,” she said, “I incline to the view that the more severe the downturn, the more positive the eventual upturn usually is. There is some evidence in SA that our residential property market operates in ten year cycles: we saw downturns and huge difficulties in getting bonds in the early eighties and mid-nineties followed by big upturns in 2008 to 2009, and in 2010 we were again in a recession. It seems to me highly likely that we will again be in a positive growth phase from 2012 to 2013.”</p>
<p>Pessimistic property watchers, said Steward, tend to forget that it is only two years since the residential market hit rock bottom – and that recoveries take three to four years.</p>
<p>“My view is that the first signs of a more optimistic outlook, e.g. more buy-to-rent investors coming in, are now becoming evident.”</p>
<p>It is also encouraging that FNB are easing up on their lending criteria. When one bank does this others often follow suit. The National Credit Act is open to a variety of interpretations but now that the worst of the recession is behind us it is possible that it will be applied with less stringency. </p>
<p>“My feeling has always been that the Act was used by the banks as a reason for being tough on lending in the recessionary conditions. If we can get back to something like the previous loan conditions, without being irresponsible or careless, there is a host of buyers waiting for an opportunity to get onto the property ladder – or move up it.”</p>
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27 May 2011, 14:32:30
 Asrin Property Developers are now gearing up for what they say will be an exciting launch for the second quarter of this year: Azure at Big Bay, on the Cape West Coast just 20km from Cape Town (which can be reached in 20 minutes in off-peak traffic times) which will, they say, add a new dimension to the total Big Bay offering.
Azure will consist of one, two and three bedroom apartments varying in size from 46m² to 146m². They will be sited on the steep slope behind but overlooking the chic R600 million Eden on the Bay mixed use project, which was also developed by Asrin and which has now been in operation almost two years. Azure will, therefore, form part of the prestigious central Big Bay village precinct below Otto du Plessis Drive and within three minutes walk of the beach and, being on the doorstep of Eden on the Bay, its residents will share in its cosmopolitan lifestyle. “What makes Azure unique and appealing to buyers is that it will offer units at prices in general at least half the going rate of apartments in the Big Bay area,” says Shiraaz Hassan, commercial director for Asrin. “Buyers will have an opportunity to purchase a two bedroom apartment from as little at R15 794 per m² whereas most apartments in Big Bay are selling at R26 000 to R30 000 per m². It goes without saying that these prices can never be repeated in this precinct.” Hassan said that Azure’s design, by the architects Smith and Smith, will place the emphasis on a convivial, communal lifestyle. It will do this by confining the residents’ cars to an underground parking basement, and by creating a large central landscaped courtyard with a two level swimming pool and entertainment areas which will be open to all residents and their guests. Many apartments will have exclusive use patio areas and the views from their upper levels will take in Table Bay, Robben Island and the internationally recognised east face of Table Mountain. Since the launch of Big Bay, said Hassan, many people have approached Asrin and other developers here about buying at Big Bay but in general the prices are above what most can afford. “Now at Azure,” he said, “prices are suddenly within the reach of the middle income earner.” This, he added, has been quickly appreciated by the more astute property watchers, with the result some 20% of the units have already been put on reserve for buyers who have learned by word of mouth of the new scheme. A pleasantly surprisingly high proportion of those who have shown interest already, said Hassan, are currently renting at Big Bay and the immediate surrounds. “In view of the pre-launch interest we are fairly confident that we will achieve full sell-out towards the third quarter of this year and will be able to pass transfers to end users by the end of 2012,” said Hassan. “It cannot be overemphasised that to be able to buy a luxury two bedroom Big Bay apartment for less than R1 million, where many units are priced at over R3 million, is a rare opportunity.” Contact the sales agents: Seeff Blouberg on the following numbers: 021 5571115 OR Emarie Cambell on 083 601 0822.
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20 May 2011, 08:13:43
Quentin Miller with examples of some of his work. |
Bill Rawson, chairman of Rawson Properties, remarked on one occasion that “architects
are nice men – they like to draw”. Being creative, it is easy for
architects to get carried away at times and to overrun the budgets of their
projects, he said.
One Cape Town architect who has always avoided this temptation and has a keen
awareness of the financial implications of his decisions – but who is also
passionate about drawing, is Quentin Miller. Throughout his 35 years in architecture,
indeed, for most of his life, he has drawn and painted. Miller's architectural
clients have always enjoyed participating in the design process as he produces
quick freehand perspectives that enable them to visualise the design.
Miller now has his own gallery, stocked exclusively with his paintings, at
Little Stream, the large garden conference centre at the end of Klein Constantia
Road, on the east slopes of the Constantiaberg.
Here visitors can see not only some of the 40 or more paintings and sketches
coming off Miller’s easel but also the self-bound collections of paintings
and text produced by him covering his sailing trips in the Caribbean and walking
experiences in the Himalayas, Tuscany, the Greek Islands and South Africa.
Miller, who at one stage in his career was partner to the architect and artist,
Hannes Meiring, is, like him, especially drawn to depicting old buildings and
designs which meet his approval.
His practice has specialised in “giving new life” to older buildings
such as Nazareth House, The College of Magic, The Decks and 56 Shortmarket Street
– and he almost invariably celebrated their completion by doing one or
more watercolours of them – which in many cases his clients have “seized”,
making it necessary for him to do another.
As he enjoys this work so much, Miller is now making himself available to any
home or building owners in SA to do a painting of their building. What is more,
his prices are very affordable, starting from R2 500 for an unframed A3 painting.
“A good painting,” he said, “can catch the spirit of the building
in a way that a photograph can seldom do. People usually come to me for such
paintings because they have just bought a new home or are about to sell, or
simply because they have grown to love their homes. Often they will make colour
reprints which they use as Christmas or greeting cards, invitations or in some
other way.”
Although right now he is not always able to get onto such projects immediately,
the delay before he gets started on a painting, says Miller, is seldom more
than two weeks – and he very definitely would like to do at least two per
week from now on.
Miller can be contacted at 083 330 3492 or by email at qmiller@iafrica.com.
FeedBack (0)
13 May 2011, 08:03:46
<p>The Upper Kenilworth area has been one of the most stable and consistent on
the Cape Town property market and any buy in this suburb has tended to be a
good one, says Tanya Jovanovski, CEO of Rawson Auctions.</p>
<p>“We have,” she said, “always found that properties sold here
attract the shrewd, long term investors who know that rentals in this area are
good and the type of tenant attracted to the precinct is reliable.”</p>
<p>At 12 noon on 17th May Rawson Auctions will be auctioning a north-facing freehold
duplex with 124m² of floor space in 8B Auburn Road, one of the best parts
of Kenilworth.</p>
<p>Like many flats, it has some 50% more space than is found in most units being
developed and sold today. It has a large living room with a bay window overlooking
a small garden, a well fitted kitchen with under counter oven and built in hob
and the installations for a dishwasher.</p>
<p>On the upper floor are three bedrooms, all with fitted cupboards. The main
bedroom is en suite and there is, too, a second bathroom. The property has a
lockup garage and ample parking and, unlike most new apartments sold today,
is not subject to any levies nor has to comply with any homeowners’ association
or house rules.</p>
<p>Jovanovski estimates that the apartment could attract a rental of R6 500 per
month. She expects bidding to be around the R1,3 million mark.</p>
<p>Previewing, says Jovanovski, can be arranged.</p>
<p>For further information contact Tanya Jovanovski 082 411 9599 or Jason Lee
082 940 6605. Both can be telephoned at their office on 021 658 7100 or emailed
via info@rawsonauctions.com. </p>
FeedBack (0)
13 May 2011, 08:03:28
The chairman of Rawson Properties, Bill Rawson, has drawn the attention of
buy-to-rent investors to the fact that the latest FNB property survey, compiled
by the bank’s respected economist, John Loos, has shown that sectional
title units have recently been far and away the best performers in the residential
housing sector.
“The FNB report,” said Rawson, “shows that in both the fourth
quarter of last year and the first quarter of this year, sectional title units
sold faster and saw greater price rises than any other sector. Those units with
less than two bedrooms did particularly well, showing a 6,6% price rise in the
first quarter of this year. No other segment of the property market has equalled
that kind of increase recently.”
Rawson Properties’ development company, said Rawson, had identified this
trend two or three years ago and since then has only built sectional title units.
They are currently bringing 416 units to the market, in the Rondebosch area
and Grassy Park at prices ranging from R750 000 to R2,2 million.
Rawson said that his franchisees’ experience in the selling of sectional
title property is that the major reasons for their popularity, apart from affordability,
are the additional security such homes offer and the fact that most are well
positioned in relation to work areas and to public transport.
“People will now pay a 20% premium – or more – for security
and an even higher premium from being able to cut down travel time even if this
means opting for a smaller, less comfortable unit,” he said.
John Loos, the FNB economist, said Rawson, has pointed out that the rise in
first time homebuyers (now 22% of all sectional title buyers) has been a big
reason for the success of this sector.
“Again, we at Rawsons would agree with this but it has to be added that
it is extremely difficult today to meet the cost limits set for first time homebuyers,
particularly if the land is in a popular precinct, reasonably close to the city
and has already been rezoned.
“As Sean McCauley, our northern region director, has said, a broadening
of the base applicable to FT buyers, but keeping it limited to the affordable
sector, would be very welcome indeed.”
FeedBack (0)
15 April 2011, 08:03:27
A prediction made earlier this year by Dante Fratti, Chief Executive of D F
Properties, one of the Cape’s most successful property marketers of residential
property at Century City, appears to be coming true.
In February, Fratti said that he foresees sales of previously occupied Century
City homes rising significantly before the end of 2011.
Since 3rd January, his company has, in fact, almost doubled its previous monthly
turnover. It has recently achieved seven sales and, said Fratti, another half
dozen possibilities await confirmation.
The confirmed sales are all in the R750 000 to R2,3 million bracket, thereby
bearing out another of Fratti’s claims, that Century City can still provide
high value sectional title and freestanding homes at prices that middle income
earners regard as acceptable.
The sales to date were for:
· a plot, a two bedroom unit and a three bedroom unit at Century View;
· a three bedroom three bathroom sectional title unit at Waterstone
East;
· a three bedroom garden apartment in the popular Island Club;
· two apartments in Royal Ascot (adjacent to Century City).
Fratti said that although value growth in these and similar units had been
negligible in the last two years, since 2004 to 2007 the properties he has sold
at Century City have increased substantially, for example, the sale of a standard
two bed apartment at The Island Club, originally purchased off plan for R850
000 is available at R1 300 000 and a two bed apartment at Villa Italia sold
off plan for R550 000 could achieve R920 000 in the current market.
Asked why he sees an improvement on the horizon, Fratti said that the banks
seem to view Century City (and his company) in a favourable light and almost
all who have bought through him have been able to access mortgage bonds, most
requiring only 5% or 10% deposits.
In addition, said Fratti, his experience has been that investors, seeing the
better times ahead and now tired of the low money market returns, are coming
back fast to property, especially in established areas like Century City where
lock-up-and-go units, a cosmopolitan lifestyle and 24/7 protection are available.
“This,’ he said, “makes sense when you consider that a two bedroom
apartment in a development such as Villa Italia can be had for as little as
R920 000 and will give a monthly rent from day one of R5 800 to R6 000.”
This year, said Fratti, D F Properties will be looking for mandates in properties
close to Century City but slightly less expensive.
“We feel obliged to do this,” he said, “because every week we
are approached by buyers who very much like what Century City can offer but
want to be in lower priced units, preferably close by. A big market is, therefore,
opening up in developments at Royal Ascot which have their own attractions but
which to an extent are beneficiaries of the whole Century City success.”
FeedBack (1)
08 April 2011, 09:33:19
The public has every right to protest against a new development in the Cape Town
Metropole (in indeed, anywhere else) but far too often this happens without any
reference to the zoning laws.
When, therefore, the objections are heard but rejected, allegations of bias
or favouritism are all too often levelled against councillors and/or the city
planners, who are even accused of being in cahoots with the developer.
This was said recently by Paul Henry, MD of Rawson Developers.
“Cape Town’s development rules are, in fact, some of the most exacting
in South Africa and have deterred many a developer from trying to do business
here. It certainly does not help to have objectors who, to add to our difficulties,
do not consult the zoning legislation but simply lodge a protest on the “not
in my territory” principle.
“What protestors sometimes fail to understand,” said Henry, “is
that the City Council is trying to reverse the injustices caused by apartheid
which forced poorer (non-white) people to live on the urban fringe and spend
hours (and cash) each day travelling to and from their work places.
“The only way this can be done is to allow in-city residential development
and to densify residential areas that are reasonably close to the city or industrial
nodes. The good news is that, although this policy is accepted by the Council,
they have gone about it with extreme caution and with due regard, wherever possible,
for the existing residents’ privacy and view rights.
“That said, it has to be accepted that the knocking down of single residential
units or small flat blocks and their replacement with four or five storey blocks
will often not be to the liking of those who live nearby, even when the new
scheme’s landscaping is taken seriously and the aesthetics are put up for
widespread comment – but developers cannot be expected to forgo the opportunity
now open to them to create higher density complexes in areas like the Southern
Suburbs, where these are zoned for this.”
Cape Town’s new Integrated Zoning Scheme, which will shortly become law
is, said Henry, not a departure from the existing policy but a combination of/coordination
of the 20 or more different zoning schemes on which the City Council has worked.
In terms of the Metropolitan Spatial Development Policy of 1999, densification
in selected areas (“urban corridors”) of 40 to 100 units per hectare
is allowed. The urban corridors, said Henry, have to lie within one kilometre
of major roads or railway lines.
Protestors who run to their councillors as soon as a scheme is announced should,
said Henry, first become familiar with the zoning rulings. These can be viewed
in colour-map format on http://map.capetown.gov.za/PBDM_Viewer/.
“Most major developers are, I find, community sensitive and always consult
with residents in areas they want to develop,” said Henry, “but there
is no point in residents trying to overturn existing planning/zoning legislation.
Instead they should cooperate with the developers to ensure that their neighbourhood
gains the maximum benefit out of the scheme.”
Henry commented that no high density Rawson project had ever lowered the value
of other units in its area.
“On the contrary, they almost invariably raise values – as we have
seen recently at Rondebosch Oaks.”
Footnote:
The apartheid policy which pushed thousands of people out into areas where
they did not want to live was, said Henry, contrary to the evolutionary nature
of cities because the poor have traditionally lived within half an hour’s
walk of their workplaces.
“One has only to look at London’s East End in the last half of the
19th Century and the early 20th Century to see how beneficial close proximity
can be,” he said. “The architect, Lord Holford, has shown that in
every major city in Europe the lower classes throughout history occupied houses
close to the core, although usually on the “wrong” side, of the city,
creating lively communities (like District Six) with their own spirit. In a
small way, high density developments with communal facilities do the same.”
FeedBack (0)
25 March 2011, 07:48:33
At the bottom of the recent downturn in the property sector, Parklands, the
West Coast suburb 15km north of Cape Town, had some very bad press – it
did at one stage appear to have many distressed sellers – but it is now
emerging from this downturn in triumphal fashion, says Gary Claven, the Rawson
Properties franchisee for this area. (He is also the franchisee for Rawson Properties
Atlantic Seaboard franchise).
"The plain truth," said Claven, "is that with an average price
per unit of just under R1 million, Parklands has an amazing sustained ability
to attract buyers, even in bad periods. Its prices now are exactly right for
today's market."
A recent Lightstone Survey, said Claven, has shown that Parklands, with 495
sales in 2010, i.e. well over one per day, was one of the top two or three most
active residential areas in South Africa in 2010 – and in previous years
it was always in the top five.
"This huge suburb," said Claven, "has 6 187 freestanding properties
and 89 sectional title schemes with 4 163 units. This makes it a very big precinct,
but there is room for future expansion. Roughly 10% of Parklands properties
changed ownership last year (a very high figure by South African standards)
and all the indications are that the sales will improve further this year."
His nine agent franchise, said Claven, has cornered a high percentage of the
market and last year handled 37% of the total sales volume in Parklands.
"With three bedroom freestanding homes still available at R850 000 and
very few homes priced much above R2 million, this is an area where a keen agent
can rope in buyers day-after-day," said Claven. "What is more, even
in the sectional title units, the swing now is to first time homebuyers and
away from buy-to-rent investors. This augurs very well for the future of Parklands."
Despite this, said Claven, Rawson Properties and other estate agents in the
area have strong rental portfolios. His two man team in fact manage close to
200 properties and, when selling to investors rather than to occupant owners,
the ability to offer this facility is much appreciated.
"Buyers who learn to trust you in the sales process like to come back
to the same team for the management of their rentals. It is very seldom, indeed,
that someone who buys through us does not also use us to manage their properties
if they are looking for a rental agent."
As one would expect, said Claven, demand is especially strong right now for
the four major security estates in the precinct. Here premiums of over 20% (on
a per square metre basis) are being charged for space, but nevertheless the
average price is still only around R1,2 million.
The first signs of price rises are now, said Claven, becoming evident at Parklands
and anyone contemplating buying here should do so within the next six months.
This, he added, would also enable them to notch up a purchase before interest
rates rise, as some are predicting they will do early in the new year.
"A factor which has been mentioned but is, I think, still insufficiently
valued is that the IRT (Integrated Rapid Transport) buses, running every 15
minutes at peak hours on their own dedicated tracks, will cut the travel time
to the city to a mere 20 minutes – this compares extremely well with the
80 to 90 minutes taken by vehicles at peak hours moving both in and out of the
city. It will have a huge impact on house prices and on demand for the area."
The fast IRT buses, said Claven, will stop only at Table View, Sunset Beach,
Milnerton, Lagoon Beach and Paradise Island before reaching the city.
In Claven's team there is at least one agent (Marius van der Bank) selling
two to three houses per month and at least one (Fred Chenal) who regularly sells
two homes per month. Last year the agency also had the top rookie agent in the
Rawson group, Shannon Ficek.
FeedBack (0)
24 March 2011, 15:29:50
 Teaming up once again with Gary Vos, one of his most successful developer clients, Mike Abrahamse, owner and principal of Rawson Properties’ Blaauwberg franchise, is now selling eleven luxury beach house apartments in Vos’ latest development, “Beach Walk”.
The new project is in Waves Edge, Bloubergrandt and is the sixth West Coast beach-related project that Abrahamse has marketed for Vos’s Blouberg Coastal Properties Trust group. All have sold in a fairly short space of time.
Vos’ architect, Enrica van der Linden, has opted for a clapboard façade and mono pitched roofs that will give the complex the currently popular Cape Cod look. Van der Linden has said that she wanted to create a beach related project, one that would be filled with light and encourage informal living.
Seven of the units are one bedroomed, the remaining four being two bedroomed. Four units will have their own private sunny gardens. Six garages are tucked in under the homes and are entered via a brick paved east facing side of the scheme. Each apartment will have its own dedicated, secure parking bay within the complex grounds.
Floors will be tiled or wooden and the interiors, says Abrahamse, will have cool neutral beach colours in shades of light blue and white.
“As one would expect in such sophisticated units,” he said, “they will have state-of-the-art fittings such as stainless steel ovens, hobs and extractors and granite working tops.
“This is the sort of lock-up-and-go home that suits the fast-moving, upwardly mobile single person or couple, possibly with children, who enjoy the outdoor beach life (the beach is, in fact, only two minutes away) and the boulevard/bistro lifestyle which is now so popular in the focal points of the Blaauwbergstrand beachfront,” says Abrahamse. “There are, we estimate, at least eight restaurants within 500 metres of this complex.”
Prices at “Beach Walk” begin at R599, 000 for a one bedroom unit (although many are priced in R600, 000s). Prices for a two bedroomed unit start at R799, 000 rising up to R895 000 for a sunny north facing unit on the ground floor with a landscaped private garden.
A landscaped park with a children’s jungle gym is also planned for those units without gardens.
An optional full furniture “pack” is available to buyers and is, says Abrahamse, especially well suited to those buying an apartment as holiday accommodation and planning to rent it out when they are not there. Furniture packages are priced at R17 000 for a single bedroom unit and R20 000 for a two bedroom apartment. These packages include TV sets, refrigerators, blinds, linen and much else.
“Considering the position of the development and the quality of the finishes, Beach Walk will always be in demand by tenants and will be easy to resell in the future. This is an ideal project for investors either as a short-term speculation or a long-term income generating buy with excellent capital appreciation,” said Abrahamse.
A sales office will be established on site and will be in operation by the end of March. Occupation of the units will be given early December 2011 with transfer taking place during February 2012.
For further information contact Mike Abrahamse on telephone numbers 082 555 5390 or 021 557 5514 or email mike.bw@rawson.co.za.
FeedBack (2)
24 March 2011, 15:26:11
The Sibani Sands development situated on the KwaZulu-Natal north coast presents
first time buyers, retirees and buy-to-let investors with an ideal real estate
investment opportunity, says John Pechey, Broker/Owner of RE/MAX Dolphin Realtors.
Located in Westbrook, between Umdlodi and Zimbali – a mere five-minute
drive from the new King Shaka International Airport – units in Sibaya Sands
range in price from R795 000 for a two-bedroom, two-bathroom unit, up to R890
000 for a three-bedroom, two-bathroom unit. The penthouses, which consist of
three bedrooms and two bathrooms, and boast extra exclusive-use areas and outstanding
sea views, are priced at R1,295-million each.
“There are 18 sectional title units in the complex, and we have already
sold 10 of these,” says Pechey. He explains that the two-bedroom units
measure approximately 72m2 and come with covered carports. The three-bedroom
units measure approximately 89m2, and each one has its own private 16m2 lock-up
garage. “The real selling point is the development’s location however,”
he says. “Apart from being conveniently and centrally situated, around
70% of the units in the development boast outstanding, panoramic sea views.”
Pechey notes that Sibani Sands provides first time buyers with an attractive
investment option. “The top-end, quality finishes, the generous size of
the units, and the comparatively low prices are all qualities that are difficult
to find along the popular north coast strip. Furthermore, the proximity to the
new airport and Sibaya Casino, as well as the security features and tranquil
and aesthetically pleasing natural surroundings makes this development a very
attractive investment option.”
What is more, Pechey says that the price of the units includes VAT, so buyers
won’t have to pay any transfer duty when they purchase a unit: “Buyers
have the option to use the money they have potentially saved up for transfer
duty to put down a larger deposit on the unit they want to buy. This in turn
will increase their chances of a bond application being approved by the local
mortgage lenders as the larger the deposit, the higher the chances of the loan
being granted and the better your chances of negotiating the best interest rate
possible.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that Sibani Sands is
ideally positioned to take advantage of the fact that 2010 marked the highest
percentage of first-time home buyers entering the market since 2005. “A
local study by a South African bond originator noted that in 2010, the proportion
of first-time buyers as a percentage of total applications increased to 47,61%.”
Pechey adds that interest rates are also currently at a 30-year low, and improved
affordability has enabled many potential homeowners to make the leap of owning
their own home, since the cost of servicing their mortgage has been considerably
reduced.
“Sibani Sands is ideally suited to take advantage of this positive development
in the local housing market – the price is right, the position is right,
the lifestyle offering is right – this is a solid investment for anybody
who may be thinking of entering the market,” Pechey concludes.
FeedBack (2)
18 March 2011, 10:58:52
National real estate company Aida is riding to the rescue of all long-serving
estate agents who have still not completed their RPL portfolios to obtain the
new compulsory real estate qualifications – and are short of cash to do
so.
“This is the last year in which agents who were registered before July
2008 can get an NQF4 or NQF5 level qualification via the Recognition of Prior
Learning (RPL) route,” says Aida CEO Young Carr, “and we want to help
them do so without delay.
“So together with top real estate training company Ditasa*, we are offering
them assessment, assistance and coaching to enable them to compile the necessary
portfolios of evidence and fill in any gaps in their training, at half the normal
price for such courses.
“What is more, they will be able to make payment over three months, so
there should be no strain on their cash flows, even if they have to take some
time off work to attend classes. And this offer is open to any registered estate
agent, from any company.”
Agents who do not complete RPL portfolios before the end of this year, he notes,
will have to join those who were registered only after July 2008 in taking the
standard NQF4 and NQF5 courses – which they will have until the end of
2013 to complete.
“However, those who would like to obtain their qualifications sooner than
this can also immediately start the relevant course through Ditasa – which
has training centres around the county - and will also be able to pay these
off over several months.”
For more details, agents should contact the Ditasa helpdesk on 0861 –348-272
or helpdesk@ditasa.co.za
FeedBack (0)
18 March 2011, 08:35:43
At the end of September last year, credit bureaus had records for 18.35 million
credit-active consumers, of which 53,7% were classified as in good standing,
according to the National Credit Regulator’s report. The report notes that
this was an improvement from the previous quarter and in fact, is the first
improvement in consumers’ credit reports since December 2007. However,
there are still 8,49 million consumers with impaired credit records.
In light of these figures and in line with predictions that distressed properties
could form up to 30% of all residential transactions over the next three years,
Kevin Reddy, Broker/Owner of RE/MAX Sell-ect, says the time has come for real
estate agents to lead the housing market into recovery by providing solutions
for homeowners in need.
“There are unfortunately too many homeowners who are unable to service
their home loan debt that don’t make use of the assistance or advice that
real estate professionals can offer,” he says.
Reddy notes that four of his agents are Certified Distressed Property Experts
that have been trained extensively to understand the options, solutions, and
effective methods for dealing with homeowners facing financial hardship. “A
Certified Distressed Property Expert is a real estate professional with specific
understanding of the complex issues confronting the real estate industry, and
the options available to homeowners to take in order to avoid their property
being repossessed by the financial institution that holds the bond,” he
says.
The International Certified Distressed Property Expert Professional Designation
(CDPE) course was launched exclusively to RE/MAX Broker/ Owners and Sales Associates
in January this year. The license to Designate agents in South Africa was obtained
from the Distressed Property Institute LLC which has been offering the Designation
in USA and Canada for the last three years and is widely recognised as the leader
in its field.
Reddy explains that the course focuses on the options and alternatives that
professionally trained agents can offer homeowners who have found themselves
in a distressed situation. “The primary objective for the professional
agent is to find a way to assist the homeowner to keep their home. This is also
the primary goal for the financial institutions. “
Peter Gilmour, Chairman of RE/MAX of Southern Africa, who also heads up the
specialised Distressed Property Division of the company, says that currently
there are more than 120 000 families in distressed situations in South Africa
and this number is growing every month. “With these numbers being a reality,
a significant proportion of these distressed properties need to be sold to reduce
the debt of the financial institutions. “
To date, over 300 RE/MAX agents in South Africa have attended the course and
are now Certified Distressed Property Experts.
“Dealing with financial challenges is a hardship for any family, but finding
a qualified real estate professional that can assist you in selling your home
for a market-related price, before your financial troubles get to such a point
that your property could be repossessed, should not be. “The CDPE designation
will set our agents apart and customers can easily identify a CDPE agent from
our office to assist them in a distressed situation,” Reddy concludes.
FeedBack (0)
18 March 2011, 08:34:59
Located a mere 15 minutes from OR Tambo International Airport and the Gautrain,
Serengeti Golf and Wildlife Estate is an exciting 780-hectare residential development
within Kempton Park in Johannesburg.
Says Adrian Goslett, CEO of RE/MAX of Southern Africa: “This is such a
massive development, that many define this estate as a city within a city. A
development of this magnitude, within such proximity to the bright lights of
Johannesburg, is a real find. Given its location and accessibility, it is unlikely
that land of this size will ever become available again for residential property
development.”
What makes this estate truly unique is the fact that its design vision embraces
the wild African bush. Says Neville Brits, Broker/Owner of RE/MAX Dazzle: “The
estate boasts abundant wide open spaces – unlike other estates that are
characterised by developers squeezing in as many homes as possible, on Serengeti
there is truly room to breathe and explore. The estate has set aside 280 hectares
of indigenous grasses and rehabilitated wetlands, which is home to a variety
of buck and birdlife that roam free on the estate – bringing the feeling
of the wide open African bushveld to your front door.”
With crime being an ever-present concern in South Africa, Serengeti boasts
state-of-the-art security equipment and infrastructure for a total security
solution, explains Brits. “Both the internal and external elements of the
estate of policed by the Serengeti Rangers, who are controlled by the estate
management and Serengeti’s superlative on-site security control centre,
for 24-hours, 7-days-a-week peace of mind.
Offering a diverse range of world-class facilities, Serengeti’s residents
can relax in the knowledge that their every need has been met without having
to leave the estate’s perimeter. “One of the most talked about innovations
is the fact that Serengeti has an optic fibre network that reticulates to each
home inside the estate, providing connectivity, broadband Internet and email
services, directly to each home, at no additional cost as it is included in
the monthly levies,” explains Brits. The optic fibre also provides voice,
video and data to all homes at no additional cost, meaning that all phone calls
and video streaming within the estate are free.
As a golfer’s paradise, Serengeti boasts The Jack Nicklaus Signature Golf
Course and club house facility. “Officially opened by the golfing icon
himself, Jack Nicklaus, this golf course was voted the Best New Golf Course
2010 by Golf Digest. It is the only golf course in Gauteng offering 27 holes,
and together with its spectacular 6000m² club house, Serengeti offers the
ultimate golfing experience for golfers who are in search of the best,”
he says.
An ideal estate on which to raise a family, Serengeti also boasts a top-class
private school, Curro Serengeti Academy, within the borders of the estate. Also,
located in the heart of Serengeti, lies Village Square – a meeting place,
deli for daily groceries and offering a selection of restaurants and coffee
shops open any day of the week. Furthermore, Serengeti has direct access to
almost 20km of bridle paths for horse riding enthusiasts, a hotel, spa and conference
facilities, as well as a selection of offices, all within the secure Serengeti
perimeter.
Says Brits: “A total of 1 800 units are planned for Serengeti, and the
size of the stands range from 1 000m² to 2 500m² - the cost of which
varies from R550 000 to R2-million. The cost of ready-built homes starts at
around R4-million and extends right up to R10-million, depending on its location,
size, style and finishes. “
John Smook of RE/MAX Dazzle is currently selling a modern six-bedroom home,
with all bathrooms en-suite, with a private study and guest loo, four reception
rooms, a spacious enclosed entertainment area, servants quarters complete with
a full bathroom, and a total of five garages, for R5,8-million.
“For those who like the wide open feeling of the bush, who enjoy living
in the country, but who need to have access to the city and its amenities –
Serengeti Golf and Wildlife Estate offer a safe and secure solution for an upmarket
family lifestyle.”
FeedBack (2)
11 March 2011, 08:41:56
 Harcourts
is now the most trusted name in SA real estate – even though it is the
newest of the national big estate agency brands.
This has emerged from an recent poll run on the high-traffic Cyberprop website,
in which thousands of users were asked to name their most trusted real estate
company - and Harcourts gained the majority of votes.
“This result is really gratifying,” says Harcourts Africa CEO Richard
Gray, “especially since the Harcourts brand was only introduced to SA two
years ago and some of the other big names in the industry have been around for
decades.”
Harcourts Africa, the local branch of the international Harcourts group, is
currently also one of the biggest real estate groups in SA, with 129 estate
agencies and rental property management offices in cities and towns right across
the country.
And it continues to expand, despite the sluggish recovery of the property market.
“We have opened 12 new offices in the past six months,” notes Gray,
“and have at least another 10 currently in the pipeline.
“This reflects our belief that the future of real estate franchising in
this country is not just about giving our franchisees and agents a ‘brand
name’ to stick on their office doors, but about adding real value and providing
them with superior training, technology, marketing tools and business systems.”
However, he notes, the group appreciates that acceptance and trust on the part
of consumers – those who buy, sell and invest in property through Harcourts
– is the key to real success. “We know that no amount of innovation
can replace positive interaction with our clients, and the results of the Cyberprop
survey now show that our commitment to always put ‘people first’ in
our business is widely appreciated.”
* Harcourts International, rated one of the five fastest growing global real
estate brands, has more than 650 offices and 4000 agents in nine countries,
including the US, China, Australia, New Zealand and of course SA.
FeedBack (0)
11 March 2011, 08:41:12
With the appointment of Dianne Leighton as his rental property manager, Anton
du Plessis, Chief Executive of the Cape real estate marketing agency, Vineyard
Estates, is signalling to the world that upmarket homes in the traditional,
more affluent southern suburbs of Cape Town are now attracting excellent rentals
and, he says, the demand currently exceeds the supply.
“We always knew that renting in this area could be a rewarding exercise,”
says du Plessis. “The traditional Southern Suburbs have so much going for
them that many of those relocating or moving to Cape Town look first to this
area for a temporary home. However, we did not want launch into a full-scale
rental division until we had the right person on our staff.”
Leighton, says du Plessis, in her first fortnight signed up five leases, with
values of R7,500 to R15,500 per month, and she is now working to achieve a target
of five leases per month. She has since rented a home in Rondebosch at R24 000
per month.
“It may come as a surprise to those people not in touch with the market
to know that fairly ordinary two or three bedroom homes in Upper Kenilworth,
Upper Claremont, Newlands and Constantia are fetching R15,000 to R26,000 per
month. What is more, as there is a serious shortage of stock in this bracket,
these rentals can only rise,” said Leighton.
It may also surprise people to know, she adds, that houses in the best security
estates, e.g. Silvertree and Steenberg, can easily attract rentals of R40,000
to R50,000 per month.
For many people, she says, the cut-off point on rentals, whether they are relocating,
retiring or just taking a year between homeownership, is between R25 000 and
R30 000. Above that level the general consensus is that they would probably
be better off buying although initially most will be forced to rent because
it can take months to find a suitable home. However, because of the low expected
annual increase in house prices – potentially as low as 3 to 4% per annum
– it often makes sense at this stage to rent, particularly if the buyer
is looking for “that perfect home”.
Leighton has had 19 years in property. She wrote her board examinations in
1992 and has worked for three of the larger real estate companies before, having
taken a “well-earned” eight month break from property prior to joining
Vineyard Estates.
FeedBack (2)
11 March 2011, 08:40:30
Sellers and buyers dealing in residential property have to realise that delays
in transfer do occur and no estate agency or conveyancer can guarantee a transfer
date. This was said by Anton du Plessis, head of Vineyard Estates, commenting
on a recent case in which the Deeds Office held up a transfer by almost one
month.
“It is,” said du Plessis, “quite understandable that clients
should assume that if the agent and the conveyancer work efficiently and win
the cooperation of buyer and seller, transfers should not take longer than eight
weeks. Regrettably this is not always the case.”
Recently, said du Plessis, a minor mistake in the Title Deed (it was, in fact,
a duplication of a minor clause) resulted in a call for a correction. Normally,
he said, this would have taken no more than four or five days. However, in this
case the clerk responsible for the work happened to take leave for three weeks
at the time and no one was delegated to take over his responsibilities whilst
he was away.
“In the end the transfer took just under one month. The loss of interest
over that period on so large a sum was significant and the inconvenience caused
to those who had expected to be able to move in or out of certain homes on certain
dates was considerable.
“A staff member taking annual leave is in most cases an event that Deeds
Office management would be aware of in advance, and good management practice
would necessitate forward planning to fill the gap. Correcting a simple error
on a Title Deed is a simple administrative process, and it is beyond belief
that some other official could not be made available to attend to this work.”
Delays in transfer, said du Plessis, can be caused by a variety of factors,
including time lags in receiving rates clearances, transfer duty receipts, bond
registration or cancellation instructions. In addition, unexpected increases
in the number of transfers going through the Deeds Office can also slow down
the process, as can any number of complications arising from complex conditions
contained in many Deeds of Sale.
FeedBack (0)
11 March 2011, 08:39:16
The great satisfaction of being involved in finding rented accommodation for
people, says David Beattie, principal of the Cape company, Chorus Letting and
a committee member of the Western Cape Institute of Estate Agents, which manages
several hundred rented properties, is that what you achieve on the client’s
behalf can make a very real difference in their lives.
“I have,” he said, “seen people’s enjoyment of life markedly
improve simply because they have moved into an apartment or home which suits
them and/or simplifies their daily travel arrangements. This does give considerable
satisfaction.”
Those interested in making a career in property should consider being a letting
rather than a sales agent, he says.
“All property marketing is fast-paced and those in the rental field can
be put under considerable pressure – but the variety of the work and the
contact with all types of people is exceptionally stimulating. There is, too,
huge satisfaction from concluding deals regularly, not occasionally as in selling
and it is worth commenting that many agents do end up owning significant rental
portfolios.”
A big advantage of being a letting agent, said Beattie, is that the work provides
a steady income, not the fluctuating earnings of so many estate agents –
and this increases year by year.
But, he said, the job calls for long hours and does require a good clerical
ability and a willingness to attend to detail.
“The accounting and record keeping are simple but have to be done right
– and knowledge of SA property law is also essential.”
Those letting agents who put their hearts into the work, said Beattie, gain
the satisfaction of building relationships with clients. When these are landlords,
the successful letting agent can assist in building up a property portfolio
which in many cases is extended year by year and form the main bases of the
client’s wealth.
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11 March 2011, 08:37:05
 Asrin
Property Developers report that even though there has as yet been no official
launch or advertising campaign at their new Stellenbosch residential development,
Nuutgevonden, advance press and online reports have already resulted in their
selling just on 50% in phase one.
On offer are two bedroom two bathroom sectional title apartments priced from
R599 000 to R725 000 and two and three bedroom, two bathroom houses priced from
R849 900 to R1 195 000. In both cases, the price includes VAT and transfer duty.
“The development theme and design lend themselves toward a modern Cape
farmhouse style, making extensive use of the straight line gables, dark roofs
and clean façades for which Stellenbosch is known, said Shiraaz Hassan,
Asrin’s commercial director.
He adds that, as expected, the competitive price and prime location of the
development have produced an “overwhelming” uptake. The project’s
strategic position just off the R304 and next to the upmarket Welgevonden estate
residential development, said Hassan, make it highly suitable for anyone working
in Stellenbosch or studying at the university (both five minutes away by car),
while its proximity to many famous vineyards and to the encircling Simonsberg
and other mountains are added attractions.
“Worldwide,” said Hassan, “there is a shortage of affordable
accommodation in university towns. In bringing units to Stellenbosch at our
prices we have tapped into a huge reservoir of potential buyers who had come
to believe that these sorts of prices were no longer possible in so sought-after
and affluent a town as Stellenbosch.”
The agents marketing Nuutgevonden on behalf of Asrin are Property Pro (021
886 5212) and Chas Everitt (021 883 8493).
FeedBack (2)
11 March 2011, 08:36:25
Michael Bauer, General Manager of IHFM, the Cape property management company
and Managing Director of IHPC, the exclusive estate agents of Bardale Village,
has drawn attention to the price analyses in the latest FNB report.
These, he said, confirm the generally accepted opinion that not only are Western
Cape residential property prices the highest in South Africa but that, if measured
on a square metre basis, they are particularly expensive in relation to other
areas.
“This fact,” said Bauer, “becomes particularly evident in the
sectional title sector where the Cape per metre square price last year was R10
341, 36% higher than that of South Africa as a whole (where the average price
was R7 601).”
These high Cape sectional title prices, said Bauer, have come about as a result
of the prevailing lack of land in the Greater Cape Town Metropolitan Area.
“What we are now witnessing,” he said, “is a scenario in which
the value of sectional title and other property in the CBD continues to rise
steadily because people can no longer accept the lengthy commuter times of up
to two hours a day, nor are they prepared to pay the continually rising car
maintenance and petrol costs which commuting generates.”
Bauer said that there are still no signs of this trend being reversed and CBD
fringe sectional title units are, therefore, likely to continue to be an excellent
property investment.
“There will always be those who want a freestanding home (preferably with
a few square metres of grass and with some private space) and the type of property
that is especially well suited to young couples with children is currently only
affordable in developments like Bardale Village. However, it has to be accepted
that when such homes are affordable in outlying areas, the travel costs can
be expensive. For this reason many property investors are now increasingly moving
towards sectional title in the high density urban areas and properties in the
better positioned security estates in the suburbs.”
FeedBack (1)
11 March 2011, 08:35:44
The maintenance of windows in sectional title schemes (especially those that
are near the sea and prone to rust) has long been a contentious issue. Whether
they are the responsibility of the unit owner or the body corporate has always
been subject to debate.
Michael Bauer, the sectional title expert and the general manager of the sectional
title management company IHFM, said recently that previously the Sectional Title
Act specified that any items inside the median line drawn through the middle
of the unit’s outer walls was the full responsibility of the owner, while
any items outside that line was the full responsibility of the body corporate.
If it was placed on the median line the responsibility was shared. Window frames,
said Bauer, can be either on the median line, inside it or outside it - “which
of course means that the whole matter of their maintenance was bound to lead
to controversy”.
Now, said Bauer, the new Sectional Title Amendment Act, about to be promulgated
(Provision 5,5 (a)) will make all window maintenance the joint 50/50 responsibility
of the owners and the body corporate irrespective of the window’s actual
location in relation to the median line.
This new amendment, added Bauer, will be especially helpful in those cases
where the responsibility of payment was unclear. For example, window frame deterioration
on the weather side of the building far exceeded that on the protected area
but where, nevertheless, all members have had to pay for their repair or replacement.
Those on the protected side might feel hard done by.
“It has to be admitted,” added Bauer, “that after 50 years’
exposure to a salt-laden atmosphere almost any steel window will need replacement
- hence the swing in coastal districts to aluminium.”
The cost of window replacement, he added, can be ‘astronomical’.
Bauer warned trustees that wooden frames, too, need regular maintenance. He
recommends re-varnishing all outfacing wood once a year.
FeedBack (1)
11 March 2011, 08:35:25
Another high profile Cape estate agency chief executive, Anton du Plessis of
Vineyard Estates, has commented on the practice adopted by some estate agencies
of insisting that deposits be paid into their own trust accounts, instead of
to the conveyancer’s trusts. These comments follow on the accusations now
being levelled against certain high profile estate agencies regarding the misuse
of funds.
Du Plessis said that, although the law stipulates that each estate agency must
have a trust fund which has to be audited annually, in his company’s he
almost always asks for deposits to be paid to conveyancer’s trusts.
“One of the benefits of the agency holding a deposit is that in the event
of there being a commission dispute, the agent is in a stronger bargaining position.
However, an agent cannot simply disburse money to himself from a trust account
in the event of a dispute, and there are onerous regulations governing the conduct
on trust accounts if a dispute does occur.
“Many reputable estate agencies, including some with nationwide franchises,”
said du Plessis, “find it best to insist that all deposits or other money
should be lodged with the conveyancer’s trust. In this way they keep their
hands clean and minimise the risk of fraud, misappropriation or theft.”
That arrangement, added du Plessis, is not only preferred by the vast majority
of clients but also has the advantage that, in the event of a disagreement,
e.g. on the commission payable, the funds are in a ‘neutral corner’,
the managers of which should, as professional attorneys, be able to remain detached
and objective.
Many of the general public, said du Plessis, are now wary of handing over a
large deposit for fear that they will lose it in the event of a forfeiture being
legally decreed or taking place without their permission. They are, however,
protected from loss by the Fidelity Fund which pays out funds to members of
the public who lose money as a result of dealing with any attorney or agent
registered with the fund.
“We need to remind such people,” said du Plessis, “that the
Fair Penalties Act, although slow moving, will almost always result in justice
being achieved and in no innocent person being victimised or paying a disproportionate
penalty.”
FeedBack (0)
04 March 2011, 08:42:37
 When
you buy a property on Sunset Links Golf Estate on the Western Seaboard, Cape
Town, you are buying into an exclusive lifestyle, says Caron Leslie, Broker/Owner
of RE/MAX Property Associates. “Located on the edges of the fairways of
the prestigious Milnerton Golf Course, Sunset Links Golf Estate is considered
by many in the know as one of the best kept residential secrets in the greater
Cape Town area.”
A coveted address by any high-flying investor, it is understandable why homes
on this estate are in high demand. “An upmarket, security golf estate,
Sunset Links Golf Estate is situated on Milnerton Golf Course; one of South
Africa’s few links-style courses, with access through Sunset Beach. With
the ocean on its western border and a river estuary encompassing Rietvlei Bird
Sanctuary on the eastern side, the estate offers breathtaking views and scenery
from all vantage points,” says Leslie.
A unique residential concept, offering unsurpassed 24-hour security, the estate
has been designed with an ethos of making the most of its exquisite surrounds.
Jeanne Thompson of RE/MAX Property Associates, who lives on the estate and markets
properties for sale there, says that this estate affords its residents the most
spectacular views of the surrounding ocean of Table Bay, Table Mountain, Robben
Island, and even the new Green Point Stadium can be seen in the distance. “The
specified architectural-style has been conceived with the aim of harmoniously
complementing the estate’s natural surrounds,” she says.
The location of the estate is ideal for families and professionals, as it is
close to the Mother City CBD, V & A Waterfront, Cape Town International
Airport, schools, private hospitals and shopping malls. The new Rapid Transport
System will add value and public transport convenience to the community. Sunset
Links Golf Estate boasts a plethora of various amenities and facilities to cater
for every need:
“The beach-side Milnerton Golf Course has been redesigned and upgraded
to championship status. Water sport lovers can make use of the long stretch
of beach for surfing, kite-surfing, windsurfing, jet skiing and fishing. The
lagoon of the Rietvlei Nature Reserve forms part of an estuary that is extremely
rich in birdlife – idyllic for any bird watching enthusiast,” says
Leslie.
“A dedicated tarred track, which runs from the Cape Town city centre to
Blaauwberg Road in Table View, and which can be used down to the beach and continues
to Big Bay, is perfect for joggers, runners and cyclists. And for a bit of R&R,
residents can access the beach and lagoon via dedicated private footpaths, to
enjoy long walks along the adjoining beach, or simply to sip a glass of wine
and enjoy the beautiful daily sunsets afforded all year round.”
Sunset Links Golf Estate consists of full title properties which are grouped
according to position and divided up into Ocean Villas, Lagoon Villas, Ocean
Terraces and Courtyard Homes. “A total of 250 homes are on the estate,
and the erven range from 350m² to 1 550m². An entry-level home will
start at around R3-million, with large luxury homes on the estate fetching as
much as R10-million,” she explains.
Offering access to an idyllic urban-country lifestyle, the estate boasts a
blend of foreign investors, retired persons, professional couples and families.
Says Leslie: “We have a lot of foreign homeowners who ‘follow the
sun’, spending up to four months of the year on the estate and then leaving
to spend the summer months overseas, safe in the knowledge that their beloved
homes are secure in their absence.
“In fact, Milnerton is one of the Western Cape’s fastest growing
towns, boasting an infrastructure to support this growth. Sunset Links Golf
Estate is within easy reach of a plethora of good schools, private clinics,
Cape Town International Airport, Canal Walk Mall, and a wide variety of nearby
restaurants, coffee shops and boutique stores. Cape Town city centre and the
V&A Waterfront are a mere 15 minutes away – affording residents on
this estate the best of both a quiet seaside lifestyle, with all the benefits
of living close to a bustling city.”
Golf estates have been a popular property option since the concept first launched
years ago, says Adrian Goslett, CEO of RE/MAX of Southern Africa. “Properties
situated within golf estates around the country have retained their value due
to the security benefits and lifestyle they offer.”
A successful development on all levels, Sunset Links Golf Estate has a proven
track record of offering owners an excellent return on their investment, superb
value given its position, access to a sought after and secure lifestyle, and
it offers tremendous growth potential. “Sunset Links Golf Estate is the
perfect balance between an excellent investment and the ultimate lifestyle.
With all of the homes within the estate complete and no further land available
for development, now is the time to invest,” Leslie concludes.
For more information, contact Jeanne Thompson from RE/MAX Property Associates
on 082 924 5899 or 021 521 3100.
FeedBack (0)
25 February 2011, 15:43:09
Towards the end of 2010, Bill Rawson, Chairman of Rawson Properties, said in
an off-the-cuff comment that he could think of no better place for a South African
with limited knowledge of world markets to invest in property right now than
in South Africa itself.
“All the Western and most of the Middle Eastern property markets have
been hard hit by the downturn. It is only in Asia, India and the Far East that
property right now remains a favoured investment channel - but it goes without
saying that there are large unknowns and incalculable risks in going this far
afield.”
Rawson has now just returned from a four week trip to the USA - and this has
confirmed his negative feelings about investing in their property at the moment.
“I was asked by certain South Africans to check whether the rather gloomy
figures coming back to us were warranted or not. Now that I have been to the
USA I am fairly sure that it will pay to wait a year or two before moving into
their residential property sector. The new R4 million per person per annum foreign
investment allowance does open exciting prospects for diversification - but
any step in this direction should be taken with great care as an overseas investment
always carries a higher risk than a local one.”
In the course of his visit, Rawson went to two states - but in both, he said,
he found the same scenario: homeowners and home investors had given their title
deeds back to the bank and walked away, accepting their losses.
“This, of course, would not be possible in South Africa, but, possibly
because the government is behind some of the biggest housing financiers, this
behaviour is seen as acceptable in the USA.”
This type of action, said Rawson, had resulted in the drop of US residential
property values, often being as high as 50%. Second homes and investments in
the leisure market had been among the hardest hit, although in Hawaii the drop-off
in values had been only 20%.
“In the case of the leisure market,” he said, “I was surprised
to find that most of the fractional ownership, time share and outright buy-to-rent
holiday accommodation buyers had from the outset expected no real return. People,
it seems, had been prepared to buy simply to secure ‘free’ accommodation
once a year, with the management company sometimes taking 60% to 70% of the
rents just for looking after the property and the rest going in rates, taxes,
levies and maintenance.”
Although there had been a big decline in tourism, said Rawson, the major shopping
malls in the holiday areas, especially those in Hawaii, are still thriving,
catering very often for Far Eastern, particularly Japanese, and Australian tourists.
These centres, he said, are ultra-sophisticated and way ahead of what we can
offer in South Africa, “excellent though many of our big retail complexes
now are”.
Asked if, as in South Africa, residential rentals had not improved as a result
of the drop in homeownership, Rawson said that it appeared that they had, but
this had not yet boosted the buy-to-rent demand partly because, again as in
South Africa, the costs of rates and services were also rising.
“As is happening here,” he said, “they are hitting the survivors
in the affluent areas to help keep their systems afloat. I was surprised to
learn that a significant number of municipalities are now technically bankrupt
and have had to cut back on services accepted previously as every householder’s
right.”
Obviously, added Rawson, the big question being asked is, “How long will
this state-of-affairs last?”
“I have no clear answer to that question” he said. “All that
one can say is that a full-scale recovery will not be seen this year and possibly
not in 2012 either. It is just possible, that although the US economy is still
five times as big as that of China, its government will never again be able
to call the economic shots - and its housing market could remain in the doldrums
for another three years. It will certainly take the banks and the large number
of distressed home sellers that long to sell off the exceptionally large stock
which is now waiting, and often waiting in vain, for owners.”
FeedBack (3)
18 February 2011, 12:30:53
Although verbal agreements can be – and often are – binding in SA
law, where property is concerned every agreement and condition has to be in
writing (or in 21st Century terminology, in print with signatures).
Anton du Plessis, CEO of Vineyard Estates, said that he has in his 24 years
in property seen several agreements fall apart for the simple reason that those
who made them had not confirmed certain details and key aspects of the agreement
in writing.
“In most cases,” said du Plessis, “the consequences have not
been too serious but in a recent High Court case they were nothing short of
disastrous.”
In this case, said du Plessis, an elderly couple whose daughter had married
a suitor sold their home to that suitor on condition that they would be allowed
to live in it for the rest of their lives. This agreement was verbal and not
put in writing.
Then, however, the daughter’s marriage failed, relations became strained
and the son-in-law refused to honour the agreement and demanded rent or departure.
The judge, while expressing sympathy with the parents-in-law, indicated that
he had no power other than to abide by the sale agreement which made no mention
of the old couple’s right to live in the home. The judge said, too, that
such ancillary agreements had to be registered against the property’s title
deeds to be enforceable. Had that been done the agreement would have stood up
“against all the world, including any later owners of the property”.
FeedBack (0)
18 February 2011, 12:30:28
The legal term usufruct is used to define a state in which an individual has the
right to occupy a property even though he or she does not own it. To be legally
binding a usufruct must be registered against the title deeds.
Usufruct, says Rob Lawrence, national manager of the bond origination service,
Rawson Finance, is most commonly used when a married person (in most cases the
husband) leaves a home to his children on condition that his spouse is allowed
to live there for the remainder of her life.
This can be a wise provision, says Lawrence, because it eliminates the need
to transfer the property twice – first to the spouse, and then, when she
dies, to the children – and it secures the latter’s inheritance because
the widow cannot sell the property.
But, Lawrence points out, a usufruct arrangement can lead to problems if the
user has insufficient funds – or is unwilling – to maintain the property
properly.
“Regrettably,” said Lawrence, “there have been cases in which
the surviving spouse, who may often be a second wife, has very little income
of her own and cannot afford the maintenance costs of the property, the rates,
levies and other costs. Sometimes also she finds herself in an unsatisfactory
relationship with the children/heirs. This does happen quite often – especially
if the heirs are her stepchildren.
“In that situation, there may be little or no motivation to maintain the
home – and the children may avoid stepping in to help in this matter, even
though it would pay them to maintain their property. This all-too-common backing
off can in a space of five to ten years result in the entire house losing much
of its value.”
The children/heirs may decide to sell the house – but as the usufruct
is registered against the title deeds, they cannot do so unless the buyer is
prepared to honour the usufruct, which happens only very rarely.
Lawrence says that anyone going the usufruct route, should leave enough money,
possibly in a separate account, to ensure that the property is maintained. The
donor might also consider authorising an independent person to initiate and
supervise maintenance.
The heirs can, however, consider buying the occupant out – i.e. paying
her an agreed sum to relinquish her usufruct.
In a few cases, added Lawrence, the usufruct beneficiary will voluntarily give
up the right to occupy – but this is seldom as satisfactory as being paid
to relinquish it.
“It must always be remembered that a usufruct is registered at the Deeds
Office against the title deed, so no transactions can take place on that property
without due consideration given to this usufruct.”
FeedBack (0)
15 February 2011, 08:18:38
When buyers are struggling to raise finance for a bond to purchase a home,
one of the most powerful “tools” at their disposal is a suretyship
or guarantee. If a borrower can get a well resourced individual or company to
stand surety for the loan he is likely to be given it.
The danger here, says Anton Du Plessis , CEO of Vineyard Estates, is that the
person standing surety may see himself as simply complying with banks’
red tape and may not see his signature as having much consequence.
If and when things later go wrong with the borrower’s financial position
and the bank calls up the loan, the suretyship guarantor and may well feel “cheated”
and try to duck out of his obligations.
Du Plessis has drawn attention to a recent High Court case in which ABSA sued
a private individual who had stood surety on two fish retail outlets in Edenvale,
Johannesburg.
The defendant, Groenewald, claimed that he was not liable for the money owed
(a) because the letter of demand had initially had been sent to the wrong address
and (b) because he was expected to sign as surety for the increase on an outstanding
bond to a development trust which had an undefined relationship with the fish
business – but he had never agreed to the fish business going into overdraft.
He had, he said, made it clear to ABSA that he could not afford any further
debt.
The court, however, ruled that they had to abide by the wording and conditions
of the originally signed suretyship, agreements in property always in the end
having to rely purely on written and signed documents. No possible verbal statements
could, ruled the court, be accepted as altering a signed agreement.
FeedBack (0)
15 February 2011, 08:17:44
There has always been a tendency among South Africans, especially those who
have achieved success in the business world to believe that they are capable
of handling property transactions on their own. They are inclined to think that
a perusal of the business media and talks to friends have somehow qualified
them as experts in property matters. All too often, says Anton du Plessis, this
is not the case and this attitude leads to serious mistakes.
“When I advise clients that they must be guided by an estate agent, there
will always be a few who believe that I am saying this to protect my position.
This scepticism is, however, not justified. Many incidents have in my career
shown that the average SA citizen needs guidance in his property deals.”
Clients coming to property from other fields, said du Plessis, almost invariably
lack the knowledge of property law and property finance (and the nuances and
conditions surrounding these matters) of which an experienced agent will be
aware.
What should the client do, however, if he has doubts about the agent’s
competence?
“In the case of a seller, it is prudent to send all written documentation
(including all offers made for the house) to an attorney, preferably the one
chosen to act as the conveyancer on the deal. The conveyancer will usually welcome
this, as it is far easier to adjust an offer before the seller signs than to
spend valuable time sorting out a dispute arising out of a faulty contract.”
In most cases, said du Plessis, buyers have recently sold or are selling their
homes, and should already have a relationship with their conveyancer who can
then be asked to check the new deal.
“Only rarely is an offer so urgent that it cannot be vetted by a conveyancer.
Most conveyancers will make themselves or a partner available at short notice
if required to do so.”
Should an offer go through without being checked by an attorney, the bidder
will have to accept that it may be very difficult to alter the offer’s
conditions after it has been submitted – and even more difficult after
it has been accepted.
“Similarly, the seller, once he has accepted an offer, is at the mercy
of the buyer, who may or may not allow changes.”
What are the factors in property documentation that can lead to problems?
Du Plessis said that a lack of accuracy or definition, vagueness and ambiguity
are the main reason for contracts becoming “voidable”.
“I have recently seen a deed of sale where transfer was listed as 1 March
2011, and the buyer had until 29 February 2011 to sell his house. Clearly, no
attorney in his right mind would initiate the transfer process until the suspensive
condition of the buyer’s sale has been concluded. While this would not
necessarily cause the sale to be cancelled, it clearly created a false expectation
in the seller’s mind. In 2010 there was a R10 million sale on which the
buyer reneged, but got away with it because the agent had not written the seller’s
first names and surname on the deed of sale. (The parties to the agreement must
be clearly identified.) Even the best agents may occasionally make a typographical
error – although this is generally not grounds to cancel a sale if it is
obvious that it was an error. For example, if an erf number is written incorrectly,
as long as there is no confusion as to which property the buyer is making an
offer on, it should not pose a problem. It would however be problematic where
one is buying a vacant erf in a large development.
“I have also seen clauses which lack completeness: for example, the seller
might agree to have the roof inspected by an expert but does not say who will
be responsible for repairs if the expert finds faults.” (Du Plessis has
his own “formula” for this situation and usually alters agreements
in line with it.)
Errors or omissions, said du Plessis, lead to frustration, anxiety, delays
– and quite often to the cancellation of the deal and in most cases they
would have been completely avoidable if the error or omission had been picked
up before the agreement was accepted..
But, he warns, sellers or buyers should not allow a pedantic attorney to insist
on minor alterations in what is otherwise an excellent offer to purchase.
“When presented with a clean cash, binding offer, it is unwise to alter
an agreement over a relatively small item – e.g. a second hand fridge.
If one does, your alteration becomes a counteroffer to the buyer and if he does
not accept the change, the deal can be terminated. There are many occasions
where a buyer makes a clean offer, but when the excitement of making the offer
dies down, he gets ‘ buyer’s remorse’. This often happens quite
often but the sale goes through because the buyer is contractually bound. However,
if he is given an opportunity to rethink, it is possible that he will change
his mind.
“The involvement of a good agent should be a safeguard against pitfalls
of this kind – so check your agent’s reputation with the Institute
of Estate Agents and if he or she is not a member, or is a member with disciplinary
hearings pending, treat that as grounds for caution.”
FeedBack (0)
10 February 2011, 16:38:19
Mauritian real estate remains a great investments choice, says Adrian Goslett,
CEO of RE/MAX of Southern Africa: “Part of the SADC region, Mauritius boasts
a strong and diversified economy that offers a number of fiscal benefits, including
a flat corporate and personal tax rate of 15%, the absence of inheritance and
capital gains tax, no foreign exchange controls, trade barriers or quotas, and
no restrictions on capital repatriation.”
He explains that over and above these benefits, Mauritius is a politically
and economically stable country, with a strong financial and off-shore sector,
modern and reliable IT and telecommunications infrastructure, and a comprehensive
legal framework, which makes it ideal for long-term investment.
Recently, RE/MAX Properties in Mauritius was given the mandate to sell commercial
and retail space in Kinoo Square, a well positioned and imaginative commercial
development in the best located and busiest part of the island’s capital
city of Port Louis.
Daniel Poupinel and Dominique Le Clezio, joint Broker/Owners of RE/MAX Properties
in Mauritius say they are pleased to have been awarded the mandate to sell Kinoo
Square, which is located opposite La Gare du Nord – on the corner of Farquare
and Joseph Riviere Streets in Port Louis. “Situated opposite the La Gare
du Nord Bus Station, the locale links the northern areas to the capital city.
The site lies within the protected area of the Aapavasi Ghat World Heritage
Trust Fund and is placed relatively close to China Town, the Central Market
and the Caudan Waterfront.
“Kinoo Square is completely transforming the area by offering investors
modern and secure shopping units with cutting edge amenities to meet market
demand, in an exceptionally convenient and well positioned area,” they
say. Kinoo Square comprises 82 commercial and retail sectional title units in
total. The size of the average unit starts at 11m² and goes up to 71m²,
and they can be sold as either separate or multiple modules.
The price of the units starts at MUR 3-million, but varies depending on the
size of the unit in question, as well as its locale. “The developer is
a well respected and seasoned Mauritian businessman who has successfully completed
and sold the first phases of this development: All 21 units in phase one have
already been sold and phase two seems to be quickly following suit. Out of the
82 units in phase two, 25% have already been sold as from December 2010. The
units have proven to be exceptionally popular due to their excellent location
and modern aesthetics – in fact, the developer, who is also involved in
the textile trade, has kept one of the units as a retail outlet and his head
office for the textile arm of his business,” says Poupinel and Le Clezio.
Since these units offer an exceptionally attractive return on investment, Poupinel
and Le Clezio say that investors are snapping them up quickly. “Generally,
investors so far have mainly been individuals who are involved in retail and
trade, such as book dealers, textile businesses, fashion and shoe retailers,
jewellery and accessory outlets, sport equipment retailers, and so on. The development
also boasts a healthy cross-section of lifestyle type businesses to ensure good
foot traffic and passersby, including beauty salons and spas, pharmacies, art
galleries, jewellers, restaurants and libraries. Of the 82 units that are up
for sale, a well proportioned food court with an adjoining seating area has
been included into the design.”
Set for completion and ready for occupation in August 2012, the project is
headed by a team of professionals operating in the built environment. The development
boasts GFA status (Guarantie de future achevement), which offers investors peace
of mind that Kinoo Square will be completed to specifications on time.
Say Poupinel and Le Clezio: “All the permits have been approved and the
work is currently underway according to the stipulated schedules to ensure that
the project meets its deadlines.”
FeedBack (1)
10 February 2011, 16:37:20
The International Certified Distressed Property Expert Professional Designation
(CDPE) course was launched exclusively to RE/MAX Broker/ Owners and Sales Associates
in January this year. The license to Designate agents in South Africa was obtained
from the Distressed Property Institute LLC which has been offering the Designation
in USA and Canada for the last three years and is widely recognised as the leader
in its field.
The course focuses on the options and alternatives that professionally trained
agents can offer homeowners who have found themselves in a distressed situation.
The primary objective for the professional agent is to find a way to assist
the homeowner to keep their home. This is also the primary goal for the financial
institutions.
To date, over 300 RE/MAX agents in South Africa have attended the course and
are now Certified Distressed Property Experts.
Peter Gilmour, Chairman of RE/MAX of Southern Africa, who also heads up the
specialised Distressed Property Division of the company, says that currently
there are more than 120 000 families in distressed situations in South Africa
and this number is growing every month. "With these numbers being a reality,
a significant proportion of these distressed properties need to be sold to reduce
the debt of the financial institutions. "
The introduction of the CDPE course exclusively to RE/MAX agents comes in light
of the mass of distressed residential properties that hit the market last year.
Gilmour says that distressed sellers are everywhere and no market is excluded.
"It is anticipated that more than 30% of all property sales over the next
three years could be distressed properties. It is therefore imperative that
RE/MAX agents are prepared and well equipped to service this market. The CDPE
designation will set our agents apart from the industry and customers can easily
identify a CDPE agent to assist them in a distressed situation."
At the end of September last year, credit bureaus had records for 18.35 million
credit-active consumers, of which 53,7% were classified as in good standing,
according to the National Credit Regulator's report. The report notes that this
was an improvement from the previous quarter and in fact, is the first improvement
in consumers' credit reports since December 2007. However, there are still 8,49
million consumers with impaired credit records.
In light of these figures and in line with predictions that more distressed
properties will hit the market during the course of the next three years, Gilmour
says the time has come for real estate agents to lead the housing market into
recovery by providing solutions for homeowners in need. "There are unfortunately
too many homeowners who are unable to service their home loan debt that don't
make use of the assistance or advice that real estate professionals can offer.
Real estate professionals with the Certified Distressed Property Expert (CDPE)
Designation have been trained extensively to understand the options, solutions,
and effective methods for dealing with homeowners facing hardships," he
says.
Gilmour explains that a Certified Distressed Property Expert is a real estate
professional with specific understanding of the complex issues confronting the
real estate industry, and the options available to homeowners in order to avoid
their property being repossessed by the financial institution that holds the
bond.
"While dealing with financial challenges is a hardship for any family,
finding a qualified real estate professional that can assist you in selling
your home for a market-related price before your financial troubles get to such
a point that your property could be repossessed should not be," says Gilmour.
"Therefore, the introduction of the CDPE Course has created much excitement
in the marketplace and those receiving CDPE designations in South Africa will
join over 30 000 agents in North America who have benefited from the information
and knowledge gleaned from the course," he concludes.
FeedBack (3)
10 February 2011, 16:28:24
 Asrin
Property Developers Director, Shiraaz Hassan, promised towards the end of 2010
that the new year would see the company launching new projects "ahead of
the pack". At the time, he said, Asrin had been steadily working on preparing
these for the market and would soon be ready to release them.
Sure enough, this week Hassan revealed a campaign to launch 83 affordable yet
upmarket apartments at Big Bay - where the company was co-developer (and principal
contractors) on the R600m Eden-On-The-Bay mixed use project. The affordable
prices of the new offering, says Hassan, will make the project unique. The new
development has been given the name "Azure" in recognition of the
clear blue colour of the sky that in this area is seen 320 days a year.
The apartments now on offer will be sited just behind Eden-On-The-Bay and will
therefore be one of 13 or 14 elite projects benefiting from being below Beach
Road and within an easy walk of the beach and the shops of the Eden-On-The-Bay
retail sector. The ground behind this sector slopes upwards, enabling most purchasers
at Azure to enjoy sea views of Table Bay and Table Mountain.
Azure will comprise of one, two and three bedroom apartments, varying in size
from 40m² to over 100m². These will be in a superstructure three stories
high - with a large, secure parking basement of the kind that already serves
Eden-On-The-Bay. The finishes, says Hassan, will be in most ways similar to
those of Eden-On-The-Bay but the prices will be exceptionally competitive.
"If buyers do not respond fast to this opportunity, it will simply be
because they have not understood the value offered. Never before has a project
so close to the beach at Big Bay been priced so reasonably."
The units are selling from R850 000 including VAT and transfer costs. Even
the most expensive penthouse suites will, therefore, be priced close to R2 million.
Hassan said that Azure, on which construction will start by mid 2011, will
come on stream some two years later, (occupation is scheduled for late 2012).
Ground floor units will have gardens and wooden decks, and the centre courtyards
within the development will create attractive internal out-of-the-wind landscaped
spaces including a swimming pool and communal social centre courtyard. Top floor
units will have domed roofs.
Access to the complex will be strictly controlled and it will be protected
by state of the art security, common boundary walls and electronic gates.
Hassan predicted that current market prices in the village lead him to think
that by the time buyers take transfer at the end of 2012, values at Azure will
have already escalated by at least up to 20%.
"The Big Bay precinct has become so popular and so 'in' socially that
it is already has great panache. As we see it, this can only increase now because
land for development in the Eden-On-The-Bay precinct is now all but taken up."
For sales information contact Emarie Campbell on 021 557 1115 or 083 601 0822.
FeedBack (0)
10 February 2011, 16:27:46
 A
dire shortage of land within the municipal boundary and strict rules regarding
the demolition of existing older homes have ensured that new property developments
at Stellenbosch have always lagged well behind the strong demand for accommodation
here. As a result many of those studying or working in the town have had to
live elsewhere.
Now, however, Asrin Property Developers are about to launch a residential estate,
Nuutgevonden, that is both more ambitious and more affordable than most seen
in Stellenbosch in the last decade or longer.
Asrin have acquired a 6,2ha site on the corners the R304 and Welgevonden Link
Road. The land lies next to the popular and prestigious Welgevonden Residential
Estate. Here Asrin will, this February, launch a development with 194 opportunities
in six separate sections.
These are:
· 141 sectional title apartments in three-storey blocks, with a mono-pitched
roof and a secure parking basement;
· 54 single residential homes in attractive, modern, Cape farmhouse
styles, which complement the design aesthetics that prevail in Stellenbosch.
The two bedroom apartments will have 1½ bathrooms and will measure 60m².
The envisaged launch price will be from R599 000, including VAT and transfer
costs while the three bedroom single residential components will be selling
from R849 900, also including VAT and transfer costs.
Hassan said that Asrin expect the communal facilities to be one of the big
selling points of the project. They are providing two play parks for children
measuring approximately 1 000m², walking trails within the 6,2 hectare
site, a large communal swimming pool, clubhouse and an alfresco braai area.
All open ground will be generously landscaped while initial gardens will be
developed for the freestanding homes.
At the prices offered, said Hassan, purchasers, whether downscaling or upgrading,
will find the development well suited to their needs, as will investors wanting
to purchase for student accommodation.
“One of the important aspects of this project is that it is approx. 2km
from the University of Stellenbosch,” he said.
The site’s panoramic view of Mt. Simon, added Hassan, is one of its most
attractive selling points.
The development is also very convenient traffic-wise, it offers quick easy
access to the R304 provincial road.
First handovers are scheduled to take place by November 2011 and, if the demand
is as good as expected, Hassan expects that a total sellout will be achieved
by early 2012.
For further information contact Ling Majiet or Rehana Moosa on 021 713 3012
FeedBack (3)
04 February 2011, 08:16:15
The recent revelation that the CEO of a national estate agency may have been
able to use substantial trust deposits for purposes other than those intended
by the depositors, has sparked a debate in the real estate sector as to whether
any estate agency should be allowed to operate a trust account on behalf of
clients.
Discussing this, Sean McCauley, Rawson Properties’ director (based in
Johannesburg) said that he cannot see why estate agencies should be allowed
to be in control of client trust deposits.
“In our group,” he said, “the sale agreement specifically states
that we do not hold deposit monies on behalf of clients – we advise putting
deposits in the conveyancing attorney’s trust account – but it has
to be admitted that attorneys’ trust accounts have on occasion also been
abused. It is time, therefore, that the whole system was reviewed.”
Certain options, said McCauley, are open to those who do need a trust account.
In the case of estate agents, he said, the best safeguard would be to stipulate
that when the money is deposited, the client has to be given immediate proof
of this – and that no money should ever be released from a trust account
without both the client’s and attorney’s signatures.
Another option is that of getting a bank guarantee for the full payment due
to the seller on transfer of the property. This could eliminate the need for
deposits.
“The estate agency sector has tightened up its controls very noticeably
in the last few years. If the trust fund system was phased out it would, in
my view, be another step forward,” said McCauley. “At a time when
vastly improved qualifying criteria are set to transform the image of estate
agencies, we must not have our image destroyed by financial misconduct.”
FeedBack (2)
04 February 2011, 08:15:15
Paul Henry, managing director of Rawson Developers, has criticised the National
Home Builders’ Registration Council (NHBRC) for failing to protect the
very people it was originally set up to help most, those buying into low-cost
units.
“The NHBRC, which came into existence some 15 years ago, is responsible
for “policing” home builders to ensure that poor quality construction
is eliminated. In return for a 1,3% fee levied on the total cost of the house
and its land, they inspect the home at specified stages during the construction
and, if satisfied on completion, provide structural insurance and a five-year
warranty on the house. To qualify for this, the builder has to be a member of
the NHBRC and to pay his levies on time.
“If the builder does not register with the NHBRC, no buyer of the home
will be able to get a bond until it has stood for five years. Even owner builders
should, therefore, enrol with the NHBRC.”
These rulings, said Henry, give great power to the NHBRC. Should an inspector
detect poor workmanship, he will issue a “non-compliance” certificate
which obliges the builder to remedy the problem within 48 hours, failing which
he will be issued with a “cease work” order.
“This system is basically sound and has raised standards among SA builders,”
says Henry, “but the NHBRC failed to insist that they must be involved
on all low-cost housing and – with the result that 3 000 homes are now
having to be demolished or repaired.
“Sipho Mashinini, Chief Executive of the NHBRC, said that he holds the
State responsible for the non registration and that changes in the NHBRC’s
mandate will be made to improve the situation – but no radical changes
are in fact required: it is already agreed that all low cost housing builders
should be NHBRC members.
“The truth is that the Council turned a blind eye to the activities in
the low cost sector and let them continue without interference. Now, inevitably,
SA is paying a high price for the shoddy workmanship allowed in so many contracts.”
What makes the situation particularly frustrating, said Henry, is that the
NHBRC has focused on monitoring established recognised builders and developers
who by and large employ qualified architects and engineers who already have
professional insurers able to pay up in the event of any serious failures –
and who, therefore do not need the NHBRC Insurance.
“The impression given is that the NHBRC is concerned only with those high
value contracts where their fee will be large and the inspection task a matter
of routine. The sector most in need of protection and most likely to engage
unqualified builders has been overlooked.”
Also frustrating, said Henry, is the fact that although the NHBRC is now “sitting
on” a fund “the size of which is not disclosed but which it is said
now runs into billions”, the actual number of structural failure payouts
has been minimal.
“When a claim is made by the owner of a home or his bond issuer, the NHBRC
is mandated to put pressure on the builder to rectify the matter. In practice
this has often had little effect because certain builders will close down their
operations and restart under another name. Some will do only minor repairs and
string the NHBRC along. Others will simply disappear. I would guess that less
than 10% of claims have been paid.”
In previous statements Henry has already said that the standard of workmanship
by many start-up companies handling provincial and municipal housing leaves
much to be desired.
“It is these companies which the NHBRC should have been disciplining.
In failing to insist on this they have betrayed the poor and let us all down.”
FeedBack (1)
04 February 2011, 08:14:57
South Africans are not known as a nation of savers, in fact more often than
not the opposite is true. Statistics show that the majority of adults in this
country do not think or plan ahead financially.
Adrian Goslett, the CEO of RE/MAX of Southern Africa says that saving can and
should become a way of life. “Large numbers of South Africans received
a wake-up call when the National Credit Act was introduced in 2007. Before government
clamped down on irresponsible lending practices, it was easy to secure credit
for just about any purchase, big or small, with little or no deposit. These
days’ banks take a far-closer look at an applicant’s finances, obtain
an overall picture of the credit history, the total amount of credit that is
outstanding as well as the lenders ability to pay debt back. Banks have also
increased the amount of the deposit required to secure larger amounts of money,
including bonds or vehicle finance, although this is once again dropping.”
He says that in many ways the recession exposed our weaknesses and highlighted
the importance of having a household ‘slush fund’. Those who had spare
cash in the bank were, in many instances, able to keep the wolf from the door,
while those that were swamped by debt didn’t.
With this is mind, Goslett says that it is now more important than ever for
those planning to invest in property to get finances under control and implement
a budget, before they buy property. There are a number of ways consumers can
cut back on living expenses and areas that should be looked at include:
§ Writing out and sticking to a budget
§ Eating out less
§ Shopping around for the best prices
§ Paying cash wherever possible
§ Reviewing insurance policies and medical aids to ensure you are getting
the best deal available
§ Saving on electricity and water costs
§ Curtailing unnecessary purchases and debt
§ Draw up a savings plan, decide how much you want to save on a monthly
basis and stick to it
Managing debt has become one of the most important aspects of life in South
Africa. It has been estimated that seven million South Africans are struggling
to pay off their debts and it was recently stated that over 52% of South Africans
have a bad credit rating. “These figures are alarming, given that the banks
have taken a far stricter approach to credit and will not extend finance to
anyone whose financial history is not squeaky clean,” says Goslett.
The ratio of household debt to disposable income has proved to be the biggest
stumbling block facing those who are trying to raise finance. Simply put, many
South Africans are still struggling to get to grips with their outstanding debt.
“On the other hand,” he says, “individuals who have money set
aside for a deposit are finding it easier to buy the house of their choice and
are taking advantage of the good deals currently available. It is distressing
to note that while the current market conditions are ideal for investing, many
are unable to invest, simply because they have failed to get their financial
house in order over the last few years.”
While this advice may not be the be-all and end-all of money management as
what works for some, doesn’t for others, but it certainly is a good starting
point for a year that is successful financially.
FeedBack (0)
31 January 2011, 11:05:25
Examined critically, right now buying to rent in Cape Town’s southern suburbs
does not appear to be a great investment opportunity – but some experienced,
shrewd buyers have been buying steadily for exactly that purpose.
Seeking to explain this, Anton du Plessis, CEO of Vineyard Estates, which is
headquartered in Upper Claremont, said that during the boom years of 2003 to
2007 he had sold numerous expensive Upper Claremont, Upper Kenilworth, Bishopscourt,
Upper Rondebosch and Newlands homes to buyers who at that time were getting
up to 34% annual appreciation on their investment.
“Even then the rentals were never that high (often they gave returns of
less than 6%) but with annual appreciation at such incredible levels that hardly
mattered,” said du Plessis.
Now, however, he says, property owners are likely to achieve only 4 to 5% annual
appreciation on anything they buy in the next 12 months – and achieve negligible
capital growth. So why are they buying?
“On the face of it, it is not wise to buy at today’s market prices.
However, if you are able to get a property at 10, 15 or 20% discount, obviously
the whole outlook changes – and such properties have been available as
a result of the largest bank property repossession programme ever seen in South
Africa’s history. Buying at a discount, shrewd buyers are “building
in”capital appreciation for when the market consolidates.”
These buyers, said du Plessis, expect to see the plethora of repossessed homes
dry up by the end of 2012, after which they will either continue to get rentals
at up to 10% return on their initial investment) or they will sell at a true
market related price, plus two years escalation, achieving perhaps a 20 to 25%
total return on their capital outlay over two years.
Just how difficult it can be for a buy-to-rent investor buying at normal prices
in today’s market was shown by du Plessis, taking a R3 million home in
Upper Claremont as an example.
“Buying this R3 million home,” he said, “would involve paying
upfront R220 000 in transfer duties and bond costs, the size of the latter obviously
depending on how big a bond is taken. (For the sake of this exercise a 100%
bond is assumed.) Thereafter each month the buyer would have to find at least
another R1 000 to cover the rates owing to the municipality and a further R1
000 minimum for maintenance and repairs. This last figure might sound high but
bear in mind that a repaint every three years can cost at least R15 000 and
there would almost certainly be other unforeseen expenses which would have to
be met.
“If the home was in a security village, the levy might add a further R800
to the monthly outlay. On top of these figures, the buyer would still have to
find R500 (or more) per month for insurance. In addition, most investors would
require an agent to find and/or manage the tenant – this would absorb another
R1 300 (at least) of the rental income.
These outlays, although varying from house to house and from owner to owner,
might, said du Plessis, total R5 000 per month.
What would the owner be getting back in rental?
“Bear in mind that the more expensive the home, the lower the return in
relation to the investment. Certain homes in the R20 million bracket are only
achieving gross rentals of R50 000 per month, but on our R3 million example,
one can assume a gross rental of around R15 000 per month which equates to less
than 6% on the outlay (including transfer costs). This of course assumes that
the buyer achieves an unbroken tenancy, with no gaps between leases whilst he
tries to find another tenant.
“Summing up, therefore, at present buy to rent investors have to find
bargains if they are to remain in this market.”
That, said du Plessis, may seem like bad news – but currently, there are
really good deals to be had, especially at ±R8 million. Even better deals
are available in the R10 to R20 million bracket and “spectacular”
deals are now achievable on homes above R20 million.
“Shrewd buy-to-rent investors will, therefore, continue to be active in
Cape Town and, you can take my word for it, they are achieving killings for
which they – or their heirs – five, ten or fifteen years down the
line will be extremely grateful.”
The Cape Town market, said du Plessis, has always performed above average for
South Africa and fluctuated far less than properties further to the north.
“The very simple, easily understood reason for this,” he said, “is
that space in the more desirable areas of the Cape Peninsula has been for years
been in short supply and will become increasingly limited. You simply cannot
bulldoze away a 50km mountain or cover it in houses, because most of it is a
national park. This fact ensures that Cape Town will not only retain its values
but also its enduring charm and attraction which impresses so many people from
all round the world.”
FeedBack (0)
28 January 2011, 09:16:17
Despite predictions for a very slow and steady growth of between 3% and 5%
for the South African property market overall during 2010, RE/MAX of Southern
Africa reported a 37% growth on registered sales compared to its 2009 figures.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while market experts
were cautiously optimistic that property sales volumes and values would pick
up during 2010, it is encouraging to see that our sales results have exceeded
the anticipated national growth figures. He says December was the best month
of the year in terms of registrations.
Looking at each of the RE/MAX regions of operation, it is impressive to see
that every single one has shown an increase on registered sales. The highest
growth reported was in the central region of Gauteng which saw a 68% increase
on 2009’s registered sales. Next was the northern region which includes
Mpumalanga and Limpopo Provinces which achieved a 45% increase on 2009’s
registered sales. KwaZulu-Natal also performed well reflecting a 31% increase
on its 2009 figures, while the Eastern Cape saw a 17% increase. The Western
Cape achieved 14% increase while regions outside of South Africa, such as Mauritius,
Namibia and Mozambique, achieved a collective 11% increase.
Looking at the leisure property market, Goslett notes that while there has
been increased activity along the coastal areas, he says that sales in the leisure
property market generally lag behind the traditional market. “Added to
this, sales in the leisure market generally occur mainly in February and March,
which means that only time will tell to what extent this market has improved,
if at all.”
Aside from sales figures, RE/MAX of Southern Africa grew in office and agent
numbers too, with 18 new franchises sold during 2010, 558 new agents joining
the brand and 117 agents returning to work under the RE/MAX banner. Goslett
reports RE/MAX agent productivity also saw an increase of 40% during 2010, which
he attributes to the US-based Buffini training course offered exclusively by
the RE/MAX group to its agents. Goslett says that this courses was introduced
specifically to help agents better manage their client relationships.
Says Goslett: “Numerous factors have influenced the year-on-year growth,
mainly the low interest rates that have aided consumers in reducing their high
levels of debt. The interest rate outlook for 2011 is stable which will certainly
add to the appeal of property ownership in the near future.”
RE/MAX of Southern Africa is geared for another year of solid growth in property
sales as well as franchise and agent growth. To date, four new RE/MAX franchises
have already been sold in the first week of business this year.
Talking about the year ahead, Goslett anticipates that demand for property
will remain at much the same levels as the second half of 2010, meaning slow
and steady growth for the first half of 2011.
“It is expected that there will be some increase in property values in
the middle- to lower-end of the market, but the upper-end of the market is expected
to remain stable. General demand is likely to gain momentum in the second half
of the year,” Goslett concludes.
FeedBack (0)
28 January 2011, 09:14:53
Sales on the KwaZulu-Natal South Coast boomed in December. This is according
to Pat Symcox, Broker/Owner of RE/MAX Coast and Country who recently opened
a new office in Hibberdene, further expanding the successful RE/MAX Coast and
Country brand. The office operates in the areas between Hibberdene and Port
Shepstone.
Symcox says that the boom in sales along the South Coast was due to the fact
that those looking to invest in real estate have realised that real value exists
in property there, particularly those situated between Port Shepstone, Umtentweni
and Hibberdene. “This stretch of coastline has been a popular holiday spot
for many years, with Pumula Hotel one of the most popular resorts.”
The area has come into its own as a destination, and, although there is still
a large retirement contingent, the KwaZulu-Natal South Coast has become the
place to be for those looking for a more relaxed lifestyle. “The younger
generation, particularly those aged between 30 and 40 have become aware of the
importance of planning ahead and as a result many are investing in holiday homes
with a view to moving down permanently when they retire,” says Symcox.
He says investing in the area has a number of benefits including affordability.
As many buyers are looking for a unit to cater to their holiday needs, security
is important and for this reason, the lock-up-and-go option has proved to be
the most popular choice. Symcox says that a quality offering in a secure estate
is priced from R750 000. Full-title properties range in price from R850 000,
although anyone investing in a home in this price range will have to undertake
renovations. He says that full-title homes with a sea view that are situated
close to the beach have retained their value.
“There is no doubt that in monetary terms, the South Coast offers some
of the best value for coastal property in the country, particularly when compared
to the North Coast of KwaZulu-Natal. The region has felt the full brunt of the
slowdown in the property market and as such, there are still bargains to be
found.”
The situation will not last forever as Symcox reports that the number of sales
concluded over December alone surpassed the sales for the entire year. “This
stretch of coast is also one of the few areas in the country that boasts six
Blue Flag beaches and although a large amount of development took place in the
“boom years, the villages that dot the region have not affected the beauty
of the area. The beaches are clean, have shark nets and perhaps most importantly,
are largely unspoilt,” he says.
Another factor driving demand is the number of golf courses in the area. “Although
officially known as the Hibiscus Coast, the region with its 11 top golf courses
is affectionately known as the Golf Coast. Hibberdene is ideally situated within
a 45 minute drive from them all.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while the property
market is showing signs of recovery, buyers are still looking for those homes
that meet their requirements while offering value for money. Property on the
KwaZulu-Natal South Coast seems to meet these demands for a large number of
buyers looking for a retirement spot or a holiday home.
“The entire South Coast region enjoyed an extremely successful holiday
season in December. This coupled with the reasonable prices of property has
driven demand well beyond our expectations. Consumer confidence has returned
to the area, various projects are on the cards and once completed will fuel
demand for well-priced, quality property. The local market has turned the corner
and I fully expect a further upswing during the second half of 2011,” says
Symcox.
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28 January 2011, 09:12:31
Although South Africa has had to weather a serious global economic downturn,
the economy managed well – and one sector of the local property industry
has remained reasonably buoyant, says Michael Bauer, general manager of the
property management company IHFM and a contributor to a landlord forum, www.lessor.co.za.
The economic problems affected tenants just as much as homeowners and resulted
in more rent defaulters than previously – but they also caused a rise in
those wanting to rent rather than to buy because once the lending criteria of
the banks had been tightened up it became very difficult to buy.
At IHFM each month between four to eight units are being added to their existing
rental management portfolio, he said. On these the company is achieving less
than 2% defaulting payments each month.
“At the outset we conduct a tight tenant screening process, ask for at
least 1.5 times rental deposit and we demand automatic debit orders from tenants,”
said Bauer. “Then at the beginning of every month we are averaging 8% defaulters.
By the seventh day of that month we have usually, through good credit control,
reduced this to 4% and by the fifteenth day reduced this further to 2%.”
Landlords, said Bauer, tend to be resentful of paying extra costs for such
services as tenant finding, advertising and other upfront fees charged by letting
agents. IHFM, therefore, does not charge for these.
“We usually insist on 12% of the monthly rent being paid in commission.
Fees of 10% are charged by some agents,” said Bauer, “but in these
cases regular inspections are sometimes few and far between.”
Bauer said that any landlord or rental agent who is not able to use a national
credit checking network such as TPN is likely to find themselves in serious
trouble. After credit and background checks, he said, IHFM find it necessary
to reject some 30% of applicants. Landlords, he said, can ask to see the tenant
applications and credit reports for themselves and can approve or reject potential
tenants.
The traditional practice of telephoning the previous landlord for a reference,
said Bauer, can be unreliable because some landlords may say “almost anything”
to get rid of an unreliable non-paying tenant who, in some cases, has actually
been related to the landlord. Similarly, employers can be poor referees because
they may know nothing of their employees’ spending habits and can simply
confirm employment.
At IHFM, he said, they now insist on one and a half month’s rental deposit
paid upfront - but this can on occasions prove inadequate to cover the repair
work necessary when a tenant leaves.
An inspection with the tenant, possibly with photographs or a video, and the
compilation of a snag list prior to the tenants taking occupation is essential,
said Bauer, and should be repeated before the tenant leaves before the rent
deposit is refunded. Regular checks on the condition of the property are also
important.
Bauer said that trying to save on an agent’s fees is short-term thinking,
because the role of a good agent in selecting the right tenant, ensuring that
rentals are paid on time and protecting the property simply cannot be over-valued.
“Most landlords tend to forget that their time has value and a cost and
“self-management” is far more expensive than using a good agent,”
he said.
The selection of the right agents is equally important. Just as you would not
hire a divorce attorney to represent you at a criminal trial, so you should
not hire a selling agent to do the letting of your property.
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28 January 2011, 09:11:32
The difference between a well-run sectional title scheme in which the units
appreciate steadily in value and those schemes which are not functioning well
can often be seen on a first, short visit to the building, says Michael Bauer,
General Manager of IHFM, the sectional title management company (see Bauer’s
newsletter and blog on www.sectionaltitlesa.co.za).
“Poor maintenance will be evident even to the untrained eye,” says
Bauer. “When trustees are losing the ability to manage their members (and
collect levies from them) many of the units and the common property will tend
to build up a maintenance backlog and need a repaint, waterproofing or some
other improvement. As the property ages, the maintenance requirements and costs
will increase.
Faced with a deteriorating scheme, trustees, says Bauer, have to act decisively:
the Sectional Title Act empowers them to collect outstanding levies plus interest
from owners and compel the owners to maintain their units. Should an owner fail
to do so, trustees are entitled to do the repairs themselves and to recover
the cost from the member.
“Obviously in a poorly managed scheme that is on the downhill slope, carrying
out maintenance and recovering the costs can be difficult especially when there
is no cash flow and working capital,” says Bauer, “but trustees must
not shrink from doing this due to doubts about the timing and their ability
to recover the costs.”
The problems, he said, are often twofold: while facing problems from non-paying
members, the trustees may also be under pressure to keep levies down and avoid
increased debt.
Many trustees, said Bauer, do not realise that, although slow-moving, the legal
processes in these matters can be extremely effective and can bring about action
on the part of the member.”
Firm action, he added, gives an important signal to all members – and
lack of action will also be picked up by them as a sign that it is acceptable
to pay levies only as and when they can.
“It is essential to maintain financial disciplines on all schemes. When
this is done, they flourish. When neglected, they deteriorate.”
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28 January 2011, 09:10:27
In recent years, says Anton du Plessis, CEO of the Cape Peninsula estate agency,
Vineyard Estates, the average difference between the achieved price and the
asking price of homes in the southern suburbs has been ± 13 to 15%.
“This fact,” he said, “is often discussed. The danger is that
it can lead to all potential buyers automatically offering 15% less on every
offer they make – which could be a big mistake.”
The fact that the 15% is an average figure should, said du Plessis, make people
realise that some homes have sold at or close to their asking price while others
(usually hugely overpriced) have sold at 30% or more below the asking price.
“All sorts of intangible subtle factors can influence the bids on a home,”
said du Plessis, “and statistics are by no means hard and fast reliable
guidelines: for example, in the last six months, the “average” price
in Bishopscourt was R20 million – but on investigation it transpired that
only one house sale was put through the Deeds Office in that period - in fact,
in that suburb, it is commonplace for properties to come on the market in the
R30 millions and to sell in the early R20 millions.”
Then, too, said du Plessis, certain areas cover a wide range of housing: in
Claremont, for example, it is, he said, still possible to find apartments priced
under R500 000 but the precinct also has homes selling around the R 20 million
mark. Averages here can, therefore, be misleading.
“The difference between asking and achieved prices in Claremont in the
last six months is only 7% - this probably reflects the fact that sellers have
become more realistic with their asking prices – it does not yet indicate
a strengthening in the market.”
What will surprise many Cape Town southern suburbs property pundits analysing
the sales in Claremont, said du Plessis, is that in the segment over R6 million
the asking/achieved price difference recently has been only 5% while in the
under R3 million bracket it is again at 7%.
“The 5% figure,” said du Plessis, “possibly reflects the fact
that many upper bracket buyers can get bonds easier (as some are asking for
only 50 to 70% of the purchase price). Others are straight cash buyers who do
not need bonds. In the under R3 million market, many buyers are looking for
90% bonds, and are pushing the boundaries where it comes to qualifying for a
bond.
Most of Cape Town’s southern suburbs, said du Plessis, have always been
prime property and have traditionally resisted price falls strongly. While he
does not expect prices here to rise by more than 5 to 6% in 2011, he remains
adamant that in the long term the prime southern suburbs served by Vineyard
Estates – Upper Claremont, Upper Kenilworth, Rondebosch, Bishopscourt and
Constantia still rank among the top 10% best property buys in SA today.
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28 January 2011, 09:02:28
Those looking to buy a residential property are still waiting to find their dream
home, even though their budgets have shrunk. This is according to Gerrit Stenvert,
Broker/Owner of RE/MAX Outeniqua, which operates in the Garden Route town of George
and has properties listed in Herolds Bay, Victoria Bay, Glentana, Tergniet and
surrounding areas.
Stenvert believes that most people are not willing to let their dream home
go and settle for less. "Instead they will rather wait for the day when
their price range and their dream home are on the same level, and this is one
of the main reasons why the property market in George has slowed down over the
last two to three years."
But, he says, on the other hand investors here are becoming more and more active.
They are looking for below market value buys with above market value income,
therefore securing above average return on investment on the income and capital
growth. "These kinds of investment buyers have been successful in George
as this scenario makes a well-priced house with flat in an average area a polished
diamond due to the huge demand for residential rentals in the sub R5000 per
month market," he says.
Stenvert notes an increase in sales volumes in George towards the end of 2010.
"Serious sellers are negotiating downwards and a decline in prices has
occurred. The sub R800 000 market is moderately active but the market cools
off as prices increase to the higher levels. The residential property market
has been far more active than the commercial one and the industrial market is
still in a coma," he says.
According to Stenvert, housing in George ranges from affordable to very expensive
as its areas accommodate a diverse range of people. Therefore, he says that
while entry level housing has different meanings to different buyers, those
looking to purchase in George can expect to pay anywhere from R300 000 up to
as much as R1,3million for entry-level housing, depending on the area or suburb.
He reports that the market has been slow in the mid-level housing sector, which
ranges from R700 000 up to around the R1,8million mark. Homes in the upper price
brackets however, are quite common in George suburbs such as Campfers Drift,
Heatherlands, Glen Barry, Fern Ridge, Glenwood and Eden. Here prices range from
about R1,7million up to R8million plus, with the odd investment exception.
But even though sales have been on the slow side, RE/MAX Outeniqua recently
sold a house in Tergniet for R2,75million and two properties to one investor
in the past four months.
While he cautions that property is a long term investment, Adrian Goslett,
CEO of RE/MAX of Southern Africa, says that nationally property is only expected
to achieve a growth rate of around 3% for the year, but those properties that
are well situated and well priced have the potential to show better returns
in a shorter period of time.
Looking forward, Stenvert believes that depending on area and price, property
sales will be slow to moderate for the next 12 months in George and through
the rest of the Garden Route. However he says that some residential properties
here offer an exceptional return on investment that beats most commercial options
on risk and capital growth.
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05 January 2011, 08:34:09
These days, no self-respecting agent would think of trying to work without
a cellphone and similarly, almost all real estate companies these days have
a website, or at least a web presence.
But of course not all websites are created equal. Some, like the newly revamped
RealNet website, have been carefully designed and constructed not only to be
really user-friendly and easy to navigate, but also to achieve maximum worldwide
exposure through search engine optimisation (SEO).
The effect of this, explains ggroup mmarketing ssupport mmanager Piet Olivier,
is that the website has higher visibility on popular search engines such as
Google and so attracts more visitors. “This is evident from the huge jump
in our site’s world traffic rankings since it was re-launched a month ago.
It has moved up from about number 355 000 in the world to number 159 631, because
it is now attracting twice the number of visitors as it did before.”
And this is of very real value to RealNet clients, he says, because it means
that their properties listed on the website are now getting twice the amount
of exposure, all over the world.
“Indeed, the percentage of visitors to the site coming from outside SA
has increased by 86% since the redesign.
“We have also built in an option for any property on the website to be
instantly shared via the Facebook and Twitter social networks, which will boost
exposure even more.
“And then we have gone even further, creating a mobi site which enables
visitors to search listings online, at any time, through their mobile phones.
This means they do not even need a computer to access our website, and the highly
efficient design allows fast downloads, including photos, to any phone with
a mobile browser.”
Features of the redesigned RealNet site include categorised or “horizontal”
searches to assist potential buyers to quickly find exactly the types of property
they are looking for. For example, visitors to the site can now search for commercial
properties for sale, or for farms and smallholdings, or for new developments
and rental properties, as well as residential properties to buy.
Then, once they have selected the type, price and features of the property
they are looking for, the results will give them the option of viewing all suitable
properties within the province at the same time, eliminating the need to search
area by area.
“The response to this has been tremendous,” says Olivier, “
with visitors now each spending an average of 55 minutes on the site compared
to 21 minutes previously, and each viewing around 32 pages, which is more than
double the average number viewed before the relaunch.
“In other words, www.realnet.co.za and mobi.realnet.co.za are now even
more effective tools to help our agents and their clients connect with potential
buyers across SA and around the world, and thus to achieve quicker and better
sales.”
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15 December 2010, 12:20:24
For many homeowners nearing retirement, downsizing their home seems to be an
inevitable step, particularly once all the kids have left the nest. While for
some this may be a very emotional life event, others may well look forward to
a more relaxed lifestyle, unfettered by monthly bond repayments and the never-ending
upkeep and maintenance that is part and parcel of owning a freehold property.
“Either way, there are a number of issues that should be carefully considered
before making a decision,” says Adrian Goslett, CEO of RE/MAX of Southern
Africa.
“There are numerous lifestyle benefits to downsizing from a large, free
standing, full title suburban property to a sectional title unit in a secure
complex or a retirement village. For example, you are no longer responsible
for the upkeep and maintenance of a home, a large garden, a pool and other property
features. You can also enjoy increased security and easier access to amenities
such as 24-hour medical care and social activities. In addition, downsizing
can result in significant monthly cost savings for homeowners, in terms of the
rates and taxes, utility bills, maintenance and repair costs, and security and
insurance costs. This is important in light of the fact that monthly pensions
are smaller than the monthly salary earned while working, even if the homeowner
made good provision for retirement,” comments Goslett.
“However, the biggest expense in most households is the monthly bond repayment,
and whether a homeowner will be free from this responsibility will depend on
how well the family’s finances were managed prior to retirement.”
If a homeowner has paid off the mortgage bond on the property, or at least
the bulk thereof, it may well be possible to sell the property, settle the outstanding
bond and have enough capital to purchase a smaller property without having to
enter into a new mortgage agreement. “Homeowners who have paid off their
mortgages prior to retirement are in a far better financial position than those
who still face a number of years of mortgage payments because they had, for
example, taken out a second bond on the property, or upgraded to a bigger property
a few years earlier,” says Goslett. “Should there not be sufficient
equity – the difference between the current market value of the property
and the outstanding bond amount – for a cash purchase of a smaller property,
homeowners will face some challenges. Firstly, at age 65 and older, it becomes
particularly difficult to obtain a bond. These homeowners will have to carefully
consider what monthly rental or bond repayment they will be able to afford on
their lower pension income, and whether they will be able to cover the costs
involved in buying a new property, such a deposit, transfer costs and taxes.”
But there are further issues that complicate matters significantly. “For
example, if a homeowner has owned the property for some time, the capital gains
tax implications of selling the property could be significant. Homeowners may
not be able to realise the full value of personal belongings by selling these
belongings. In addition, timing should be carefully considered – it may
not be the best time to sell a property and by delaying the decision to downscale
by a few months may result in a better selling price, or - if market conditions
change unexpectedly – in a lower sales price. On the other hand, despite
the current market conditions, units in secure complexes and retirement villages
remain high in demand, and delaying the downsizing decision could result in
a homeowner missing a good buying opportunity in the current buyer’s market.”
Goslett says that homeowners who have paid off their bonds, or who have very
small monthly bond repayments could consider renting out, rather than selling,
the property. “Provided that the rental income will exceed the monthly
bond repayments and other costs, and that the homeowner has sufficient cash
flow to cover any vacancies, renting the property to a tenant could be a solution.
It will provide an annuity income for the homeowner, which could supplement
retirement income.”
Downsizing a property for retirement is not simply a matter of selling a large
property and buying a smaller property. “It should form part of a comprehensive
and well-considered retirement plan, in which the financial implications of
various possible options – such as living on the property for a few more
years, selling the property or renting out the property - is carefully considered
in light of retirement income and lifestyle. In addition to obtaining the relevant
information about the market value of the property, the current market situation
and the rental possibilities from a reputable estate agent, homeowners should
get professional financial advice in this regard to ensure they understand the
full financial and tax implications of downsizing their property,” concludes
Goslett.
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14 December 2010, 09:15:51
Kim Ashton, manager of the Western Cape Institute of Estate Agents’ PropPlacements
division, reports that this year she has found positions in property for 52
candidates - 41 residential and rental agents; four interns to real estate and
seven administrative staff.
“This,” said Ashton, “could give the impression that we are
heading for another property boom but in reality many agents this year have
had a rough ride.”
Now that the Christmas break is approaching agents may well find that they
are short of funds.
“In the circumstances,” said Ashton, “perhaps it is time that
the estate agency world adopted the practice of many corporates and smaller
businesses of awarding some sort of December bonus to both administrative staff
and agents.
Bonuses, she said, are not in any way obligatory in SA labour law and often,
if they are paid, are strictly performance related but she would like to see
agencies awarding a further 1% commission to agents on any deals done over the
December break (when sales tend to be fewer) and “thank you” handouts
made to the admin staff. These could possibly be paid upfront (i.e. before Christmas)
on the understanding that if a sale falls through the agent will accept a commission
reduction later.
“The estate agency world,” said Ashton, “is strong on incentives
but still lacks certain perks.
“An IEASA committee member, Samuel Seeff, has pointed out that almost
no agencies offer medical aid. This, too, should, I feel, now be considered.
With the rise in status being brought about by the new educational qualifications,
agents should have the extra benefits of other professionals.”
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14 December 2010, 09:15:08
One of the major challenges facing any sectional title scheme is to find competent
trustees who will take their duties seriously and work for the benefit of their
fellow members.
“There is,” says Michael Bauer, general manager of IHFM, the sectional
title management company, “almost always a reluctance to take on a trusteeship
– for the simple reason that the position is unpaid, the trustees are seldom
thanked and the position can involve responsibilities of which many people are
afraid.”
Long experience in the sectional title sector, said Bauer, has shown that the
average body corporate member avoids being a trustee because, should things
go wrong, he or she could be held legally liable.
This fear, says Bauer, is by and large not warranted because the Sectional
Title Act provides for a general indemnity for trustees in the event of their
making a “genuine” mistake and for the body corporate to pay for this.
The Act does, however, allow prosecution for any criminal acts (such as fraud)
or for gross negligence.
“If, for example, trustees allowed a managing agent to appropriate a large
sum without giving an analysis of the reasons for doing so, that could be deemed
as negligence.”
Managing agents, who are assumed to be professionals, are not indemnified by
the Act. If they make a costly mistake, however, it will probably be covered
by their Fidelity Fund Certificate insurance.
On most sectional title schemes, said Bauer, the insurance policy will cover
the trustees up to a payment of R1 million.
Any managing agent who does allow defaulting levy payers to continue to get
away with it or who fails to maintain and secure the complex properly might
be liable to prosecution – but, Bauer repeated, the same level of expertise
and competence is not expected of potential trustees – who should, therefore,
be more willing to take on a position where they can so materially assist their
fellow members.
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10 December 2010, 08:06:25
 It
has long been a tradition of companies to celebrate the closing of yet another
year with colleagues. This year, the agents from REMAX Infoglobe, which operates
in the suburbs of Pretoria East, decided to break away from this tradition and
rather spend their day off entertaining the children from the Louis Botha Children’s
Home.
The Louis Botha Children’s home is a welfare organisation that currently
takes care of 97 children between the ages of 5 and 18. These children are victims
of misdemeanours including abandonment, neglect, emotional and physical abuse
and have been removed from their parents/guardians by the courts.
RE/MAX Infoglobe Broker/Owner Andrew Louw said that in the short time that
his office has been operating in the area, the business has grown from strength
to strength. Over the past year, during a time where many real estate agencies
had to close their doors, this office managed to grow triple digit figures,
which Louw attributes to the commitment to customer service and determination
to succeed his office has.
“But,” he says, “our success could not have been achieved if
it were not for the support of the community. That is why, for the team it was
a unanimous decision to forego a traditional company year-end function, and
rather give back to our community by bringing joy to these children.”
 Approximately
40 children attended this event, which took place on the rugby field of Hoërskool
Garsfontein on Saturday 4 December. The team from RE/MAX Infoglobe spared no
expense to make this day a memorable one for the children. While flights in
the official REMAX hot air balloon had to be cancelled due to the weather conditions,
the balloon was raised much to the delight of the children.
Louw said the food and drinks, fun activities like the jumping castle and especially
the presents which included a R150 Pick ‘n Pay voucher for each child,
all culminated to make it a fantastic day of fun for everyone.
Their entire RE/MAX Infoglobe team with the support of two attorneys, AJ Coetzer
De Beer & Steyn and Prinsloo Bekker Attorneys, as well as BetterBond made
sure that every child walked away with a very happy memory.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that giving back to
the local community in which a business operates is an important element of
corporate responsibility. “Well done to RE/MAX Infoglobe for making such
a meaningful contribution to its community through hosting this fun-filled event
for its children.”
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07 December 2010, 08:29:47
RE/MAX ranked as PropertyGenie’s top agency lead earner for two consecutive
months
South Africa's leading online property search portal, PropertyGenie.co.za,
releases a monthly report on the latest trends within the residential property
sector. Both the October and November PropertyGenie Trends Reports list RE/MAX
as the top lead earner among its database of residential properties listed with
all South Africa's leading real estate agencies. This ranking is based on the
website’s Email a Friend, Email/SMS Agent, Call me back and Agent Tel number
functionality.
Two RE/MAX properties also ranked second and fifth in the Top 5 most viewed
properties on the website for November.
The Western Cape continued to dominate in the November 10 hottest suburb listings,
with Bryanston - Gauteng, Claremont – Western Cape and Sea Point –
Western Cape ranked in the top three positions. Sea Point was followed by Hout
Bay – Western Cape, Morningside – KwaZulu-Natal, Rondebosch –
Western Cape, Kenilworth – Western Cape, Newlands – Western Cape and
Plumstead – Western Cape.
Furthermore, the Western Cape suburbs of Green Point, Sea Point and Rondebosch
were the top three areas to earn the highest suburb alerts over the course of
the month.
Says Adrian Goslett, CEO of RE/MAX of Southern Africa: “Reports such as
these go to show the importance that the internet currently plays, and will
continue to play, in the property sale process. It is well known that many buyers
research online before embarking on the physical aspects of the house hunting
process, and it is evident that agents who maximise this technology to its full
advantage generate leads which ultimately will translate into property sales.”
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02 December 2010, 15:19:15
 Well-known
for its superb luxury hotels and holiday accommodation, first world shopping
centres and exotic Mediterranean, Asian, Middle Eastern and African restaurants,
Umhlanga offers a vibrant night life and plethora of holiday, dining and entertainment
experiences, with the Sibaya Casino as one of the area's main attractions.
Just off the coastline, on land that once formed part of Umhlanga's undulating
sugarcane landscape, Tongaat Hulett Developments built an exclusive residential
estate, which, to date, has outperformed most of the other prime developments
in and around KwaZulu-Natal.
Situated just off the N2/M4 on the coastline of Umhlanga, the first stage of
the development, known as Izinga Ridge, commenced in 2005 and comprises four
gated village estates. "They are almost completely developed and offer
buyers an exciting mix of properties, including sectional title units, duets
and freestanding houses, with a selection of panoramic sea views," comments
Gareth Bailey, Broker/Owner of RE/MAX Address, whose agency has been accredited
to market the development.
Building sizes start from 260m2 for a sectional title unit to 310m2 upward
for a duet and 580m2 upward for a freestanding house with land sizes ranging
between 850m2 for a duet to 1,100m2 upward for freestanding houses. Sectional
title units are priced from R2,8-million with duets reaching R3,5-million upward
and freestanding houses priced from R5,7-million upward. Plot sizes range between
700m2 and 1 600m2 and are priced from R770 000 to R1,4-million.
The second stage of the development, known as Izinga suburb, commenced in 2008
and forms part of a potential 2000-unit project, which will form the residential
suburb around Izinga Ridge as opposed to being a gated community.
"The architectural style is similar to that of Izinga Ridge's earthy African
palette and Mediterranean/Balinese form, spoiling residents with large open
spaces and areas where they can walk, run, cycle or just enjoy the fresh air
and breathtaking ocean view, says Bailey.
In these challenging economic times, developments have suffered perhaps the
worst of the brunt. "Izinga, however, has done exceptionally well, which
can be attributed to its prime position, among other factors," adds Bailey,
who also notes that phase one of the land sales is almost completely sold out.
Describing Umhlanga as Durban's Sandton by the Sea, Bailey notes that the north
coast has shown solid growth and that demand currently exceeds supply for high
quality, secure, gated estates in Umhlanga while non-gated estate land in prime
positions are also sought after.
Adrian Goslett, CEO of RE/MAX of Southern Africa says Izinga's close proximity
to prime amenities such as the Gateway Theatre of Shopping on top of Umhlanga
Ridge, the Umhlanga Hospital, the burgeoning Umhlanga Ridgeside business district
and excellent private and public schools, makes it one of the most sought-after
development opportunities in KwaZulu-Natal.
Please contact Gareth Bailey, RE/MAX Address on (031) 313 1310 for more information
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02 December 2010, 15:18:58
The collapse and massive bail out of the Irish economy will have repercussions
for South Africa, says Bill Rawson, Chairman of Rawson Properties.
"As has been thoroughly documented," says Rawson, "in the 2003
to 2007 period the Irish economy had a phenomenal growth, twice exceeding 8%
per annum. As a result, here in South Africa we suddenly found many Irish buy-to-rent
investors buying up property, particularly at the Cape.
What is more, many did it on a big scale, acquiring 20, 30 or even more properties,
either individually or syndicates, and in some cases they invested in more than
one province."
This, says Rawson, was part of a worldwide trend. Irish property investors
also moved into Chile, many of the European countries, parts of the USA and
Australia.
Certain of the buyers in South Africa, says Rawson, are now finding that, with
the collapse of their banks and the call-up of investment finance, they cannot
service their bonds and in many cases are seriously over-extended. He himself,
he says, knows of two syndicates that have given instructions to South African
estate agents to sell for what they can get.
"The strategy in most cases," says Rawson, "appears to be to
find enough cash to cover the outstanding bond. This probably means that they
will have to sacrifice everything that they have paid in so far - an indication
of how drastic the situation is for some of them."
Rawson stresses, however, that this was not true of all investors from
Ireland: some, he says, have already paid off the bulk of their commitments,
others are well able to service their bonds (usually with 50% of the money raised
locally and 30% to 40% raised in Ireland because South African law does not
allow a foreign investor to use local bonds for more than half the total sum
borrowed).
"From what I have been told," says Rawson, "the successful Irish
investors will continue to be a significant force in South African property."
With the rand so strong and Irish property now often selling at 30% to 50%
discounts on the previous high prices, says Rawson, now is a good time for South
Africans to reverse the trend and start buying in Ireland.
"There can," he says, "be fewer more pleasant places to live:
with a population of only four million the country remains predominantly rural
and unspoilt and the people are friendly and the cultural sophistication of
the upper middle class Irish has long been recognised. South Africans tend to
feel very comfortable and at home if and when they holiday or settle in Ireland."
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26 November 2010, 09:18:50
Known as the vibrant student suburb of Cape Town, Rondebosch is located approximately
5km from the Mother City's urban centre, and is bordered by the suburbs of Rosebank,
Rondebosch East, Claremont, Newlands, and the slopes of Devil's Peak.
Says Graham Alexander, Broker/Owner of RE/MAX Alliance: "Primarily a residential
suburb, Rondebosch is host to a wide variety of facilities and amenities in
the area. It offers various retail outlets and shopping malls, as well as its
own business districts. It is conveniently located with easy access to the Simonstown
trainline, which runs from Cape Town through Rondebosch to Simonstown."
Considered to be one of Cape Town's entertainment centres, Rondebosch is home
to The Baxter Theatre, which is Cape Town's second biggest theatre complex.
Rondebosch is also home to the historic Groote Schuur Estate, which includes
presidential and ministerial residences with Cape Dutch origins. Other historical
buildings in the Rondebosch area include the library, formerly the town hall,
and St Paul's Church, which was designed by Charles Michell. Main Road, located
in the centre of Rondebosch, is home to the well known historic landmark - the
cast iron Victorian Rondebosch Fountain, around which local Capetonians sell
a wide range of freshly cut flowers.
However, what Rondebosch is arguably best known for, are its excellent schools,
says Alexander: "The strength of the property market in Rondebosch, one
of Cape Town`s leafy southern suburbs, has always been underpinned by the abundance
of schools and well established educational institutions located in the area.
Besides Westerford, the best school in the country according to an annual survey
by the Sunday Times Newspaper, the area is also host to South African College
School, Rondebosch Boys Junior and High School, Rustenburg Junior and Senior
Girl`s schools, Groote Schuur Hoërskool, Bishops and Marist Brothers."
He says that sporting facilities are also in ample supply in this suburb, and
for those who work in the Cape Town city centre, the area is conveniently located
approximately 25 minute's drive to the inner city CBD in rush hour traffic.
"Rondebosch's Golden Mile is still the best address in the area, which
has shown strong resilience to price cutting through the recession and subsequent
downturn in the real estate market. The precinct is bounded by Park Road which
faces Rondebosch Common, Milner Road, Avenue De Mist and Campground Road,"
says Alexander.
Adrian Goslett, CEO of RE/MAX of Southern Africa says that due to the fact
that Rondebosch is a very sought after area, it boasts a relatively low property
turnover and that real estate values have managed to maintain steady growth:
"According to propstats.co.za, a total of 78 properties changed hands between
January to June 2010 and the average discount to asking prices have remained
at a very comparably low 8%, which indicates the strength of Rondebosch`s property
values. These figures include Sectional Title sales and also cover Rondebosch's
Silver Mile, located closer to the M5 freeway. The suburb comprises about 3
000 erven and 109 sectional title blocks, so the low percentage turnover indicates
the stability of this sought after area."
A fact that Alexander says is backed by facts listed on the property transfer
guide - the SAPTG website: "According to www.saptg.co.za, there have been
65 property sales in the last six months, and 134 sales in the last 12 months.
The predominant price band for real estate in the Rondebosch area lies between
the R2-million and R5-million mark, with the median sale value for 2010 lying
at R2,3-million. Bucking the general real estate trends, the area's median sale
value has remained pretty constant over the last four years, ranging from R1,8-million
in 2006, to R2,1-million in 2007, R2,375-million in 2008 and R2,4-million in
2009."
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26 November 2010, 09:14:19
p>Demand for homes in the Parow Valley area is as strong as ever, because the prices
here are exactly right for today’s market, says the Rawson Properties franchisee,
Alvin Suklall, - but, he adds, bond applicants at this price level have great
difficulty obtaining bonds.
Suklall’s territory is one of the largest in the Rawson group – it
covers Parow Valley, Ravensmead, Elsies River, Cravenby, Matroosfontein, Bonteheuwel
and Valhalla Park. It has some 15 000 houses in all. Homes here can be priced
up to R1,3 million but the vast majority are in the R350 000 to R800 000 bracket.
“I go to great lengths to ensure that the potential buyer is more or less
prequalified,” says Suklall, “but even then my applicants experience
a 60% rejection rate. The banks are exceptionally diligent these days about
credit checks and, while that is understandable, and even commendable, the scorecard
system can result in perfectly worthwhile steady employees being disqualified
on account of some minor slip-up or misdemeanour of which they may not even
be aware – and which, in my checking, I have also not picked up. Like other
senior property people, I have these days to be a financial consultant to my
clients so as to help them pre-qualify for bonds.”
His area, says Suklall, has already been harder hit by bank repossessions and
distressed sales than most. These are often a direct result of job losses and
they have kept prices down despite the huge demand for property. Suklall does
not foresee a strong recovery until the second or third quarter of 2011.
“We at Rawson’s have benefitted from the Quick Sell properties and
PIPs,” he said, “because we have good connections with the banks and
handle a major share of these properties.”
Three factors, said Suklall, have helped, or will help, in these times. The
first is that some banks have been willing to arrange personal loans over and
above the bond to cover the extra costs such as the deposit, the transfer and
conveyancing fees. These have to be paid off faster than the bond but they do
not cause undue hardship.
Secondly, at this price level, the 0,5% drop in interest rates will bring another
10% buyers into the market.
Thirdly, awareness of the banks’ reactions to debt or poor paying track
records has grown markedly in the last few months and people now realise and
accept the need for a “clean sheet” profile before going house hunting.
Buyers are also willing today to go for a less expensive area rather than the
one which would have been their first choice. Also helpful is that if the bond
applicant earns less than R15,900 per month (combined salaries) and buys below
R300 000, he can now get a 100% bond.
“This new attitude to saving,” says Suklall, “is a big change.
I have in the past had applicants where the combined husband and wife salary
was close to R50 000 per month but where debts – on cars, store accounts,
credit cards and the like – made it impossible for them to get a bond.”
As in other areas, says Suklall, a fairly high percentage of home sellers have
still not come to terms with today’s prices – they are still holding
out for figures 15 to 20% above what the market will offer – but this,
too, he believes, will change in the new year.
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26 November 2010, 09:12:54
KwaZulu-Natal's Elephant Coast, so named after the country's largest herd of indigenous
African elephants that have lived in sand forests in this region for centuries,
stretches from the world heritage site of Lake St Lucia in the south to the Mozambique
border in the north.
The Elephant Coast is fast growing in popularity for its incredible variety
of habitats and ecosystems, and, with its sand dunes and swamps, coastal forests,
rocky shores, coral reefs, mangrove swamps, woodlands, savanna grassland, and
the largest protected wetland in southern Africa, iSimangaliso Wetland Park
(the Greater St Lucia Wetland Park), a World Heritage site, it stands to reason
that this stretch of coastline is the ecotourism Mecca of the Zulu Kingdom.
Lourens de Lange, Broker/Owner of RE/MAX Heritage which services this region,
says sales in the St Lucia area in the past six months have been incredible,
with the office receiving property enquiries on a daily basis. "St Lucia
is just going to get more and more expensive. Holiday makers here realize this
and want to buy and invest in St Lucia," he says. "Over the last five
months, June to October 2010, our total value of sales in monetary terms was
the second highest ever over a five month period in the last five years."
He attributes this to the natural beauty of the area referring to the fact
that iSimangaliso Wetlands Park must be the only place on the globe where the
world's oldest land mammal (the rhinoceros) and the world's biggest terrestrial
mammal (the elephant) share an ecosystem with the world's oldest fish (the coelacanth)
and the world's biggest mammal (the whale).
In addition, he says that as St Lucia only has 400 odd stands and cannot grow
further as it is the only town in the world situated within a World Heritage
Site, meaning that there is limited supply which continues to drive demand.
"Old houses, townhouses and flats are being bought and renovated here,
with old self catering flats getting bought up, renovated and sold off as sectional
title units," he says. "Large stands of 2000m2 are being subdivided
into two 1000m2 stands, as the smallest size a stand may be in St Lucia is 900m2.
"
De Lange says that in the last five months his office has sold a range of properties
priced between R590 000 and R2,15m in St Lucia. In Monzi an 8ha property with
2ha of macadamia nuts and a four-bedroom home sold for R 3,175m while two vacant
20ha plots were sold in Hluhluwe for R960 000 and R1,295m respectively. "The
amazing thing is that all these properties were sold as cash deals; not one
was with a bond or mortgage. "
Talking about average property prices in the area, de Lange says that a one-bedroom
flat situated in a complex with a swimming pool would sell between R 490 000
and R 690000 while a two- bedroom apartment in a complex with a pool, tennis
and squash court as well as a jetty on Lake St Lucia would sell between R600
000 and R900 000. "The cheapest house currently on our books is a three-bedroom,
one-bathroom house that needs some attention. It is situated on a 1000 m²
stand and is selling for R1,6m."
According to de Lange, average middle class homes are priced between R2,2m
and R3,2m and feature three to four bedrooms, two bathrooms, a swimming pool
and double garage. These homes, he says, are also usually situated on 1000m2
stands.
"The most expensive houses in the area are the those currently being used
as guest houses or B&B's. These usually have four to seven en-suit bedrooms
with lounges and dining areas, swimming pool etc. These properties, which enjoy
an average of 40% occupancy, sell between R5m and R11m, depending on rooms and
occupancy."
He says most buyers in the area are South Africans that buy flats, town houses
and holiday homes. The foreigners from Europe usually buy old run down houses
and spend a lot of money renovating and upgrading the properties for family
homes or B&B's. The vacant land and small holdings in Hluhluwe and Monzi
are being bought by both foreigners and South Africans that want a place in
the bush or to start guest lodges, or other hospitality businesses.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while most of South
Africa's regional property markets have felt the effects of the economic slump,
there are some regions that have seen phenomenal growth, such as St Lucia. "Areas
with a limited supply of properties and continuous demand have excellent long
term growth potential."
However, de Lange says that with the increase in demand, prices have escalated
and buyers sit and wait for a bargain that never comes. However, in the future
fractional title sales may be introduced into the area as properties are getting
more expensive and people only go on holiday maximum of four weeks. "Buyers
will be able to choose four weeks in a 4-star guest lodge with breakfast in
the mornings, swimming pool and boma for braai's in the evening at the lodge
or a two- or three-bedroom self catering apartment, which is still being negotiated
with the owners," says de Lange.
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26 November 2010, 09:12:26
The decision made by one of SA’s major banks to establish and work exclusively
with a brand new origination company which deals directly with estate agencies
will adversely affect bond originators and could, in fact, also reduce the amount
of mortgage bond business that the bank itself does, says Rob Lawrence, national
manager of Rawson Finance.
“There have over the years been various attempts to cut back on the number
of bonds handled by originators,” said Lawrence, “but in the end they
have all been abandoned because clients appreciate the fact that bond originators
will approach all the banks to get them the best possible deal. Any arrangement
which limits this flexibility and choice and tries to channel the bond applications
to one bank only is likely to be seen as suspect even if, as is the case here,
the bank has promised to stick to the current lending policies and criteria.”
The popularity of bond origination, said Lawrence, is shown by the fact that
Rawson Finance has this year increased its turnover by 60%.
“October was our best month ever,” said Lawrence.
The connection through the Rawson group is, he said, proving valuable and working
to the benefit of both Rawson Finance and the agents themselves (who receive
a commission on all referrals).
Lawrence said that if the double dip in the global economy can be avoided,
good trading conditions in property could be seen again within 12 to 18 months.
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04 November 2010, 16:49:25
The selling of a home frequently involves a whole chain of related property
transactions, involving two or even three buyers and sellers, and this can cause
complications related to the occupation date, says Anton Du Plessis, CEO of
Vineyard Estates.
“Occupation on transfer is,” he says, “the widely accepted practice
– and our experience indicates that that it is preferable to other arrangements,
but it is not always possible.”
If the buyer moves in prior to transfer, said Du Plessis, there is always a
danger that he will then find that certain aspects of the home are not to his
liking – and he may then instruct his conveyancer to hold up the transfer
while he negotiates for remedial action.
“If the buyer is a shrewd operator accustomed to sailing close to the
wind, he may ensure that the transfer is delayed and that he pays occupational
rental for several months. This will be to his benefit because in most cases
the occupational rental is only 50 to 70% of what he would be paying each month
on his bond.”
To prevent situations of this kind arising, said Du Plessis, if at all possible,
the occupational rent should be set, at the current bank rate, as a percentage
of the total purchase price.
Arrangements for some kind for occupation before transfer, says Du Plessis,
should be included in all sale contracts because transfer dates can vary, they
are dependent on other transactions such as the obtaining of a SARS tax certificate
and a rates clearance certificate and other documentation, the dates of which
cannot be guaranteed.
“Accepting that the average transfer takes two and a half to three months,
it is wise to set a transfer and occupation date well ahead, say, at least three
months ahead. Most conveyancers will agree that it is almost impossible to guarantee
a specific transfer date. At present, it takes over ten working days from lodgement
at the Deeds Office until actual registration of transfer. It can be appropriate
to insert a clause in the deed of sale that states that occupation can occur
on a specific date, provided that lodgement of the transfer has occurred. Failing
this, it is also wise to specify a time on the day of transfer for occupation
to occur - say midday. This allows all parties to plan ahead and to instruct
the movers correctly,” he says.
When writing out an offer to purchase, the buyer should not automatically specify
the date of occupation to be the first of any month: he should check if the
occupation date is set for the weekend. The usual practice is to set the transfer
and move on the first day of the month but, if this is a Sunday, it is likely
that no removal service will be available on that day – and it should be
remembered that, as most removal companies like to pack the goods the day before
they do the move, Monday is also not a good day for a move. Quite often, says
Du Plessis, it will happen that one removal company works faster than another
– with the result that the buyer’s fully loaded van may have to wait
hours before the seller’s packers move out of the home. For this reason,
he says, the actual time of the occupation should also be specified.
Ideally, says Du Plessis, the seller should be allowed two or three days after
his move to clean up the house.
“Any move will cause a mess. The conscientious seller will always ask
for a day or two to clean the fitted carpets, tiles and windows.”
Although estate agents are seldom directly involved in organising a move, their
experience can be valuable to the clients – and should be drawn on, added
du Plessis.
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29 October 2010, 08:22:37
 Fourways
Gardens resident wins a R100 000 room makeover from RE/MAX of Southern Africa
By Friday 22 October, votes for the RE/MAX room makeover competition were tallied,
with the Steyn family of Fourways Gardens, announced as the winner of the R100
000 prize on Saturday 23 October.
The six-week online competition, which launched on 1 September, was advertised
nationally and received over 9000 entries. Over 5000 instant prizes, from spa
pamper treatments and rounds of golf to magazine subscriptions, were awarded
to participants during the competition.
RE/MAX of Southern Africa also held its own "Blog to Win" competition,
an online campaign for the blogging community that motivated bloggers around
the country to direct as many people as possible, with their blogs as the platform,
to enter the national competition.
On 7 October five finalists were randomly selected and verified by accredited
auditors. The finalists were then asked to submit a short motivation about why
they deserved the room makeover, along with a picture of the room they would
like to see with a new look. Pictures of these five finalist's rooms were posted
on the RE/MAX website, www.remax.co.za, for the general public to cast their
vote to determine which room they thought deserved the makeover the most.
On Saturday 23 October, Gary and Diane Steyn and their two sons, Kevin and
Brandon, were surprised by a visit at their home from Adrian Goslett, CEO of
RE/MAX of Southern Africa, along with a team of RE/MAX agents and staff, who
announced them as the winners and handed over the grand prize. Kevin's bedroom,
which was the room entered for the makeover, received 26 619 out of the total
57 206 votes.
A surprised and excited Steyn family said they were elated to be voted as the
winners. "We mobilised all our friends and family to vote for us and are
extremely excited about a makeover of Kevin's room." Diane said she is
looking forward to seeing the room change, and is grateful for the opportunity
as she lacks creativity when it comes to interior décor.
Gary, said he felt the competition was exceptionally well run, with the web-based
system making it easy to vote. "RE/MAX has also involved youngsters in
this competition, which is a great brand-building initiative."
Adrian Goslett, CEO of RE/MAX of Southern Africa, congratulated the Steyn family
on their win. "This competition has been extremely successful, and presented
RE/MAX with a brilliant opportunity to engage with its customers in a fun yet
meaningful way. Well done to the Steyn family, we all look forward to comparing
the before and after look," Goslett concluded.
Caption: The Steyn family of Fourways Gardens were announced as the RE/MAX
Room Makeover Competition winners. From left to right: Vicky Goslett, RE/MAX
of Southern Africa Senior Manager: Marketing and Franchise Services, Brandon
Steyn, Gary Steyn, Diane Steyn, Kevin Steyn, Adrian Goslett, CEO of RE/MAX of
Southern Africa.
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27 October 2010, 08:53:58
The smell of a freshly mowed lawn is one of summer's special delights for many
homeowners, but figuring out what to do with the grass clippings is often not
such a pleasure - especially if you're trying to live a more "green"
life.
"The simple answer, of course, is to make free compost that you can then
use to improve the soil quality and fertility and benefit the plants in the
rest of the garden," says Berry Everitt, CEO of the Chas Everitt International
property group. "But unfortunately it is not quite that easy, because grass
by itself is tricky stuff to turn into compost."
Writing in the Property Signposts newsletter, he notes that grass clippings,
being mostly water and very rich in nitrogen, can be problematic in compost
heaps and bins because they tend to compact, become anaerobic and start to smell.
"Consequently, you need to mix them with lots of carbon-rich material (also
called "browns"), such as dried leaves, coarse straw or hay, mielie
cobs, sawdust, paper and cardboard."
If you have a lot of grass clippings to compost, he advises, you should spread
them out to dry in the sun for at least a day before adding them to your compost
heap and then layer them with brown material in a ratio of about two parts brown
to one part green. In this way you should be able to "harvest" nutrient-rich
compost in just a few weeks.
"What is more, you will be doing your bit to recycle useful material instead
of sending it to the landfill, where plant material tends to break down in anaerobic
conditions and give off methane - a gas that is 21 times more potent as a greenhouse
gas than carbon dioxide."
Indeed, it has been estimated that a standard black refuse bag (750mm x 950mm)
containing 14kg of grass clippings will give off as much greenhouse gas as burning
9,5L of petrol by driving about 100km.
Issued by Chas Everitt International
For further information call
Berry Everitt on
011 801 2500 or visit
www.chaseveritt.com
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27 October 2010, 08:53:39
The Chas Everitt International property group now has an office open in Bloemfontein,
which currently has one of the fastest-growing property markets in the country.
The franchise in the Free State's capital city was recently purchased by the
local BCF Group, which has been serving Bloemfontein consumers for the past
15 years. The diversified companies in the group include BCF Micro Finance,
BCF Cellular, BCF Financial Services, BCF IT Solutions, BCF Properties (Property
Management and Rentals), Blue Line Office Supplies and the local Mama's Chicken
fast food outlet.
Chas Everitt International Bloemfontein will be managed by Willie Coetzer,
who has extensive business and real estate experience in the city and is very
upbeat about its property prospects.
"The market here is flourishing and has already been in positive territory
for the past three months, mostly because of the growing appreciation of its
convenient location," he says.
"Bloemfontein is a centralised city, close to other major cities by air
and on a crossroads leading to five other provinces and Lesotho. It serves a
large geographical area and has good schools, tertiary education institutions,
hospitals and medical facilities, retirement options and retail centres. This
combined with a friendly, more laid-back life style is attracting executives
and families from other cities."
The northern suburbs of the city such as Dan Pienaar, Pentagon Park and Heuwelsig,
as well as western suburbs such as Universitas and Langenhovenpark have become
sought-after places to live, Coetzer says, and the newly established Woodland
Hills Wildlife Estate, which also offers a retirement and medical facilitation
centre, is also in demand.
"The focus among buyers is currently on properties for their own use,
and this is contributing to a shortage of rental properties in the city, which
means opportunities for developers. Commercial properties are also scarce and
expensive."
Chas Everitt's International director of franchising Barry Davies says the
Bloemfontein office is geared up to capitalise on all these opportunities, thanks
to BCF's strong business foundation in the city and Coetzer's experience, and
that he is confident the new franchise has a bright future.
Issued by Chas Everitt International
For further information call
Barry Davies on
011 801 2500 or visit
www.chaseveritt.com
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22 October 2010, 08:13:15
Estate agency Aida Polokwane has scooped a prestigious Diamond Arrow award
for its efforts to promote economic growth and development in Limpopo over the
past 12 months.
The award, presented by the Professional Management Review magazine (PMR),
was made following a survey in which thousands of corporate and public service
respondents were asked to nominate and then rate companies for their development
contributions, as well as their managerial capabilities and corporate governance
procedures.
With a rating of 4,2 out of a possible 5, Aida Polokwane was the top-scoring
real estate company in the business section of the survey, and franchise owner
Anton Hanekom says the agency is honoured to join the select ranks of prominent
local undertakings that have received diamond arrows. The agency has previously
won several PMR gold arrows.
“The PMR award is a stamp of approval that a company is run on sound business
principles and also covers external aspects such as service delivery, professionalism
and community involvement. It underlines our office credo that service and integrity
are not negotiable.”
He also says the award will bolster Aida Polokwane’s already strong market
share. “Aida has become a household name in this city and we do our utmost
to honour the confidence placed in us. This award will further motivate our
highly trained and professional staff to keep delivering the best property service
in Limpopo.”
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01 October 2010, 08:03:50
The fact that RE/MAX of Southern Africa reported increased sales figures through
the World Cup period and the winter months proves that South Africa's property
market conditions have already seen vast improvement.
This according to Adrian Goslett, CEO of RE/MAX of Southern Africa, who notes
that traditionally property sales decrease by between 20% and 30% during the
winter months.
"The first seven months of the year exceeded our expectations," says
Goslett. "While we had anticipated a slow and marginal recovery for the
first half of 2010, the market seems to have improved far quicker than anyone
anticipated. This is evidenced by the fact that our sales increased during the
winter months by between 30% and 40%, compared to the same period in 2009. This
goes against the norm as typically fewer sales are made during winter."
He says that the group's total sales from January 2010 to August 2010 are up
42% on the same period last year, with Gauteng and KwaZulu-Natal the top achievers.
Gauteng's sales were up 73% on the same period last year, while KwaZulu-Natal's
sales figures indicated a 26% increase on the January to August 2009 figures.
The Eastern Cape saw a small decline of -3% on their sales results with the
Western Cape showing a more moderate growth of 17% on last year.
In addition, 22 new franchise sales have taken place to date, with over 350
new agents joining the brand and 45 agents renewing their relationship with
RE/MAX of Southern Africa so far this year. In addition, Goslett notes that
RE/MAX of Southern Africa ranked first out of the 93 regions around the world
where the RE/MAX brand is represented in terms of agent growth during May and
June this year.
While there are a number of factors behind the continued growth of the RE/MAX
of Southern Africa brand, Goslett mainly attributes it to the Brian Buffini
training, available exclusively to RE/MAX agents. He says that aside from attracting
top agent talent to RE/MAX, the Brian Buffini 100 days to Greatness programme
has improved agent productivity by over 40% as it empowers agents and teaches
them the value of building and maintaining relationships.
The new and improved website has also added to the success, with its reach
up by 32% and the time each visitor spends on the site up by 70%. Goslett also
reports that over R100-million of sales has been undertaken by the group's assisted
sales department which handles all its distressed property sales around the
country. The department is currently receiving over 250 leads per month, and
it is expected that this number will grow substantially over the coming months
as more financial institutions bring their distressed properties to the market.
"With the recent drop in interest rates and the wide range of value-for-money
properties currently available on the market, we expect to continue achieving
solid results for the remainder of the year," Goslett concludes.
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01 October 2010, 08:03:33
Asrin Property Developers are now offering buyers a total package deal at their
Somerset Country Estate (in the Heritage Park security precinct at Somerset
west) which, says Asrin’s director, Shiraaz Hassan, represents “one
of the best offers in the entire Helderberg Basin today”. There is, he
said, nothing comparable to it within 40 kilometres.
The estate, one of the largest in the area, covers a full 19,2ha but when the
206 units to be built on it are complete only 54% of the area will have been
developed – the remainder will be public open space including two detention
ponds which are home to a prolific bird population. All open spaces are generously
landscaped.
“With only 10,56 units per hectare, this development will retain its country
ambience and atmosphere in perpetuity,” said Hassan. “For many of
our buyers this is a very attractive reason for buying here.”
When Somerset Country Estate was launched by Asrin in 2008, they sold the plots
and left the owners free to build their homes subject to clearly defined guidelines,
which have ensured that all homes conform to a recognised style and harmonise
with each other.
Now, however, Asrin have undertaken to do the construction work as well and,
as indicated, to give buyers a one-off turnkey deal.
“This,” says Hassan, “has three major advantages. Firstly, it
keeps the price down – on the current price list we can offer three bedroom
homes and a double garage with built areas of approximately 146m² to 350m²,
priced from R989 000 to R1,26 million. These prices include upmarket finishes
as well as VAT and transfer costs.
“Secondly, it means that the buyer does not pay interim interest payments
on the bond until he actually takes transfer of the completed unit – he
does not have to start paying early for the erf.
“Thirdly, and this is significant, the buyer can, in consultation with
Asrin, design the home and specify its finishes exactly to his taste and needs
– only the sizes, the facades and the roof exteriors have to be in accordance
with the guidelines. This, too, means that he can tailor his home to his budget,
cutting back here and there if costs rise.”
Asrin, said Hassan, is aiming its marketing campaign at the owner-occupier.
However, recent surveys confirm that buy to rent investors are securing between
R8 000 to R9 000 per month in rentals – on three bedroom homes.
Jan De Villiers, Asrin’s resident sales agent (he is CEO of Remax’s
Gordon’s Bay franchise), said that after 2½ years of living at Somerset
Country Estate, he can recommend it with total sincerity.
“I’d like to say it is the best kept residential secret in the Cape,”
he said. “Particularly reassuring is the fact that the estate enjoys “double
security”.
“The outer ring security is provided by the Heritage Park security team,
the inner ring by our own electrified security fencing, manned entrances and
patrol guards. Crime has been almost eliminated from the area.”
Discussing their pricing on the package deal, Sophia Vorster of Devpro, who
works with Asrin, said that similar homes nearby in Heritage Park are selling
at R1,7 and R1,8 million.
Among those buying in here, she added, are the parents of Stellenbosch University
students who have realised that they can get a complete home here for the same
price as a bachelor flat in the university town – and who welcome the higher
level of security.
All four major SA Banks, she added, are prepared to advance loans for homes
at Somerset Country Estate to creditworthy bond applicants.
Hassan said that 43 homes have been built at Somerset Country Estate so far,
a further eight are in the pipeline and the new offer will probably net another
20 sales before the year end.
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23 September 2010, 08:42:28
With no end in sight to the demand for rental property on both short and long-term
leases, premier real estate group Aida has just launched a new electronic rental
property management solution to ensure excellent service for both landlords and
tenants.
“From student flats to family homes and from bush lodges to beachfront
cottages, if they’re let to tenants they all need managing,” says
Aida CEO Young Carr, “and many of our offices across the country already
have large portfolios of rental properties.
“Now our new rental management platform will make it easier for them to
keep track of all the details of each property and the actions required to deliver
consistently excellent service to landlords and their tenants.”
He says the launch of the system is in line with Aida’s policy of continuously
adding value to its franchise and service offering without ever detracting from
the essence that has made Aida a trusted and respected household name.
“In this respect, what we try to do is identify systems that will assist
our existing franchisees to improve their service offerings and that will also
attract new franchisees so that we can reach more clients. And we now already
have some offices that are purely concentrating on rental property management,
thanks to the new system.”
Carr says the demand for rental property is set to keep growing for two reasons:
the stringent credit control measures that restrict access to the home loan
finance that would enable tenants to become owners, and the increasing mobility
of skilled employees, who need to be able to move quickly from place to place
as they take up new contracts.
“And that means that there will be an increasing number of landlords who
need help to manage their rental properties and maximise the returns on their
investments. Our aim is to provide that help, in an efficient and entirely professional
manner.”
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17 September 2010, 08:05:09
Spire Property Management has officially opened their Johannesburg regional
office, completing their national footprint within South Africa.
Spire previously operated a successful office in Johannesburg managing Paramount
Property Fund’s Gauteng properties until the sale of Paramount to Growthpoint
in 2007. Now, as a direct result of increased business on a national level,
Spire has made the decision to re-establish an office within the Gauteng region.
“This is an exciting area that promises continued growth for the organisation,”
says Marc Edwards, Managing Director of Spire Property Management.
“Charles Morris has been appointed as the Regional Manager for the Johannesburg
office and we are more than confident that he will maintain Spire’s good
name and proven track record. Charles was responsible for Spire’s operations
in Johannesburg previously and so has an in-depth understanding and knowledge
of the industry and the clients.”
“We have seen our portfolio grow significantly in the past 12 months, mainly
through word of mouth, despite the recession which has seen a number of firms
struggle. We have placed targets on our property managers to control their operational
expenditure and have encouraged them to nurse the income side of the building
during these difficult times whilst constantly looking for additional income
earning opportunities to add value to our clients’ properties. This approach
seems to have paid dividends and reduced the pressure which potentially could
have been felt by our clients.”
In addition to the above, Spire has focused on adhering to green property management
principles throughout their national portfolio. "By focussing on reducing
the energy consumption of the property and reducing its waste we are able to
increase the value of the owners investment through a reduction in cost whilst
at the same time treading lightly on the planet which the entire industry needs
to do given that buildings account for approximately 30% of green house gas
emissions worldwide,” says Charles Morris.
Edwards and Morris concur that Spire is looking forward to growing the companies’
new regional branch and to its ongoing success in the future.
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17 September 2010, 08:03:45
One of the strong points in favour of the Western Cape Institute of Estate
Agents Property Placements service – which finds employment in the property
sector for suitable people – is that the manager of the service, Kim Ashton,
as a result of working with most Cape estate agencies, has a very real understanding
of their different cultures – and is able to match applicants to the companies
that will suit them best.
“The cultures of the various estate agencies are so different that it
can be disastrous to place a certain person with a certain company – whereas
he or she will “fit” comfortably and perform well in another company,”
said Ashton.
The good news for job seekers, she said, is that estate agencies are hiring
again.
Although some of the packages offered are attractive, the biggest challenge
she faces, she said, is to persuade more employers to offer a variety of employment
contracts – from a straight salary through to a retainer plus commission
or a commission only package (which may or may not be accompanied by an initial
advance against earnings).
Many of those coming to Prop Placements, Ashton added, are already working
in the property sector but want to improve their prospects and earnings. Thirty-nine
people have been placed so far this year – five in the last fortnight –
and a further 70 vacancies throughout the Western Cape are still needing to
be filled.
Ashton reminded employers that if they want to attract good staff they have
to build up a reputation for being generous and staff-orientated.
“The best employees,” she said, “will always look for a work
environment where they are respected for what they are and rewarded adequately
for what they achieve.
“In good companies, the staff themselves will recruit for the employer
because, believing in and enjoying what they do, they will encourage others
to join them.
“Recruitment agencies,” she said, “know that it is impossible
for all positions to be filled by the right people and there may even be some
positions for which it is very difficult to find anyone at all. However, the
more employers work with recruiting agencies, the better their chances of success.”
Those wanting what she describes as “a personalised recruitment and placement
package” to meet staff requirements can email Kim Ashton on kim@propertyplacements.co.za.
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16 September 2010, 16:23:33
  Top-performing agents and independent estate agency principals are taking to the new Chas Everitt Notebook licensing concept like ducks to water, and the company has signed up a total of 17 operators in just six months.
The latest licences issued cover areas as diverse as Hilton in KZN, Bethlehem and Clarens in the Free State and Mayfair and Heidelberg in Gauteng, says Barry Davies, the group’s director of licensing. “And there are also many different reasons for agents to consider a Notebook operation – some of which we had not previously considered.”
One interesting motivation comes from Amy Bharoochi, the Notebook licensee for Johannesburg’s Mayfair area. Previously an agent with another real estate company, and also the mother of four, she says the search for more flexibility in her life was what made her choose Notebook.
“It is very hard to achieve balance in your life when you are trying to perform at your best in a corporate environment and still find quality time for your family. There is constant stress. But with Notebook, I don’t have that. And it’s not that I’m working less, it’s just that I can pick my hours, and that I don’t have to answer to a boss or a partner.
“In addition, Notebook is very affordable compared to a normal franchise system, and I get to keep much more of any commission I earn, which takes the pressure off even more and means I can really focus on my clients’ needs.”
George Page, the new Notebook operator in Clarens, also talks about affordability as a major motivator. “Clarens is a tiny village, and it just did not make sense to me to go the traditional franchise route. The market here is too small to justify the kind of fees and royalties now being charged by the big real estate companies.
“On the other hand, I knew I had to be part of a national organisation with a big footprint and strong marketing system so that my property listings could be properly exposed. Almost all our buyers here come from outside Clarens.
“And Notebook was just the perfect solution to this dilemma. It enables me to fly the flag of a major company and market my listings nationally and internationally without having to pay an arm and a leg for the privilege.”
Davies explains that a Notebook licence grants the operator the right to use the Chas Everitt International brand, its systems, websites, marketing material and training within a defined area. “The entry and operational costs are very affordable and further savings can be made because Notebook licence holders do not necessarily have to operate from formal office premises or hire administrative staff, as our state-of-the-art business systems allow them to manage their own transactions.”
For further information about Chas Everitt Notebook, call Barry Davies on 011 801 2500
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13 September 2010, 11:21:51
On a beautiful early spring day the Bloemfontein branch of Chas Everitt International Property Group set aside some time to reach out to their local community. The Bloemfontein based Free State Residential Care Centre annual Spring walk presented this opportunity to care for those far less privileged than most of us. Involved were more than 500 children and young adults from the Lettie Fouche school for the mentally disabled, a group from the Free State Residential Care Centre as well as a group from the Sunflower organisation for children with aids.
The Chas Everitt team arrived early at the tranquill National Botanical Gardens just outside the city and set up a watering point while awaiting the walkers. As the sun became hotter everything was ready for the hundreds of walkers to reach their halfway mark – the Chas Everitt gazebo with 600 bottles of prepared water and fresh slices of orange.
 They arrived in different groups – some really exhausted – and were so thankful for the halfway refreshments. Some asked for extra water and more slices of orange and the Chas agents gladly helped each and everyone.
Everybody from the Chas team expressed the fact that this little bit of care was more than worthwhile after seeing and experiencing the joy and enthusiasm of these young people with disabilities.
According to branch manager, Willie Coetzer, this outreach will become a regular event in the ChasCare program of the Bloemfontein office of Chas Everitt International
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13 September 2010, 10:15:02
Real estate group Harcourts Africa has announced the appointment of financial
services expert Richard Gray as its new CEO, effective 1 September 2010.
He replaces Martin Schultheiss, who has overseen the restructuring of the group
over the past two years.
Gray brings to the group extensive experience in IT, project management, corporate
operations and financial services provision, with his previous position having
been CEO of mortgage originator Bond Choice.
After obtaining an honours degree in accounting and computer science in 1988,
Gray completed national service and worked as a software developer for Eskom
before being recruited by software giant Oracle to work on projects in the US
for multinational companies such as Kelloggs.
When he returned to SA in 1997, he joined NBS (the old Natal Building Society)
as manager of its homeloans IT division - and became head of IT and operations
at brand new originator Bond Choice following the management buyout of the NBS
homeloans division in 2002.
As Bond Choice grew and expanded, he moved on to become head of operations
in the coastal sales and aggregation division for two years, during which time
his potential as a new leader in the real estate industry was recognised with
a 2007 Young Lion award from the Property Association.
A year later, he was appointed CEO of Bond Choice and this year he was the
recipient of the Bond Choice chairman’s award.
Of his decision to join Harcourts, Gray says: “I was offered this exciting
position by the Harcourts Board, and felt it was too good an opportunity to
pass by. I have always been interested in a career in real estate, and the dynamic
nature of Harcourts, along with its strong growth over the past year, was an
attractive proposition.”
The keys to the group’s prospects, he believes, are the strong brand,
industry-leading value proposition, talented people and the benefits of being
part of a powerful international real estate group. “Over the past 18 months,
Harcourts has completed a tough journey with many changes. It is now positioned
to grow off a strong financial base, and reach its full potential,” he
says.
As for the current state of the real estate market, Gray expects the next 12
months to still be “tough”, but says the improvement year-on-year
is very encouraging even now. “There is definitely more activity in the
market and interest in buying and selling houses has increased. Securing finance
for buyers remains the biggest hurdle to recovery.”
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10 September 2010, 08:35:21
A survey by TNS Research Survey has confirmed what both he and his chairman,
Bill Rawson, have been saying for a year or more now, says Tony Clarke, Managing
Director of Rawson Properties: that the recession has reinforced property buyers’
confidence in the big national brands and led to their being wary of smaller
brands, particularly if they are new on the market.
“The TNS survey showed that this is true in almost all sectors, not just
in property, but as Ivan Neethling, Chairman of the Western Cape Institute of
Estate Agents, and other speakers made clear that the Institute’s recent
AGM, the appeal of big brands is especially noticeable in the residential property
market,” said Clarke.
Clarke said that while buyers will go to any agency which has a house that
seems promising, sellers in the past two years have gravitated to the big names.
They, he says, are thought to be advertising the properties more thoroughly
as well as making use of sophisticated IT marketing services and referral networks.
The big property marketing brands, added Clarke, have also proved increasingly
attractive to potential franchisees, many of whom have now applied to become
part of bigger groups.
“Here,” said Clarke, “there are two definite categories of property
franchisor: the first offers franchises as an extra to the existing operation,
which is probably branch orientated. The second is entirely made up of franchises.
Needless to say it is the latter that nine out of ten potential franchisees
favour.”
The Rawson Group is this year plans to increase the number of new franchisees
countrywide by 90, especially targeting Gauteng and KZN.
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10 September 2010, 08:35:04
Speaking to a group of property developers from out of town, Anton du Plessis,
CEO of Vineyard Estates, listed five do and don’t guidelines to be kept
in mind when appointing an agent.
These, he said, are:
1. Unless you are absolutely convinced of his/her merits, do not appoint a
person who is “just an acquaintance”, for example, your wife’s
book club member or someone whom you met at parent teacher gatherings. Do not
lose sight of the fact that any sale of fixed property is a business transaction
– you need a business oriented professional handling it.
2. Ask yourself, is the agent likely to be able to relate to the type of buyer
who will be suitable for your property. There is no point in getting an agent
well past retirement age to sell a trendy penthouse in a modern block, but such
an agent may be the perfect choice for a house in a retirement village.
3. Check that your agent works more or less full time in your area and is focused
on it. In this tight market, the agent should not be selling property as a “hobby”.
In particular, the agent must have in-depth knowledge of the suburb in order
to convince buyers of the value of your property.
4. Check that the agent has been successful. Ask him to produce in writing
a list of the homes he has sold in the last six months – with data on his
valuation and the amount achieved. Ask permission to contact his previous clients.
If the agent has not sold at least one home per month on average, he is probably
not a top performer – though the rate of sale in the higher brackets is
always slower.
5. Ask what other properties he is selling in the area. If he has many, query
how much time he will give to your property. A big stock list is not proof of
success – it may in fact be a reason not to appoint someone. See if the
agent is able to tell give fundamental but vital information about the size
of the erf and the size of the dwelling.
“In my opinion, no agent can handle more than ten properties at one time
with real efficiency,” says du Plessis, “If they take on large numbers,
they are likely to delegate important work to less qualified assistants.”
6. Follow your instincts – do you feel you can trust this agent? Do you
feel you could accept his word on all occasions? Do you feel that the agent
will place your interests above their own? Bear in mind that in many cases,
your decision on accepting an offer is based on feedback/guidance provided by
your agent.
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07 September 2010, 08:19:09
The Chas Everitt International flag is now flying high at The Clarens Golf & Trout Estate, close to the picturesque village known as the Jewel of the Free State, thanks to the decision of a local property expert to purchase a Notebook® licence.
George Page, who was involved in the development of the estate at an early stage, is a veteran of the property industry who decided to settle in Clarens and focus exclusively on the sale of homes in the estate and in the village itself
And he has, he says, been looking for some time for a franchise or other offering that would enable this niche business to tap into an existing national and international branding and marketing infrastructure without necessarily incurring all the costs usually associated with becoming part of a major franchise group.
“The Clarens market is just too small to justify the usual franchise fees and royalties,” he notes, “but I realised at once that the Notebook licensing model offered by Chas Everitt was ideal for my needs. Specially designed for specialist agents and independent principals like myself who operate in single suburbs, small towns or rural areas where the sales volumes do not justify the costs of a full franchise, it enables me to use the high profile brand in my specific license area and at the same time gives me access to the group’s awesome marketing infrastructure.
“What this means in my case is that I can now easily market the exceptional properties at The Clarens to the whole of South Africa and the world.”
Purchase options in the estate include lodges, villas and residential stands overlooking the golf course, and ownership includes golf club membership. Home prices range from around R1,8m to R7m and there are currently some two-bedroom, fully-furnished villas available for less than R2m.
Set against a backdrop of the spectacular sandstone mountains for which Clarens is renowned, the estate features a superb par-71 golf course designed and constructed by Golf Data that meanders along and across a tranquil river and a series of dams and cascading waterfalls.
It also boasts some of the best trout-fishing spots in the country, due to the inflow of icy streams from the surrounding mountains that keep the water at the low temperatures that encourage trout activity and ensure great sport for avid anglers.
The nearby village of Clarens is also renowned for its art galleries and craft shops and in the autumn especially attracts many artists, photographers and nature lovers looking to capture the beauty of the local scenery. It is also an increasingly popular weekend getaway for jaded city dwellers who want to experience outdoor activities such as horse riding, river rafting, mountaineering and hiking.
Issued by Chas Everitt
Contact George Page on 082 896 2747
www.chaseveritt.co.za
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03 September 2010, 08:38:49
With successful launches attended by over 300 delegates in Gauteng and Cape Town now behind them, the marketing team of Stilus (Sectional Title Insurance Levy Security) policy will this week focus on promoting the new insurance policy throughout KwaZulu-Natal. A launch function has been arranged from 8:30am to 12:00 noon at the Blue Waters Hotel, 175 Snell Parade, North Beach, Durban on the morning of Tuesday 7th September. All insurance brokers, managing agents and trustees are invited to attend the function. Details can be obtained from Vicky Vermaak at vicky@stilus.co.za.
In addition to the Stilus presentation Barbara Schingler of the National Association of Managing Agents will discuss matters of interest to the sectional title industry and will be followed by Tertius Maree a member of the Stilus “team” and one of the recognised experts in South Africa on the Sectional Titles Act.
Charles Coetzee, the Chief Executive of Stilus said, “The sectional title industry is now being given the long-awaited relief and breakthrough on the financial front which has been needed for a decade or more.”
The Stilus policy, which is underwritten by Santam, he said, is tailored to assist those sectional title bodies corporate whose members have fallen behind on their levy payments. Once the policy has been implemented, immediate catch-up funding is provided to bodies corporate to cover shortfalls in their levies. Once the policy is implemented, immediate catch-up funding is provided to the body corporate to cover shortfalls in their levies. Using Coetzee’s experience, acquired over many years in sectional title management, Stilus then undertakes to collect the arrear levies from the defaulting members – at no cost to the body corporate. The body corporate is, however, the insured body and is responsible for paying the Stilus premium, the cost of which when apportioned amounts to approximately R10 per month per unit – less than the cost of a cappuccino! – in return for which the body corporate trustees can now have complete peace of mind on financial matters.
Coetzee said, “Stilus is revolutionary in that, unlike most other sectional title “rescue” packages, it is not a loan to the body corporate and it places few obligations on them. The premium is almost ludicrously small considering the immense benefits derived by the body corporate.”
This, he added, has been a big surprise to the sectional title industry which had expected far higher Stilus premiums.
Michael Garvin, Marketing Director of Stilus, said that illiquidity has been the curse of the South African sectional title bodies corporate.
“All too often, schemes, which when launched were perfectly satisfactory, are allowed by inexperienced trustees of bodies corporate, and in some cases inefficient managing agents, to fall behind on levy collection and consequently property maintenance and municipal services payments. This very rapidly results in the properties losing their attractive appearance and intrinsic value and in some cases the downward spiral eventually results in substantial losses to all parties concerned.
“There are,” said Garvin, “some 60 000 sectional title schemes in South Africa comprising 800 000 units which provide accommodation for over 3,5 million people. This is the fastest growing sector of the South African residential market. Experience has shown that if body corporate schemes are properly administrated and managed they can appreciate faster than other types of residential accommodation, but if they are neglected they also lose value faster.”
“Stilus,” said Coetzee, “has the potential to remedy the “very unhealthy” sectional title problems that are now rife throughout South Africa. We estimate that over 30% of sectional title schemes are behind on payments – but the initial response to Stilus has been so good that we now expect to be serving 3 000 schemes by the end of the first year of operation and to increase this exponentially year by year.”
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03 September 2010, 08:31:52
Landelike Magaliesburg gaan na verwagting voordeel behaal uit verskeie woonontwikkelings
wat gebou gaan word sodra dienste by die boupersele voltooi is.
Die klein dorpie, gerieflik geleë tussen Randfontein en die vinnig-groeiende
Rustenburg, gaan waarskynlik kopers lok wat in Rustenburg en omgewing werk maar
vanaf Randfontein pendel weens behuisingstekorte, sê Sienie van der Merwe,
eienaar van die Aida Magaliesburg-kantoor.
“Die beplande woonontwikkelings sal ‘n welkome hupstoot gee aan die
plaaslike eiendomsmark wat nou onder druk is weens onsekerheid oor talle staatskontrakte
om landbougrond rondom die dorpie vir grondhervorming te bekom.
“Verskeie kontrakte is die afgelope 18 maande met die staat gesluit, maar
die proses hang nou in die weegskaal. Gebrek aan fondse om die grondeienaars
te betaal is as die rede aangevoer en talle eienaars is nou onseker oor hulle
toekoms. Kontrakte vir grond van meer as 2000 hektaar in die Magaliesburg-gebied
is onderteken,” sê sy.
Die bou van sewe nuwe ontwikkelings gaan egter sowat 200 wooneenhede in die
klein dorpie, wat nou minder as 20 voltitelhuise bied, beskikbaar stel. Nuwe
eenhede gaan trosbehuising sowel as voltitel-eenhede insluit, sê Van der
Merwe. Dienste soos water, elektrisiteit en riool word nou aangebring.
“Eenhede gaan na verwagting in die loop van volgende jaar voltooi word
en ons verwag gesonde vraag.
“Dit sal nie net ‘n voordelige woonplek wees vir pendelaars wat by
die myne en verwante bedrwywe naby Rustenburg werk nie, maar Magaliesburg lok
ook talle naweekbesoekers danksy die rustige landelike atmosfeer – en ons
verwag dus dat eenhede gaan ook byval vind onder leefstylkopers.”
Die dorp se toerismebedryf het ook ‘n stewige hupstoot gekry deurdat die
Portuguese sokkerspan tydens die Wêreldbeker daar gewoon het, sê
sy. “Verskeie hotelle in die omgewing gaan waarskynlik groot voordeel uit
dié blootstelling kry.”
Plaaslike handelsondernemings maak ook gereed vir die verwagte invloei van
nuwe inwoners en ‘n plaaslike supermark is reeds besig om die winkel op
te knap en uit te brei.
Magaliesburg is sowat 15 minute se ry vanaf Randfontein en sowat 30 minute
vanaf Rustenburg geleë.
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02 September 2010, 09:25:44
I t’s hot, it’s hip and it’s the most ‘happening’ place in the Western Cape to live right now, boasting a heady combination of magnificent beaches, awesome views and the integrated urban lifestyle sought after by today’s up-and-coming executives and professionals.
In addition, the Blouberg area along the Cape’s Western Seaboard is rapidly becoming one of the country’s top seaside playgrounds for both local and foreign holidaymakers, says Deon Lessing, new owner of the local Chas Everitt International franchise.
Formerly the marketing director of mortgage origination company Betterbond, Lessing has extensive experience in real estate but admits to a special interest in Blouberg, which he says is “rapidly gaining a reputation as one of the best beachfront destinations.
“It is already a hot residential choice for Cape Town’s ‘beautiful people’ – young executives and professionals who appreciate the chance to live a film-star lifestyle, for much less than in other upmarket locations. Here they can have it all – long white beaches on the doorstep, trendy restaurants and cafés all along the shoreline, premier shopping venues within easy reach and best of all, designer apartments and penthouses boasting world-class views at comparatively low prices.
“This has made it one of the fastest-growing areas in SA over the past few years, and now it is also becoming a favourite destination for an increasingly cosmopolitan crowd of beach tourists. Blouberg is rated one of the top kitesurfing beaches in the world, and other popular leisure activities here include whale and dolphin watching, shark diving, cycling, canoeing and sailing.
“And for those who prefer a more leisurely holiday, there are several excellent golf courses in the area and plenty of places along the seafront where one can take in the spectacular views of Table Mountain, Robben Island and the Cape Town skyline while sipping a sundowner.”
Indeed, says Lessing, there is a constant demand for holiday rentals and sustained interest among developers as a result, with many new projects now coming on stream in Bloubergrant and around Big Bay. “The long-term rental market is also extremely busy. There is a large contingent of foreign residents, and apartments and houses renting for between R3500 and R7000pm are in high demand, while beachfront apartments and penthouses attract tenants at rentals right up to R25 000pm.
“This makes Blouberg a choice area for local buy-to-let investors as well as the increasing number of SA expats keen to buy properties ‘back home’, which they see as likely to increase in value faster than those in the UK, Europe and many other parts of the world that were hard-hit by the recession.”
Prices in Blouberg, which includes the suburbs of Bloubergrant, Bloubergrise, West Beach, Bloubergsands, Blouberg proper and Blouberstrand, start at around R500 000 for a one-bedroom apartment inland, and range between R900 000 (bachelor’s) and R2,5m (two-bedroom) for a high-rise apartment with views on the beachfront.
A three-bedroom townhouse close to the beach with two bathrooms, double garaging and a private garden can be had for around R1,8m Three-bedroom, two-bath apartments start at around R2,1m and there are brand-new, palatial penthouses in beachfront blocks available for around R20m.
In the Big Bay estates, there are stands available for around R2,2m for those who would like to build their own homes.
Issued by Chas Everitt International
For further information call
Deon Lessing on
082 800 9153 or visit
www.everitt-westernseaboard.co.za
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30 August 2010, 11:06:33
The Chas Everitt International property group now has an office open in Bloemfontein,
which currently has one of the fastest-growing property markets in the country.
The franchise in the Free State’s capital city was recently purchased
by the local BCF Group, which has been serving Bloemfontein consumers for the
past 15 years. The diversified companies in the group include BCF Micro Finance,
BCF Cellular, BCF Financial Services, BCF IT Solutions, BCF Properties (Property
Management and Rentals), Blue Line Office Supplies and the local Mama’s
Chicken fast food outlet.
Chas Everitt International Bloemfontein will be managed by Willie Coetzer,
who has extensive business and real estate experience in the city and is very
upbeat about its property prospects.
“The market here is flourishing and has already been in positive territory
for the past three months, mostly because of the growing appreciation of its
convenient location,” he says.
“Bloemfontein is a centralized city, close to other major cities by air
and on a crossroads leading to five other provinces and Lesotho. It serves a
large geographical area and has good schools, tertiary education institutions,
hospitals and medical facilities, retirement options and retail centres. This
combined with a friendly, more laid-back life style is attracting executives
and families from other cities.”
The northern suburbs of the city such as Dan Pienaar, Pentagon Park and Heuwelsig,
as well as the western suburbs such as Universitas and Langenhovenpark have
become sought-after places to live, Coetzer says, and the newly established
Woodland Hills Wildlife Estate, which also offers a retirement and medical facilitation
centre, is also in demand.
“The focus among buyers is currently on properties for their own use,
and this is contributing to a shortage of rental properties in the city, which
means opportunities for developers. Commercial properties are also scarce and
expensive.”
Chas Everitt’s International director of franchising Barry Davies says
the Bloemfontein office is geared up to capitalise on all these opportunities,
thanks to BCF’s strong business foundation in the city and Coetzer’s
experience, and that he is confident the new franchise has a bright future.
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30 August 2010, 11:05:16
When the home loan is granted the normal period that the client will take to repay the bond is 20 years and the prevailing bond rate at that time will apply. The Usury Act permits a bond holder to make payments in addition to the stipulated monthly instalment at any time.
However, should the bond holder wish to pay the full outstanding balance of the loan in one amount prior to the due date (the bond has to be in the books of the bank for 3 years), the following provisions will apply:
The bond holder is required to give the bank 90 days notice in writing of the date the payment will be made.
The notice may not be given before the expiry of a period of 90 days from the date when the loan was registered.
The act clearly stipulates that the bank has the right to have an account on their books for a minimum period of 180 days from inception i.e. 90 days have to lapse after registration of the bond and then 90 days notice, which should be furnished to cancel the bond within the 3 year period.
This allows the bank to recoup some of their origination costs as a result of the potential interest income that will be lost. It takes anything up to 3 years before a loan becomes profitable to the bank.
The early termination fee is not a penalty imposed by the bank, but a recovery of interest income, which is specifically provided for in legislation.
Accounts to which early termination would apply:
When a bond is cancelled within the first 3 years after registration with effect from 1 October 2001.
All home loans with a fixed or capped interest rate agreement.
This allows the bank to recoup some of their origination costs as a result of the potential interest income that will be lost. It takes anything up to 3 years before a loan becomes profitable to the bank.
Process to determine finance charges debited to your home loan account:
90 Days interest is calculated on the outstanding balance at day of notice.
The provisional figure is added to the outstanding balance together with other allowances such as insurance/assurance and admin fees, etc.
On final cancellation, the unexpired portion of 90 days interest will be charged and debited to the bond account, and will be due by the bond holder.
Refund of early termination interest charged:
Should the customer take out a new bond with the bank within 6 months of settling the previous home loan account, the client needs to advise the cancellation department of the new account number.
The refund will not be considered until the new bond is registered.
To avoid early termination – give 90 days notice!
This information may be valuable to investors as they often buy off-plan and sell on once the project is completed, which means they have not paid a single bond repayment and penalty interest will apply. So, take heed of the above information to avoid these costs, or make sure you factor the cost into your new sale price.
Please note: This information may vary from bank to bank and it is recommended that you check the rules with your bond consultant.
Riki Scruton
General Manager
Chas Everitt International Property Group Sandton & Northern Johannesburg
Mobile: +27 (0) 82 558 5086
Tel: +27 (0) 11 463 2033
Fax: +27 (0) 11 463 2036
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19 August 2010, 14:08:06
Paul Henry, the managing director of one of Cape Town’s most prolific
producers of residential units, Rawson Developers (they have completed several
thousand units over the last 15 years), has warned that although there are big
advantages to buying off plan, there is always a danger that the final product
may not be as good as the computer graphics and plans led the buyer to expect.
There is also, said Henry, a danger that the specifications list will be vague
and non-specific, thereby allowing the developer considerable leeway in his
selection of the fittings and fixtures.
Another possible danger, said Henry, is that the contract can be open ended
as regards the time. With bank finance hard to come by and banks insisting on
a high percentage of sales before they advance money, projects can be held up
for long periods before the first work begins on site.
On the other hand, buying off plan enables the buyer, in return for a small
deposit, to get a fixed price related to today’s values and then to watch
it escalate in value for a year or two, during which time no further outlays
are called for.
“Experience has shown that this can be a highly profitable form of investment
– with the huge advantage that the investor is able to gear it. This is
seldom possible with the majority of other investments.”
Asked how a buyer can protect himself agents the dangers and pitfalls mentioned,
Henry said,
“Your only real safeguard is the developer’s reputation. If he has
been in business some time and has a good track record, you can probably be
confident that the final product will be on time and up to standard. If he is
a new name on the scene, with little development experience, it will pay to
have a good lawyer go through the deed of sale, to insist on guarantees and,
above all, to ensure that your deposit goes into a ring-fenced trust.”
Three questions, said Henry, should be put to the clients of all developers.
The first is, “Did the finished product exceed your expectations for a
unit in this price range?”. If the developer is good, the answer will always
be “Yes”.
The second question is, “Has your unit experienced capital growth?”.
That, said Henry, may be a tough proposition in today’s market but many
good developers can even now show significant value growth on their units over
the last year or two – as well as on those due to come on stream in the
next year.
The third question, in many ways the most important, is, “Did the developer
attend conscientiously to the snag list?”.
All too often, said Henry, developers have been hard to contact once a unit
has been transferred. This, he said, is disgraceful behaviour because 70% of
units will require some post-handover attention.
Henry added that, although some very big projects have been highly successful,
he personally would always be wary of any project on which the work is likely
to be ongoing for years and years.
“This type of scenario can lead people to feeling they are living on a
permanent building site. Reasonably small schemes – say, with not more
than 200 units – in good areas, still offer the best and safest investments.”
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19 August 2010, 14:07:23
Rawson Properties will be giving away a fully completed 55m2 two bedroom home
in the Kingfisher precinct of Parklands, some 15km north of Cape Town. This
will be the prize awarded to the winner of a new competition about to be launched
by the popular people’s newspaper, The Daily Voice.
The competition is aimed at aspirant first time homeowners - one of its conditions
being that neither the winner nor any immediate members of his family may already
own a home.
Bill Rawson, Chairman of Rawson Properties, said this week that Independent
Newspapers, owner of The Daily Voice had approached Rawson Properties with the
suggestion that they offer a substantial prize that could make a real difference
to the winner’s life.
“Obviously,” said Rawson, “a complete debt-free home has to
be the perfect answer to this request. Nothing else could be quite as suitable.”
The ancillary benefits to the Rawson group, he added, are likely to be significant
because The Daily Voice’s circulation has now risen to 580,000 - and is
still going up.
“No other Cape newspaper can offer quite so much coverage,” said
Rawson.
Rawson Developers designed, developed and built the home that will be given
away - but, having sold all their homes at Kingfisher, they are buying back
this home from one of their clients to make it available for the competition.
“The home has a current market value of R530,000,” said Rawson, “and
in view of Parklands’ popularity it is likely that with capital appreciation
here, by the end of 2011 the value will be in the region of R600,000.”
Although this is a no frills starter home, added Rawson, it fully maintains
the very satisfactory standards of Parklands developments. It has a tiled roof,
a fully equipped kitchen, fitted carpets in all living and bedroom areas and
built in cupboards in the bedrooms.
Rawson said that he had been impressed by the Independent Newspapers’
marketing skills.
“The Daily Voice will give details of how to go about entering the competition.
What does seem certain is that it will draw many people to this Parklands show
house and quite possibly to others and could boost the area.”
Rawson Developers have in recent years been among the most committed and the
most prolific of all Cape residential developers. They have now completed over
3,000 units. Three new developments, two of which are in Rondebosch - the former
Porter House project (165 units) and the final phase of Rondebosch Oaks (109
units) - have just received Council approval, as has Rawson’s 70 unit Grassy
Park development, called Olive Grove. Another Rondebosch sectional title project,
Rivers Edge, is now 50% sold.
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19 August 2010, 08:42:24
Most property sellers have to drop their asking prices to achieve a sale, a property group said on Tuesday.
"And the average drop is around 12 percent, which means that most sellers are quite seriously out of step with what buyers are actually willing or able to pay," the Chas Everitt International property group said in a statement.
Berry Everitt, CEO said such sellers usually argued that prospective buyers were quite at liberty to make lower offers.
"The fact is that serious buyers will usually not make any offer at all on a home they consider to be overpriced, especially if there are many properties on the market for them to choose from."
Everitt said others would shy away from making a lower offer because they did not want to offend the seller, even if they really liked the property.
"And sellers need to face up to the fact that buyers usually know the market better than they do... sellers may look at a few homes before listing theirs for sale, but buyers have frequently looked at dozens of homes over a few weeks or months by the time they decide to make an offer."
Everitt said if a home was not attracting any interest after a couple of weeks on the market, the seller should consider lowering the price as soon as possible.
"Sellers who do this when the listing is relatively new and the home still fresh in potential buyers' minds stand a good chance of keeping the marketing momentum going."
Those who did not would inevitably end up with an unsold property that was "about as attractive to buyers as last week's bread". - Sapa
Issued by Chas Everitt International
For further information call
Berry Everitt on
011 801 2500 or visit
www.chaseveritt.com
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17 August 2010, 16:34:57
Erik van der Walt (28) from Pretoria won the South African 2010 RE/MAX World Long
Drive Championship. This prestigious event was held on Friday, 23 July at the
beautiful Maritzburg Golf Club in KwaZulu-Natal.
Van der Walt, who has been playing golf since he was six years old, beat 2008
SA champion, Rynardt Combrinck, who came in 2nd with a drive of 352.9 metres,
Ryan Louw, who finished 5th at the World Championships in the USA last year
and came in 3rd with a drive of 339 metres and 2008 runner-up in the USA, Dewald
Gouws, who came in 4th with a drive of 320 metres.
“It was an unbelievable experience to receive the trophy while standing
next to guys like Rynardt Combrinck and Dewald Gouws,” comments van der
Walt, who secured 1st position with a drive of 362 metres.
Van der Walt, who won R30 000 in prize money from RE/MAX of Southern Africa,
will represent South Africa at the RE/MAX Long Drive Championship finals in
Mesquite, Nevada in October 2010.
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13 August 2010, 15:07:11
Your deposit should be carefully arranged if you're a homebuyer purchasing "off plan" - or in advance of your home actually being built - you will most likely have more money issues to deal with than those purchasing a prc-owned property. And the first of these is the matter of the deposit.
It is very important Chas Everitt International property group says, that you do not pay any deposit for a stand or an off-plan home - or sign any agreement to purchase such a home - until you have thoroughly checked the credentials of the developer and/ or home builder and made sure they are well-established operators with a track record of completed and successful developments.
You should also make sure that your deposit is only paid into the trust account of an attorney or a registered estate agent - not the bank account of the developer or builder. There have been far too many cases in recent years of bogus estate agents, builders' agents and construction companies taking deposits for proposed developments and then simply vanishing.
Writing in the Property Signposts newsletter, Berry Everitt says the second thing to consider is the possibility that you may need two separate home loans - one to pay for a stand and the other for the actual structure - if the development is not sectional title. "The second loan is often called a 'building loan' and is used to pay the building contractor in installments known as draws.
These are paid as certain stages of the building work are completed to the satisfaction of the financial institution." "However, you as the buyer will have to sign each draw form authorising the bank to pay. so you can have a large measure of control over the way the work is done. And you should exercise this control by visiting the building site frequently and monitoring the workmanship closely so that any problems can be rectified immediately - and certainly before the builder collects the last draw."
In addition, says Everitt, you should never occupy or sign for the keys to your new home before you've checked it over thoroughly once more, and got the builder to agree in writing to rectify any remaining "snags". "And lastly if you're a VAT-vendor or are buying the property in the name of a VAT-registered enterprise, you should consult your accountant about reclaiming the VAT payable on the purchase of a newly-built home."
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11 August 2010, 09:40:32
Homebuyers are
accustomed to the idea of paying a premium for a property with
a view, like a “house on the hill” or an apartment overlooking the
sea, says Chas
Everitt International Property Group MD, Berry Everitt in the latest
Signpost Newsletter.
But just how much value does a view add? In an area where most homes have views you’ll probably pay a smaller premium to have one than in an area where view homes are scarce. On the other hand, buyers will usually pay an extra premium for a view that is wholly unobstructed by any other homes, power lines or trees.
However, even buyers prepared
to pay extra for a view are unlikely to do so unless the property as a whole
is in good condition and has facilities such as a second bathroom or proper
garaging that warrant the higher price. A small, run-down home with a spectacular
view will for example have limited appeal even to view buyers, because most
of them will be reluctant to spend even more on renovations or additions.
The local buyer profile will also affect the value equation. If most buyers in
an area are looking for homes in which to raise children, but all the view homes
available are tricky to access or have no gardens, those properties may actually
be hard to sell and fail to command any premium at all.
And of course no view can compensate for a neglected area at risk of going into a decline. In fact, it might even become a hindrance, since the view property you paid a premium for will be harder to sell than others if prices in the area start to fall.
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11 August 2010, 09:40:08
‘New applications continue to come through and we have bedded down
a number of new operations in July”, says Barry Davies, Chas Everitt’s
licensing and franchising director.
These include operations in Walkerville and Mayfair in Gauteng, 2 new Free State
Notebooks in Bethlehem and Clarens as well as coverage in Hilton and Pietermaritzburg
in KZN.
Top agent Christiaan Steytler, who is renowned for his years of high-end sales
in Constantia who opened his own Notebook office
with business partner, Shaun King, in McGregor is
a great example of the calibre of applicant the model is attracting.
The Notebook system is specifically designed to accommodate agents and principals who are strong in their local markets and wish to trade for their own account but under a national brand.
The model is largely aimed at small towns and rural areas where traditional
franchise and set-up costs are prohibitive relative to market size, Davies explains.
The Notebook licence grants an operator the right to use the Chas
Everitt International brand, its systems, websites, marketing material
and training within a defined area at an affordable entry and operational cost.
Substantial savings are also made because Notebook licence holders are not required
to operate from formal office premises or hire administrative staff as the group’s
business systems allow them to manage their own transactions.
The latest addition to the growing team, Amina Bharoochi is taking up the reins
in the Mayfair/Crosby areas of Johannesburg and
will be fully operational from 01 September 2010. On joining the team,
Amy had the following to say “I am pleased to be part of the Chas family.
I feel confident in the support available to me. Clearly our goal of success
is one and honouring each other equates to honouring our future success.”
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11 August 2010, 09:39:27
Oddly enough, the last thing most home sellers want
to think about when their property is not attracting offers is price –
even though they themselves may be extremely value conscious when looking at
homes to buy Chas
Everitt International Property Group note in the latest Signpost Newsletter.
This is clearly evident in the latest statistics from First National Bank which
show that 80% of sellers are still having to drop their asking prices in order
to achieve a sale. And the average drop is around 12%, which means that most sellers are
quite seriously out of step with what buyers are actually willing or able to
pay.
Such sellers will
usually argue that prospective buyers are quite at liberty to make lower offers,
but the fact is that serious buyers will usually not make any offer at all on
a home they consider to be overpriced, especially if there are many properties
on the market for them to choose from.
Others will shy away from making a lower offer because they don’t want
to offend the seller, even if they really like the property.
And sellers need to face up to the fact that buyers usually know the market
better than they do. Sellers may look at a few homes before listing theirs for
sale. But buyers have frequently looked at dozens of homes over a few weeks
or months by the time they decide to make an offer - and acquired a finely tuned
idea of value as well as a sense of which way the market is tending.
So if your home is not attracting any interest after a couple of weeks on the
market, you should consult your agent and seriously consider lowering the price
as soon as possible. Sellers who do this when the listing is relatively new
and the home still fresh in potential buyers’ minds stand a good chance
of keeping the marketing momentum going. Those who don’t will, inevitably,
end up with an unsold property that is “stale” – or about
as attractive to buyers as last week’s bread.
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11 August 2010, 09:39:02
NOW more than ever, homeowners need professional help when they decide to sell their properties. In short, says Berry Everitt, CEO of the Chas Everitt International property group, they need agents that really know how to reach potential buyers, have the latest market information at their fingertips and can handle tough negotiations while also maintaining excellent relationships with lenders.
“The first thing to look for when you are choosing an agent to market
your home is someone who is in the real estate industry full-time.It
is difficult, for example, for an agent to give you good advice about an asking
price unless he or she lives and breathes real estate and keeps constant track
of sales in your area.”
Writing in the Chas
Everitt Property Signposts newsletter, he says other traits that make
a top agent are;
Passion, enthusiasm and dedication: You want an agent that will go the extra mile to get the best results, even when the going gets tough.
Market savvy: Knowledge is the key to attracting buyers and achieving consistent sales in a given area – including your property.
Creativity: Your agent should be able to write offers to purchase that excite the buyer as much as you, and to be able to think “out of the box” to reach solutions if negotiations bog down.
Sensitivity and empathy: Tighter lending requirements are a primary concern in today’s market. A good agent will know the right questions to ask buyers about money without offending them, and be able to make suggestions about how you can make the deal more attractive.
Technology savvy: Most home transactions today begin on the Internet. In addition, more and more people are conditioned to receiving information the moment it becomes available. You don’t want to lose a buyer because your agent was slow to put your listing out there.
A team mindset: A good agent will have at least one good assistant and a strong network of other professionals and service providers such as mortgage originators, insurance agents, home inspectors and handymen that you can tap into.
For more information call Berry Everitt on 011-8012500 or visit www.chaseveritt.com
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06 August 2010, 08:13:56
At any given stage, Rawson Auctions will now have 20 or more PIPs (Properties
in Possession) to sell, says the CEO of this new Rawson division, Tanya Jovanovski.
From an early stage,” she said, “we have been able to capitalise
on Rawson Properties’ good relationships with some of the major banks and
have been given a steady stream of residential, commercial and industrial repossessed
properties to auction.”
In current conditions, said Jovanovski, buyers are often able to get these
knocked down to them at 30% below the price they might have obtained at the
peak of the 2007 boom. This, she said, means that buy to rent investors are
currently building up ‘useful’ portfolios on which in many cases their
monthly bond repayments are covered from an early stage.
“We have had a 95% success rate with repossessed properties. We have auctioned
stock in Parklands, Gordons Bay, Kuils River, Athlone, Marina da Gama, Wynberg,
Bellville and Ottery.”
Where a property does not find a buyer, she says, the reason is almost always
that the reserve price was unrealistically high.
“It surprises me,” she said, “how often someone will bring a
property to us for auction when it has stuck on the market for a year or more
because it was unrealistically priced – and then expect us to sell it at
roughly the same price. In some cases, it has to be said, it is the estate agent,
keen to get a mandate, who has given expectations of these unrealistic prices
– as if there has been no downturn and no recession. Fortunately, however,
those advised by Rawson staff have usually had a clearer idea of where prices
are pitched today.”
Jovanovski said that she has now taken on two new consultants, Jason Finch
and Joe Przygonski to represent Rawson Auctions.
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23 July 2010, 15:39:03
South Africa's leading online property search portal, Property Genie, recently
released its National Trends Report for June 2010. The report is a monthly overview
on the latest real estate trends as experienced by Property Genie, which comprises
a database that includes residential properties listed with all South Africa's
leading real estate agencies.
Every month, active homebuyers register to receive property alerts via email
or SMS, which notify them when a new property listing on the site that matches
their criteria. During the month of June, 176 470 property alerts were sent
out to Property Genie's database of 5 723 registered homebuyers for new stock
loaded onto the site and matching their search criteria. In the June report,
RE/MAX of Southern Africa was listed as the top agency to earn the highest number
of alerts, based on new stock loaded onto the site matching homebuyer interest.
Among a wealth of other property related information, the report also listed
the country's 10 hottest suburbs as:
- Claremont - Western Cape
- Bryanston - Gauteng
- Sea Point - Western Cape
- Hout Bay - Western Cape
- Rondebosch - Western Cape
- Cape Town - Western Cape
- Constantia - Western Cape
- Kenilworth - Western Cape
- Plumstead - Western Cape
- Durbanville - Western Cape
Adrian Goslett, CEO of RE/MAX of Southern Africa said the company is very proud
of its Property Genie Top Agency title for the month of June. This comes hot
on the heels of the launch of two new technology innovations for the group's
property listings: its new website and RE/MAX MOBI/LEADS. "We will continue
to employ cutting-edge technology to assist in matching buyers with properties
that suit their individual requirements. That, after all, is the best way to
ensure a successful property transaction," Goslett concludes.
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23 July 2010, 09:28:45
In the residential property sector it is, says Lanice Steward, MD of Anne Porter
Knight Frank, sometimes said that if, you want to see an area with real value
appreciation potential, check out where the foreigners are buying.
“Obviously foreigners buy primarily for lifestyle, views and access to
recreational areas but it is significant that right now Hout Bay is much favoured
by the British and by Europeans, especially Germans.”
The obvious virtues of Hout Bay, says Steward, are its spectacular encircling
mountains, its sweeping kilometre long beach, its busy harbour and yacht berths
and its 50 plus restaurants, bistros and coffee shops – but it has two
other less well known advantages which should influence anyone looking for a
home here.
These, she says, are
the village’s friendly atmosphere.
“With less than 7 000 homes in the valley, the middle class inhabitants
tend to know and care for each other. There is a real welcoming community spirit
there and this is fostered by some very active and alive churches.”
the easy commuting to the city.
“Even at the peak traffic times, 8am to 9am,” says Steward, “it
is always possible to reach and find parking in the city in half an hour and
getting to Camps Bay or Sea Point takes half that time. Compare this to the
1¼ hours that Table View or Parklands residents can spend driving to
work – even when they set out early – and you will realise that Hout
Bay’s coastal road access to the city is, or should be, a big reason for
settling there.”
A further reason, says Steward, is that prices in Hout Bay are still very
competitive.
“If you have the cash and you want to own a mountainside mansion with
180° views you can find many splendid homes priced from R10 to R25 million
– and these give Hout Bay a certain cachet and exclusivity – but there
are many good two or three bedroom family homes priced from R1 to R1,5 million.
Steward said that APKF now has a comprehensive list of homes for sale and to
rent – and, she predicts, by the end of 2011, the valley will have seen
some of the best price appreciation in the whole Greater Cape Town area.
“It has taken time for people to realise how charming and convenient Hout
Bay is – but the message is now going through,” said Steward.
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23 July 2010, 09:27:17
Capitalising on the success of its first multiple properties auction, Rawson Auctions
is organising a breakfast at Kelvin Grove (in Newlands, Cape Town) to introduce
more Capetonians and others possibly not familiar with the auction method of selling
properties to this increasingly popular marketing system.
The function will be at 7:45am on 11th August.
Photographs and details will be on display but the occasion will be treated
as a preview to these properties being auctioned later. The properties will
be both commercial and residential.
While breakfast is served, three top level property personalities will give
talks. Pascal Phelan, chairman of Phelan Holdings and developer of the Cape
Royale Hotel, will talk about the benefits that in his view will be experienced
in the next year or two as a result of SA’s hosting the World Cup. He will
also explain the investment potential offered by the Cape Royale.
Tony Vaughan, publisher of The Property Magazine will be speaking about the
latest property trends and Tanya Jovanovski, CEO of Rawson Auctions, will be
auctioning three pages of advertorial space in the magazine, along with a glittering
dinner for 16 of the successful bidder’s colleagues and guests. (Photographs
of this will be included in the magazine.)
Trevor Weston-Green, Rawson Developers’ planner, strategist and marketer,
will then elaborate on the virtues of the second of Rawson’s new Rondebosch
projects, River’s Edge, which is bringing 84 one and two bedroom apartments
to the market at prices from R769 990. Being in the UCT ‘academic belt’
these are likely to be much in demand for students.
Jovanovski has said that these breakfast functions are highly enjoyable and
informative.
“They have the big advantage of enabling clients, agents, owners and potential
buyers to network and exchange views – which can only benefit us all in
Cape property.”
Bookings for the breakfast, at R120 per head, should be made via Dianna Reid
by email to info@rawsonauctions.com or by telephone on 021 658 7100. There will
be no charge for those wanting to attend without the breakfast option but Rawson
Auctions encourage those coming to book to ensure that they have enough seating
on the morning.
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09 July 2010, 08:33:25
Three difficult decisions face any elderly person contemplating a change of
address and lifestyle for their retirement years, says Heather Cape, Manager
of New Development Sales at Greeff Properties.
The first is when to retire, the second is what retirement village to live
in, if any, and the third is which ownership model to adopt. (The last two choices
are linked because retirement estates usually offer only one model.)
“On the first decision, the problem which becomes more apparent year-by-year
is almost always that people do not get old as fast as they used to and they
often never really retire. They, therefore, delay making the necessary arrangements
until very late.
“Then they find that they have limited options because the waiting lists
of all the popular retirement homes are full.
“The other big decision, choosing the model that suits you best is also
delayed. The options are Life Right, share block, freehold or sectional title.”
Many South Africans, says Cape, are inadequately informed on the merits of
what these different options offer - and, in particular, they do not know how
the Life Right system works.
“The alternatives to Life Right have been fairly thoroughly marketed,”
says Cape, “but Life Right has not had as much publicity. The prejudice
against Life Right is, therefore, almost always based on ignorance of the real
facts.”
The facts, says Cape, are:
Life Right, almost without exception, offers the lowest purchase price in relation
to the product and this price advantage is enhanced by there being no transfer
duty or tax payable, and
Life Right is the most widely used retirement home model worldwide. It is particularly
popular in the USA, where it is referred to as the Life Plan model and in Australia
and New Zealand where it tends to be known as the Licence to Occupy model.
Explaining how Life Right works, Cape says that it does not give the purchaser
ownership of the unit but rather the right to live in it for the remainder of
his or her life - and this right extends to both people in a marriage or partnership.
If the one dies, the other continues to remain in occupation.
Furthermore, when either of the parties dies (or decides to leave the unit)
their heirs or they themselves are paid back on the basis that the capital sum
paid is returned plus 25% of the profit after costs (holding back some of the
profit enables the owner to refurbish the unit).
Cape says that one of the foremost Life Right retirement complexes now on sale
at the Cape is Riverside Gardens, which will be managed by the CPOA.
In this development, says Cape, 57 one and two bedroom units are available
from R799 500.
“I am convinced that this offer represents one of the best buys in the
retirement field ever to become available at the Western Cape,” says Cape.
“Considering that Riverside Gardens will have excellent communal facilities,
including a dining room, a communal living room, a bar with a big screen TV,
a library, a heated swimming pool, a gymnasium and landscaped garden. It offers
excellent value at a low price.”
The upmarket communal facilities, said Cape, have been carefully designed to
“add a further dimension” to the residents’ lives – and
in other villages have led to residents being outgoing, active and ready to
interact with the other residents with whom they find they have something in
common.
“This fact, as well as the greater security of a complex like Riverside
Gardens, should always be borne in mind when the retiree is contemplating a
purchase: the simple truth is that he is not buying a right to live in a unit,
he is buying a lifestyle which will comfort and stimulate him and his partner
in what should be a relaxed and enjoyable phase of their lives.”
FeedBack (0)
09 July 2010, 08:31:53
Rawson Properties is working to ensure that by 2012 all its agents will be
qualified in compliance with the new National Qualifications Framework level
4 and all its franchise principals in terms of the NQF5 criteria.
Luke van Vuuren, who now heads up all Rawson training, says that in the past
two years 330 Rawson agents have qualified. This year the past is being increased
and an additional 300 agents should reach NQF4 and/or NQF5 levels. (The Rawson
group is in line for 300 SSETA bursaries, half of which will be for the training
of principals to NQF5 level.)
To date, said van Vuuren, the Rawson group has achieved a 90% plus pass rate
in all Services Sector Education and Training examinations.
In addition to the obligatory training without which it will become illegal
to work as an estate agent, Rawson’s, as part of its franchise backup service,
is also providing supplementary skills training.
“While it is true that certain people are naturally good agents, it is
also true that training will make a good agent better and an average agent above
average. From an early stage in this group’s history Bill Rawson has placed
huge emphasis on training, in the belief that it is this that sets the really
good agencies apart from the others,” said van Vuuren.
FeedBack (0)
09 July 2010, 08:29:46
The Aida Lowveld franchise has spread its wings and now offers its services to
property consumers right across the Mpumalanga lowveld.
The franchise is now operating in the residential and rental markets of Nelspruit,
White River, Sabie, Graskop, Bushbuck Ridge, Sabiepark, Hazyview, Rocky's Drift,
Barberton and Marloth Park, says owner Marelize Schuld.
“Aida’s CEO Young Carr has identified 2010 as the year of courage,
and that was our motivation to further strengthen the Aida brand - which has
served the South African property market for the past 52 years - in the Lowveld
region,” she says.
“And, with agents whose first priority is client service, it is possible
to be courageous in the prevailing market conditions. Our highly trained team
offers combined experience of nearly four decades and our motto is ‘be
the best that you can be’, which translates to the best possible service
for our clients.”
The main office of Aida Lowveld is situated in the town of White River near
the province’s capital of Nelspruit and a modern, coffee-shop approach
will be employed in some of the smaller towns and outlying areas to be more
accessible to property consumers and to give wider exposure to properties for
sale.
Schuld adds that Aida Lowveld will expand its community service, and projects
involving local schools will shortly be launched. “We aim to serve our
clients and the wider community to the best of our ability, and community projects
form part of this commitment, as does our goal of further developing the wonderful
Lowveld area.”
She points to the success of the Hazyview office – one of the smallest
in the Aida group – in Aida’s ongoing blood donation campaign. “That
office has assisted the Nelspruit Blood Bank in having the biggest volume of
blood donated countrywide in the past six months. The same guts, marketing skills
and service orientation characterises our business drive,” she says.
The Lowveld, still a popular tourist destination and the gateway to Mozambique,
offers a wide range of properties with prices ranging from R220 000 in rural
areas to R18m for top properties such as game lodges and trout, nut and game
farms overlooking the scenic Sabie and Komati rivers.
Schuld says that although there are some land claims in certain areas, agricultural
land in the region is still in strong demand.
Issued by Aida National Franchises
Aida head office: 012 682 9600
FeedBack (0)
01 July 2010, 16:46:32
The Aida Lowveld franchise has spread its wings and now offers its services to
property consumers right across the Mpumalanga lowveld.
The franchise is now operating in the residential and rental markets of Nelspruit,
White River, Sabie, Graskop, Bushbuck Ridge, Sabiepark, Hazyview, Rocky's Drift,
Barberton and Marloth Park, says owner Marelize Schuld.
“Aida’s CEO Young Carr has identified 2010 as the year of courage,
and that was our motivation to further strengthen the Aida brand - which has
served the South African property market for the past 52 years - in the Lowveld
region,” she says.
“And, with agents whose first priority is client service, it is possible
to be courageous in the prevailing market conditions. Our highly trained team
offers combined experience of nearly four decades and our motto is ‘be
the best that you can be’, which translates to the best possible service
for our clients.”
The main office of Aida Lowveld is situated in the town of White River near
the province’s capital of Nelspruit and a modern, coffee-shop approach
will be employed in some of the smaller towns and outlying areas to be more
accessible to property consumers and to give wider exposure to properties for
sale.
Schuld adds that Aida Lowveld will expand its community service, and projects
involving local schools will shortly be launched. “We aim to serve our
clients and the wider community to the best of our ability, and community projects
form part of this commitment, as does our goal of further developing the wonderful
Lowveld area.”
She points to the success of the Hazyview office – one of the smallest
in the Aida group – in Aida’s ongoing blood donation campaign. “That
office has assisted the Nelspruit Blood Bank in having the biggest volume of
blood donated countrywide in the past six months. The same guts, marketing skills
and service orientation characterises our business drive,” she says.
The Lowveld, still a popular tourist destination and the gateway to Mozambique,
offers a wide range of properties with prices ranging from R220 000 in rural
areas to R18m for top properties such as game lodges and trout, nut and game
farms overlooking the scenic Sabie and Komati rivers.
Schuld says that although there are some land claims in certain areas, agricultural
land in the region is still in strong demand.
FeedBack (0)
24 June 2010, 17:43:06
Both the government and the banks need to understand clearly that if the commercial
property sector is not helped to emerge from its current backwater, it could
take the entire South African economy down to a new low.
This is the view of Tony Clarke, Managing Director of Rawson Properties.
“There has recently,” said Clarke, “been considerable focus
on and media publicity about the residential sector and the latest data does
indicate that it is leading the property world out of the recession. However,
the commercial sector still lags far behind, with high levels of vacancies,
defaulting tenants and regular landlord liquidations.”
Asked what measures he proposes should be adopted to remedy the position, Clarke
said that, as a first step, the banks could look at extending the length of
commercial bonds. At present most are signed for periods of ten years, but bonds
of 15 or 20 years, as in the residential sector, could ease the situation for
hard pressed landlords and could prove more profitable to the banks in the long
term.
On the government side, said Clarke, the SARS tax legislators could look at
giving bigger depreciation allowances and tax write-offs.
They could also study the merits of mortgage insurances to help landlords to
cover bond payment shortfalls if and when their tenants default - as is now
often done in the residential sector.
It is encouraging, said Clarke, that the big private equity property owners
are finding ways of standing by their tenants through the current double-dip
downturn, but smaller landlords frequently do not have the resources to do this
- and more will inevitably go under if not assisted in some way.
“I have been in property long enough to see just how disastrous it can
be for any area when one or more buildings stand vacant and neglected as a result
of tenant and landlord failures,” said Clarke. “We must not let this
happen.
“I do also realise that in difficult situations of this kind calls for
state help are made too easily and too often. However, my concern is that, as
yet, there is very little awareness of just how serious and potentially crippling
the situation in the commercial sector now is.”
FeedBack (0)
22 June 2010, 09:13:09
 Bellville
estate agency ERA JC Properties walked away with many of the top accolades at
the recent ERA South Africa national awards ceremony.
Agency co-principal Casper Hattingh was named as the national top sales associate
in both the units sold and commission earned categories, having earlier won
the award for the top sales agent in the Cape region.
In addition, the office was named as the top franchise in the Cape region,
which helped it to win the national top franchise award in the commission earned
category. These awards were presented to co-principal Jaco Venter by ERA South
Africa CEO Gerhard Kotzé, who said the company was very proud to recognise
all its sales associates and principals who performed at the industry's highest
level.
"Top performers deserve to be recognised for their innovation, professionalism
and deal-making abilities; this holds especially true in last year's challenging
economic climate. We congratulate all the award winners on their impressive
and outstanding accomplishments."
FeedBack (0)
11 June 2010, 08:23:30
International real estate group Harcourts has just announced a new joint venture
that will shortly see the launch of its brand in the US.
This follows the news that the group – which is represented in SA by Harcourts
Africa - achieved property sales worth a total of US$20,4-billion in the financial
year to end-March.
Harcourts International, rated one of the top five global real estate brands,
already has more than 630 offices and 4000 sales consultants in nine countries,
including Australia, China, Indonesia, New Zealand and of course South Africa.
And speaking at the Harcourts International 2010 conference this week, MD Mike
Green said the group had just concluded a joint venture agreement with a California-based
real estate group that currently has 23 offices and 700 agents, to give it a
presence in the US.
Expansion into the US would be the next big international step for Harcourts,
he said, “and with the US property market just beginning to show signs
of improvement, we believe the timing is perfect.
“With the training and technology platform Harcourts has to offer, along
with our values-based, performance-driven culture, we believe there is huge
opportunity for this new Harcourts joint venture company to grow rapidly as
the general economic situation in the US improves.”
Meanwhile, he said, Harcourts had seen strong growth across the board in the
past year. “In Australia (www.harcourts.com.au) we achieved considerable
success, increasing sales by 73% in New South Wales, by 52% in Western Australia,
by 49 % in Victoria and by 47% in Tasmania.
“In New Zealand (www.harcourts.co.nz), where we are already the country’s
largest real estate group, we increased our national market share to a record
level, and in South Africa (www.harcourts.co.za), the group grew to more than
140 offices.
“We also achieved solid growth last year in both Indonesia (www.harcourts.co.id)
and China (www.harcourts.com.cn), with expansion in the latter including the
establishment of the first Harcourts office in Hong Kong.”
FeedBack (0)
11 June 2010, 08:22:48
The JSE Securities Exchange continues to be volatile and quite likely to witness
further drops as a result of the Eurozone/UK financial problems and there is a
possibility of seeing a close below the 25,000 mark on the All Share Index, as
European and USA stock markets continue to fluctuate wildly. Greeff Properties,
says CEO, Mike Greeff, are finding that the relatively greater stability and simplicity
of property is pulling buy-to-rent investors back into this market – and
the fact that there are still many units for sale will keep the prices down for
the time being.
“Currently,” said Greeff, “I estimate that investors rather
than owner-occupiers now make up 2,5% of our sales - and I am sure that this
percentage will increase in the next two years to ±15%. At the peak of
the property boom this figure was as high as 25%.”
The big attraction of property, said Greeff, (“People have been saying
this for centuries”), is that it enables the buyers to see exactly what
they are getting and to have a large measure of control over the investment.
“It goes without saying that this is not the case when you invest in shares,”
said Greeff. “What is more, if you have spare cash you can improve the
property or add to it in many ways to increase its profitability. You can even,
and this has happened quite a lot recently, demolish it and rebuild it, in the
process often doubling its value.”
Asked if he can justify a previous statement that property is on the whole
far more stable than shares, Greeff said that over the last recession very few
Cape precinct homes dropped in value – if they did, it was by only a few
percent.
“In the last 20 years there have, in fact, been only two periods in which
house values fell noticeably and both of these were relatively short lived.”
In the late 1990s inflation was soaring, interest rates rose to 23% and unemployment
reached totally unacceptable levels. Not even property could bear up under economic
conditions of that nature. Similarly, in 2009, after a really spectacular boom,
we also saw a drop mainly in the northern areas of the country, but it did not
last long. There are now already signs that a slow, unspectacular recovery will
take place throughout this year.
“With our economy’s growth rate now predicted to come close to 3%
and with housing very much in short supply throughout the country, the prospects
for good returns on property, particularly in the lower bracket, can only improve
and this, I believe, is the reason why we are seeing more investors coming back
into the market.”
FeedBack (4)
11 June 2010, 08:01:44
Aida National Franchises’ Pretoria office has once again won the property
group’s top award – while three of its agents scooped the top accolades
as the best-performing agents in the group countrywide.
The office has been named as Aida’s top overall performing franchise,
pipping Aida Goldfields Welkom and Aida North East Executive to the post.
On top of that the office and its agents managed to add 14 additional awards
to their haul at the recent annual Aida awards ceremony. Pretoria won the award
for the top non-residential office; top spot as the metropolitan office that
earned the most commission as well as most units sold; as well as top national
office overall in both categories.
Pretoria agents achieved the singular honour of taking five of the top six
spots in the categories top agent for commission earned and top agent for units
sold. Ina Adams was placed first countrywide in the category commission earned
with colleague Wynand Richter earning third spot.
In the category top agent for units sold, Pretoria agents swept the boards,
taking the three top spots, with Quentin Meyer in first place, Jackie Meyer
in second and Wessel Wessels in third place. Then the three agents were called
to the podium a second time - in the same order - to receive the awards for
top agent overall.
Ewa Schutt joined her colleagues in the limelight when she took second spot
in the category top agent for non-residential sales.
Aida CEO Young Carr, who presented the awards, congratulated the agents for
their sterling performance in what he described as an exceptionally tough year
in the industry. “They have shown true grit and determination in challenging
circumstances – and we are very proud of the achievements of our Pretoria
franchise as a whole,” he said.
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Pretoria agent Quentin Meyer, left, was named as the
Aida’s Top Agent of the year at the group’s recent award ceremony.
His award was presented by Aida CEO Young Carr.
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Aida Pretoria franchisees Piet Joubert, left, and Johan
van der Westhuizen, right, accepted the group’s Top Office accolade
from CEO Young Carr at the recent national awards ceremony.
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Pretoria agent Ina Adams, left, has been named as the
Aida group’s top earning agent for the past year. CEO Young Carr
presented her award for the most commission generated at the group’s
recent award ceremony.
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FeedBack (0)
11 June 2010, 08:00:12
Named after the Ba-Phalaborwa Tribe that started mining metals in the area
hundreds of years ago, Phalaborwa, meaning 'better than the south', is located
in the Limpopo Province on the border of the Kruger National Park and is known
as the 'Gateway to Game and Golf'.
With a range of amenities and many sport and recreation facilities, this town
offers all the modern conveniences. One of these is the famous Hans Merensky
Country Estate and Hotel, which is best known for its notorious golf course
where playing golf among giraffe, impala, warthog and monkey are an everyday
occurrence.
It is here that Glenda Fourie, Broker/Owner of Phalaborwa's RE/MAX Two Summers
office, has some outstanding, top-of-the-range properties for sale. She says
fully furnished lodges that have been designed with two to four bedrooms sell
from around R2,9m all inclusive. She says most of these homes have swimming
pools and overlook the golf course or dams. "Buyers can expect to pay between
R3,6m and R5m for a four-bedroom home within the Hans Merensky Country Estate.
These more expensive homes," says Fourie, "will have four bedrooms,
a boma and an outlook point on the property."
Fourie reports that the biggest movement in the Phalaborwa property market
is properties in the R480 000 to R800 000 price range, while some sell for around
R1,2m. She says that at the lower end of the price range, the properties are
typically old mine houses which are very basic and usually include three bedrooms,
one bathroom and a single garage.
"Properties priced from R800 000 and upwards usually have three or four
bedrooms, one or two bathrooms as well as a lapa and a swimming pool. The stands
are also located in more upmarket areas of Phalaborwa," she says.
Talking about the property market in Phalaborwa overall, Fourie says that so
far this year her office has already concluded three quarters of the amount
of deals concluded for the whole of 2009, a clear indication that the property
market is picking up. However, she says that there is currently a lot of stock
available due to the Sasol plant which closed down. "There are quite a
few old mining houses for sale which are priced between R550 000 and R900 000.
Some of the manager's homes, which are more luxurious, are also on the market,
but are priced up to around R1,8m," she says.
On the market for R4,9m, and is situated virtually next door to the Kruger
National Park. Fourie says it has a modern design and is situated on a large
stand in the new part of town. This four-bedroom home has been designed with
a number of luxury features including a Jacuzzi and a koi pond underneath a
glass walkway at the entrance. Top of the range finishes, staff accommodation
and a flatlett complete the picture.
Another interesting property Fourie has on her books is priced at R4m and is
also situated next to the Kruger Park. This double-storey home has been designed
with three bedrooms, a natural rock pool and koi pond. There is also a two-bedroom
flat which can be used as a home office. "But what makes this home interesting
and unique," says Fourie, "is the fact that it has been built in a
semi-circle shape into the side of a koppie. The rock from this koppie was also
used in the building of this home."
While Fourie reports a definite difference between asking price and the actual
selling price of homes in the Phalaborwa area, she says many of the homes currently
on the market were bought from the mining companies at a relatively cheap price,
meaning owners who are currently selling are making a reasonable profit.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that unlike Phalaborwa
where a lot of stock has recently been put on the market, there are reports
of stock shortages, particularly for properties priced between R900 000 and
R1,2m in certain areas. "Residential properties in the R1,2m price range
currently sell within six to eight weeks and demand in certain areas outstrips
supply."
FeedBack (0)
11 June 2010, 07:57:28
Named after the Ba-Phalaborwa Tribe that started mining metals in the area
hundreds of years ago, Phalaborwa, meaning 'better than the south', is located
in the Limpopo Province on the border of the Kruger National Park and is known
as the 'Gateway to Game and Golf'.
With a range of amenities and many sport and recreation facilities, this town
offers all the modern conveniences. One of these is the famous Hans Merensky
Country Estate and Hotel, which is best known for its notorious golf course
where playing golf among giraffe, impala, warthog and monkey are an everyday
occurrence.
It is here that Glenda Fourie, Broker/Owner of Phalaborwa's RE/MAX Two Summers
office, has some outstanding, top-of-the-range properties for sale. She says
fully furnished lodges that have been designed with two to four bedrooms sell
from around R2,9m all inclusive. She says most of these homes have swimming
pools and overlook the golf course or dams. "Buyers can expect to pay between
R3,6m and R5m for a four-bedroom home within the Hans Merensky Country Estate.
These more expensive homes," says Fourie, "will have four bedrooms,
a boma and an outlook point on the property."
Fourie reports that the biggest movement in the Phalaborwa property market
is properties in the R480 000 to R800 000 price range, while some sell for around
R1,2m. She says that at the lower end of the price range, the properties are
typically old mine houses which are very basic and usually include three bedrooms,
one bathroom and a single garage.
"Properties priced from R800 000 and upwards usually have three or four
bedrooms, one or two bathrooms as well as a lapa and a swimming pool. The stands
are also located in more upmarket areas of Phalaborwa," she says.
Talking about the property market in Phalaborwa overall, Fourie says that so
far this year her office has already concluded three quarters of the amount
of deals concluded for the whole of 2009, a clear indication that the property
market is picking up. However, she says that there is currently a lot of stock
available due to the Sasol plant which closed down. "There are quite a
few old mining houses for sale which are priced between R550 000 and R900 000.
Some of the manager's homes, which are more luxurious, are also on the market,
but are priced up to around R1,8m," she says.
On the market for R4,9m, and is situated virtually next door to the Kruger
National Park. Fourie says it has a modern design and is situated on a large
stand in the new part of town. This four-bedroom home has been designed with
a number of luxury features including a Jacuzzi and a koi pond underneath a
glass walkway at the entrance. Top of the range finishes, staff accommodation
and a flatlett complete the picture.
Another interesting property Fourie has on her books is priced at R4m and is
also situated next to the Kruger Park. This double-storey home has been designed
with three bedrooms, a natural rock pool and koi pond. There is also a two-bedroom
flat which can be used as a home office. "But what makes this home interesting
and unique," says Fourie, "is the fact that it has been built in a
semi-circle shape into the side of a koppie. The rock from this koppie was also
used in the building of this home."
While Fourie reports a definite difference between asking price and the actual
selling price of homes in the Phalaborwa area, she says many of the homes currently
on the market were bought from the mining companies at a relatively cheap price,
meaning owners who are currently selling are making a reasonable profit.
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that unlike Phalaborwa
where a lot of stock has recently been put on the market, there are reports
of stock shortages, particularly for properties priced between R900 000 and
R1,2m in certain areas. "Residential properties in the R1,2m price range
currently sell within six to eight weeks and demand in certain areas outstrips
supply."
FeedBack (0)
11 June 2010, 07:53:40
Clanwilliam, situated at the foot of the Cederberg mountain range, about 230km
from Cape Town, was largely undiscovered until the N7 from Cape Town to Namibia
was built in the 1960s. As one of the ten oldest towns in South Africa and the
only place in the world where Rooibos tea is planted and cultivated, Clanwilliam
is rich in cultural and historical heritage.
Linda de Boer, Broker/Owner of RE/MAX Blue Waters whose office operates in
the area, reports that, in line with the rest of the country's property market,
there has been a decrease in the volume of sales. "While homes here are
selling at approximately 15% below the asking price, the properties here are
often overpriced to begin with." She says the general demand is from Capetonians
looking for a weekend home, and this has a strong influence on the asking price.
"Sales of second homes and leisure properties have naturally taken a knock
with the recession," says Adrian Goslett, CEO of RE/MAX of Southern Africa.
"However, as Clanwilliam is a popular getaway destination for Capetonians,
coupled with the fact that the property market is well on its way to recovery,
we expect to see a higher turnover in sales in this area as the year progresses,
with the gap between asking prices and actual selling prices decreasing."
De Boer says that an entry-level home in Clanwilliam sells for around R900
000, with mid-level homes selling anywhere between R1,5-million and R2-million.
Buyers can expect to pay in the range of R2,8-million for the area's most expensive
homes.
One such property on the market for R2,8-million is a 4,62-hectare small holding
that offers a luxurious country lifestyle. Only 4km from the popular Clanwilliam
Dam, the spacious thatched roof, Spanish-style home is spread over three levels
and enjoys an excellent position overlooking Clanwilliam.
The ground floor of the home is a two-bedroom flat that has an open plan lounge,
dining and kitchen area along with a covered patio with picturesque views.
The second level of the home has been designed with three bedrooms and three
bathrooms, a lounge, dining room, a TV room and a beautiful kitchen with granite
counter tops. The loft has two rooms, one of which can be used as a study/office.
The second room is spacious with great views from the balcony, and, according
to de Boer, would be ideal as a big family room.
"This property is ideal for those who enjoy entertaining," says de
Boer who points out the lapa in the landscaped garden that overlooks the swimming
pool with a rock water feature.
The home also includes staff accommodation of one bedroom, a kitchen and a
bathroom. Aside from air-conditioning and a fire place, additional features
of this home include the water purification system and the computerised irrigation
system.
"The current owner enjoys the peacefulness, tranquillity and the space,"
says de Boer, "along with the property's nooks and crannies where they
can have a cup of coffee and enjoy the splendid views."
Situated in the centre of various flower and historical routes, Clanwilliam
boasts a breathtaking natural beauty, modern recreational facilities and a range
of activities including water sport, hiking, bird watching, fishing, rock climbing,
mountain biking, 4x4 routes, rock art, bowls and historical trails.
FeedBack (0)
11 June 2010, 07:50:37
Positioned at the end of the popular Garden Route, The Nelson Mandela Metropole,
including Port Elizabeth, Uitenhage and Despatch, is the capital of the sunshine
coast. Located on the south eastern coastline of Africa, Port Elizabeth has
the largest seaport in the Eastern Cape and, as South Africa's fifth largest
and second oldest city, is situated 260 km from Knysna and about 800km from
Cape Town.
Port Elizabeth is a popular residential area mainly due to its moderate year-round
climate and range of amenities. Its property also caters to those buyers who
are looking to downscale into a retirement development. Summer Dunes Retirement
Village, which was launched in April 2005, has become the premier retirement
village in Port Elizabeth, according to David Rodgerson, Broker/Owner of RE/MAX
Bay Properties.
"The village is situated in the up-market suburb of Summerstrand and is
close to the city's main blue flag beaches as well as all major amenities including
the Humewood Golf Club," says Rodgerson. "The up-market homes are
set in well established, landscaped gardens and the village boasts a 5-star
clubhouse complete with a heated swimming-pool. "
This exclusive, 117-unit retirement village development offers relaxed, estate
living and offers buyers a choice of designs from bachelor bedsits to two- or
three- bedroom units.
Summer Dunes is a Life Right scheme which offers buyers the opportunity to
gain capital growth. The life right retirement system is the most popular retirement
property option in the Western world.
"Buying into a life right system means that the buyer purchases a right
to live in a unit until they leave or die. While this is not the same as buying
a sectional title unit in a retirement village, it does not mean that the owner
loses out on his/her original investment," says Adrian Goslett, CEO of
RE/MAX of Southern Africa.
"In fact, the Life Rights System is considered to an option that costs
less," he says.
"On relocation or death, the unit is relinquished back to the development
at the full invested price and in some cases, as with Summer Dunes, capital
appreciation on the property is also paid out."
Rodgerson reports that the final phase of Summer Dunes Retirement Village is
now available and offers potential buyers a range of purchase options. He says
assisted living units that include a lounge, kitchenette, one bedroom, one bathroom
and a patio are priced at R575 000, while semi-detached and free-standing homes
that have been designed with a lounge, dining room, three bedrooms, two bathrooms,
a kitchen with drying yard, patio, double garage and enclosed garden are priced
from R1,55-million.
The developers, Cape-based Inframax Developments, have successfully completed
up-market retirement villages in Cape Town, Durban and Johannesburg.
FeedBack (0)
11 June 2010, 07:50:22
According to Peter Bester, Broker/Owner of RE/MAX Finest in Alberton, the number
of sales achieved in February alone this year, was three times higher than at
any given period last year.
"This is partly due to the industrial and commercial developments along
the R59, which caused an influx of potential buyers and tenants to Alberton
and surrounds. Such a development is Heineken Breweries, which opened their
factory along the economic development corridor in September 2009.
New developments in the area, such as the nature and echo estates in Meyersdal,
also played a significant role in "putting Alberton on the real estate
map," notes Bester. Residential property prices achieved in these two developments
ranged between R3-million and R30-million.
Aside from Meyersdal, New Redruth and Albertsdal have also seen an increase
in estate, townhouse and cluster developments over the last five years. "As
such, the demand for vacant land in Alberton remains high," he says.
Commenting on the local property market's performance, Bester says that more
and more first-time home buyers are entering the market due to the low interest
rate. "We're also moving back to the old practise whereby buyers first
put their homes on the market and then purchase a new home, as such subject-to-sales
are the order of the day." He adds that while property prices depreciated
in the past year, profit on distressed properties are being made.
Entry-level homes in townships such as Soweto, Tokoza and Katlehong range between
R350 000 and R550 000 while entry-level property in Alberton is priced from
R600 000 upwards. Mid-level properties in the area start from R800 000 with
homes in the affluent areas reaching up to R2-million. "Homes in the last-mentioned
price bracket do not stay on the market for long while homes priced at R2-million
and above sell but sit on the market for anything between six months to a year,"
he says.
Bester says although current market conditions cannot compare favourably to
2003 whereby a property was sold within 4 weeks of being listed and qualified
buyers were ten a penny, RE/MAX Finest recently managed to sell a R650 000 townhouse
within two weeks after one show day. "Now that is a record given the current
market we're operating in," he says.
Adrian Goslett, CEO of RE/MAX of Southern Africa says the fact that Alberton
is well situated with easy access to all major routes, good hospitals and schools
makes it a great place to live.
"Recent upgrades to landmarks in the area, such as the Clinton Hospital's
new oncology wing and alterations to Alberton City will have a positive impact
on future property prices in the area," adds Goslett.
"We're also looking forward to the regional shopping mall to be erected
where the Newmarket Race course has always been," Bester concludes.
FeedBack (0)
10 June 2010, 09:13:32
Training plays an important role in career development in any field, and real
estate is no exception. Peter Gilmour, Chairman of RE/MAX of Southern Africa,
says training, or the acquisition of knowledge, skills, and competencies for real
estate agents has been found lacking in South Africa's property industry.
In a move to amplify the success potential of its agents around the country,
RE/MAX of Southern Africa has embarked on a large-scale training programme,
called the RE/MAX Ultimate Success Series, using training material from the
highly acclaimed Brian Buffini Organisation, the largest real estate training
company in North America.
Brian Buffini developed a powerful referral system that helped him become one
of the top realtors in the United States and, in 1995, he started Buffini &
Company to share these highly acclaimed lead-generation strategies with others.
Buffini & Company is now the number-one training and coaching company in
North America that equips real estate, lending, and service industry professionals
with tools to dramatically increase business while living a balanced life.
Gilmour explains that Buffini & Company's coaching solutions are designed
to position entrepreneurs for success through teaching people how to increase
profitability, become strong leaders, recognise and recruit top talent and most
importantly, develop lead generation.
It is the Buffini "100 Days to Greatness" programme, the most successful
agent training program in the world with over 60 000 agents worldwide having
taken the course. The course teaches the fundamentals of real estate lead generation
by referral. The course combines training from business coach/industry expert
Brian Buffini, role-playing exercises on video, action steps and live accountability
sessions - all for a comprehensive, practical learning experience. This programme
also demonstrates to entrepreneurs what steps they need to take to recession-proof
their business.
Says Gilmour: "The programme teaches people how to take their database
of existing relationships and create advocates that will help them accelerate
their business along with how to proactively add new relationships to their
database. Building relationships with customers based on trust also forms part
of this programme along with how to transform traditional real estate lead-generation
activities like show houses into effective tools for building business."
Underpinning the Buffini training is the premise that in order to increase
profitability, you need exceptional leadership in addition to top talent and
proven lead generation systems. The leading Broker/Owners and Managers of RE/MAX
in Southern Africa have been trained as Mentors to deliver the Buffini programmes
to their agents while Peter Gilmour, the group's Chairman, his wife, Val, a
director of the company and Adrian Goslett, the CEO, are the only licensed Buffini
Master Mentor Trainers in South Africa.
To date, approximately 80% of South Africa's RE/MAX Broker/Owners have been
through the training programme, and RE/MAX agents across the country now have
access to trained mentors who are able to deliver the "100 Days to Greatness"
course to agents.
FeedBack (0)
04 June 2010, 08:41:40
Inframax Holdings, the Cape based property developers who operate nationally,
are making use of a vast tract of land which they acquired some years ago to
develop a “next generation” inland port and logistics gateway to service
Johannesburg, Gauteng and Southern Africa.
Inframax MD, Dr Willie Els, says that the project has the potential to put
Gauteng’s entire logistics capability into a new and far more efficient
era and to create thousands of jobs whilst stimulating the area’s GDP.
“It is,” says Els, “fairly widely thought that Johannesburg’s
freight logistics needs have not been fully understood or appreciated by most
of the public sector authorities and agencies serving this area over the years.
As a result, the current situation is characterised by excessive use, and wear,
of roads by freight operators, dramatic decline in rail usage (due to poor service
levels), increased congestion and fragmented freight planning. South Africa’s
freight logistics system is not meeting the country’s needs and not keeping
up with the way the world is moving.”
The proposed new inland port and logistics gateway, says Els, will contribute
significantly to meeting Gauteng’s need to increase the current freight
logistics capacity/throughput in and out of Johannesburg, to 3 million TEU’s
by 2015 and 4 million TEU’s by 2020 - with further increases thereafter.
The 630ha site for the new project, which will be called Tambo Springs (the
original farm here was known as Tamboekiesfontein), is situated 25km southeast
of the Johannesburg CBD. Inframax plans to add at least a further 600ha to this
site in time, which would enable it to be developed to a world class inland
port and logistics facility.
“This,” says Els, “is appropriate as Gauteng is not only the
largest metropolitan area in Africa, but is also one of the largest in the world,
with a population of 10 million people generating the largest annual GDP in
Africa.”
Inframax has commissioned GAPP Architects and Urban Planners and the internationally
recognised logistics consultants, Franco Eleuteri and Associates, to help them
structure the concept and business plan for Tambo Springs. GAPP, says Els, are
a well known local firm who have been acclaimed for such work as the Umhlanga
Ridge New Town Centre North of Durban and the Cape Town Waterfront. Eleuteri,
who was born and raised in South Africa, is based in Dallas, Texas, and has
been involved in the development of Inland Ports, IDZ’s and other logistic
centres in Chicago, Dallas Fort Worth, Los Angeles and Monterey in North America.
He is also able to draw on experience acquired in similar developments in Asia
and Europe.
“One of the things which has become clear from our association with Franco,”
says Els, “is that the logistics challenges now faced in Johannesburg/Gauteng
have cropped up worldwide wherever cities have expanded fast.”
“Typically,” says Els, “the original logistics centres were
developed on what was then the periphery of the cities. Over the years, however,
these cities grow and absorb the centres, making expansion and/or upgrading
to accommodate new demands difficult.”
This, he says, is more or less what is happening to Johannesburg’s City
Deep Terminal, which was established in 1977 as a bonded inland container depot
where containers from Durban could clear customs in Johannesburg.
“City Deep still has a vital role to play but the time has come to have
it operating in tandem with a larger inland port or ports located on the new
city periphery and able to accommodate a large efficient intermodal capability
for road, rail and air transport. This is fundamental to any 21st Century freight
operation.”
In choosing a site for a new next generation inland port there is, says Els,
a checklist of factors which have to be in place before it can be considered
– and Tambo Springs scores exceptionally well on such a list.
“The first essential for such a port,” says Els, “is that it
has to have fast, easy access to the country’s major road and rail networks,
linking it to the big industrial centres and the country’s major sea ports.
“Tambo Springs is exceptionally well positioned in this respect as it
is located in the southern periphery of Johannesburg and within the Johannesburg/Durban
road freight and rail corridor. It has, therefore, access to the N3 freeway
to Durban (South Africa’s major freight transport route), to the N1 to
Cape Town and via the R390, to Port Elizabeth and East London as well as to
other freeways to the industrial centres just south of Johannesburg: Heidelberg,
Vereeniging, Vanderbijl Park and Sasolburg, all of which are within 20 to 60km.
The site is also only 22km from the City Deep Terminal and 25km from the OR
Tambo Air Freight Terminal. These excellent road linkages will allow the site
to accommodate both FTL (full truck load) long distance road freight and LTL
(less than truck load) regional distribution.
“On the freight rail side,” says Els, “the existing dual directional
links already run through the site to all the areas mentioned above. Accordingly,
the Tambo Springs development can contribute significantly to optimising the
country’s existing infrastructure, particularly that of the Ngqura Deep
Water Port near Port Elizabeth. More optimal usage has the potential to increase
this so called Eastern Corridor’s share of South Africa’s freight
handling from +-14% currently to 21% in future. This is important given congestion
issues with Durban.
“A further essential element of Next Generation inland ports such as Tambo
Springs,” says Els, “is to have sufficient reasonably priced land
to be able to accommodate an intermodal rail yard capable of handling point
to point movement of freight using ‘block trains’ up to 1,5km to 2km
in length and integrating the exchange of goods to and from the trains with
road and air transportation systems.
“There must, too, be sufficient land to perform value added logistics
functions on site as an integral part of the transportation functions. It is
for this reason that Inframax is assembling ±1 200 ha of land for the
Tambo Springs development.
“Finally,” says Els, “as the whole aim of a development of this
kind is to increase freight handling efficiency and improve service, it is important
that the most advanced telecommunications backup is available – including
high speed broadband and sophisticated IT systems.
“With all these elements in place,” says Els, “it is possible
to establish twinning arrangements, with an agreed set of operational procedures,
between the coastal ports and the new inland port/logistics centre. Once these
have been clearly defined and understood, he says, they can make a tremendous
difference to the functionality of the new port and the efficiency of the local
logistics system as part of the Global Supply Chain.
“Developments of this kind,” adds Els, “have internationally
led to ancillary development and the overall plan has to make allowance for
this. Typically, this involves the following, which the planning of Tambo Springs
will accommodate:
· freight transportation and logistics focussed development including
an intermodal yard with rail access;
· value added logistics park as an economic development zone forming
part of a (sea, air, road, rail) logistics gateway with a focus on accommodating
businesses involved in the transportation, processing, manufacture, warehousing
and distribution functions;
· an ancillary business park accommodating a commercial development
component;
· the development of a retail support component for the above; and
· the development of a consequential residential component which enables
the occupants to work, live and recreate on site without having to travel large
commuting distances. The residential component in turn, will require social
facilities such as schools, sports clubs, churches, and the like.
“One of the great benefits of being able to work on a new greenfields
project of this kind,” says Els, “is that it is possible from the
outset to implement green and eco-focused plans which ensure a minimum of pollution
and a steady improvement of the environment. This not only greatly improves
the quality of life of those moving in there, but it also makes the project
more attractive to First World firms which have come to expect this standard
of development.”
“Tambo Springs, which will be developed in phases, is expected to take
about ten years to reach full fruition. The first phase is anticipated to involve
an initial investment of ±R1 billion,” said Els.
“Projects of this size, scale and impact are typically in the international
experience carried out with public/private partnership arrangements which have
mutual benefits for both sectors,” says Els. “For this reason, while
this is a private sector driven initiative, Inframax has from the outset engaged
with key public sector authorities and agencies to canvass in principle policy
support for the initiative. These include Gauteng Department of Economic Development;
Blue IQ; Transnet Freight Rail and Ekurhuleni Municipality, among others. In
addition, Inframax is currently engaging with potential private sector stakeholders
to help finalise the business plan for the development.”
“At the end of the day,” says Els, “the success of the development
will depend on how successfully it addresses the business imperatives of companies
in the logistics arena.”
Els pointed out further that in addition to enhancing the logistics capacity
and efficiency of South Africa, the project will have other significant economic,
social and environmental benefits, including: the creation of decent jobs on
a large scale; creating business opportunities for both large established companies
and SMME’s; the enhancement of GDP for both Gauteng and Ekurhuleni; contributing
positively to the achievement of Gauteng’s Economic Growth and Development
Strategy; the upliftment of the deprived areas immediately north of the site,
i.e. in the greater Katorus area; enhancement of Sustainable Human Settlements
and the enhancement of Gauteng’s and SA’s position as an economic
driver/conduit in Southern Africa.
“Particularly exciting,” says Els, “is the job creation potential
of the initiative, given that high unemployment is one of the biggest challenges
in South Africa. Citing the example of a similar development at Interpuerto,
Monterrey, in Mexico which has similar challenges, Els points out that the number
of jobs that can be created from a project like this can range from between
37 000 to 57 000, of which between 28 000 to 42 000 are expected to be from
logistics operations and 9 000 to 14 000 from ancillary associated activities.”
“The Tambo Springs development,” says Els, “provides the opportunity
for public and private sector partners to participate in financially viable
ventures, while acting as the catalyst for initiatives focussed on strategic
goals and economic development in Southern Africa.”
FeedBack (3)
04 June 2010, 08:33:24
One of the interesting facts revealed by his weekly review of the asking and achieved
residential property prices in the areas that he serves, says Anton du Plessis,
CEO of Vineyard Estates, the Cape Town southern suburbs estate agency, is that
the number of show houses held has hardly altered since the boom period of 2007
– in some cases it has even gone up.
This, says du Plessis, is not what he would have expected – taking into
consideration that the number of estate agents has in the period under review
been cut by 65% and the number of sales by has reportedly halved.
The areas surveyed by du Plessis were Bishopscourt, Constantia (Upper and Lower),
Kenilworth and Newlands. In May 2007, said du Plessis, these areas had just
over 100 show houses per week. In May 2008 the figure was 120 – and the
figures for the years since then were on much the same level. In May 2009 the
figure 108 and in May 2010, again, close to 120.
“What this indicates,” said du Plessis, “is, firstly, that today’s
agents are working very hard, sometimes showcasing the same home two or three
times in a month and, secondly, that, despite the slight uptick in the prices,
there is still a great deal of stock available. Conditions, therefore, still
favour the buyer rather than the seller and this is particularly true of Constantia
where right now there can be anything up to 150 homes for sale.”
Asked how significant the recent uptick is, du Plessis said that his sales
show a 4 to 5% increase on what would have been achieved in the last quarter
of 2009 – and he remains confident that by the year end this will have
risen to 10%.
The show house figures, said du Plessis, also indicate that there is still
no better way to bring about the sale of a property than by putting it on view.
In his company, show houses account for at least 25% of sales and other have
put this figure far higher.
“Show houses have this great advantage: they offer the visitor the opportunity
to inspect the home thoroughly at leisure and without pressure from the agent.
Many potential buyers feel more comfortable under these conditions. In fact,
there are many buyers who are reluctant to make appointments to view potential
homes because they do not want to inconvenience the agent and seller –
particularly if they are still not sure that they do want to make a change.
Those same people often walk in to a show house, like it and become serious
buyers.”
“There is always a mix of visitors to any show house,” said du Plessis,
“you have inquisitive neighbours, property enthusiasts, serious and not-so-serious
buyers. Often people visit show houses in their chosen area to get an idea of
the relative value of their own property. Although many visitors are not initially
serious buyers, it is surprising how often a casual visit will result in the
visitor “falling for” a home and end up buying it.
“This is one of the reasons that I welcome every show house visitor. The
other is that they create a busy, competitive vibe that can stimulate interest.”
FeedBack (0)
04 June 2010, 08:32:57
Trudy van der Vlies, Broker/Owner of RE/MAX Marine which represents the northern
KwaZulu-Natal (KZN) areas of Richards Bay, and surrounding Empangeni, Kwambonambi,
Esikhawini and Ngwelezane, says that the bustling town of Richards Bay and its
surrounds are fast becoming the north coast holiday destination of choice for
many South Africans.
"Richards Bay is one of the closest seaside destinations from Gauteng,
the climate is warm and tropical all year round, and real estate in the area
offers great value for money."
Adrian Goslett, CEO of RE/MAX of Southern Africa, explains that this particular
area has been enjoying rapid industrial expansion over the last few years, and
as a result, the tourism and real estate industry in the area are flourishing.
"Richards Bay offers visitor's entrance to Zululand, marking the northern
tip of the Dolphin Coast. Its white sandy beaches stretch approximately 350km
- from the mouth of the Tugela River in the south, to the Mozambique border
in the north. The coastal plains include endless unspoilt beaches and coastal
conservation areas, and incorporate the largest estuarine system, as well as
the largest harbour in Southern Africa."
Van der Vlies says that with regards to the real estate market, sales volumes
have been excellent since the beginning of 2010. "There has been a good
and consistent general demand for property in the area, and the prices achieved
have been fair considering that there is a surplus of stock on the market. An
entry level home, such as a two-bedroom apartment, for example, will generally
fetch in the region of R390 000 to R540 000. The average three-bedroom, two-bathroom
home, with a single garage, will sell in the region of R800 000 to R950 000.
And at the upper-end of the market, modern homes set on large stands and featuring
top-end finishes, will fetch between R1,4m and R4m."
She says that the majority of her clients are first-time buyers or bargain
hunters, and that most of them are looking for bargain buys and "fix-uppers"
that they can renovate and improve over time when they have the money. She says
another market trend is the high demand for properties that are conveniently
located near to the various CBD areas in the region. "Many young people
want to live within walking distance from the CBD areas and all the accompanying
amenities and facilities these nodes have to offer."
On the whole, van der Vlies says she is incredibly optimistic about what the
future holds for the area: "We are expecting productivity throughout 2010,
and with foreigners from all over the world soon to visit our shores for the
FIFA Soccer World Cup, we are sure there is going to be an increase in future
foreign sales. Over and above this, with the interest rate holding at a very
low 10%, it is currently an excellent time to invest in property. So much so,
in fact, that we have already noticed a growth in prices since the drop in interest
rates, not only on owner-sold property, but also properties that are being sold
at auction."
FeedBack (0)
28 May 2010, 07:48:30
The recent International Franchise Expo at Sandton, Johannesburg, and a 110%
increase in “hits” on the Rawson Properties website (since January
2010), indicate clearly that the calibre of those applying to become franchisees
or estate agents in the SA residential property sector is improving by leaps
and bounds, says Tony Clarke, MD of Rawson Properties, which claims at the moment
to be the fastest growing residential property franchise group in SA.
“We are now witnessing the demise of the housewife/part time agent who
comes into the industry to make a little spare cash. Today’s applicants
quite often have tertiary education qualifications and among those applying
for franchises the majority have had previous successful careers and business
experience.”
These applicants, said Clarke, are “serious entrepreneurs”: the fact
that they have to buy their franchises eliminates most of the less dedicated
lets-give-this-a-try candidates.
Franchisees joining one of the big name property groups, said Clarke, will
have more chances of success than those who try to go it alone.
“Statistics from FASH (the Franchises Association of South Africa) have
shown that 92% of new start-up businesses fail within two years. However, 76%
of those signing up as franchisees with recognised groups succeed – and,
due to careful selection and ongoing support, our success rate in Rawson Properties
is far higher.”
Clarke said that he was disappointed that the Department of Trade and Industry
apparently had found it not worth their while to support the Franchise Expo.
“Property and most other franchises,” he said, “are in the small
to medium enterprise category on which the government has said the future growth
of SA will depend. Surveys worldwide have shown that SMEs have higher outputs
per person than those in big business and operate on lower overheads. SMEs are,
therefore, exactly what SA needs: business is the driver of economic growth,
innovation and job creation.
Clarke added that in the property sector the improved calibre of property staff
and their greater dedication will work to the benefit of the consumer. This
is important because in the past slack, untrained agents have sometimes given
consumers a raw deal.
FeedBack (0)
28 May 2010, 07:47:48
With many homes these days being smaller than those of yesteryear, it has become
essential to find ways of making interiors look bigger, says Mike Greeff, Chief
Executive of Greeff Properties.
He has, he says, on several occasions found that some or all of the following
steps can greatly improve the ‘feel’ of a home’s interior.
No 1: De-Clutter
“We all have furniture, knickknacks, pictures and semi-obsolete items
which serve no real or decorative purpose in the home. A resolution should be
taken to get them out of the way: store them, give them to your offspring or
take them off to the auction houses. Also, however, consider seriously rearranging
the layout of the furniture to achieve space. This can be done if you make a
point of breaking the furniture ‘boundaries’ in the room.”
No 2: Lighten Up
“Well lit rooms automatically give a feeling of space and airiness. What
is more, if your lighting network focuses on certain spots this creates the
impression that there is an extra dimension beyond them. It is often possible
to give a visitor to the room the feeling that there is ample space just beyond
the light fringe - when in fact there is almost no space at all.”
No 3: Use Colour Creatively
“Try to use relatively few colours but make sure they harmonise. Be aware,
again, that light, bright colours enhance a feeling of space. This has been
proved so many times that it always surprises me to see how seldom this particular
space enhancement method is used.”
No 4: Paint Over Tiles
“If a room’s walls are tiled and you feel that this creates a closed
in, cramped atmosphere, remember that it is possible to paint over tiles, again
using light colours. This will be a great deal cheaper than retiling in lighter
hues.”
No 5: Think Lines and Circles
“Until quite recently, people were reluctant to have two colours or different
patterns on the same wall. The truth is, however, that this can add character,
interest and space to an interior.
“If you want to increase the feeling of space, use horizontal lines. If
you want to ‘heighten’ the room, use vertical lines - and if you want
to give a backdrop to a light, a vase or a picture, try a circle.
“Any deviation from the norms in this respect will always add interest
and, once again, improve the feeling of space.”
These tips, says Greeff, are particularly relevant when a home is about to
be put on a show day. Spending a few hundred rand and preparing the home in
the ways described, he says, can very often make a significant difference to
the impression it creates on visitors.
FeedBack (0)
28 May 2010, 07:45:28
 The
Cape Town suburb Plumstead, says Anne Porter Knight Frank agent, Neava Enslin,
is perennially popular and its homes have a stable price record. Many of its
people stay there all their lives. It is close to good schools, sports clubs,
communal facilities and good retail centres as well as major highways to the
CBD – yet, surprisingly, it is still an area in which “reasonable”
house prices are found.
“One reason for this may be that many of the homes date from before the
1970s – and some see this as a drawback. The truth is, however, that the
older houses, almost without exception, were beautifully built in an age when
artisans were more proficient and these homes have been well maintained. They
have a solid character seldom found elsewhere today and have such features as
sash windows, high ceilings, large open hearth fireplaces and wooden floors.”
One such now on the market at a price of R1,845 million, covers a large 1 128m²
erf (which allows for a back garden large enough for kids’ cricket, lawn
tennis or croquet).
The home has four bedrooms, a study, two living/dining areas, a double garage,
servants’ quarters, off street parking, a swimming pool and splendid views
of Devils’ Peak and Table Mountain.
Certain features, says Wilma Vorster, who is also involved with this sale,
have been modernised – there is a solar heater on the roof and modern equipment
in the kitchen.
Lanice Steward, MD of APKF, said that in her view Plumstead offers some of
the best value in the Cape Peninsula – and has shown an ability to “cruise
through recessions” without being as noticeably affected by price fluctuations
as the more affluent areas.
FeedBack (0)
28 May 2010, 07:44:12
Why, oh why, do people buying homes wait for the market to take off before they
commit themselves? This is the question that Mike Greeff, Chief Executive of the
Cape estate agency Greeff Properties, put to his agents recently.
“Right now,” says Greeff, “virtually every commentator on the
property scene is saying that this is a good time to buy because value increases
of at least 5% to 8% are likely within the next 12 months - and in our area
many are saying that the increases will be even greater. Add to this the fact
that the banks are steadily increasing the number of bonds available and interest
rates are likely to start rising before the end of this year and it becomes
apparent that this must be the logical time to buy.”
Nevertheless, says Greeff, many of the less sophisticated buyers are still
waiting for ‘confirmation’ that better times have arrived.
“All this means is that, when they finally commit themselves they will
probably pay higher and have to accept an increased interest rate,” says
Greeff.
Really shrewd buyers, says Greeff, will often be found buying when the markets
are falling or are stable, i.e. they act counter to the man-in-the-street’s
perceived wisdom and counter to the demand cycle. By buying when confidence
is low and competition is weak they put themselves in a position to cash in
when later improvements occur in the market.
In looking for bargains, says Greeff, it is worthwhile checking which homes
have been sticking on the market for some time. Sellers of such properties may
have got to the point where they are willing to negotiate a big discount.
It is also worthwhile checking on the track record of the agent: a good agent
will have persuaded the seller to accept a market-related price, but a weak
or inexperienced agent may have accepted an unrealistically high price to get
the mandate.
“One of the main lessons we teach Greeff agents is to be realistic in
their valuations – and they are – but there is still a small minority
of sellers who will only accept market realities after their home has “stuck”
for a long time.”
FeedBack (0)
21 May 2010, 08:20:00
At the Property Expo held recently in Sandton, Johannesburg, Tony Clarke, MD
of Rawson Properties, reports that his team lined up twelve new signings.
“I was from the start confident,” said Clarke, “because this
year enquiries about, and applications for, new franchises by post, email and
telephone have risen by just over 25% month-by-month.”
This, said Clarke, is a clear indication that confidence in the property sector
is on a sharp rise - and it probably also heralds a satisfactory increase in
residential property prices over the next six months.
Rawson Properties was one of the very few big brand estate agencies to achieve
good franchise sales throughout 2009 when 26 new franchises were sold between
January and December.
This year, however, said Clarke, the level of enquiries is so far up on that
of last year that Rawson Properties now believe that they should have no difficulty
in being able to achieve a target figure of 90 new franchises being added to
their national footprint.
As most franchises are expected to have at least six agents and an administrator,
this means that over 600 new property staff will be added to Rawson Properties’
total by the end of 2010.
Clarke added that Rawson Properties are also selling franchises for their new
auction and letting divisions. Here, too, he said, the uptake has been ‘surprisingly’
good.
“Rawson Properties is in the only big brand estate agency group to offer
a separate letting franchise and this is attracting considerable interest because
this type of operation is one that many applicants prefer and because these
franchises are not expensive.”
Asked to give a price range on the agency franchises he is selling, Clarke
said that this would be totally misleading because each franchise is tailored
to suit the buyer, his territory, his past experience and his anticipated growth
path.
“Two factors have however become clear,” said Clarke. “The calibre
of those entering the industry as franchisees is now higher than ever before
and there is a growing perception that it is now essential to belong to a big
brand group if you wish to ‘cut it’ in the property sector. Independent
operators find that they lack credibility, backup support and a national referral
network.”
The Rawson Properties’ training programme, said Clarke, does ensure that
even those new to the property industry and to being franchise principals can
obtain the qualifications that are now demanded by the Institute of Estate Agents
of South Africa (IEASA). In addition to the obligatory NQF4 and NQF5 qualifications
(the latter for franchise principals) required by the EAAB, Rawson’s also
give ongoing training in a variety of skills such as negotiation, client liaison
and personal improvement.
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21 May 2010, 08:18:00
Cape Town, says Paul Henry, Managing Director of Rawson Developers, the residential
company with approximately 4 000 units to its credit, is fortunate that appropriate
and timely action has thus far prevented sections of the city suffering from
urban blight, which he describes as a ‘disease’ that is now evident
in many of the world’s big cities.
“Urban blight,” says Henry, “is the term used to describe any
area in which standards have dropped so low that the original inhabitants are
no longer content to live there. In Johannesburg, some would say that Hillbrow
is just such an area. In Durban, large portions of the CBD have also degenerated
so seriously that there has been a wholesale exit of corporate and professional
offices.”
In Cape Town, says Henry, some commentators would say that certain portions
of Muizenberg were in danger of becoming blighted in the way he has described.
Landlords, says Henry, are always compromised and lose out as a result of urban
blight.
“When an area becomes less desirable it can no longer command good rentals
or sale prices. If effective city improvement district initiatives are not then
initiated it rapidly becomes impossible for the current landlord or successive
owners to charge satisfactory rents. As a result, maintenance and upkeep are
no longer a top priority and premises begin to decay.
“In this scenario premises tend to be used for purposes for which they
were not designed, e.g. businesses in residential units, and a vicious spiral
of overcrowding, low rents and poor maintenance sets in, sometimes eventually
making the precinct acceptable only to the poorest of the poor, vagrants and
the gangster element.”
With urban blight always a potential danger, says Henry, Cape Town’s newly
introduced floodplain and river corridor management policy should be reviewed
very seriously by those responsible for the city’s development.
“The new policy, which I understand was adopted after minimal public discussion,
makes it illegal to redevelop buildings that have been identified as being within
the “High Hazard Zone”, for example, buildings along the Liesbeeck
River. Should a building along a river be destroyed by natural causes approval
from the local authority to rebuild on the site could be declined.
“As I see it, this policy could mean that some buildings will be forced
to remain empty for years to come, which, of course, would inevitably lead to
a downgrading of the whole area, the onset of urban blight setting, the devaluation
of properties, the payment of lower rates and insurance problems.”
Three factors relating to this matter, says Henry, should be borne in mind.
Firstly, the floods referred to may only occur every 50 to 100 years and may
often not be as serious as the authorities have led the public to believe. Secondly,
redevelopment can be undertaken in such a way that the building can ‘accommodate’
a flood without serious damage. For example, the likely flooded area could be
reserved for parking. Thirdly, the floods themselves are usually exacerbated
by the escalating problems of alien infestation, either upriver or in the area
concerned.
“This problem, if recognised, is always manageable,” says Henry,
“and, as the Department of Water Affairs has shown, can provide useful
short-term employment opportunities to fairly large numbers of unskilled people.
If aliens such as black wattle, rooikrans and water hyacinth are removed, water
flows become more rapid and damming is avoided, with the result that flooding
is far less likely. This is something our municipality must start thinking about,
not only on the Liesbeeck River but on other rivers, if they wish to avoid flood
damage and pollution of the type that made dredging of Zeekoevlei absolutely
essential.”
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21 May 2010, 08:17:45
Tanya Jovanovski, the go-getting CEO of the newly established Rawson Auctions
division, has lined up top speakers for a property investors breakfast to be
held at Kelvin Grove at 7:45am on 26th May. The cost is R120 per person.
Bill Rawson, Chairman of Rawson Properties and a lifelong believer in the virtues
of individual property investment, especially in the buy-to-let residential
sector, will talk on “Why the current times are idea for property investment”.
Jason Lee, author of two books (which have sold 35 000 copies) on property
will talk on this investment channel as a “Cornerstone of wealth creation”.
Backing these speakers up on a discussion panel will be Melanie Coetzee and
Allan White, from the attorneys and conveyancers, Smith Tabata Buchanan Boyes,
and Rob Lawrence, national executive manager of Rawson Finance, the Rawson Group’s
bond origination company.
Those attending the breakfast will be able to question the panel on any property
subject that interests them.
After the breakfast Jovanovski will auction 14 residential opportunities in
the “Academic Belt”, i.e. within easy commuting distance of UCT, Groote
Schuur Hospital and the Cape Technikon.
These homes are mostly in Rondebosch, Rosebank, Mowbray and Newlands and are
all capable of attracting highly satisfactory rentals. They are, therefore,
particularly well suited to buy-to-let investors.
For bookings ring Cleo Kakaza on 021 658 7100.
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14 May 2010, 10:29:56
 The
ultimate bushveld golfing, nature and hydro-therapy experience is now available
on a fractional ownership basis.
Four different packages at the Euphoria golf estate and hydro near Naboomspruit
have been launched at prices varying from R165 000 to just more than R640 000
for two weeks’ stay. Prices exclude VAT but include preferential golf tariffs
and full golf membership on some packages.
Euphoria is situated about 7km outside Naboomspruit and about 200km north of
Johannesburg, offering a convenient getaway to a piece of pristine Waterberg
bushveld, says Aida’s Anton Hanekom, who markets fractional as well as
full-title units in the estate.
Several stands are still available. Prices for Bushveld stands at the top of
the mountain overlooking the estate range from R750 000 to R2m and those in
the golf phase from R300 000 to R900 000. Stands in Orchard Village are available
from R450 000 while stands in Macadamia Crescent and Olive Grove are selling
from R350 000.
Apart form the signature golf course designed by Annika Sorenstam, the estate
offers hot mineral springs and a wide range of hydra-therapies, full conferencing
facilities, a fully-equipped 12-seater board room, several restaurants and a
club house.
A nature reserve of 760ha is home to a wide variety of game and is a favourite
birding destination, says Hanekom. “Game is free to roam and golfers are
sometimes lucky enough to combine their golfing pursuits with a spot of impromptu
game viewing when denizens of the reserve wander onto the course.”
The reserve also offers hiking, cycling and limited quad biking opportunities
as well as game-viewing safari’s. A double-roped cableway links the clubhouse,
hydro and golf course with the Bushveld stands on top of the mountain. The cableway
also transports diners to the Sundowner Deck restaurant, where patrons can experience
fine cuisine and spectacular bushveld views.
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14 May 2010, 10:24:16
 Until
the early 1930s, the Cape Peninsula suburban railway line ran only as far as
Muizenberg and one result of this was Muizenberg for half a century prior to
this was a centre of fashion, the chosen holiday resort of Lord Alfred Milner,
Sir Abe Bailey, the Robinsons and other Cape society figures – many of
whom built substantial homes here in the solid Victorian and Edwardian styles
then in vogue.
One of these, originally known as Shalvah, has just been sold at a price of
R2,83 million by Rawson Properties’ Muizenberg franchise.
Errol King, the franchise principal, said recently that by any calculations
this was a good value buy.
“The home is on Beach Road and within two minutes’ stroll of the
sea. It has a total floor area of 617m² and on an erf of almost 1 000m²
and in the garden there are two apartments, one with its own living room and
kitchen. Anyone wanting to run a guesthouse or B & B from here would have
a total of eight bedrooms to let out in the main house, the granny flat and
bachelor pad. There are also two studies and spacious reception rooms.”
The homes, said Peter Wetton, also of Rawson’s is characterised by the
features and fittings for which Edwardian homes are well known: it has four
fireplaces, thick Oregon pine flooring, wooden framed doors, ceramic tiles,
an enclosed balcony and teak window frames
King said that the mandate for the home had been shared with another big real
estate group but Rawson’s had been quicker off the mark and had been able
to use its referral network to attract offers.
“Muizenberg in my opinion is unique in South Africa, in being able to
offer affordable homes in close proximity to beaches, mountains and a vlei.
Bargain hunters on the trail of low priced homes likely to escalate in value
soon should visit the area and inspect the stock.”
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14 May 2010, 10:04:07
Chris Pearson, Broker/Owner of RE/MAX Address talks about the upswing in the
Durban property market
North Durban areas including Umhlanga, are some of the best performing areas
in the country at the moment, according to Chris Pearson, Chairman of Durban-based
RE/MAX Address. Pearson, with more then 10 years of service with the company
and 31 years experience in the real estate industry, was awarded with the RE/MAX
Circle of Legends trophy in February this year for outstanding sales performance
during 2009.
Receiving the Circle of Legends award was a great honour for Pearson, especially
since he is only the second person to receive it, outside of North America and
Canada. It was last presented in 2006 when South Africa was in the height of
the property boom. He says receiving this award has motivated him to keep going
and never stop. "You have to be consistent at being consistent," he
says, "you have to have a passion for the business of selling real estate,
you need to be able to think out of the box and must be actively involved with
your troops in the trenches." Overall, success for Pearson means taking
a disciplined, holistic approach to life and creating balance.
Commenting on the general property market in Durban and its surrounding areas,
Pearson notes that demand for residential property has picked up steadily, which
is an indication that confidence is returning to the market from all buyer segments.
"Established areas like the suburbs of Berea, North Durban and Upper Highway
areas remain popular as they often retain their value better than the newer
areas," he says. "Investing in property in active areas is always
a better option for this very reason, no matter whether it's residential or
commercial."
Depending on location, buyers interested in investing in Durban property can
expect to pay between R550 000 and R800 000 for a two-bedroom apartment in the
Berea, Glenwood or Morningside areas of Durban, while similar apartments in
the CBD would sell for approximately R400 000 to R550 000. "Mid-level homes
in and around Durban can be found for approximately R1,2m. Again this is dependent
on the location, as homes in this price range in Berea or Morningside would
be difficult, if not impossible to find," says Pearson.
He says that there are a number of expensive homes, priced from R2,5m upwards
on the market in the affluent areas. RE/MAX Address has just sold a R12m home
in Umhlanga, which Pearson says demonstrates that buyer appetite in the upper
reaches of the market is increasing. Pearson points out that market activity
in the upper echelons of the buying market has increased due to the fact that
these buyers don't have as many issues with mortgage finance as other buyer
profiles.
Adrian Goslett, CEO of RE/MAX of Southern Africa says that while the effects
of a lack of mortgage finance may hinder the buying process to a certain extent,
the market is showing solid growth overall with an increase in sales volumes
compared to a year ago.
Pearson believes that the slow but steady recovery of the market is a good
thing. "Steady and solid progress in the property market recovery means
that no bubble or false expectations will be created." He expects the interest
rate to remain steady for the next 12 to 18 months.
RE/MAX Address operates in the residential and commercial market segments of
the Umhlanga, La Lucia, Durban North, Berea, Morningside, Glenwood, Kloof and
Hillcrest areas of KwaZulu-Natal, among others.
FeedBack (5)
14 May 2010, 09:21:07
Diverse lifestyle choices in a vibrant, growing part of Pretoria
A few years ago, Mooikloof may have been considered to lie beyond the outskirts
of Pretoria. But today, it is entirely part of the vibrant "buzz"
of the city of Pretoria, offering a diverse range of lifestyle choices, including
"out-of-town" living.
"The development of this area has been phenomenal. Mooikloof used to be
the furthest end of Pretoria, but now it offers all the amenities one would
expect in a bustling suburb of a metropolitan city, including a hospital and
six shopping centres," says Roma Naudé, Broker/Owner of RE/MAX Property
Merchants in Mooikloof, Pretoria, which specialises in security estates in the
eastern suburbs of Pretoria.
"Exciting new developments continue to add to the vibrant ambience of
this fast growing area. For example, Park View is an exciting new upmarket shopping
mall near the Pretoria East Hospital and Woodhill Golf Estate. Next to Woodlands,
a new shopping centre, featuring 58 new shops, is opening in October 2010. Another
exceptional development is Zwavelpoort Meadows, a security estate offering stands
on which businesspeople can build their own office blocks, and incorporating
a residential area and a small convenience shopping centre. This means that
property owners in the estate can work, live, play and shop all in one estate.
RE/MAX Property Merchants Mooikloof is proud to have the sole mandate for this
innovative estate."
Roma opened the RE/MAX Property Merchants office in Mooikloof only one year
ago, but nevertheless scooped the RE/MAX Broker/Owner Individual of the Year
2009 by Registered Commission award at the RE/MAX Gauteng awards ceremony held
earlier this year. Commenting on Roma's achievement, Adrian Goslett, CEO of
RE/MAX of Southern Africa says that although the success of the Mooikloof office
can in part be ascribed to the growing popularity of the Mooikloof area, it
is mostly due to a formidable partnership between Roma and her husband, Etienne.
"Roma brings to the business 25 years of experience in the marketing industry,
the last seven of which has been dedicated to property sales and letting. Etienne
is a well-known attorney in the field of conveyancing and commercial litigation,
adding extensive legal expertise and property experience gained while operating
his own estate agency a few years ago," he says.
"The popularity of the Mooikloof area is due to the diversity of lifestyle
options it offers, while at the same time providing easy access to the highways
for commuters to Pretoria and Johannesburg," explains Roma. "Golfing
enthusiasts will find their dream home at exclusive golf estates such as Woodhill
Golf Estate, while animal lovers will be delighted with the big 1 ha stands
available in the area. Estates such as Boardwalk with its dams and walking paths
are perfect for nature lovers who do not want to maintain a large garden. There
are also many options for yuppie and newlywed couples who prefer to be part
of the city vibe, close to amenities like shopping centres. For those who want
an 'out-of-town' lifestyle, the new developments around Mooikloof are ideal,
and plots with excellent security are also available," says Roma.
The prices of entry-level properties in the area range from R750 000 to R1,5m,
while mid-level properties fetch between R1,5m and R3,5m. Upmarket property
prices vary between R3,5m and R9m, but luxury properties valued up to R24m are
also available in the area. Vacant land is still readily available, but the
asking prices are optimistic due to ongoing bulk-buying for development purposes.
Roma notes that sales activity and the general demand seem to be increasing,
despite the strict criteria of the various financial institutions that still
result in a lower percentage of loan approvals. Buyers looking for expensive
properties in the R10m and above mark are also coming back into the market.
"The asking prices for certain properties are still too high and this
is where the expertise of experienced agents is crucial," explains Roma.
"Overpriced properties are a direct result from the past property price
hikes. At RE/MAX Property Merchants, we are proud of the fact that we are well
informed and connected with the valuers from the banks, so we can advise our
sellers of the value the banks attach to their properties. After all, if the
valuers are not finding the value of the selling price, the purchaser will not
obtain a loan. Our philosophy is to rather walk away from an overpriced house
and focus on the realistically-priced houses."
Roma believes that the property market is still a buyer's market, but property
bargains are becoming harder to find. "Buyers still have many choices,
and thus do influence the prices. Given the wide choice they have, it is crucial
that buyers tap into the expertise of a reputable agent in the area to help
them make the right choice. In this buyer's market, it also becomes more important
than ever for sellers to choose an agent that can offer uncompromising professionalism,
integrity and service under one roof, to ensure they get the best possible price
within a reasonable time."
FeedBack (2)
14 May 2010, 09:20:47
SA real estate agencies with connections to overseas companies understandably
emphasise this, says Marion Taylor, manager of Greeff Properties’ Camps Bay
branch – but the local market should not be undervalued as it is South Africans,
and Capetonians, in particular, who in all areas, including the Atlantic Sea Board,
are responsible for a vast majority of sales.
“In the years that we were part of a very strong branded European group
we had occasional referrals from them but most potential buyers from overseas
tend to search the internet before visiting Cape Town and, once here source
properties in the same way as South Africans. They visit show houses or come
into the various street level agency offices which are usually well located
to attract passing trade.
“Now that my team is part of Greeff Properties, the really significant
assistance comes in the form of local referrals. These are many times more numerous
than the mythical overseas buyers that our former European head office hoped
to be able to send us. Johannesburg and Cape Town itself is where we find those
capable of paying the Atlantic Sea Board prices which range from R1 million
or less for apartments to R100 million for upmarket Clifton and Waterfront properties.
The tie up with Greeff Properties is proving to have been a good move as we
now receive referrals regularly, usually with excellent results.”
The flow of home seekers to and from Cape Town’s Southern Suburbs, South
Peninsula and the Atlantic Sea Board is consistent and reliable, said Taylor.
“Buyers whose children have finished school and who chose a different
lifestyle are often attracted from the Southern Suburbs to the Atlantic Sea
Board but many young families on the seaboard uproot themselves to move closer
to the many schools in the Southern Suburbs.”
Greeff Properties, added Taylor, have a strong relationship with Druce in London,
LH Properties in Munich and Your Home International in Zurich, so are still
handling some overseas buyers.
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14 May 2010, 09:19:41
Homebuyers in Weltevreden Park and the surrounding areas of Randburg can rely
on world-class expertise from the RE/MAX Master's Weltevreden Park office when
they make one of their biggest investments: buying a home.
At the RE/MAX Gauteng awards ceremony held recently, the RE/MAX Master's Weltevreden
Park office performed extremely well. Tracey Snyman received the Sales Associate
of the Year 2009 Award by Registered Commission while Lance Heroldt accepted
the Sales Team of the Year 2009 Award by Registered Commission. Glenn Joselowitz
received the Sales Team of the Year 2009 Award by number of transactions achieved.
Lance and Glenn also achieved Diamond Club in 2009 - the highest annual club
award given to a RE/MAX agent.
Over the last five years, this remarkable office has also produced the three
top performers for RE/MAX internationally (excluding North America and Canada),
with Lance Heroldt's team being recognised as the Top Team Internationally achieving
first place for 2009, Glenn Joselowitz's team achieving third place and Tracey
coming in at number 11 as an individual agent.
Glenn Norton, Broker/Owner of RE/MAX Masters Weltevreden Park, attributes this
success to the fact that they put their clients' needs first. "The business
is systems-based, ensuring high levels of service to our clientele. I count
on the fact that my clients come back to me each time they buy and sell a home,
and this is how the business grows."
The achievements of the Weltevreden office are certainly proof of the company's
position in the real estate market. "We have the best agents in the industry:
agents that lead change in an industry as opposed to being influenced by it.
Agents that know that client relationships are more important than sales and
listings," comments Adrian Goslett, CEO of RE/MAX of Southern Africa.
For many homeowners, and particularly first time buyers, making the right decision
about which home to purchase can be a daunting prospect. Sellers also require
expert advice and guidance to ensure they can achieve the best price in these
difficult market conditions. "So many agents make false representation
of what they can do, about the suitability of a property to a buyer's needs
or about the sales price they can achieve for a home. People make life-changing
decisions based on what they believe is a professional opinion," says Norton.
"At RE/MAX Masters, we are trained and qualified in accordance with the
latest legal requirements and keep up to date with the developments in the area
that affect the property market. This ensures that we can offer our clients
the best advice and uncompromising service."
Lance and Tracey, who are siblings, have a combined experience in the Randburg
property market spanning almost 17 years. "There is a considerable amount
of buying and selling activity in this area due to its prime location,"
says Norton. "For example, in Northriding, where property prices for clusters
and townhouse range between R500 000 and R3-million, a well-priced property
can be sold in as little as four to six weeks, despite the current property
market conditions. While there is still land available for development, the
constraints imposed by the slow provision of infrastructure and services will
limit further development in the immediate future, which means the demand for
properties in this area will continue to outstrip the supply."
Norton is optimistic about the future of property, but adds: "We have
seen the end of the major slump, but there are a few uncontrollable factors
that influence the property sector - recent figures from the Betterbond Group
show that only one in two bonds are granted. This means an agent is reselling
every second home he or she sells."
Norton believes that property remains one of the best investments, if buyers
keep a long-term perspective. "We are unlikely to see the boom in property
prices which we experienced a few years ago, but prices are slowly beginning
to grow positively. If you buy the right property and keep it for at least five
years, you can be assured of a decent return on your investment. But to make
sure you make an investment that is truly 'safe as houses,' you need to tap
into the experience and expertise of a reputable and recognised estate agent
who specialises in the area and is willing to go the extra mile to help you
make the right choice," concludes Norton.
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14 May 2010, 08:27:07
Beacon Bay, known as the Garden Town of the Amathole region, is situated right
on the ocean between the Nahoon and Quinera rivers. Beacon Bay is a sought-after
residential and holiday location that offers beaches and river sports, shopping
malls, office parks and cinemas as well as a new private hospital, with the amenities
of East London only ten minutes away.
It is here that Antoinette Clark, Broker/Owner of RE/MAX Border Professionals,
has noticed a definite increase in sales activity in comparison to 2009. She
says properties in the R1,2m range and below are in demand and therefore sell
the quickest.
Generally prices in the Beacon Bay area range from R700 000 up to R7m. Clark
says that many buyers are still feeling the effects of tight lending conditions
from the banks, but notes that there has been an increase in cash buyers and
those with substantial deposits.
Beacon Bay's property growth has been especially noticeable in the lifestyle
development concept with the introduction of mixed-use developments where buyers
can live, work and play.
Townhouses, she says, are still popular types of property in the area, and
correctly priced properties are selling at a good pace. "Unfortunately,"
says Clark, "many sellers are still expecting to achieve prices that they
would have in the boom times. Reality is that buyers are looking for quality
properties that represent good value for money and in line with current market
prices."
Adrian Goslett, CEO of RE/MAX of Southern Africa, says that Beacon Bay's property
market is following similar trends to the rest of the country. He cautions sellers
against pricing their properties unrealistically. "It follows that if a
property is priced correctly; it will sell in a shorter period of time and will
also attract serious buyers."
While there are a number of new developments in the pipeline for the area,
Clark notes that many of the developers of existing projects are giving buyers
incentives to purchase. "This is in line with the fact that buyers are
looking to get a lot more value for money from their property purchases these
days," she concludes.
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14 May 2010, 08:26:19
The signing of RE/MAX Realty Centre franchise, which operates out of Harare, Zimbabwe,
has catapulted the RE/MAX footprint into 82 countries around the globe.
Rutendo Rutendo, Broker/Owner of RE/MAX Realty Centre, says that while their
offices are based in Harare, they aim to operate nationally, especially considering
the fact that the Zimbabwe property market is experiencing a huge uptick in
activity with many interested buyers looking to find their perfect home.
This, says Rutendo, is exceptionally positive coming from an adverse environment
where the monetary transition to the US Dollar last year was a big shift for
the people of Zimbabwe who had to adjust their income accordingly.
He says that as with the South African market, the lack of mortgage finance
also served to hamper the Zimbabwean property market's performance, but that
the gradual return of finance has stimulated activity once more.
While Rutendo is anticipating good trading conditions in 2010 and has already
seen an increase in property transactions, affordability, he says, will continue
to be a challenge.
Properties that fall within the higher density zones are the most affordable
in the Zimbabwean property market, selling between USD 10 000 and USD 15 000
upwards. Here properties usually consist of two- or three-bedroom apartments
with a relatively small floor area.
For USD 60 000 and more, buyers can purchase a two- or three-bedroom home in
a medium density area. "As incomes improve, more loans are advanced and
there is more activity in these areas across the board. As always," says
Rutendo, "location determines the property price."
An acre of land with a home consisting of three or four bedrooms, a lounge,
dining room, swimming pool and security in low density areas, such as the northern
suburbs of Harare, can be purchased from around USD 200 000.
Peter Gilmour, Chairman of RE/MAX of Southern Africa said that the signing
of this particular franchise was a momentous occasion as it solidified the positioning
of RE/MAX as one of the strongest international real estate brands in the world.
Rutendo is excited to be taking the RE/MAX brand into Zimbabwe, a move which
he is sure will result in him attracting the best agents in the country - even
from other real estate companies. "It is an honour to be part of such as
well known, international real estate brand that offers the best in training,
technology and excellent systems," he says.
Adrian Goslett, CEO of RE/MAX of Southern Africa, is proud to have RE/MAX showcased
in Zimbabwe and looks forward to RE/MAX becoming the preferred real estate brand
in that country.
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14 May 2010, 08:25:44
RE/MAX of Southern Africa has launched its 3D advertising campaign at three of
South Africa's major airports: OR Tambo International Airport, Lanseria International
Airport and Cape Town International Airport. RE/MAX is the only South African
real estate group which has embarked on an advertising campaign using 3D technology.
The campaign, running from 4 May until 16 July, specifically targets inbound
travellers to South Africa. It aims to create awareness around the RE/MAX brand
in the country along with its service offering and quality guarantee.
During the period of the campaign, it is estimated that over 2 million people
are expected to pass through the airports. "The airport makes sense for
an advertising campaign of this nature," said Adrian Goslett, CEO of RE/MAX
of Southern Africa, "especially since the local tourism industry outperformed
world trends in 2009 and realised a growth of 3,6% in foreign arrivals with
more than 9,9-million foreign arrivals to the country. With the campaign running
through the weeks leading up to the Soccer World Cup, there will definitely
be an increase in airport traffic - a prime opportunity to showcase our brand."
The RE/MAX 3D adverts will be displayed, along with other highly rated international
brands including Coca-Cola, Colgate and Visa, on 12 high-definition, 42 inch,
3D Phillips screens strategically placed in both the domestic and international
departure areas.
Goslett said the 3D technology allows images to fly right out of the screen
without the need for 3D glasses. Using a "lenticular" lens, which
is similar to grooved plastic pictures that move when flexed, 3D TV sends different
signals to each eye which tricks the brain into seeing images float in and out
of the screen.
These 3D adverts really catch the eye, enabling advertisers to convey key information
to their audiences through a visually engaging platform. "This method of
advertising is certainly distinctive in today's cluttered media space. It is
a perfect match for the RE/MAX brand, which is very much centred on maximising
technological advancements," Goslett concluded
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06 May 2010, 14:36:14
To build on the huge success of its Home Makeover projects of the past two years and to celebrate its 30th birthday, the Chas Everitt International property group has just launched ChasCares, a new corporate responsibility programme with a broader and deeper reach.
“The Home Makeover projects in Gauteng and the Western Cape were very substantial,” says group CEO Berry Everitt, “but still meant that many of our offices and agents could not be as involved as they would have liked in our community support activities.
“The ChasCares CRP will address this, enabling everyone in the group to participate – and enabling them to reach further and deeper into their own communities to touch people who need help”
Bearing in mind that the group is 30 years old this year, the ChasCares programme will involve each office in the group in doing 30 “acts of kindness” during the year “to say a direct thank you to SA for 30 years of support”, as well as three major regional campaigns, he says.
“And many of the sponsors that were involved in the Home Makeover projects are already on board to support the new programme at regional level.”
ChasCares will, Everitt explains, be multi-layered and while it will be co-ordinated nationally, it will be structured so that regions and branches can identify needs in their own areas and decide which organisations or projects they wish to support with their own fund-raising or other activities.
“This means, no doubt, that the beneficiaries of the ChasCares programme are going to be very diverse, but the needs are great in SA and we feel that what is important now is for everyone in the group to touch as many other lives as possible and make a difference where they are, as this is a very important part of the Chas Everitt culture.”
A ChasCares website has already been launched (see www.ChasCares.co.za) and will be used to promote the programme and keep a record of its various activities around the country. News and events will also be posted for fans to the new ChasCares page on Facebook. (become a fan)
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06 May 2010, 14:32:13
 Living up to promises that they made earlier this year, to be “motoring” by mid-year, Tanya Jovanovski, CEO of Rawson Auctions, and her colleague, Jason Lee, have lined up an array of new auctions – no less than five in two weeks. These will take place from the 11th May to 26th May and with one exception will always be at 12 noon and on site.
On 11th May, the Rawson team will auction a four bedroom face brick home in Ottery. Jovanovski expects it to attract bids of R700 000 to R1,1 million.
On 12th May a four bedroom home in Leeuwenhof Road in Bellville will come up for sale – and again, is likely to attract offers from R600 000 to R800 000.
On 19th May, Rawson Auctions will sell a three unit commercial complex on a 1000m² erf in Lester Road, Wynberg. Here, prices are expected to be above R2,5 million for all three units or around R800 000 for individual units.
On 22nd May, Jovanovski will, for the first time in the history of the estate, auction a home at Steenberg Golf Estate. This is expected to attract bids above R10 million. Sited on Blue Crane Way, it is a “very upmarket” home, says Jovanovski.
Then on 26th May the Rawson Auctions team will, as announced, hold a multiple auction of hand picked Rondebosch/Mowbray and Observatory properties all suited to student accommodation and likely to be priced from R500 000 to R900 000 for apartments and up to R2 million for large houses. This auction will be held at Kelvin Grove at 7:45am and includes a light breakfast and guest presentations by Bill Rawson (Chairman, Rawson Group) and Jason Lee (the high selling property author).
Tony Clarke, MD of Rawson Properties, said recently that the energy and enthusiasm of the new Rawson Auctions division have proved “awesome”.
“They have thrown themselves in at the deep end and are managing exceptionally well: every single property they have taken on so far has found a buyer, either at or post auction. Four sales were finalised in two weeks.”
Jovanovski said that it is her ambition to grow Rawson Auctions to the point where they will be recognised as one of the big name operators in the auction field.
Those who would like further information or viewing should email Jovanovski on tanya@rawsonauctions.com or Jason Lee on jason@rawsonauctions.com
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06 May 2010, 13:52:53
RE/MAX of Southern Africa is proud to announce that the real estate company
has spread its wings to the lovely town of Bronkhorstspruit, a popular weekend
get-away destination for executives and their families due to its close proximity
to Johannesburg and Pretoria.
Situated in Fiddes Street, Bronkhorstspruit, the office, known as RE/MAX In
Action, will cover the Bronkhorstspruit and Kungwini areas.
"With more than 20 years experience within the property field, Louis van
Zyl, Broker/Owner of RE/MAX In Action brings invaluable skills to our team.
We are delighted to welcome him to our family," says Adrian Goslett, CEO
of RE/MAX of Southern Africa.
Van Zyl, who firmly believes that passion for property, professionalism and
personality differentiate one real estate agent from another in a highly competitive
industry, says that the property market in the area has performed fairly well
in what is still regarded as a tough industry to operate in.
Commenting on property prices in the area, van Zyl says that entry- and mid-level
homes reach anything between R500 000 and R800 000 while top-end properties
start at R1.2-million. He adds that there is currently a big demand for vacant
land and rentals.
New developments of note include a beautifully designed Tuscan Village, boasting
approximately 250 two- or three-bedroom townhouses in a 24-hour security complex
and a power plant and mine, situated approximately 20 km from Bronkhorstspruit.
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23 April 2010, 09:21:47
 One
of Bishopscourt’s best known – and grandest – homes is back on
the market at a price of R36 million. The agents are Anne Porter Knight Frank.
The home, Fairseat, belonged to the Porter family for over 35 years but was
subsequently sold and has had various owners.
It was bought by Allan Porter who planned to re-establish it as the focal point
of the Porter clan.
“It has always been one of the most impressive homes in the precinct,”
said Lanice Steward, MD of APKF. “It was recently modernised and extended
with a new open plan living, dining, kitchen and serving section leading onto
all the health and recreation facilities that any industry leader with a liking
for entertaining could want: a lap pool and a Jacuzzi, an alfresco dining patio,
tennis and squash courts and a fully equipped gymnasium with a steam room.”
The home now has 700m² of floor area. Its façade incorporates two
ornate but authentic Cape Dutch gables. The garden covers a full 6 246m²
and offers complete privacy.
There are no less than eleven bedrooms, all with en suite bathrooms as well
as three separate guest apartments and numerous reception areas, including an
entrance hall, which has a sweeping staircase with stained glass windows and
a formal oak panelled dining room with a pressed metal ceiling and a fireplace.
Among the extra facilities offered by this “ambassadorial” mansion
are a large wine cellar, a library (with bookshelves created by Pierre Cronje),
a billiard room (with a full size billiard table), a children’s nursery
cum playroom and garages for six cars.
“Time will show that anyone buying this magnificent property will have
got it at a bargain price,” said Steward. “Our Knight Frank associates
in the UK are selling similar homes at £4 to £10 million –
or more – despite the recession but it has to be seen to be fully appreciated.”
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23 April 2010, 09:10:34
Sales director said Asrin’s “strengths” now working to its benefit
As recent reports from bank economists have confirmed, SA residential housing
developers are once again looking for sites and planning the first new launches
after 18 to 24 months.
The Cape based Asrin Property Developers have two further and final phases
on the go at its Melkbosch Village in Melkbosstrand and have been achieving
a steady flow of sales at their Eden on the Bay, Somerset West and other developments.
Shiraaz Hassan, Asrin’s Marketing and Sales Director, said that some of
the group’s strengths are the ability to carry out in depth market research
and to position itself strategically in its markets.
“We have kept close track of demand and market trends and it is now clear
that in much of the Western Cap there is a particularly strong need for homes
in the R350 000 to R800 000 bracket.”
What is limiting development here right now, he said, is that some 50% of bond
applications are still rejected because the applicant is counted out either
on his earnings level or his credit profile – any lapsed payments in the
past and/or any indications of being an unreliable employee will result in the
application being turned down.
These appraisals, said Hassan, are particularly tough when the applicant wants
a 100% bond – as most in the affordable sector do.
Nevertheless, he said, Asrin is still ranked among the top residential developers
at the Cape and by mid 2011 they are likely to have some 800 opportunities either
already launched, or in the production line.
Another of our strengths is our versatility. We have experience in all price
levels from low priced R350 000 homes to R10 million apartments. This will stand
us in good stead as the market improves.”
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23 April 2010, 09:10:14
A host of Aida Pretoria East agents celebrate their NQF4 certification.
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The last group of agents in Aida’s large Pretoria East office who still
have to achieve the mandatory National Qualification Framework certification
is signing up in April.
“A total of 25 of our 30 agents has completed their courseware and these
agents are now fully qualified in terms of the new requirements,” says
office manager Helen Taylor, a stalwart in the estate agency industry with nearly
40 years of experience. “I doubt there is any other real estate office
in the country with so many qualified agents,” she adds.
All agents have to obtain the NQF4 qualification by 2011 in order to work as
registered real estate agents.
“It is encouraging to see our agents - young and old - embracing the new
requirements with such enthusiasm,” says Taylor, who adds that in spite
of her decades of experience she personally found the courseware “tremendously
beneficial”. She was among the first group of agents countrywide to obtain
the new qualification in 2006.
Taylor says the required qualification is a great step forward in the process
of raising industry standards . “It will improve the industry’s image
among property consumers and lead to higher confidence in agents’ abilities
and service levels,” she says.
“And arguably the most beneficial aspect is that it will purge unscrupulous
or untrained operators from the industry, allowing remaining agents to take
pride in their profession. Professionally trained agents are justified in viewing
their profession as one of the most ethical – it is the only profession
where all services are free until a transaction is successfully concluded,”
she says.
“The qualification is also of tremendous benefit for young agents in that
it boosts their self-confidence and improves their knowledge and abilities,
while more experienced agents benefit from reviewing basic real estate agency
principles.”
Taylor adds that several Aida Pretoria East agents have enrolled for their
NQF5 qualification, which will enable them to operate as principal agents.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Pretoria East: 012 348 3720
Contact: Helen Taylor
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16 April 2010, 09:49:29
The RealNet property group has opened a new office to serve property consumers
in a vast area between Mogale City and Pretoria South and beyond Magaliesburg
to the north.
The franchise has been awarded to Eben le Roux and Hanneleen Roos, both stalwarts
in the RealNet stable. The pair opened their first RealNet office in Constantia
Ridge in 2008, followed by the adjoining Weltevredenpark area just a year later.
“We started our business in probably the most challenging times the real
estate market has ever seen, but through attention to basics, applying sound
business principles and adhering to RealNet’s values we have gone from
strength to strength,” says Le Roux.
“We saw great potential when the franchise in the magnificent Cradle area
became available and having identified a top manager and business partner in
André van Niekerk, we had all the elements for another successful real
estate office,” he says.
Van Niekerk says rural businesses, residential and agricultural properties,
as well as peri-urban estates in this region will receive specialist attention.
“The Cradle has property listings to suit most tastes,” he says,
“from a historical landmark property in Maloney’s Eye on 400ha of
prime Highveld land at R15m, to the affordable, attractive, modern, and secure
townhouse and cluster developments in Pine Haven Estate.”
He adds that holdings in the semi-rural regions are in high demand. “Luxury
modern homes on properties ranging from 2 tot 5ha are available on the Oak Tree,
Steynsvlei and Muldersdrift agricultural holdings within 20 minutes of the Sandton
CBD and with easy access to the N14, while efficient, sustainable smallholdings,
that provide excellent value for money and a small-farming lifestyle, are available
in the Tarlton area. Holdings surrounding the Krugersdorp Game Reserve are just
10 minutes’ drive from the centre of the vibrant small town.”
RealNet The Cradle offers agricultural know-how specific to the area, he says.
“We are conversant with the water availability in specific regions and
can advise buyers on the best cash crops per area while our network will put
clients in touch with the right people for the right advice to help them make
the ideal property investment.”
Prices of smallholdings range between R800 000 and R12m for units of between
1 and 5ha while prices of larger holdings and small farms range from R900 000
to R10m. Guest houses, lodges, resorts and boutique hotels are selling at prices
of between R2m and R25m and stands of between 1000 and 1500sqm with luxury homes
in eco and wildlife estates at Kromdraai from about R2m.
Townhouse and cluster units in residential estates such as Pine Haven sell
from R600 000 to R1,5m while full-title units are available at prices of between
R1,5m and R4,5m.
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16 April 2010, 09:48:46
Surprisingly, it quite often happens that when estate agents draw up a deed
of sale in which there are suspensive conditions, they omit to include a date
by which these must be fulfilled.
Lanice Steward, Managing Director of the Cape Town agency Anne Porter Knight
Frank has pointed out that in a recent high court case Reddy v Govender, this
omission had a crucial effect on the final ruling.
The buyer, Govender, made the purchase of a R420,000 property subject to obtaining
a bond from a financial institution. However, no date was stipulated as to by
when this had to be achieved.
When after one month’s wait the buyer still had no bond, the seller, Reddy,
announced that that she was cancelling the agreement because a reasonable amount
of time, in her opinion, had passed for the buyer to fulfil this condition –
one month is a normal time in most deeds of sale for this.
The argument, therefore, in the end hinged on whether the four or five weeks
that had lapsed was reasonable or sufficient time to raise such a bond.
In its decision the court referred to several cases including one in 1979 in
which the judged had ruled that “this type of operation” can be time-consuming
and that the appellant had not proved that the defendant had had enough time.
Much the same argument, the court ruled, could be put forward in this case.
The judge also ruled that there was insufficient evidence that the appellant
had kept the defendant informed of her need for speed and her intention to sell
elsewhere if the conditions were not met on time.
“The lesson to be learnt from this case is that not only should the contract
stipulate a cut-off date by when all the suspensive conditions should be met,
but, in addition, all subsequent attempts to communicate with the buyer by verbal
or other means should have gone into the record. Apparently there had been several
efforts of this kind but there was no proof of them. The buyer, was therefore
given an extension of time to get a bond.”
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16 April 2010, 09:48:09
The new Notebook licensing concept recently launched by the Chas Everitt International
property group is catching on like wildfire among top-performing agents and
independent estate agency principals.
“We have issued more than a dozen Notebook licences in the past few months,”
says Barry Davies, the group’s director of franchising, “in areas
as diverse as Rustenburg, Bloemfontein, Walkerville near Johannesburg and Montagu
in the Southern Cape, as well as Witbank and Brits.
“We also have several Notebook operators in the Cape Winelands, including
the latest to sign up, Reon van der Merwe, a seasoned principal whose very successful
agency specialises in sales in the luxury Boschenmeer and Val de Vie estates
near Paarl.”
Another new Notebook licensee, he notes, is top agent Christiaan Steytler,
who is well-known for his many years of outstanding sales in Constantia and
has now decided to open his own office in McGregor.
The Notebook system is specifically designed to accommodate agents and principals
who are strong in their local markets and wish to trade for their own account
but under a national brand.
“The model is predominantly aimed at smaller franchise and rural areas
where traditional franchise and set-up costs are prohibitive relative to market
size,” Davies explains. “The Notebook licence grants an operator the
right to use the Chas Everitt International brand, its systems, websites, marketing
material and training within a defined area at an affordable entry and operational
cost.
“Substantial savings are also made because Notebook licence holders do
not necessarily operate from formal office premises or have to hire administrative
staff as our state-of-the-art business systems allow them to manage their own
transactions.”
New licensee Steytler says: “The Notebook model was the obvious choice
for me. It’s more affordable than a franchise but you still have all the
benefits of a franchise and a very strong brand. It’s perfect for top agents
who want to be in control of their own business but don’t want to run a
full-on real estate office with the hassle of managing other agents’ activities
and production.
“And the Chas Everitt systems are fantastic. It’s amazing how many
‘tools’ the group offers to help agents get the deals done and manage
the follow-up adminstration.”
Davies says the Notebook model has also elicited a lot of interest from agents
in townships who previously had few options in terms of business ownership “and
who see this as a great way to gain access to a top brand”. The Services
Seta has also evaluated the system and endorsed it as a method of new business
creation.
Issued by Chas Everitt International
For further information call
Barry Davies on
011 801 2500 or visit
www.chaseveritt.com
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09 April 2010, 10:20:09
Although a fairly high percentage of sectional title schemes in South Africa are
poorly run and even heading for big debt and maintenance problems, there is, says
Michael Bauer, General Manager of IHFM, which specialises in sectional title management,
a marked reluctance among sectional title property owners to attend the all-important
Annual General Meetings at which difficult matters can be sorted out.
“What many owners do not realise is that, if they are not capable of attending,
they are allowed to appoint a proxy – and this should be done, because
it is a right each owner has and he should use it to ensure a fair outcome.
If a sectional title scheme has problems they should be known to the unit owners.”
The Prescribed Management Rules, says Bauer, say that the proxy’s appointment
must be in writing and must be handed to the chairman before the meeting (a
late posting excuse is not acceptable).
Anyone except the managing agent and/or his/her employees can be a proxy.
There are two types of proxies and it has to be specified which votes he or
she can make. An ‘open’ proxy allows the proxy to vote on anything
on the agenda at his or her sole discretion. The ‘directive’ proxy
limits the proxy to the directions given by the owner.
In South Africa, says Bauer, the Sectional Title Act defines no limit to the
number of proxies an owner can hold when attending an Annual General Meeting.
It can, he repeats, make a big difference to the wellbeing of a sectional title
scheme, if owners attend the Annual General Meeting in person or by proxy.
For further information contact Michael Bauer on 083 255 4442 or visit www.ihfm.co.za.
IHFM have a weekly online newsletter covering sectional title and property matters
that will be supplied on request.
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09 April 2010, 10:19:49
The prevailing opinion that the recent 0,5% drop in the interest rate (taking
it down to 10%) will not boost property sales much further could well be pessimistic,
says Mike Greeff, CEO of Greeff Properties, one of Cape Peninsula’s agencies
to have grown by over 10% in the last year.
“It may be true,” said Greeff, “that from a financial viewpoint
the lower rate’s effect will not be that noticeable – but from a psychological
perspective it will have a profound impact.
“Since August last year optimism and confidence have been steadily on
the increase in the property sector – and we have seen this in our sales,
in the number of visitors to show houses and, to a lesser extent, in the hit
rate of those buyers applying for bonds. This lower interest rate will cap the
other factors which have led to the market being so much more positive despite
the economy and despite the banks’ reluctance to fund home buyers.”
Greeff predicts that by early 2011 the average Cape Town Southern Suburbs and
Atlantic Seaboard home will have undergone a 12 to 14% increase in value. The
latest FNB house price index published recently already shows a March year on
year growth figure of 8,6% - which is a national figure.
“We know that prime areas will show a better growth. We expect “normality”
in trading conditions to be achieved by mid-2011, said Greeff.
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09 April 2010, 10:18:17
The Cape residential property market, already on an exciting recovery path (with
sales rising monthly) will be given a further boost by the unexpected but welcome
0,5% drop in the interest rates, says Anton du Plessis, CEO of Vineyard Estates,
which is currently enjoying its most successful quarter since 2006.
“This move by the Reserve Bank indicates that they understand only too
well the dampening effect that the electricity rates and fuel price rises will
have on the country’s growth but they are determined to fight this as much
as possible – which is exactly what many economists and most in the property
sector have asked for,” said du Plessis.
He added that the Cape residential property market has, in his view, gained
a new momentum all of its own and this will result in price rises of 5 to 10%
by the end of this year.
“Much of the hesitation and holding back that we experienced last year
has now disappeared,” said Plessis. “We are back to the activity levels
of 2005”
Just how significant a 0,5% drop in interest rates is for the average Cape
Town Southern Suburbs buyer can be seen on a R3 million bond –the monthly
payments will be reduced from R29 951,39 to R28 950,64, a difference of just
over R1 000. Many middle class buyers are also financing two vehicles as well,
so the monthly savings are significant, said du Plessis.
“Another factor well worth considering is that, although small, the drop
in interest rates has a bigger effect on sentiment and confidence, which translates
into greater market activity,”
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09 April 2010, 10:17:25
In a recent case heard in the KwaZulu Natal High Court, the lessee of a property,
who claimed that in terms of his lease agreement, he had an optional right to
buy it, was ruled against by the court on the grounds that the description of
the property in the lease agreement was imprecise and likely to lead to confusion.
Mike Greeff, CEO of Greeff Properties, has pointed out that this is one of
a number of cases heard over the last few years in which a lack of clarity in
the documentation scotched the appellant’s case.
“The Alienation of Land Act of 1981,” said Greeff, “stipulates
that all the terms and conditions of the sale have to be in writing and have
to be clear. In property law there can be no “understandings” or verbal
agreements as there can be in other transactions.
“My impression of this KZN case is that the appellant had a strong case
but this fell through because the description of the property in the lease did
not coincide completely with the description in the title deed. In fact, as
the judge said, “an exact and precise description of the property sold
was absent – making it non-compliant with the Alienation of Land Act”.
The lesson to be learned, said Greeff, is that legal documents relating to
property have to be 100% accurate and have every clause or condition in writing.
FeedBack (2)
09 April 2010, 10:15:43
Graham Leslie, the Managing Director of Greeff Properties, one of the Cape Peninsula’s
high profile estate agencies, has drawn attention to an article in Fairbridge
Attorney’s newsletter.
In this it is reported that the courts are now more inclined to interpret the
provisions of the National Credit Act in favour of those whose homes the banks
try to repossess, particularly if they are from disadvantaged backgrounds.
“In four cases,” said Leslie, “the homeowners were low income
earners and in most cases they had paid their bond payments regularly for 13
to 19 years. Equally important, their properties were now more valuable than
the outstanding balances.”
Judge Claasen commented that the arrears were of little significance to the
banking institutions and the suffering of the homeowners if they had their homes
taken from them would be far more serious than the temporary losses of the banks.
Although the thwarted banks could now institute actions for debt recovery in
the Magistrates Court, the judge ruled that they first have to be served personally
with a copy of his judgement and informed of their rights and benefits under
the National Credit Act.
Leslie said that, where no estate agent wants to see defaulting bond payers
regularly let off the hook, the latest stance by Judge Claasen is to be welcomed.
“Where bondholders have fulfilled their obligations over a long period,”
he said, “and where their problems are probably caused by the recession,
the banks have to be more reasonable than some now want to be. Let us not forget
that worldwide it was reckless lending that was at least partially responsible
for the global crisis.”
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09 April 2010, 10:14:50
The publication each year of the Knight Frank/Citibank Wealth Report is always
carefully studied by the world’s economists because the views of the top
2% to 3% of the world’s highest net worth individuals canvassed for the
survey are generally better informed and closer to reality than most, says Lanice
Steward, MD of Anne Porter Properties, Knight Frank’s South African associate.
“In the circumstances,” she adds, “it is encouraging to be able
to report that this group of individuals is a great deal more bullish about
property prospects than they were last year. In almost every aspect the latest
report is an encouragement to invest.”
The survey reveals that among HNWIs worldwide, property remains their number
one investment channel, responsible for 33% of the average portfolio (equities
come second at 24% with cash and bonds together taking up 20% of HNWI portfolios)
Equally significant, says Steward, is the fact that whereas 29% regarded 2009
as an inauspicious time to invest in property, 71% believe 2010 will be a good
year to do so and the majority concur that residential property should take
the highest share of the portfolio (with commercial running second).
Exactly 50% foresee residential property being the best performing of all asset
classes in 2010. (By comparison property funds and REITS are regarded as good
appreciating assets by only 10% of those surveyed.)
The capital growth potential of property is seen by most as more important
than its yield. Not surprisingly, therefore, the majority rate the host country’s
likely economic performance and its reputation for good governance as the first
consideration to be taken into account before investing in property there.
“Factors such as transport links and closeness to schools, which are of
such great importance to the average buyer, are hardly considered by these international
investment buyers,” said Steward, “but political stability, design,
views and security are all rated in the top factors which influence their choices.”
The survey shows that international buyers rely heavily on direct contact with
agents for advice but trust their own expertise above all else. In making a
final decision they trust their own judgement ahead of the views of their banks,
their financial consultants, the media or the internet.
So, what does this all add up to? A staggering 63% said that in 2010 they would
be adding at least one secondary residence to their portfolios and 53% said
they would use some form of loan to help them do so.
“This is the most solid evidence yet that the recovery is in full swing,”
said Steward.
Although the names of areas were not specified by those in the survey, it is
clear from the KF/Citibank survey that the really favoured top performing properties
are now those in Asia. Rental and price growth in Shanghai, Hong Kong and Tokyo
has been five to ten times higher than that in London or New York – although
New York has now overtaken London as the world’s top ranking city from
a property asset perspective.
Steward commented that there is a close link between confidence in property
and confidence in the country as a whole.
“The group surveyed control a healthy percentage of the world’s wealth
and have influence far beyond their own spheres. Any politician wanting to attract
investment should take note of how and why they act. If we can attract their
business to SA, all would benefit, not just property dealers or developers.”
FeedBack (3)
01 April 2010, 07:42:21
Although the residential property sector in the Greater Cape Town area is now officially out of its recession, developers are still struggling to get new projects financed and launched, says Heather Cape, Greeff Properties New Developments Sales Manager.
“The main difficulties,” she said, “are that buyers still battle to get bonds and the developers are still unable to get funds for new projects, even when a very high percentage of pre-sales have been achieved.”
Greeff Properties, said Cape, now has on its books several hectares of potential development property throughout the Cape Peninsula and further afield which are suitable for projects - but very few takers.
In many cases, said Cape, the land has come onto Greeff Properties’ books because the current developer/owner has been unable to go ahead. In some cases the rezoning and plan approvals are already in place and the owners may be open to joint venture proposals.
“Where landowners are going for an outright sale,” said Cape, “there is still a tendency to work on pre-2009 values. As a result, many of the property developments that Greeff would like to have handled have become too expensive for the present market.”
Greeff Properties’ development team, said Cape, can, however, play a useful role in putting together potential joint venture partners, sellers or buyers for many opportunities that still exist.
Asked where these deals are most likely to occur, Cape said that in the Cape Town Southern Suburbs and on the Cape Flats sectional title units are very much in demand in the price bracket of R350 000 to R1,2 million.
Developers who are looking for land, she added, tend to be reluctant to wait for rezoning and/or consolidation approvals. This is because the preliminary planning stages can take at least a year and will usually be followed by another year’s wait to get the plans passed. In some cases, developers also have to deal with objections from concerned parties and neighbours.
“One of the most promising of the current opportunities,” said Cape, “is a security village on a site in Rondebosch. This site ould take ten units selling for around R2 million each. Its position will ensure that it will be very popular to investors.”
“A number of different sites in Camps Bay are also ripe for development. This is one of the fastest appreciating areas in the Cape and very much in demand with both local and foreign buyers.”
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01 April 2010, 07:40:12
If you are having difficulty renting a house or an apartment, consider seriously
furnishing it.
This is the advice of Tony Clarke, MD of Rawson Properties, but, he adds, although
he can testify from personal experience that furnishing can quickly lead to
the unit being let, it is essential to avoid the danger of overstocking the
home.
“Furnishing a home,” he says, “should not result in its being
cluttered.”
Stocking a home with the necessary furniture, he says, need not be expensive.
“Most families and their next of kin have three or four items of furniture
that they do not need and are only too willing to hand it over. Many an attractive
rented property has been fully furnished from family stock.”
An interior that is already furnished, says Clarke, will lose its bare, uninviting
look and will draw in tenants, many of whom these days do not have the spare
cash to buy furniture, especially if they are young married couples.
Furnishing a home for rental, says Clarke, often enables the landlord to charge
15% more than would be acceptable for a bare home and it gives the home a feeling
of comfort and welcome which enhances its chances of being let.
FeedBack (1)
29 March 2010, 13:08:00
BOND ORIGINATORS HAVE STREAMLINED APPLICATION PROCESS, SAYS APKF MD
Bond originators, who have been serving the residential home market for eight or nine years, have played a transforming role in making the bond market more competitive and in easing the work load of estate agents, says Lanice Steward, MD of Anne Porter Knight Frank, the Cape Town Southern Suburbs and Atlantic Seaboard estate agency.
“Those new in this business have no idea of the time that agents spent in approaching banks and liaising with the client to fill in application forms to four or five banks.”
“This work,” said Steward, “could easily take up 20% of their time.”
Bond originators, said Steward, have created a one-stop shop for the client and agent and made it possible for him or her to build a trusting, worthwhile relationship which results in their getting the right advice, complying from the outset with the National Credit Act regulations and receiving the best deal their financial circumstances will permit.
“In the old days,” said Steward, “many bond applicants simply accepted the first offer made to them, often working through their own banks. Needless to say, that was frequently not the best deal they could have signed. Since the advent of bond originators, the bond market has been a great deal more competitive.”
The banks, for their part, may well have thought that they were “losing out” because of having to pay commission fees but they should bear in mind that the originators have taken a big burden off their shoulders and enabled them to operate with smaller consulting and administrative staff.
Furthermore, said Steward, in today’s market, where the NCA conditions for being granted a bond are so tough and the global crisis has made finance so difficult to get, the bond originators have been innovative and resourceful in finding ways through the restrictions.
“Their contribution has to be welcomed: the more we can get South Africans to be homeowners, the better for the country.”
Steward said that certain banks are reluctant to not deal with a bond originator on a 100% bond. This, she said, is understandable. At present only 5 to 10% of 100% bonds are successful.
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29 March 2010, 13:06:14
2010 IS PROVING A GOLDEN YEAR FOR ANTON DU PLESSIS
Debate in the property world has long been lively on the subject of whether the best performers in the sales and marketing sector are likely to be the big gun agencies (with impressive support and referral systems, big advertising budgets and ongoing training programmes) or the small, highly motivated one and two man bands that can so often surprise the market with excellent achievement.
Anton du Plessis, CEO of Vineyard Estates, is very definitely in the latter category. He has a receptionist, a PA and has just appointed Thys Human, a former international flights Boeing pilot to assist with sales in Constantia. That is his only staff – and he does all the selling himself.
Du Plessis in a 12 day period in late January-early February notched up no less than seven sales, all of which are now going through and all of which were within 4% of the asking price, an achievement which, says du Plessis, he has not seen at any Cape estate agency since 2007.
The total sales value of the houses concerned was over R40 million and the homes sold were in a range from R2,9 to R8,8 million. All were in the central Southern Suburbs of the Cape Peninsula which, says du Plessis, have withstood last year’s downturn far better than most SA residential precincts. “The benefits of being a solo operator,” said du Plessis, “are that not only are your overheads low, but also that you can make quick decisions to help push through a deal – without having to refer to a senior.
“For example, I can in some instances reduce my commission because I know that I will be handling other deals for the same client.
“Then again, I have once or twice paid part of the conveyancer’s fee to help the client stay within budget or have agreed to a six month delay in payment.”
On one occasion, he said, he undertook (in writing) to deal with any beetle rot problems that exceeded a cost of R2 000 – and this clinched the deal. This year’s amazing upswing in sales, said du Plessis, is, in his view, partly motivated by 2010 soccer hype and it fulfils a prediction he made earlier that the shorter school holidays would see the property market take off earlier than expected.
But, added du Plessis, there is more to it than that.
“Long experience in this game,” he said, “has shown that the start of a new year invariably ushers in either a bull run or a period of negativity.
“My impression is that property buyers and sellers really being analysing the pros and cons while on their summer holidays. Until then they are often preoccupied with other matters – but over the break they decide one way or the other.
“Fortunately, it is now clear the long negative period of 2009 is no longer in fashion – suddenly everyone wants to jump onto the wagon and all the indicators are that this will continue.” The big question facing agents, added du Plessis, is what will happen over the World Cup period. Will this result in people becoming so engrossed in what is going on that they lose sight of business or will it stimulate optimism and a desire to buy?
“Right now we do not know the answers but it is significant that several CEOs of property companies have said that hey are budgeting for a ten month year – they see June and July as lull periods. “I myself am still very optimistic: we have another four deals in the pipeline, one over R20 million.”
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29 March 2010, 13:05:27
RAWSON AUCTIONS LIKELY TO BE HANDLING REPOSSESSED BANK STOCK
Rawson Auctions, established towards the end of last year, has already diversified its portfolio, says the CEO, Tanya Jovanovski.
“We are now taking on commercial properties as well as residential.”
Jovanovski added that in the current hard-hit market the challenge is not so much to find residential and commercial properties for auction – “there is a great deal available”- but to select those which have the most potential for growth. Rawson Auctions, she said, are in touch with certain banks and will soon take on carefully chosen properties for auctioning. In most cases these have been repossessed, but some are simply for sale as part of the banks’ strategies to offload fixed assets.
“We are confident that buyers will through our auctions be able to capitalise on good opportunities and gain sound investments at discounted prices – especially as, on bank properties, the outstanding rates, levies and service bills will have been paid by the banks, who are also able to offer discounted transfer fees. For further information or to be included on the investor database email Tanya Jovanovski on tanya@rawsonauctions.com or contact her on 021 658 7100.
29 March 2010, 12:49:04
 Tough economic circumstances have forced many estate agents out of business - but the cream of the crop have seen the downturn as an opportunity to hone their skills and improve service delivery.
So says Aida CEO Young Carr, who notes that many Aida agents continued to achieve sterling sales results even during the recession last year by focusing on their clients and providing excellent service.
A case in point is Centurion agent Lawrence Pearce, who faces the added difficulty of working exclusively in closed estates in Amberfield where overt canvassing is prohibited, but still sold 20 properties with a combined value of R19m last year.
“This would be an excellent performance even in good economic times,” says Young, “and shows that consumers always respond well to good service, no matter what the circumstances. And Lawrence certainly provides this through a combination of scrupulous attention to detail in meeting his clients’ needs, and interesting and pro-active marketing ideas.”
Pearce says: “One can of course only provide a good service once consumers are aware of what you have to offer. My challenge last year was to make potential clients aware of my services while adhering to the marketing restrictions prevailing in Amberfield.
One particularly successful campaign, he notes, was the use of magnetised match boxes featuring a photograph of himself, the Aida logo and the slogan “Strike it lucky with Lawrence” that he handed out during the worst of Eskom’s load-shedding. “The idea was that homeowners trying to light candles or lamps during a power outage could easily locate a box of matches stuck to the fridge – and that I could thus ‘lighten’ the experience while illustrating Aida’s commitment to service even in the most trying circumstances.”
Pearce adds that relentlessly “doing all the basics” has also played a decisive role in his success. “I show two or three houses every weekend without fail, service and maintain my advertising boards several times a week, keep a database of all stock and update it daily, and maintain a record of every transaction’s progress so that I can keep clients updated.
“The rest is just plain hard work. I think that to be a really successful agent you have to be like a tow-truck driver – on the go and available 24/7 so that prospective clients can reach you at their convenience.”
Issued by Aida National Franchises
Aida head office: 012 862 9600
Contact: Young Carr
Aida Centurion: 012 654 7276
Contact: Lawrence Pearce
Caption:
Lawrence Pearce of Aida Centurion sold a whopping R19m worth of property in trying circumstances.
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24 March 2010, 09:40:27
C3 Shared Services wins the bid to install and commission the perimeter security solution for
Blue Valley Golf and Country Estate.
March 2010, Gauteng - Named for the blue skies and open country of its surroundings, Blue Valley Golf and Country Estate is a perfect blend of hospitality, sport and nature. Situated conveniently between northern Johannesburg and Pretoria, this Gary Player residential golf estate offers a location second to none in the Gauteng area. Recently, the estate has chosen to implement a combination of thermal cameras and intelligent video analytics, technology endorsed by the Israeli defence forces, as their perimeter security solution.
C3 Shared Services, specialists in the design and implementation of high-end perimeter security solutions and military grade intrusion detection systems, has been appointed as the preferred vendor to supply and commission the new state of the art perimeter security solution. Mark Cowley, Chairman of the Blue Valley Security Sub-Committee, says “After many years of deliberation and 'shoot outs' between potential vendors over which camera system to install, we finally settled on C3 who were able to demonstrate excellent product knowledge and solutions. We have not been disappointed since installing the first phase of a trial of their solution”. The first phase has comprised of a total upgrade of the existing control room and the implementation of EVT IP video management platform of which the existing analogue cameras have been integrated. The EVT video management system will be integrated with the thermal cameras and analytics on the perimeter making for a very high end and sophisticated command and control room.
Like many other residential estates Blue Valley had implemented conventional security measures to secure the estate, such as electric fencing with zone indication of intrusion detection, roving guards, reaction vehicles and a central control room. Whilst these are still standard and traditional methods of security, many estates are finding that these are NOT sufficient when it comes to preventing and detecting intrusions. The perimeter of Blue Valley is approximately 7 km’s and they needed a system that would give instant visual verification as to the cause and position of any breaches in the perimeter day or night without the need for additional lighting to be erected. A combination of static and PTZ thermal cameras combined with analytics will be strategically placed along the perimeter as part of Phase two. Once complete, Blue Valley will be equipped with one of the most advanced and sophisticated perimeter security systems in the country. Nick Grange, Technical director of C3 says, “We are truly honoured to have been appointed to install and commission our security solution for this prestigious Gary Player golf estate. Once again, our technology has proved to be superior in performance, quality and also flexibility in catering for the client’s requirements”. Nick goes on to say, “In South Africa there are many estates claiming to be ‘secure’ whilst they employ outdated methods of security. Blue Valley will be able to advertise a truly secure environment for their residents once our system is in place”.
To date, C3 Shared Services (Pty) Ltd has had enormous success with numerous installations of thermal cameras combined with high performance analytics on various sites in South Africa such as residential estates, refineries, correctional facilities, car showrooms and National Keypoint’s and recently, the Gautrain project. For further information visit www.c3ss.com
About C3 Shared Services (Pty) Ltd: C3 Shared Services (Pty) Ltd is the only applied business partner for ioimage ,Opgal Optronics and EVT in Sub Saharan Africa and specializes in the design and implementation of high-end perimeter security solutions and military grade intrusion detection systems. C3 Shared Services' directors have been involved in providing integrated electronic solutions for more than a decade; and as a result bring both a comprehensive and extensive wealth of knowledge in providing effective and working perimeter security solutions for high risk and high value areas.
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19 March 2010, 14:27:53
RE/MAX Frontier Properties in Grahamstown is proud to announce that they have been mandated to sell a golf course built on a private farm by means of auction. The property will fall under the hammer of seasoned auctioneer Dave Mullins on Wednesday, 24 March at 11:00.
The 9-hole golf course with 18 tees, all under irrigation, forms part of a 296ha farm, which includes two title deeds, a 600m2 house, numerous outbuildings and a 250 000m3 dam. “A further 40ha could be developed for irrigation, and the farm has huge potential for eco-tourism,” says David Rodgerson, Broker/Owner of RE/MAX Frontier Properties in Grahamstown.
Situated 35km from Grahamstown on the N2, the property is close to some of the Eastern Cape’s most popular malaria free game farms.
“Auctions, if correctly marketed, are a very viable alternative to standard private treaty sales,” notes Rodgerson. Upcoming auctions in the area include one of Grahamstown’s landmarks, Phoenix Roller Mills and a popular bed and breakfast establishment.
For further information contact David Rodgerson on 0825647076 or Jean Rodgerson on 08287720396.
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19 March 2010, 13:46:06
THE FUTURE OF PROPERTY
The Nedbank Property Association Roadshows gave property professionals a sneak peak into the future of the market, and tips and tricks to make the most of the opportunities that 2010 will bring
The Nedbank Property Association Roadshows, which were held in major regions around the country earlier this month, were once again well received by the real estate community, with over 2500 agents in attendance.
Rudi Botha, Convenor of the Property Association, opened proceedings with the picture of a rather ragged looking rooster that had certainly lost some feathers. For Botha, the picture summed up the property market’s performance in 2009 perfectly. But, he said, we need to move forward, and as custodians of the real estate industry, in fact the only national body to recognise real estate professionals across the different brand denominations, the Property Association is committed to promoting the image of estate agents/property professionals to the consumer and adding value to real estate professionals in 2010.
Botha also said the Property Association wants to celebrate success in the industry and reward those who have worked hard to earn it. He encouraged estate agents to enter the annual Nedbank Property Professional of the Year awards, to be held in September, where the industry’s top achievers are recognised and rewarded each year.
The 2009 Nedbank Property Professional of the Year winners, Joel Harris and Michael Mosselson of Firzt Realty, presented a short motivation for success at the Gauteng events. Perhaps one of the most profound statements in the presentation by Harris was a quote from Victor Frankl: “In the Auschwitz concentration camp, I discovered the ultimate human freedom, the ability to choose your attitude irrespective of circumstances.”
Harris summed up by saying that life is about being:
Clear on the cost and be willing to pay the price that goes with it
Having a support team that believes in you
An organisation that keeps the focus clear
Investigating all your options and playing the movies to the end
Coming to grips with my dreams (the most powerful motivator) and
Emotional stamina
Nedbank’s chief economist, Dennis Dykes, gave some sobering insight into world economies, which, while they are showing signs of recovery, are a long way off from where they used to be. Dykes believes that property markets, both domestically and internationally, appear to be on the mend as the effects of the financial market crisis abate, however, while recovery may be underway and the outlook positive, it will be a slow one that could be adversely effected by many different factors. However, the good news, as presented by Dykes, is that South Africa is fairing exceptionally well. Dykes noted that South Africa has been higher in output over a three year period than developed world economies in terms of GDP, and he expects the country to show a 3,2% growth rate in the fourth quarter of 2010.
Some uplifting comedy and motivation, much needed after a relatively flat economic outlook, was the order of the day when key note speaker, Vusi Thembekwayo, took to the stage. His self-inspired talk, Big Mama & the Horse, bore relevance to everyone who attended the Nedbank Property Association Roadshows. He spoke of the dangers of “the eye of the tiger” approach, where you just keep looking straight ahead and go in without looking around you to consider alternatives or different methods of approach.
This is a sentiment echoed by Botha, who believes the estate agents most likely to succeed in the years ahead are the ones who can take stock of the environment around them, assess how it is changing, and adapt appropriately to the new and unique needs of their clients.
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18 March 2010, 16:53:15
The massive drop in the numbers of estate agents employed (from over 90 000
in 2007 to under 35 000 today) has reinforced the fundamental lesson that it
is impossible to survive tough times in this business if the agent is not capable
of “forging a relationship with his clients”, says Simon Raab, Southern
Suburbs Sales Manager at Greeff Properties.
“The boom in property that preceded the slump enabled many unprofessional
agents to make a living even though their knowledge and service were substandard,”
said Raab. “Those who have survived are the ones who understand what it
really takes to create a trustworthy, ongoing relationship with the client.”
So – what does it take? What are the factors leading to ongoing success,
even in a weak market?
Raab said all good agents have two attributes: they have accurate, up to date
factual data always at their fingertips (and when short of information, they
know where to find it) and they are good communicators.
“Nothing impresses a client, whether he is a buyer or seller, as much
as a factual, scientific analysis of the market in which he operates. Once he
knows that the price suggested by the agent is fair and market related, he will
relax and start to trust his agent.
“Conversely, if the client has any reason to suspect that the agent may
not have done his homework and is thumb-sucking the valuation, the relationship
will sour.”
Occasionally, says Raab, a perfectly trustworthy, accurate valuation will not
be accepted by a client – but in most such cases three months later he
will either realise his mistake – or lay the blame on the agent for not
trying hard enough.
“Clients of this sort are invariably their own worst enemies and should
be avoided,” said Raab.
The second attribute, he added, of top agents is that they communicate with
their clients on an ongoing basis.
“When a house is up for sale or when no new homes are available there
may be lulls in activity. These can lead the client to believe he has been forgotten.
The good agent will provide regular feedback immediately after he has taken
potential buyers around the home.”
Good agents, Raab added, also recognise the value of cultivating an agent network
and referral system and will happily pay out referral commission to any agency
who brings them a buyer or a seller.
They will also, he said, give the client a range of extra services, helping
to find good contractors to repair a home, fix the swimming pool or landscape
the garden.
“This is a service sector and only those who enjoy service will survive
in it.”
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12 March 2010, 08:20:01
Knight Frank, the leading independent global property consultancy, today announced
that its Knight Frank Property Search App is now available from the App Store.
The app enables users to search across more than 6,000 of the world’s best
properties for sale or rent using their iPhone or iPod touch.
The Knight Frank Property Search App has been developed as part of the evolution
of Knight Frank’s award winning online Global Residential Search, in recognition
of the many media through which Knight Frank’s clients instigate their
property searches.
Patrick Ramsay, head of Residential, Knight Frank, said: "The Knight Frank
App is a mobile window to more than 6,000 of the best properties around the
world. It is part of our integrated global coverage giving immediate access
to our international network of more than 200 offices in over 34 countries.
The quality of properties are reproduced beautifully giving an extraordinary
and effective way of showcasing houses on iPhone and iPod touch."
Jason Leven, partner, web development manager, Knight Frank, said: “We
have extended our award winning Global Residential Search to help iPhone and
iPod touch users around the world find the highest quality property available.
Using location-based services users can find their nearest property regardless
of where they currently are. It only takes one tap to search for all properties
that match a chosen lifestyle like water views, skiing, equestrian, golfing,
vineyards or sporting properties around the world. If you find a property you
like you can save it, email it to a friend or even publish it directly to Facebook©.
It couldn't be easier or more fun to browse the best local or global properties
on the move.”
Features:
- Search by lifestyle such as water views, vineyards, ski, golf and equestrian.
- Integrated global residential property search by country, region or postcode.
- Locate nearest properties for sale or rent using the global GPS search function.
- View images, floor plans and full brochures.
- Save favourite property searches for future use.
- E-mail results to friends and family or link properties to Facebook.
- Shake to refresh search.
- Locate nearest Knight Frank office and either call or email with the touch
of a button.
- Unlimited search results.
The Knight Frank Property Search App is available for free from the App Store
on iPhone and iPod touch or at www.itunes.com/appstore/.
Lanice Steward, MD of Anne Porter Knight Frank in Cape Town said that as so
many people now call up information on App Store, Knight Frank’s decision
to use this is logical and far-sighted.
For further information please visit www.knightfrank.com/iphone or please contact:
Jason Leven, partner, web development manager, Knight Frank, +44 (0) 20 7861
1658, Jason.leven@knightfrank.com or Daisy Ziegler, residential pr executive,
Knight Frank, +44 (0) 20 7861 1031, daisy.ziegler@knightfrank.com.
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12 March 2010, 08:17:16
In the Cape Peninsula there is, says Mike Greeff, CEO of Greeff Properties, a
growing tendency among property investors to buy either to demolish and replace
the existing home or renovate and upgrade it.
All too often, he adds, a “chic” refurbishment is a disaster.
“What characterises the Cape Peninsula’s homes is their historic
integrity. Without making pretentious claims to any great architectural excellence,
they reflect attractive styles that were “in” in the Cape Dutch, Victorian,
Edwardian or post-war fifties and sixties periods.
“Introducing a chi-chi interior decorator to such homes can carry a great
risk. After scouring the retail outlets for supposedly with-it lamps, artefacts,
down-lighting, tiling, kitchen and bathroom hardware, laminated or veneered
wooden components, they will cram these into the home, producing an interior
that is halfway between a Broadway apartment and a sixties industrial minimalist
office. It will represent no style or period, it will be wholly inappropriate
to its shell and it will reflect only one thing – the owner’s desire
to impress.”
Greeff said that most older Cape homes do need upgrades – their electrics,
plumbing and sewerage are frequently unreliable but all renovations should be
done in consultation with a Heritage specialist.
Even in relatively new homes, he said, it is only too easy to “wreck”
an interior.
Particularly regrettable, he said, is the use of cheap materials, often now
imported from the east, in place of the solid wood, cast iron, brass and ceramic
products which have stood the test of time and have an innate honesty that gives
character to any room.
Façades, said Greeff, should be treated with huge respect.
“We had a case where a home with white walls and Alphen green shutters
was given a pink and grey makeover. It took two years of complaints from the
neighbours to restore a semblance of dignity to the building.”
Badly upgraded houses, said Greeff, have been known to lose 15% of their value
on resale.
“That in itself should serve as a warning to those who rush in here.”
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12 March 2010, 08:13:39
The building packages now on sale in the Amberfield Valley estate
development include a stand and a three-bedroom house at prices from
R1,14m.
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Security, convenience and flexibility – that’s what awaits buyers
in the beautiful Amberfield Valley estate development, where a new phase of
building packages goes on sale on 12 March.
Situated in Rooihuiskraal, one of the fastest-growing suburbs of Centurion,
the estate is close to good schools, upmarket shopping centres and the highway
network.
Jo Pelser of developer Chapter Nine notes that Amberfield Valley is also fully-secured
with perimeter walling topped by electric fencing, and controlled access through
a manned gatehouse. “This makes it a great choice for families seeking
a secure, tranquil living environment that is still close to all amenities and
does not require a long commute to work.
“And most importantly, buyers of our packages will be able to customise
the basic house designs to ensure that their new homes are perfectly suited
to their own requirements.”
The building packages that Chapter Nine is offering in Amberfield Valley include
a stand and three-bedroom home at prices from R1,14m, VAT included. The stands
range in size from 500sqm to 800sqm.
There are four house designs for buyers to start with, including double-storey
options. All have at least three bedrooms, two bathrooms and a double garage
and come complete with paving, walling and superior finishes.
“But the size of the stands allows a lot of latitude to make changes or
additions to the standard designs,” says Pelser, “which we are happy
to accommodate.”
Finance will be available to qualified buyers, and the deposits required are
just 10% of the stand prices, which start at R300 000.
Issued by Chapter Nine Developments
For more information call
Koos Niemandt on 082-378-1725
Or visit www.amberfieldvalley.co.za
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11 March 2010, 14:08:25
The RealNet estate agency group has reopened in Rustenburg, with a new franchise
having been awarded to local real estate stalwart Reinette Lummis.
Her agency, which has been operating since 2005, will now trade as RealNet
Lummis Properties.
Lummis, who has an excellent reputation in the Rustenburg market, says she
relishes the opportunity to now expand her operation under the RealNet brand.
“RealNet is one of the country’s most respected real estate brands
and offers superb backup and systems that enable franchisees to offer their
clients exceptional service.”
She adds that her success is based on dedication to her clients, honesty at
all times and hard work. “Our motto is to walk the extra mile with our
clients and we will uphold this tradition as part of the RealNet group.
“The recession has forced many agents and agencies out of the local market
and only the most professional now remain. We are confident that we will be
able to offer an even better service as part of an acclaimed national real estate
group.”
Lummis reports that the Rustenburg market started showing signs of increased
activity in December. “Buyers are taking advantage of low interest rates
and although some buyers are still encountering problems with obtaining bank
finance, there are encouraging signs that banks are starting to relax their
lending criteria. It is particularly encouraging that first-time buyers are
obtaining 100% bonds.”
Local prices start at around the R450 000 mark for small apartments popular
among first-timers and people who are downscaling. The biggest demand, however,
is for three-bedroom family homes priced at between R800 000 and R1m, while
there is reasonable interest up to the R1,5m mark.
International buyers are also active in the market and are targeting luxury
properties, notably in upmarket complexes such as RockCliff, where prices range
from R2,8m to R6,5m.
Lummis says stock levels are high, boosted by units brought to market by owners
under financial pressure. “It creates good buying opportunities and cash
investors are currently active,” she adds.
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05 March 2010, 08:28:03
Spire Property Management recently secured the management contract for 11 Park
Lane in Parktown, Johannesburg.
“This 5000 square metre office block, belonging to a private client, expands
Spires’ footprint in the Gauteng region. As a result of our recent growth
in Gauteng we plan to open a regional office in Johannesburg during the course
of 2010 so that we can look to expand our property management operation in this
exciting area,” explains Marc Edwards, Managing Director of Spire.
Other current management contracts within the Gauteng areas are through Spires
mandate to manage the entire portfolio of Pick ‘n Pay owned retail properties,
on a national basis.
“Currently we have regional offices in Cape Town and Durban, with our
head office situated in Cape Town. We have however, identified the need to re-establish
our presence in the growing areas of Johannesburg and Pretoria and look forward
to opening our Gauteng regional office. We are actively sourcing new business
in the area and have received positive feedback in this regard which we feel
is down to our good name in the market based on our proven track record of being
hands on, professional and experienced property managers who always look to
add value to the properties we manage”
“We have seen our portfolio grow significantly in the past 12 months,
mainly through word of mouth, despite the recession which has seen a number
of firms struggle. We have placed targets on our property managers to control
their operational expenditure and have encouraged them to nurse the income side
of the building during these difficult times whilst constantly looking for additional
income earning opportunities to add value to our clients properties. This approach
seems to have paid dividends and reduced the pressure which potentially could
have been felt by our clients.
Spire has also recently expanded their management contracts in Kwazulu Natal
with the recent securing of three new buildings to be managed on behalf of a
private client. The contracts are for retail, light industrial and sectional
title office buildings that total over 6500 square metres.
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05 March 2010, 08:26:37
The Cape has had its first autumn rains - and more are on the way.
Now is the time to get on a ladder and clean out your gutters and down pipes,
reseal your copings and flashings and generally batten down for the long damp
days ahead, says Lanice Steward, MD of the Cape Town estate agency Anne Porter
Knight Frank.
“Once the rains really set in,” says Steward, “the water-proofing
companies often become difficult to get hold of. Now is the time to get a good
deal out of them.”
In her business, she says, it is embarrassing to recall the number of times
a house has been severely damaged by leaks, jeopardising its appeal and making
it difficult to sell or rent.
“Along with faulty geysers, dirty swimming pools, unweeded gardens and
unmown lawns, I would list damp damage as one of the five or six main reasons
for a house losing its charm and appeal. Once it is on the market, even a single
damp patch on a ceiling will lead to suspicions that the house itself is unreliable
and other leaks can be expected. It really does, therefore, pay to keep your
home solidly watertight, especially as delays in doing this all too often result
in hundreds of rands worth of damage and sometimes even in severe structural
problems.”
www.anneporter.co.za
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05 March 2010, 08:25:37
Top Cape agency joins Harcourts
03 March 2010
In a move that has set the Cape Town real estate establishment abuzz, the landmark RE/MAX office on the Blouberg beachfront has converted to the Harcourts brand.
“This office was one of the best-performing RE/MAX operations in SA and in the world, so its conversion is a very big deal for us,“ says Harcourts Africa GM Jeanne van Jaarsveldt. “It is a major endorsement of what our group has to offer in terms of business systems, technology platforms, web-based training and a superior rewards programme for business owners and agents alike, and a strong indicator that top agency principals are eager to embrace the change we are bringing to the SA real estate industry.”
Harcourts Africa, he notes, has notched up 27 such conversions in the past 12 months, over and above the foundation of offices it had in the former Homenet group.
Andre Stols, principal of the agency now known as Harcourts Cape Coastal, says his team of agents will continue to serve homebuyers and sellers from Milnerton to Melkbos – an area that encompasses many of the Western Cape’s busiest and strongest property markets currently, including Table View, Parklands and Bloubergstrand.
His plans for the future include additional Harcourts Cape Coastal outlets and intensified efforts in the markets his office currently serves, with a view to further growing market share.
“The Western Seaboard as a whole has recovered swiftly and well from the recession, with sales volumes and turnovers having leapt up in the past few months. Prices are, however, still much more affordable than in many other parts of Cape Town and we believe that this, combined with a great lifestyle offering, will make this area one of SA’s top property investment choices over the next 18 to 24 months,” he says.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
JEANNE VAN JAARSVELDT ON
083 641 6603 OR VISIT
www.harcourts.co.za
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05 March 2010, 08:25:19
Tony Clarke, Managing Director of Rawson Properties, has joined other high
profile spokespeople in the property sector in congratulating Finance Minister,
Pravin Gordhan, on the balance achieved in his recent budget between growth
stimuli and educational, social upliftment and welfare packages. In the current
post-recessionary conditions with the tax revenue down some 13%, said Clarke,
this was no mean feat.
However, Clarke took issue with Gordhan on one “crucial” matter,
the budget’s lack of incentives to home ownership and the real estate sector
in general. In this respect, he said, the State’s policy and actual performance
are still miles apart.
“Only a week before the budget speech,” said Clarke, “President
Zuma said that help for the man who could not afford his own home, would be
forthcoming – and Gordhan has said that a policy to achieve this will be
worked out – but nothing concrete has been suggested in this field for
a long time and many of us are worried that nothing will be seen.”
One positive step, said Clarke, is the granting of extended times on the VAT
payments for materials used by property developers. Previously they had to pay
their VAT on materials within a few weeks of receipt but were unable to claim
them back until the unit was sold. Now options are being investigated to determine
equitable values and easier VAT claim back times. This, said Clarke, will help
to get developers moving again.
Also likely to have a beneficial effect (on a limited scale), said Clarke,
is the extension of the amnesty period given on transfer payments to those taking
property out of companies, trusts and close corporation and transferring it
to individual ownership.
Reverting to the housing issue and repeating statements made more than once
by Rawson Properties Chairman, Bill Rawson and Rawson Developers MD, Paul Henry,
Clarke said he would like to see the State really “get to grips” with
low cost home ownership.
“Housing,” he said, “is a basic need. It has been shown by companies
like Inframax and Asrin that it creates political stability and promotes a work
ethic – the man with a home of his own is more likely to work to keep it
– but it has also been shown that the State has to partner private enterprise
here to achieve real delivery. The idea that municipalities will ever really
be successful as developers has been disproved again and again, not only in
SA but in India, Brazil and Australia. They simply do not have the background
or the expertise for what is essentially an entrepreneurial exercise.”
In addition to a bolder approach to low cost housing, said Clarke, he believes
that a reduction in transfer duty would have been a big help to the whole property
sector.
He would also like to see a strategy evolved by banks and/or the State to capitalise
on the large numbers of repossessed or distressed owners’ homes now on
the market at prices 15 to 25% below their real value.
“We have here a wonderful opportunity to give potential homeowners their
first step on the housing ladder instead of just letting investors add to their
portfolios, could we not make these houses available to first time or less affluent
buyers by means of state-bank subsidies for, say, an initial period of five
years.”
This, Clarke said, would bring SA more into line with the UK methods to which
he has previously drawn attention of encouraging home ownership by “ladder”
or scaled-up bond payments.
FeedBack (1)
02 March 2010, 14:31:05
RE/MAX of Southern Africa kicked off 2010 with awards breakfasts held around the
country to celebrate outstanding successes achieved in 2009, one of the toughest
years in the property market by far.
Hosted by internationally renowned speaker, Michael Jackson, the fourth and
final national RE/MAX awards breakfast, made possible by the support of its
long standing business partners, Betterbond and Standard Bank, was held in Cape
Town at the end of February. Out of the 360 awards presented nationally, 127
awards were handed over at the Cape event.
Before the ceremony got underway, Peter Gilmour, Founder and Chairman of RE/MAX
of Southern Africa, together with his wife Val, were welcomed back into the
RE/MAX of Southern Africa Family. The Gilmours, reacquired the RE/MAX of Southern
Africa region under a new Master Franchise Agreement late last year and with
more than 20 years of experience with RE/MAX, their experience and support will
undoubtedly lead the company to greater heights in 2010.
Addressing the room of RE/MAX Broker/Owners, Sales Associates and support staff,
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, said
that despite the fact that 2009 was dubbed as ‘the toughest year in real
estate’, RE/MAX continued to grow through and out of the recession. “Since
September last year,” he said, “we have seen month-on-month sales
growth with November equalling record months of 2007.” Goslett also noted
that 111 new agents joined the RE/MAX brand in the last three months of 2009
and a further 15 agents were welcomed back into the RE/MAX family.
Talking about what is in store for RE/MAX in 2010, Goslett said the year started
off with a bang. “In the first month alone 55 quality agents joined the
company with a further 10 family members returning. We also concluded six franchise
sales in the first five weeks of the year.”
Goslett believes the group’s success is due to agents that can change
their business strategy to be more efficient and more effective because they
belong to a system that allows them to be entrepreneurs; agents that lead change
in an industry as opposed to being influenced by it and agents that know that
client relationships are more important than sales and listings.
This ability to adapt to changing market conditions became evident when the
awards were handed over to those Broker/Owners and Sales Associates who, despite
the odds, achieved phenomenal successes in 2009. The awards categories were
tiered in accordance with sales results and commissions earned over the past
12 months.
Broker/Owners and Sales Associates within the Cape region racked up 45 Executive
Club awards and 61 100% Club awards for their remarkable sales results over
the past 12 months. A total of 16 Platinum Club awards were handed over to Sales
Associates and Broker/Owners in the Cape region, with four Chairman’s Club
awards presented in recognition of outstanding sales performance. Gerlinde Moser
of RE/MAX Living and Ari Voyiatiz of RE/MAX Property Associates each received
a Diamond Club award for their outstanding achievements in 2009.
Of the 29 Career and Special Awards presented nationally, the Cape Region laid
claim to 10, with nine Hall of Fame awards presented to those Broker/Owners
and Sales Associates who have achieved exceptional results during their career
with RE/MAX. Cheryl Bluff of RE/MAX Elite was presented with a Lifetime Achievement
Award. To be eligible for this award, Cheryl needed to have dedicated at least
seven years of her real estate career to RE/MAX, aside from achieving outstanding
sales results.
The Cape region also managed to scoop several national awards, including Best
Small Office of 2009, which was awarded to RE/MAX Lifestyle Estates, a RE/MAX
office that is deeply involved in its local community, and one that achieved
a 30% agent growth in 2009. The national award for the Best Multi Office with
the highest sales volume by registered commission was presented to Caron Leslie
and José de Abreu of RE/MAX Property Associates, as was the prestigious
multi-office Broker/Owner of the Year award.
The top five sales associates by registered commission were, ranked from one
to five, Karyn Cartoulis of RE/MAX Living; Debra Peters of RE/MAX Property Associates;
Marius Jordaan of RE/MAX Living; Harriet Engelbrecht of RE/MAX Living and Peter
Kotze of RE/MAX Property Centre.
RE/MAX Property Associates cleaned up the award category for the Cape’s
top three sales teams by registered commission. The winners were announced as
Ari Voyiatzis; Jacqui Kvalsvig and Trevor Chute.
The top three multi-offices by registered commission were RE/MAX Property Associates;
RE/MAX Living and RE/MAX Property Centre. The top three single offices of the
year for the Cape Region were RE/MAX Oaktree; RE/MAX Helderberg and RE/MAX Prestige.
All the successes celebrated above could not be achieved without the assistance
and dedication of support staff, for which Alicia Havenga of RE/MAX Property
Associates was awarded as the Regional Office Administrator of the year.
Another fact worthy of celebration is that RE/MAX of Southern Africa has raised
over R6,4-million for Reach for a Dream since it first started supporting this
worthy cause in 2004. During 2009, R313 000.00 was raised for Reach for a Dream,
and a cheque was handed over to a local representative of the Foundation from
RE/MAX of Southern Africa. This donation was made possible by voluntary contributions
from Broker/Owners and Sales Associates around the country. The highest contributing
office to this worthy cause regionally and the highest average contribution
per Sales Associate for the region came from RE/MAX Lifestyle Estates.
Goslett concluded by saying that 2010 is the year of opportunity. “The
market has certainly turned but it is up to us to go out there and make it happen.
We need to exude passion and energy in all we do and we need to get back to
the one thing that sets us apart from our competitors, our willingness to succeed
and the core values that we represent in our Formula.”
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26 February 2010, 08:13:58
The Property Association, South Africa's leading real estate support organisation,
has once again teamed up with Nedbank to present a series of roadshows to estate
agents in the major regions across the country.
In line with The Property Association's primary objective to further enhance
the image of real estate agents in South Africa by assisting them to grow, develop
and ultimately achieve the pinnacle of success, entry to the roadshows is free
for members of the Property Association.
Last year's roadshows saw an attendance of over 500 estate agents in each region,
with the national attendance close to 3 000 estate agents. Rudi Botha, CEO of
the PA Group believes this year's attendance figures will be even better. "Aside
from the exceptional line-up of guest speakers, estate agents will be presented
with key information snippets to assist and motivate them to achieve success
in current economic conditions and gain a greater understanding of the market
place in which they operate."
This year, estate agents will have the opportunity to listen to Nedbank's chief
economist, Dennis Dykes, who will equip them with all that they need to know
when it comes to managing expectations for market recovery. Dykes believes that
property markets, both domestically and internationally, appear to be on the
mend as the effects of the financial market crisis abate and will discuss how
sound this recovery is and assess how favourable the climate will be over the
medium term at the roadshows.
The industry certainly needs motivation to succeed during challenging times,
and can therefore expect to be entertained by Vusi Thembekwayo during his self-inspired,
comical talk called Big Mama & the horse. Thembekwayo has delivered this
talk in four of the seven continents and has fine-tuned its message to entertain,
enthuse and inspire.
Says Botha: "The keynote speaker will inspire and motivate all who attend
to make the most of all of the opportunities that 2010 holds."
Says Charles de Winnaar, of Nedbank Homeloans: "Nedbank Homeloans is dedicated
to its commitment towards the industry and the upliftment of broad based participation.
Now more than ever is the time to partner with key players within our industry
in support of establishing a sustainable future platform."
Botha concludes by saying: "These roashows serve as a platform to equip
estate agents with vital tools to achieve greater professionalism and success.
The Property Association values the partner relationship that it has with Nedbank,
as without them as a sponsor, we would not be able to deliver these key annual
events to estate agents around the country."
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26 February 2010, 08:12:59
Both official data and the experience of the Rawson franchises north of the Orange
River indicate that the upturn in the SA residential property market is now under
way, says Sean McCauley, Director for Rawson Properties in the northern territory.
“The Knight Frank Global House Price Index shows that in the third quarter
of 2009 South Africa had the sixth highest capital growth in residential property
in the entire world – despite most of us believing we were still in a recession
and since then the market has performed steadily better.”
The countries ranked ahead of SA, said McCauley, were Singapore, Hong Kong,
Australia, Canada and New Zealand.
Making the SA ranking especially impressive, said McCauley, is the fact that
in the previous year SA had been in the 15th position.
“This,” he said, “shows that our recovery had been faster than
that of most of the world.”
(For the record, the bottom ranking is now held by Dubai, whose capital growth
rate was totally negative: 47% down on its values a year before.)
The latest FNB House Price Index, said McCauley, also gives grounds for optimism:
it shows that since mid-year 2009 the downward trend on the price graph has
been reversed, giving year on year growth of 2%.
Even more significant, said McCauley, is that FNB, having in November predicted
a 5% rise in house prices in 2010, have now revised this to 8%.
Another indicator that things have changed, he said, is the Estate Agency Affairs
Board reports that 8 085 Fidelity Fund Certificates have been issued to new
trainee intern estate agents, a sign that South Africans again see property
as offering a good career.
At Rawson’s Johannesburg office, from which he operates, McCauley said
there has been a 35% increase in applications for training courses and the classrooms
have been full all this year.
“Some 25% of those being trained are doing the two week Rawson Estate
Agency course, the others are training to improve their professional abilities
as agents and studying to pass the NQF4 examinations.
The Rawson trainers at Gauteng, now coach some 200 people each month.
The demand for Rawson franchise ownerships had, said McCauley, also been higher
than predicted. Three new franchises were sold in January alone and eight more
are currently being negotiated.
Right now, he said, there are 48 Rawson franchises in the Northern Region but
by the year end the figure will be at or very close to 80 – and in Kwazulu
Natal , where Rawson’s recently set up their first franchise, he plans
to have 15 franchises by 2011.
Visits to Rawson show houses – up by 300% in 2009 and sales enquiries
(up 120%) also indicate that confidence is returning to the market – and
that potential buyers are finding it easier to get bank finance than previously.
Demand, said McCauley, is strongest in what middle income earners regard as
the affordable market (i.e. in the R800 000 to R2 million bracket) and the areas
which offer the best value here have been the ones to see the highest sales.
“It is,” said McCauley, “difficult to point to any one area
as offering the greatest potential capital growth but sales in Randpark Ridge,
Weltevreden Park, Glenvista, North Riding and Vanderbijlpark as well as Bloemfontein
and certain of the bigger Mpumalanga towns all indicate that these areas are
in an upward phase and that could become a boom.”
McCauley said that, as he sees it, in the next few months buyers will have
a window of opportunity to buy homes at good prices. Thereafter, he says, the
long awaited takeoff will become a reality with prices in 2011 rising up to
a projected 10%.
Asked how Rawson plans to with and capitalise on his predictions, McCauley
said,
“It is not a secret: we will sell more franchises – but, if possible,
we will deal only with buyers capable of enhancing our reputation and we will
train and train.
“Thorough training and easily comprehended systems are the two factors
for which Rawson Properties is best known. Because we take these seriously at
Rawson’s, the turnover generated per agent is considerably above the national
average.”
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26 February 2010, 08:11:01
Many homeowners have asked themselves the question: "Should I stay or
should I go." However, says Adrian Goslett, CEO of RE/MAX of Southern Africa,
the decision to stay put and renovate your existing home, or to sell it and
buy another house, is largely dependent on each homeowner's individual circumstances
and preferences.
If you do decide to renovate your home, be careful of overcapitalising, where
you spend more money on additions or renovations than the value they add to
your property. Says Goslett: "The total value of your property, which comprises
its current value plus the cost of the proposed additions, should not be more
than 25% higher than the average property in your area."
He notes that homeowners need to look at their neighbourhood and find out what
the average home in that area consists of: "If the average home has three
bedrooms and two bathrooms, and your home only has two bedrooms and one bathroom,
then it will probably be worth adding on another room and bathroom." However,
in the above example, Goslett says that it won't be worth your while to add
another three bedrooms and bathrooms to this home. Doing this would seriously
narrow the market for potential buyers who would be prepared to pay the required
asking price that would cover the value of the property plus the costs of the
renovations.
"If your property is in a good area, and you have owned it for many years,
there is less danger of overcapitalising, as your home would have grown in value
over that time. However, bear in mind that if your property is in a good area
and your house is really old, then it might be worth your while to demolish
it entirely and build a new one. This is because the costs of building new are
much lower than the costs of renovations, as builders charge premium prices
for relatively small renovating projects," explains Goslett. He says that
in some cases, it may be worth it to look around as you may find you are able
to buy a home in a similar condition for less than you would spend on the renovations.
Goslett also points out that it is vital to calculate the costs involved in
both renovating, selling and buying another home: "To calculate what it
will cost you to renovate, you need to compare a couple of quotes from building
contractors. Since the cost of renovating or building can vary dramatically,
depending on what you want done and the finishes you chose, it is essential
to get detailed quotations that specify the exact finishes you want. Quotes
that are based on estimated per-metre costs are dubious at best, and don't allow
for proper comparisons. They often lead to much higher costs down the line."
The kind of renovations you decide to make will also be a primary consideration
with regards to the financial feasibility of the proposed project: "You
need to take into account whether the additions you are planning will add to
or detract from the aesthetics of your property. Cheap ad-hoc additions usually
have the potential to seriously devalue your property. Renovations that add
the most value to a property comprise upgrades to the kitchen, bathroom, living
and entertainment areas of your home. But always remember, it is more often
than not kitchens and bathrooms that sell homes."
Also, it is important to consider your future needs, he says: "For example,
it won't really be worthwhile to add on two extra en-suite bedrooms if your
children are expected to leave home in the next few years."
Goslett's final word of advice: "Homeowners need to carefully weigh up
the pro's and con's of renovating vs. buying before making a final decision.
At the end of the day, the decision is often largely influenced by cost and
personal circumstances."
By www.remax.co.za
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25 February 2010, 10:15:39
RE/MAX of Southern Africa recently hosted the KwaZulu-Natal Regional Awards
breakfast at the Durban ICC. This was the third of four awards breakfasts to
be held across the country where the successes of the RE/MAX Broker/Owners and
Sales Associates during 2009, one of the toughest years in the property market
by far, were celebrated.
Hosted by internationally renowned speaker, Michael Jackson, and thanks to
the support from its long standing business partners, Betterbond and Standard
Bank, RE/MAX of Southern Africa kicked off 2010 with a celebration that would
also serve to provide motivation for the year ahead.
Leading up to the presentation of the awards, Adrian Goslett, CEO of RE/MAX
of Southern Africa, who believes that 2010 is the year of opportunity, told
the crowd of RE/MAX Broker/Owners and staff who attended the event that a year
ago people were leaving the industry in droves. "Sales," he said,
"were hard to come by and mortgage finance was nearly impossible."
At this time, Goslett believed that many RE/MAX Broker/Owners were possibly
even contemplating their own future and asking difficult questions of themselves.
But he was confident that no matter what was thrown at them, they would not
only overcome the issues but rise to the challenge.
And rise to the challenge they did, evidenced by the amount of awards presented
at the breakfast. The KwaZulu-Natal awards ceremony saw no less than 128 awards
handed over to the region's top performers. The winning Sales Associates and
Broker/Owners were ranked in various tiered categories, all of which were based
on sales concluded over the previous 12 month period.
Out of the 199 Executive Club winners announced throughout the country, the
KwaZulu-Natal region laid claim to 36, with a further 41 Sales Associates presented
with a 100% Club awards for their remarkable sales results over the past 12
months. No less than 18 Platinum Club awards were handed over to Sales Associates
and Broker/Owners in the KwaZulu-Natal region, with five Chairman's Club awards
presented in recognition of outstanding sales performance. Deanne Hamilton of
RE/MAX Panache and Chris Pearson of RE/MAX Address each received a Diamond Club
award for their phenomenal success in 2009.
In the Career and Special Awards category, five Hall of Fame awards were presented
to those Broker/Owners and Sales Associates who have achieved exceptional results
during their career with RE/MAX. Pam Eglington of RE/MAX Dolphin Realtors was
presented with a Lifetime Achievement Award. To be eligible for this award,
Pam needed to have dedicated at least seven years of her real estate career
to RE/MAX, aside from achieving outstanding sales results.
Perhaps the most impressive honour of the day was the handing over of the Circle
of Legends award. This prestigious award, which has only been presented once
before in RE/MAX of Southern Africa's history, was proudly presented to Chris
Pearson of RE/MAX Address. Aside from 10 years of service with RE/MAX, Chris
had to redefine the meaning of sales success to qualify for this award. What
is even more impressive to note is that The Circle of Legends was last presented
in 2006 when South Africa was in the height of the property boom. To achieve
an award such as this is proof that Chris has the staying power, grit and determination
to eek out success even in tough times.
All the successes celebrated above could not be achieved without the assistance
and dedication of support staff, for which Linda Oosthuizen of RE/MAX Midlands
was awarded as the Regional Office Administrator of the year. Linda has been
with RE/MAX for 12 years, and continues to go above and beyond in the undertaking
of her duties.
The KwaZulu-Natal region also managed to scoop several national awards, including
National Broker/Owner of the Year, which was presented to Sean Beyers of RE/MAX
Address in Umhlanga Rocks. In his one and a half years with RE/MAX, Sean has
managed to increase their number of registered Sales Associates by 42%, and
his office sales volume also increased by 22%.
The National Sales Associate of the Year based on number of transactions was
awarded to Chez Kruger of RE/MAX Tricolor, while Chris Pearson of RE/MAX Address
claimed yet another title: Broker/Owner Sales Team of the Year, which was based
on registered commissions.
The Leadership Award was presented to Grant Gavin of RE/MAX Panache for dedication
and commitment to ensuring the success of the RE/MAX brand in his area and in
the region as a whole.
The top five sales associates by registered commission, ranked from one to
five, were Chez Kruger of RE/MAX Tricolor; Sue Lindon of RE/MAX Address; Sheryl
Schilz of RE/MAX By The Sea; Christopher Morris and Daisy Govender of RE/MAX
Dolphin Realtors.
But it doesn't end there. The successes of the top three sales teams by registered
commission were celebrated along with the winners who included Deanne Hamilton
and Kerry Bailey of RE/MAX Panache along with Sandy Combrink of RE/MAX Midlands.
The top three multi-offices by registered commission were RE/MAX Panache; RE/MAX
Address and RE/MAX Midlands, while the top three single offices included RE/MAX
Toti; RE/MAX By The Sea and RE/MAX Sell-ect.
Another fact worthy of celebration is that RE/MAX of Southern Africa has raised
over R6,4-million for Reach for a Dream since it first started supporting the
charity in 2004. During 2009, R313 000.00 was raised for Reach for a Dream,
and a cheque was handed over to a local representative of the Foundation from
RE/MAX of Southern Africa. This donation was made possible by voluntary contributions
from Broker/Owners and Sales Associates around the country. The highest contributing
office to this worthy cause regionally was RE/MAX Panache, while the highest
average contribution per Sales Associate for the region came from RE/MAX Hibiscus.
Peter Gilmour, Founder and Chairman of RE/MAX of Southern Africa, together
with his wife Val, reacquired the RE/MAX of Southern Africa brand under a new
Master Franchise Agreement late last year. The Gilmour's were welcomed back
to the South African RE/MAX family where their experience and support will undoubtedly
lead the company to greater heights in 2010.
RE/MAX of Southern Africa already started the year off with some great successes,
including five new franchise sales in the first five weeks of the year. Goslett
believes the group's success is due to agents that can change their business
strategy to be more efficient and more effective because they belong to a system
that allows them to be entrepreneurs; agents that lead change in an industry
as opposed to being influenced by it and agents that know that client relationships
are more important than sales and listings.
"I am also proud to say that we have the most highly respected and experienced
leaders in the industry in our Broker/Owners & managers who have steered
their ship through the roughest real estate seas for some time. We look forward
to sharing in their successes in 2010 and beyond," Goslett concluded.
ENDS 1140 words
ISSUED BY GREEN GRAPES COMMUNICATIONS
ON BEHALF OF RE/MAX OF SOUTHERN AFRICA
MEDIA CONTACT: RETHA VAN REENEN, 083 353 6811, rethavr@greengrapes.co.za
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19 February 2010, 08:12:00
International estate agency group Harcourts is now represented in Louis Trichardt
in Limpopo, following the conversion of leading local agency Homenet Jana Marie
to the global brand.
This follows the establishment of a partnership between Harcourts International
and SA real estate giant Homenet group, which is now known as Harcourts Africa.
Jana Smith, owner of the Louis Trichardt agency, says the change is expected
to further boost her office’s offering in the local market. “We are
confident that international exposure of local properties, and especially game
farms, through the global Harcourts network will benefit local sellers. Interest
in game farms as holiday properties among international investors is already
high and we expect this to increase.”
Smith adds that Harcourts’ proven systems and cutting-edge technology
will be a boon for local property consumers. “It will enable us to hone
our offering in the market and offer even better service to buyers and sellers
alike.”
The office started 2010 on a high note with three successful transactions recorded
in the very first week of the year and Smith says that although buyers are still
experiencing difficulties obtaining credit, the local market shows definite
signs of picking up.
“Demand among buyers in the upcoming middle class remains buoyant and
we are experiencing an inflow of buyers from surrounding rural areas who aspire
to a middle class lifestyle with the facilities that a town offers.”
The biggest demand in town is currently for family homes in a narrow price
band of R800 00 to R900 000. Smith says solid three-bedroom homes with two bathrooms
and a garage are available in this range.
Meanwhile farms in the area are selling at prices of between R4000/ha and R9000/ha,
depending on location and infrastructure. Smith notes that apart from buyer
interest in game farms there is also good demand for land among local cattle
farmers who are expanding their activities.
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19 February 2010, 08:11:15
The RealNet estate agency group has increased its number of offices in Pretoria
with the opening of a new agency in Moreleta Park, east of the city.
The new franchise is owned by Veronica Potgieter, who says the brand has received
an overwhelming response in the local market. “We had our first show houses
in January shortly after opening and received several sole mandates in the second
week.
“We currently receive three listings per day on average and local buyers
and sellers regularly approach us for advice. ”
Potgieter, an experienced estate agent with a slew of industry accolades under
her belt, decided to strike out on her own and chose the RealNet brand based
on its performance and continued growth in spite of tough economic conditions.
“I have reviewed all franchise opportunities and was most impressed with
the RealNet presentation. The group’s values and marketing strategy were
particularly impressive and the fact that it caters fully or the Afrikaans market
was an important consideration for a real estate office in Pretoria,” she
says.
Potgieter adds that in spite of the difficult economic conditions of the past
year, property in Moreleta has retained its resale value. The area offers a
variety of properties for sale at prices ranging from R480 000 to more than
R3m. Units in established areas, as well as new extensions and security complexes
are available.
The biggest demand is currently for homes in the R800 000 to R1,5m price range.
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19 February 2010, 08:10:18
The decision by Rawson Properties’ Constantia franchise to open a rental
division covering the whole of the southern suburbs has, says the franchisee,
Eugene Pienaar, paid off handsomely.
“Much of the success of the new division,” he said, “can be
attributed to the manager, Linda Stringer. Coming from the hospitality industry
and with experience in running her own business, she has real understanding
of the type of client putting a house or a flat up for rent and the sort of
person who is looking to occupy such premises.”
In three months, said Pienaar, Stringer has achieved what other rental agents
would have taken a year or more to bring about.
“Linda Stringer has let over 20 properties in the short time she been
here – and most of these have been in the high value bracket, some with
rentals of over R20 000 per month.”
Particularly promising right now, said Pienaar, is the outlook for those homes
being made available for the World Cup period. A well sited home with three
or four bedrooms, a garden and a pool is able to charge R2 000 per person per
night over the six to eight week World Cup period. A one bedroom flat in the
Tokai area can charge R3 000 per night.
Pienaar said that he will be taking on another two rental agents to assist
Stringer and will expand the service to provide a truly comprehensive management
as well as letting service.
“Rental agents have acquired a bad name in the southern suburbs due to
the lack of professionalism and reliability. With a high calibre agents like
Linda and her team members we will be changing this perception.”
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05 February 2010, 08:21:24
The Harcourts brand is finding favour among property buyers and sellers in the Mpumalanga town of Lydenburg.
“Our conversion from the Homenet brand to Harcourts at the end of last year has elicited an amazing reaction in the market,” says owner Mandy Blom. “We have seen a rapid upturn in the number of new clients enquiring about our services and have reconnected to many old clients who bought or sold property through our office in years past.
“There was strong interest in family homes during December and early January as new mine employees and other people relocating to the Lydenburg were looking to buy before the start of the new school year, and our office attracted many of these buyers thanks to the novel Harcourts branding.
“The fact that we now have full international exposure through Harcourts International has also piqued the interest of property owners – especially those with guest houses and upmarket homes who are keen to expose their properties to a worldwide market,” Blom says.
Harcourts is the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rates by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Martin Schultheiss, CEO of Harcourts Africa, says international market exposure is one of the benefits that the global Harcourts group offers local property sellers. “Other benefits include financial and technological resources that allow Harcourts Africa to offering exceptional service to SA property consumers.”
ISSUED BY HARCOURTS
FOR FURTHER INFORMATION CALL
MANDY BLOM AT
013 235 4131 OR VISIT
www.harcourts.co.za
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29 January 2010, 11:37:20
Property group RealNet has boosted its presence in Pretoria with the opening of
a new franchise focusing on the property market in the Faerie Glen and Garsfontein
areas.
The franchise is owned by mother-and-daughter team Marina van Niekerk and Manri
Lourens, who are confident that the property market is now poised for new growth.
Van Niekerk, who previously owned a RealNet franchise in Lynnwood but left
the industry to pursue other interests for a while, says it is great to be back.
“I believe that property is one of the best – if not the best –
investment most ordinary people can make and that buyers who enter the market
now have excellent prospects for value growth. I understand the heartbeat of
property.”
Lourens joins the agency with a sound background in property deeds.
The office, which currently fields three agents, is focusing on duets and full-title
homes in the upmarket suburbs of Faerie Glen, Garsfontein and Pretorius Park,
which borders Woodhill, while Nelis Bezuidenhout of RealNet Wapadglen focuses
on townhouses in the same area.
Van Niekerk, who sold the office’s first property within a weeks of opening,
says demand is strongest in the cheaper end of the market. “Properties
in the price range of between R750 000 and R1,3m are actively targeted,”
she says.
Prices of duets in Garsfontein start at R850 000 and prices of houses at around
R950 000. Property in Faerie Glen is on average a bit pricier with duets starting
around the R950 000 mark and homes selling from about R1,3m, she says
Prices at the top end of the market range from R3,5m upwards and some exclusive
homes have reached prices of R15m.
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28 January 2010, 07:41:23
RARE OPPORTUNITY TO BUY INTO TOKAI SECURITY ESTATE
The demand for security estates throughout the Greater Cape Town area is now at an all time high, says Lanice Steward, MD of Anne Porter Knight Frank, and, she adds, in many suburbs the lack of these is now a cause of serious concern.
“We could have at least 30% more and still find buyers for them all,” said Steward.
An estate that appears to prove the rule is the seven unit security estate in Weaverbird Close in Tokai. Here Anne Porter Knight Frank has two homes for sale.
This estate, says Sue Bust, who with Barbara Stephenson, is handling the sale, is ideal for those scaling down from larger properties in nearby Constantia and Tokai itself. It is sited at the end of a quiet cul-de-sac and overlooks a wetland that has a large bird population. It is also close to the Tokai forest which offers walking and riding trails – and is within five minutes drive from the Constantia and Blue Route shopping centres.
The homes for sale here both have low profile ranch styles with tiled roofs, two en suite bedrooms, a study, separate living and dining rooms (the former with a fireplace) and internal courtyards in which there are water features.
The listed price is R3,8 million. Bust can be contacted on 083 302 5395 and Stephenson on 082 825 5699.
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14 January 2010, 16:24:39
MARION TAYLOR RECOMMENDS APARTMENTS AS TOP GRADE, LONG TERM INVESTMENTS - ESPECIALLY THOSE ON THE ATLANTIC SEABOARD
The long-running argument as to whether property or the stock exchange gives the best returns was one of the topics raised at an early 2010 planning meeting at Greeff Properties’ Camps Bay branch.
Drawing on her 28 years’ experience in property, Marion Taylor, Greeff Properties director for the Atlantic Seaboard, told some of her agents that they could recommend apartments as investments with complete confidence, especially if these are in the Camps Bay Atlantic Seaboard precinct.
“Obviously from time-to-time you will come across clients who are extremely competent stock exchange analysts and who will be able to tell you about spectacular returns achieved on the JSE. No one argues that this is possible to the real experts. We have clients, for example, who bought WBHO shares less than a decade ago at under R3 and who are now seeing them valued at close to R110. However, this type of expertise is not easy to come by and in my experience the average stock exchange investor has to work on hearsay and dinner table talk. For that type of investor property has always been the safer investment channel.”
Asked to give at least one example of a property investment success, Taylor said that in 1985 she had assisted a relative to buy four apartment blocks in the City Bowl with 20 units in all. The price paid was just under R500,000 for all four blocks.
“That investment,” she said, “is now generating over R100,000 per month in rental income - rentals have continued to rise consistently despite the recession. Right now, in fact, residential property is leading the recovery out of the downturn. Well located apartments as long term, income producing investments cannot be beaten. There is also the added benefit of consistent capital appreciation and, if necessary, the investment is easily converted into cash”.
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04 December 2009, 07:53:22
MIKE GREEFF PUNTS PROPERTY IN THE CAPE’S MOST PRESTIGIOUS RESIDENTIAL AREAS AS EXCELLENT LOW RISK INVESTMENTS
Price rises will match inflation by late 2010, Mike Greeff says.
In every South African city there are one or two areas that property buyers have singled out as “exceptional” and “prestigious” – and which, therefore, tend to show remarkable price stability – no matter what happens elsewhere.
Talking recently to potential UK investors on this subject, Mike Greeff, CEO of Greeff Properties, said that Upper Constantia, Bishopscourt, Higgovale, Camps Bay and Clifton/Fresnaye are areas illustrating this proposition.
“Sceptics will tell you that some homes in these areas recently sold at 20% below their 2007 peaks,” said Greeff. “What they do not tell you is that in the 2003 to 2007 boom the price rises here were almost exponential. We saw some properties treble in value. The 2009 price drops that followed, although unfortunate for those who bought very late, were actually not that significant. The areas I have mentioned always were, still are and will remain excellent property investment prospects.”
Quoting the FNB economists, John Loos and Ewald Kellerman, Greeff said that he agrees with them that SA residential property is still in a correctional phase and, like them, he foresees price rises in the next decade being less spectacular than those of 2003-2007 – but, he adds, “in my view, from late 2010 onwards they will match salary wage and inflation increases – and will be above 7 to 8% for two to three years”.
Once again, therefore, said Greeff, those who are looking for a solid, low risk investment should go to the prestige areas he has quoted.
“What will become apparent in the next two years is that not only are prices again rising because demand here will exceed supply but also, by international standards these properties are almost ludicrously inexpensive. Homes with small vineyards and swimming baths in Upper Constantia can still be bought for R8 to R12 million. In Monaco or St Tropez that might, if you were lucky, buy you a two bedroom apartment without a harbour view.
“As people from Europe flood into SA for the World Cup, so this huge discrepancy in values will be more evident – making our best areas as sought-after as ever.”
Greeff’s statement has, since he made it, been corroborated by another FNB Home Loans analysis which shows that in 2009 large homes (those with 220m² or more floor area) have increased in value by 1,9% (i.e. in real terms lost only 4,3%). This was a markedly better performance that that of the single houses (which lost 4,4% in nominal value, 10,3% in real terms) and medium sized homes (which lost 4,7% nominally and 10,5% in real terms).
Loos and Kellerman commented in their report that the FNB Property Barometer has consistently pointed towards a greater percentage of selling to downscale due to financial pressure in low income areas as opposed to those higher up the ladder where, says Greeff, the market is far less dependent on large mortgage loans, another factor boosting prices.
For further information contact Greeff Properties on 021 763 4120 or email mike@greeff.co.za
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04 December 2009, 07:52:02
MISCONCEPTIONS ABOUT RETIREMENT VILLAGES CAUSE PEOPLE TO POSTPONE THEIR MOVES TO THEM
Greeff Properties’ ongoing campaign to make South Africans more aware of the need to book a place in a retirement village as soon as possible continues to reveal a great deal about the reasons why people postpone their decisions on retirement accommodation, says Greeff Properties Development Director, Heather Cape.
“It is becoming very clear to me,” said Cape, “that one of the main causes of procrastination on this matter is, put quite simply, that people do not like to be thought of either as old or retired.
“As some of them see it, moving into a retirement village is tantamount to announcing that you are nearing the end of your life span.”
In reality, said Cape, this is way off the mark: retirement complexes such as Riverside Gardens in Diep River, where Greeff are the marketers, accept people as young as 55 years of age and the vast majority of those who join initially continue to go to work.
“Today’s residents of retirement projects,” said Cape, “are some of the most active, lively, like-minded people in Cape Town. They travel two or three times a year, they play tennis and golf, they walk, they climb mountains – and the great benefit of a medium sized complex like Riverside Place is that it does give them a chance to meet people with similar interests with whom they may well find they can share their hobbies, passions and pastimes.
“Surveys have shown that a fair number of those moving into retirement complexes as single people actually end up partnering or marrying one of the other residents.”
Another feature which, said Cape, has become evident from her dealings with potential buyers in Riverside is that many people think of the Life Right system, which in reality is the least expensive and most popular of all retirement options, as depriving their heirs of the wealth they might inherit – something most of them desperately wish to avoid.
“This, too,” said Cape, “is way off the mark. In all the well run schemes like Riverside Place and Riverside Gardens, heirs are paid back the full purchase price paid plus 25% of the enhanced value. This is surely a good deal when you take into account that the buyer has no responsibility whatsoever for maintaining the property.”
From the viewpoint of the buyers’ family, said Cape, one of the huge advantages of a retirement complex is that the resident will be cared for quickly if something goes wrong, e.g. if he/she has an accident or a serious health setback such as a heart attack or stroke.
“In certain retirement schemes these days the panic activator is attached to the resident’s wrist (or worn around his neck) and will summon up aid at a few moments notice. Compare this to the total anonymity which many residents experience in sectional title or conventional housing where they can go for as much as a week without talking to their neighbours and where certainly their absence would never be noticed and you will understand the advantages of living among concerned neighbours with an involved management and staff at your beck and call.”
Mike Greeff, CEO of Greeff Properties, added that with retirement projects worldwide running into deficits as a result of the recent financial crisis and the ever longer lives which people live, returns on pension funds are bound to suffer. This, in turn, he predicts, will mean that the less expensive Life Right schemes will increase in popularity as compared to the outright purchase coupled to levy payment schemes.
For further information contact Heather Cape on 021 763 4120 or email hmcape@greeff.co.za
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02 December 2009, 09:51:11
APKF SIGN FIVE YEAR LEASE IN CAMPS BAY
Anne Porter Knight Frank, seeking a more upmarket venue for their Atlantic Seaboard office, has relocated from Regents Road in Sea Point to the Central Parade building in Victoria Road in Camps Bay, overlooking the lawned approach to the beach and the popular tidal pool.
“The sea,” said APKF’s Camps Bay manager, Helen Hoekstra, “is less than 100m away. As a result there is a permanent holiday atmosphere in this area. The office’s position, of course, also means that we are now attracting literally dozens of walk-up enquirers.”
APKF have signed with Camps Bay Investments for 52m² for five years.
Lanice Steward, MD of APKF, said that in the first 12 weeks after taking occupation of the new offices, APKF’s Camps Bay turnover had risen by over 60%.
Particularly impressive, she said, has been the performance of the branch’s letting division.
“We are finding that short term lets, for a week or 10 days, can achieve quite staggering rentals – up to R40 000 per night for a luxury unit with a cook, a maid and a butler.
“Even on fairly simply furnished apartments, provided they are within sight of the sea, R1 000 per night is now the minimum rate.
For further information contact Helen Hoekstra on 073 337 6122 or email helen.hoekstra@anneporter.co.za
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02 December 2009, 09:49:33
DUAL LIVING CAMPS BAY HOME COULD BECOME A B & B OR GUESTHOUSE
Anne Porter Knight Frank’s latest residential offering at Camps Bay could attract two or three types of buyer, says the APKF Camps Bay manager, Helen Hoekstra.
“It could suit someone wanting to open a guesthouse or B & B in this popular area or someone with an extended family, such as grandparents – or simply any family with a large number of children.”
The home, which is a triple storey, is in fashionable Rottingdean Road. It has no less than seven bedrooms, all en suite, two living rooms and two kitchens.
Tane Collins, the APKF agent handling the sale of this property, says that, with separate entrances for the upper and lower sections, the two sections could be kept independent of each other – but the division can be ignored.
The hoe, he says, although modern and well equipped, has something of an olde world atmosphere – there are three fireplaces and other traditional fittings.
The property has its own pool, garages for four cars and staff quarters. The beach is a two minute drive away and a Friendly 7/11 and the Hussar Grill are within walking distance.
Hoekstra commented that the listed price of R7,5 million would give any buyer “a great deal for a relatively small outlay”.
For further information contact Tane Collins on 073 135 9641 or email seapoint@anneporter.co.za.
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02 December 2009, 09:46:08
IMMACULATELY MODERNISED VICTORIAN HOME IN OLD GREEN POINT IS A TESTIMONY TO THE DESIGN SKILLS OF THE OWNERS, SAY APKF AGENTS
A home has come onto the market in the historic ‘village’ area of Green Point – and, what is more, it is sited in one of its most prestigious streets, Clydebank Road.
This home, says Lanice Steward, MD of Anne Porter Knight Frank, is almost certainly the best example she has ever seen of a Victorian CBD home modernised to be wholly appropriate for a leading executive professional man and his family.
The people responsible for this ‘magnificent’ upgrade are the current owner, Vaughan and Eloise Russell, partners of Field Architecture, a dynamic architectural and interior design practice. They, said Steward, have taken the original 1898 house and, preserving the front façade and covered stoep with its cast iron columns and broekie lace decoration, have completely reconfigured the interior so as to
make the ground floor completely open plan with interlinked living, dining and kitchen areas in which the finishes are ‘superb’. The kitchen has Iroko wood countertops and the floors are dark stained Oregon. Leading off this ground floor area is a raised bedroom with its own bathroom.
extended the living space into the loft area so that under the roof there are now two bedrooms, a study and another bathroom.
covered the rear courtyard with a burglar proof pergola. Here they have installed a solar heated 6m long lap pool and have made the area accessible to the interiors by making the division here entirely of stack back glass doors.
One of the most ingenious and attractive features of the home, say APKF agents, Meryl Kreuger and Velma Knight, is a light freestanding staircase leading to the upper floor supported (and partly obscured) by cubistic metal frames.
“Every feature of this home,” said Velma Knight, “is attractively minimalist but not spartan. The interlinked spaces harmonise perfectly and yet each is private.”
The APKF agents can be contacted on 082 375 3355 (Meryl Kreuger) or 082 081 7770 (Velma Knight).
The list price of the property is R3,395 million, a price which, Steward predicts, will seem almost ludicrously cheap in five years time as this area is undergoing a rapid transformation following the completion of the impressive stadium and the extensive landscaping work on the precinct surrounding it
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27 November 2009, 09:17:08
All four offices in a group that bears one of the oldest names in Cape Town’s real estate industry are now flying new colours as members of the powerful international group Harcourts.
Situated in Pinelands, Edgemead, Fishhoek and Bergvliet and dating back to the establishment of the Maynard Burgoyne property group in 1964, the offices have been operating under the Homenet banner since 1993 but have now been given another incarnation as the Harcourts Maynard Burgoyne chain.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is re-branding all its offices around the country.
And Harcourts Maynard Burgoyne principal Denis Quayle, a veteran of the city’s real estate industry, is “ecstatic” about the transition. “Harcourts is a truly international real estate brand which has a great future ahead of it. Its training systems, overall image, international referral network and ability to satisfy markets across the international property spectrum place the brand in a very strong position on a global platform.
“I am also particularly excited about Harcourts’ Luxury Portfolio and Relo Home Search facilities. While Luxury Portfolio essentially enables Harcourts members to market homes in excess of R6m to select clients, the Relo facility allows agents to access instant cost-of-living statistics, home sale information and relevant properties listed by members in 38 countries. The service is exclusive to the Leading Real Estate Companies of the World real estate network, of which Harcourts is a member.”
However, says Martin Schultheiss, CEO of Harcourts Africa, this is just a small part of the overall Harcourts value proposition that is currently creating huge excitement in the SA real estate industry.
“We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added more than 20 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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27 November 2009, 09:15:32
International real estate group Harcourts has arrived in Jeffreys Bay and is expected to make big waves in the property market of this prime surfing destination.
The Harcourts Jeffreys Bay office was formerly Homenet Phoenix, one of scores of Homenet offices around the country that have converted to the international brand.
And Anne Crous, principal of Harcourts Jeffreys Bay, says Harcourts’ wide international experience and excellent value proposition for agents and consumers are already creating a stir in the local market.
“Harcourts is represented in important international markets and our franchise area including Jeffreys Bay and St Francis Bay is among the favourite SA destinations for overseas buyers. We confidently expect that our conversion to the brand will give us better access to these buyers,” she says.
“One of the most innovative tools in the Harcourts offering is its online, Google-based marketing package which gives Harcourts offices a leading edge. Its training programmes are also a cut above the rest and our agents report that they have already benefited greatly from their initial exposure to the Harcourts programme. This will, no doubt, enable us to hone our service to local and international clients alike.”
She adds that the conversion to the brand comes at a fortuitous time. “The local property market is showing signs of a turnaround. Inquiries are growing thanks to more confidence among buyers brought about by easier access to financing, lower interest rates and more affordable property prices.”
Property prices in the area now range between R500 000 for apartments and R7m for luxury holiday properties. Family homes are selling from R800 000 upwards.
Martin Schultheiss, CEO of Harcourts Africa, says the new brand is creating high levels of interest. “Harcourts has grown apace in spite of the difficult economic conditions this year. While other local groups were curtailing operations, Harcourts added more than 20 new offices.”
Harcourts is the fastest growing real estate group in Australia and the largest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CONTACT
ANNE CROUS ON
042 296 1740 OR VISIT
www.harcourts.co.za
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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27 November 2009, 09:13:59
HIGH WORLD CUP RENTALS NOT A PIPEDREAM SAYS GREEFF MANAGER
The predicted demand for rental accommodation over the Soccer World Cup period is now beginning to become evident, says Marion Taylor, Greeff Properties Atlantic Seaboard director.
What is more, says Taylor, although the Soccer World Cup itself will only take up 36 days in June and July, some of the bookings coming in are for six months or longer.
This, she says, appears to be because those serving the Soccer World Cup (on a variety of fronts) from TV coverage to food catering often have to be in South Africa for long periods before and after the cup events.
An example of a rental of this kind which is available for short term letting through Greeff Properties is a bungalow on the beach at Bakoven which sleeps eight. Taylor anticipates that this type of property will be snapped up once the match venues are announced on the 4th December.
Asked if signing up unknown tenants from another country could put the property at risk, Taylor said that large upfront deposits will accompany all bookings and will not be refunded until the departure of the tenant and careful inspection of the property has taken place. In addition, the full rental will also be payable in advance.
For further information contact Marion Taylor on 083 448 0300 or email marion.taylor@greeff.co.za
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27 November 2009, 09:11:47
International real estate group Harcourts, which already has a large footprint in the KwaZulu-Natal Midlands and along the north and south coasts, has now consolidated that presence with the conversion of five former Homenet offices in Durban to the global brand.
The five offices will now trade as Harcourts Westville, Harcourts Brighton Beach, Harcourts Musgrave, Harcourts La Lucia (formerly Homenet Steve Millington) and Harcourts Tops (formerly Homenet Wade & Quine).
They are among scores of former Homenet offices and more than 20 other agencies that have converted to the Harcourts brand in the past year.
Martin Schultheiss, CEO of Harcourts Africa, says the energy and new vision the international brand has brought to SA’s real estate industry are eliciting great excitement in the local market. “We’ve been growing fast while other real estate groups were shrinking because of the tough economic conditions of the past year.”
And the owners of the Durban offices point out that the Harcourts value offering holds great benefits for property consumers as well as real estate offices.
“The group offers very effective marketing and managing tools that will give us an edge in the market, to the benefit of all consumers who want or need to sell or buy property,” says Jonathan Styles of Harcourts Musgrave.
Kathy Bledsoe of Harcourts Brighton Beach says the group offers a wealth of international experience and expertise. “It also opens doors for local agencies in the international arena thanks to Harcourts’ presence in important international markets. As one of Durban’s best established agencies, we were proud to join Homenet years ago – and now we are proud to be associated with the Harcourts brand,” she says.
Annatjie Angelo, owner of Harcourts Tops, adds that Harcourts offers excellent support systems as well as training in the new systems it has introduced locally. “In these difficult market conditions it is also reassuring to have the might of such a strong international group behind us, the benefits of which will also be felt by our clients,” she says.
Harcourts is the fastest growing real estate group in Australia and the largest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CONTACT
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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24 November 2009, 11:29:32
Property in high demand
According to Nils and Elizabeth Hanneman, Broker/Owners of RE/MAX Central – Norwood, the local property market is performing well with sales volumes currently higher than last year. “We foresee further growth from early 2010,” they say.
Launched in October 2007, the office covers the north eastern suburbs of Johannesburg and surrounds east of the M1 highway, including Norwood, Orange Grove, Sydenham, Highlands North, Bramley, Kew, Lombardy, Rembrandt Park and Lyndhurst as well as Linksfield, Senderwood, St Andrews and Bedford Park.
Commenting on entry level property in these areas, Nils says that Orange Grove is in high demand with homes fetching anything between R750 000 and R1,25-million. “Sydenham and Highlands North prices range between R1-million and R2-million. Many of these homes are built on double stands of approximately 990m2,” says Nils. Property in trendy Norwood with its sidewalk cafés and newly upgraded shopping mall falls within the R800 000 to late R2-million price bracket.
With stand sizes of approximately 1500m2, Bramley, which is within walking distance to Melrose Arch, is another popular area to invest in. “Here buyers can expect to pay anything from R1,1-million for an entry level home to R3-million for properties with business rights,” says Nils, adding that they currently have outstanding properties from the area on their books. “We have an eight-bed, eight-bath Bed and Breakfast going for R3,3-million as well as a business property with seven reception areas on a main road with high exposure for R2,3-million.”
Lyndhurst, Lombardy East and Rembrandt Park still offer great value for first time buyers with townhouse prices reaching the early R400 000’s and houses starting at around R800 000.
“Luxurious lock up and go properties are also high in demand in Linksfield, Bedford Park, Senderwood and St Andrews,” says Nils. Entry level homes here start at about R1,1-million for townhouses while houses range from R2,5-million upwards.
Homeowners in the area who are struggling to make ends meet in tough economic times, will furthermore be relieved to know that RE/MAX of Southern Africa has partnered up with First National Bank (FNB) on their Quick Sell Plan (QSP).
Says Adrian Goslett, Assistant Regional Director of RE/MAX of Southern Africa: “The QuickSell Plan is a private sale that enables customers to voluntarily sign a mandate with an estate agency chosen by FNB to sell their property in the shortest possible time. Therefore, allowing them the opportunity to move on with their lives - clear of a debt burden they can no longer service.”
These customers will not be black listed if no legal action has been taken while any shortfall owing to the bank can be paid off over a period of up to 20 years. “The QuickSell product is also very attractive to buyers, offering them a 50% discount on transfer costs and registration fees and up to 100% bonds for those who qualify,” comments Adrian.
In addition, RE/MAX of Southern Africa and Yellow Hammer announced a strategic partnership to supply auctioneering services to the property market. This concept differs from traditional methods of auctioning in that it combines the estate agent methods of selling with that of auctions. This way, estate agents can use their expertise, skills and contacts to increase the exposure of a property while the auction is used to efficiently conclude the transaction.
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24 November 2009, 11:04:18
In the past we have posted various articles with regards to "South Africa Experiments With Houses Made of Sand"
We have recieved many comments and questions regarding this article and for that reason we are now posting
the details of the Architectural company who are behind the project. If you have any questions or comments,
the link below will take you directly to their website...
MMA Architects
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19 November 2009, 16:28:38
International real estate group Harcourts is now an established presence in Pretoria, following the conversion of the three Homenet operations in the city to the global brand.
These are now trading as Harcourts Pretor, Harcourts Maxima and Harcourts Maritz, thanks to the implementation of a partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and has almost completed the re-branding all its offices around the country.
Harcourts is the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
And Harcourts Africa CEO Martin Schultheiss notes that it clearly represents the “next generation” of estate agency practice, with a huge value proposition for both franchisees and clients that is already injecting new energy into the SA real estate industry and raising the bar on service standards.
Irene Prinsloo, principal of Harcourts Pretor says she is particularly excited about the Harcourts values and “people first” methodology. “Branding is cosmetic and any company can adopt a new look. The difference is that Harcourts actually follows through in that they abide by a very high standard of customer service and are also intent on adding value to franchisees and making them successful.”
Riaan Maritz of Harcourts Maritz says the partnership with Harcourts has already made the local group a “next level” industry player, and adds that the opportunities for entry-level agents with the group are now particularly good because of the excellent training programmes that Harcourts offers.
Dr Willie Marais, owner of Harcourts Maxima, believes the Harcourts marketing programme will prove to be a real boon for agents and home sellers as it offers a huge choice of material and options and allows for better e-marketing and in-house applications.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
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19 November 2009, 16:26:57
Attractive lakeside apartments are another testimony to rawson construction skills, says paul henry
Rawson Developers’ claim that their construction division can be very useful to other developers has been proven by “The Lakeside”, recently completed on Henley Road, overlooking the parkland and water of Zandvlei at Lakeside, says Paul Henry, MD of Rawson Developers.
“The siting and the design of this very attractive complex make it a good buy right now,” said Henry. “It is within walking distance of the railway station and offers residents the opportunity to walk straight from their security area into the pleasant parklands of Zandvlei.”
On offer are 40 two bedroom and 18 single bedroom units. Floor sizes vary from 41m² to 119m², excluding the balconies and the garages. All units have a balcony and a garage, certain of the units incorporate two bed loft areas on a mezzanine floor.
The kitchens, says Henry, are especially attractive with granite countertops, upper and lower cupboards and Defy ovens and hobs. The living rooms and kitchen are tiled and the bedrooms carpeted wall to wall. Ample built in cupboards are fitted.
A big attraction of the site, said Henry, is that it flanks a proclaimed wetland which is home to a number of water fowl and land birds. To stabilise the structure in such conditions, 168 augured/precast concrete piles were sunk and linked with ground beams.
Henry estimates that the total construction cost of the development is in the region of R#2 million. The building cost (without the civil engineering and the piling contract) was R28,7 million. Rawson’s construction team was on schedule and on budget – they completed the entire project in six months from 15th January to 31st July.
The entire 9 700m² site (which includes a wetland area) is enclosed in electrified fencing and has an electronically controlled entrance. Parking for some visitors’ cars is provided.
“In many similar cases, we would offer our sales and marketing teams as an additional service but that has not been called for here,” said Henry.
The selling and renting costs have not been publicised, but the developer can be contacted on 082 427 7865 or 083 530 3626 for further information.
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16 November 2009, 15:34:13
Rawson properties now selling 2,5 franchises per month
Rawson Properties has sold 23 new franchises since 1st January this year and the group reports that the sales pace is now picking up to four per month.
Half of the new franchises are in Rawson’s fast growing northern region where franchisees have been signed on in Bloemfontein, Kimberley and Tzaneen as well as areas close to Johannesburg, such as Vanderbijlpark, Secunda and Musina.
In the southern region, sales and resales have expanded the group’s spread as far afield as Port Elizabeth, George, Wilderness, Malmesbury, Ceres and Langebaan and in the Cape Peninsula to Fish Hoek and Noordhoek. The group now also has two franchises in Khayelitsha.
“It might surprise those who think that residential property is in the doldrums to know that some of our new franchises, like Brackenfell and Parklands, are already proving to be among our top performers. We expect to sign up a further 30 franchises by the end of 2010.”
The Rawson Group, he said, is finding that the majority of those applying to them for franchises are already qualified agents, most of whom have completed their now obligatory Recognition of Prior Learning programme. They are now keen to set up on their own and take advantage of Rawson’s branding, their referral network, their user friendly systems, their ongoing NQF training and consistent management support programme.
“We have on several occasions said that now is good time to be setting up in a franchise because we believe that the residential property prices countrywide will be on an upward path soon.”
Asked if a person with no property experience can run a franchise, Clarke said, "Yes, absolutely: all you need is the backing of a good brand and support of a network that will help you obtain the necessary statutory requirements. You also, of course, need some good old fashioned entrepreneurial flair – and most of those coming to us have this."
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com
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13 November 2009, 09:49:29
Star agent Mandy Blom has been honoured by Harcourts Africa as the national real estate group’s top-selling sales consultant of the past year.
Blom, principal of the Harcourts office in the Mpumalanga town of Lydenburg, took the award for the most units sold at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, she was named as one of the group’s top 20 revenue-earners in the past 12 months.
“This achievement underlines the continued buoyancy of the Lydenburg property market in the face of the economic downturn,” says Harcourts Africa CEO Martin Schultheiss. “This is largely due to the strong performance of the area’s platinum mines and increase in the resident population.
“However, the fact that Mandy has even been able to outsell colleagues in major towns and cities is also testimony to her own dedication and commitment to excellent service. She is a real credit to Harcourts.”
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MANDY BLOM ON
013 235 4131 OR VISIT
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13 November 2009, 09:48:19
The Harcourts outlets in Richards Bay. Empangeni and Ballito have been named by the real estate group as its three top rental property management offices of the past year.
The agency principals received their awards for the most management revenue generated at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
“The short-term rental market in Ballito is very strong with the area now rivalling other top leisure destinations such as Plett and Hermanus,” says Harcourts Africa CEO Martin Schultheiss, “and the longer-term market in the Richards Bay / Empangeni area continues to be buoyed up by new infrastructural and commercial development around the port.
“However, the earnings generated by these three agencies over the past year are also very much an indication of the determination with which they have expanded their rental property portfolios and the skill with which these are managed.”
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031 201 1060 OR VISIT
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13 November 2009, 09:47:15
Cbd claremont flats at competitive prices
Those who believe, probably rightly, that the high density CBD of Claremont is an area in which property prices are poised for spectacular rises will be interested to learn that the Greeff Properties sectional title team serving this area has a mandate to sell a studio apartment and two bedroom apartments at prices ranging from R795,000 to R1,5 million. These apartments are in the totally refurbished Piccadilly Court complex.
The refurbishment, said Maureen Grimbeek of Greeff Properties, has been done with great care and to high standards. The project was handled by the respected developers Aslo Properties, using the architectural practice Albertyn Viljoen to achieve a 21st Century look in which some of the units have loft mezzanine bedroom levels.
The finishes throughout the refurbished apartments are upmarket and include granite kitchen countertops, secure parking, laminated floors and balconies.
Maureen Grimbeek and her business partner Vilma Gruneberg can be contacted on 082 892 5456 and on 082 895 9172 or via the Greeff Properties Head Office 021 763 4120
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13 November 2009, 09:45:49
Homebuyers beware the three month wait for your title deeds after registration
It can be very risky, warns Anton du Plessis, CEO of Vineyard Estates, to buy a home in the confident expectation of selling it soon after transfer - and speedily registering the property into the new buyer's name. In fact, any transaction that depends upon the availability of the physical Title Deed within three months of transfer registering should cater for the fact that in many cases Title Deeds are taking up to and over three months to emerge from the Deeds Office. Unless a conveyancer specifically requests that the Deeds office 'expedite' the issuing of the Title Deeds, the process can take four months or longer, depending on the pace of the Deeds Office.
In many cases, the seller may not want the buyer to know that he has only recently purchased the property, effected renovations, and then on-sold at a profit. Should he sell a week after taking transfer, the paperwork can be ready within four to five weeks. The conveyancer would then be in a position to lodge the transaction at the Deeds Office, but would be unable to do so without the physical Title Deed. He could then easily wait a further seven weeks for the Title Deeds.
In current markets, where profit margins on speculative purchases are lower, a seven week delay, says du Plessis, can cause cash flow problems if the speculator is relying on the transfer to release cash by a specific date.
“I would urge cash buyers who are undecided as to whether or not to register a small bond over the property to make sure that they do not anticipate using the property as security for any borrowing immediately after transfer. Most of the larger lending institutions will not afford credit without the Title Deed. In fact, even with proof of transfer into the purchaser’s name from a reputable firm of attorneys, banks will seldom budge on this condition.”
“I believe this is right: buyers should refuse to advance any of the purchase price before transfer. The risks and stakes are too high. There are good reasons that the whole process of alienation is so comprehensively legislated, and the handover of funds only effected on actual registration.”
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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13 November 2009, 09:44:14
Upgraded mowbray home offers best of old and new world
A house which, says Lanice Steward, MD of Anne Porter Knight Frank, epitomises the transformation of Mowbray, Cape Town, into a ‘with-it’, up and coming suburb in which it is now fashionable (and very convenient) to live, has come onto the market at a price of R1,895 million.
“This,” said Steward, “is a traditional, solid, comfortable old Mowbray home to which changes and upgrades have given a totally new look while in no way destroying the atmosphere and feel of the mid-20th Century style which has such features as wooden floors, leadlight windows and a tiled roof.”
The home has three bedrooms and two bathrooms, a dining and a living room, a study and two garages.
“It is almost impossible to get this amount of space in a newly developed complex today,” says Angela Magner of APKF. “Modern homes at this price have 40% less space and little of the charm of this era.”
For further information contact Angela Magner on 082 468 5550 or Beryl Southan on 082 438 3730
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13 November 2009, 09:42:54
New knight frank website aimed at the global buyer
Property watchers – and those who simply enjoy browsing the internet to keep abreast of economic trends – will be interested to learn that Anne Porter Properties’ UK associates, Knight Frank, one of the world’s leading property companies, has upgraded their website, www.knightfrank.com.
“This,” says Lanice Steward, MD of APKF, “is particularly interesting to many because Knight Frank, being a global company with upmarket connections and with branches in over 40 countries, i.e. in all five continents, they cater particularly well for the steadily growing band of international property investors.”
Some of Knight Frank’s clients, says Steward, have homes or offices in three, four or even more countries and have proved exceptionally shrewd in spotting the up and coming property precincts. Right now, Steward believes, interest in South Africa among such people is rising to an all time high.
The Knight Frank website, adds Steward, showcases everything from a 210 million Hong Kong dollar five storey townhouse on Severn Road, overlooking the bay (a HK dollar is valued roughly at the same level as the South African rand) to more affordable but just as exotic homes such as a canal fronting apartment in the Bahamas or a two acre plot on the Kilifi Creek estuary in Kenya. The latter, for those interested, is priced at four million Kenyan shillings.
All APKF’s properties feature on the KF website and, says Steward, all help illustrate two facts right now. These are that residential property prices have been lowered across the world without exception and that Africa – and South Africa in particular – now offer what is almost certainly the best value of all.
“I think we sometimes underestimate the appeal of what we have to offer here in Africa and in South Africa,” said Steward. “For many people a fortnight in the bush among wild animals is a life changing experience. For others a visit to a wine estate or a hike on Table Mountain has real glamour of a type not easily found in Europe or the UK today.
“For the jaded European or American now bored with his cultural roots, it can pay handsomely to take a break with urbanised living and regenerate himself in Africa. That is one of the lessons that I believe the new Knight Frank website will impart – it is certainly worth perusing.”
KF report that they are getting increasing enquiries on properties in all price categories, particularly from South Africans living abroad but wishing to invest in SA.
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za
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13 November 2009, 09:41:34
It is difficult to rival older claremont apartments on space and convenient siting
The last decade, says Maureen Grimbeek of Greeff Properties, has shown conclusively that two factors set the older, more distinguished apartments of the Claremont area apart from most others, including many that have recently been built and are recognised as being chic and exceptionally well fitted out.
These two factors, said Grimbeek, are the ample floor space of the older apartments and the close proximity to Cavendish Square.
Taking as an example a two bedroom, two reception room, two bathroom apartment in Claremont’s five storey Eversley complex which Greeff Properties are now marketing at R1,995,000, Grimbeek said that this unit has no less than 128m2 of floor space.
“That,” she said, “is much the same floor area as many modern, freestanding three bedroom simplex and duplex homes, but it is not unusual to find this amount of space in the older flats of Claremont and Kenilworth. A couple or family living here would definitely be able to ‘spread themselves’ and the feeling of space would be enhanced by the splendid mountain views on offer from the north-facing rooms and balcony of this apartment.”
The nearness of Cavendish Square, added Gruneberg is ‘surprisingly’ very important to many people, both young and old.
“The more one lives here, the more one realises that Cavendish Square today has become a venue in its own right, a sort of “suburban village” with a life of its own,” said Gruneberg. “Some people visit it three or four times a week, others dine there two or three times a month. To be able to live close to it is for many people an enormous plus factor.”
Caren de Nobrega of Greeff Properties Rental Division said that demand from investors for this type of apartment is always strong and there has never been sufficient stock to meet the need. What is more, she added, there are now clear signs that rentals are set to rise and that demand is on the increase.
Maureen Grimbeek is partnered in her sectional title sales operation by Vilma Gruneberg. They can be contacted on 082 892 5456 and on 082 895 9172 or via the Greeff Properties Head Office 021 763 4120
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13 November 2009, 09:38:58
Building standards in low cost housing are shocking, says rawson chief
None of the larger players in the SA development/construction sector, has, to his knowledge, ever objected to the state policy weighting the tender process in favour of black empowered, previously disadvantaged contractors, especially when it comes to awarding low cost housing contracts, says Paul Henry, MD of Rawson Developers.
However, he adds, some form of modification in the process is now necessary because time and again those to whom the contract is awarded are incapable of doing the job efficiently.
“On any private enterprise contract we have to finish on time and to the specifications. If we do not, we are heavily penalised but on state housing it appears to be possible for the contractors, some of whom have had no previous building experience, to end late and get away with incredibly sloppy work.”
With too little knowledge of the tender process, says Henry, certain newly-arrived black empowerment firms will price ludicrously “tight” in order to ensure that they get the job. Then, as the contract progresses, it will become increasingly obvious that they cannot make a profit – and, in many cases, in fact, they are heading for a big loss.
“At that point,” says Henry, “101 cost cutting shortcuts are taken, most of which are illegal and all of which subsequently result in ongoing repairs being absolutely essential.”
All too often, said Henry, he has come across sites where the plaster is falling off the walls, the bricks lack sufficient mortar to be structurally sound, the doors do not close, there are gaps between the window frames and the walls or the electrics fuse one day after handover.
Henry said that the public bodies awarding these contracts should be far more sceptical when presented with tenders which are clearly below the going rates.
“All tenders should be carefully scrutinised and the contractor’s – if there is any – previous work should be inspected. On most contracts there is no obligation to take the lowest or any tender and if the contractor is clearly not up to the job he or she should either be rejected or be obliged to go into joint venture with another with more experience.”
Henry pointed out that the deplorable state of many of the housing projects which are handed over results in those served feeling that, once again, they are not getting a fair deal.
“The whole “poor delivery” complaint is fuelled all over again – despite the goodwill and the best efforts of the authorities.”
Henry was critical of the official clerks of works and inspectors whose task it is to monitor the building work as it progresses and on completion.
He was also highly critical of the NHBRC (The National Home Building Registration Council) which he described as “awash with funds” but all too often negligent in inspecting the completed buildings of its members – as it is expected to do in terms of its constitution.
For further information contact Paul Henry on 021 658 7100 or email paul@rawson-developers.co.za
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13 November 2009, 09:35:00
The best blind company moves to buchanan square
Maintaining Redefine Properties’ growing reputation for being able to attract top-level creative and artistic organisations to their Buchanan Square development on the eastern fringe of Cape Town’s CBD, The Best Blind Company has purchased over 300m² in the newly refurbished Hills building part of Buchanan Square.
Founded by sisters Tracy and Debbie Hutchings, The Best Blind Company specialises in “the unusual and the extreme”, creating blinds, curtains and soft furnishings for projects as far afield as London, New York, Mauritius and the recently completed Villa Orpheus in Mykonos, Greece.
“After seeing a lack in the local market of quality, contemporary poles and fittings we designed our own exclusive range of stainless steel fittings which we supply to the industry locally and nationally. The growing reputation of Buchanan Square as home for innovative, creative entrepreneurs – in a variety of disciplines – suits our operation and has given us the opportunity to open a retail space to sell our diverse range,” said Debbie Hutchings.
“We are pleased to be out of the CBD and do enjoy the energy, vibe and enthusiasm we have found at Buchanan Square.
“The easy access to freeways and all the suburbs makes doing business here easy,” added Hutchings.
For further information contact The Best Blind Company on 021 461 2122 or Debbie 083 459 9345 and Tracy on 083 441 9030
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13 November 2009, 09:31:57
Meyer + Vorster Architects has purchased over 280m² on the third floor of the historic Armoury building in Redefine Properties’ Buchanan Square, the newly refurbished development in Sir Lowry Road in the East City precinct.
Tiaan Meyer, who, with Jan-Heyn Vorster founded the firm in 2002, said that the premises suit them admirably because the entire precinct is fast becoming recognised as the new creative centre in Cape Town – from advertising, photography and modelling casting to furniture and fashion sales, ceramics and custom designed kitchens.
Now employing a qualified staff of seven, Meyer + Vorster is, said Meyer, a genuinely multi-disciplinary design firm offering architecture, urban design and interior design/decor. There has always, he said, been a strong orientation towards avant garde housing in the firm but they have also been involved with such big projects as the Northpine Secondary School and the Ina Paarman kitchen at Constantia, the Kuyasa Transport Interchange at Khayelitsha and the Orient Restaurant at Melrose Arch.
Ivo Nestel, Redefine’s sales executive for Buchanan Square, said that it had been “a coup” to attract a firm of Meyer + Vorster’s standing and he hoped that other architectural practices would follow their example.
For further information contact Ivo Nestel at Redefine Properties on 021 425 1000
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13 November 2009, 09:27:48
The Harcourts outlet in the KwaZulu-Natal Midlands village of Hilton has been honoured as the real estate group’s top performing office of the past year.
Agency principal Andrew Line received the accolade for the highest revenue generated per sales agent at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, Harcourts Hilton rookie agent Cathy Fitzpatrick was named as the group’s Rising Star of the year, and the agency also won a Bond Choice award for the amount of new home loan business it has generated.
“These achievements reflect the ongoing demand for property in Hilton despite the economic downturn,” says Harcourts Africa CEO Martin Schultheiss. “The village, just a few kilometres from the KZN capital of Martizburg, appeals to investors as well as lifestyle buyers looking to escape to the country, and of course is close to several of the country’s top schools.
“However, the fact that Harcourts Hilton has dominated the local property scene with a market share of more than 60% for several years also points to the energy and dedication of Andrew and his team, who consistently deliver outstanding sales results.”
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CONTACT ANDREW LINE
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13 November 2009, 09:26:30
Star agent Pieter Maritz has been honoured by Harcourts Africa as the national real estate group’s top-earning sales consultant of the past year.
Maritz, co-owner of the Harcourts Maritz office in Centurion, was presented with his award at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, Harcourts Maritz was named as one of the group’s top performing offices of the year, placing second among the 10 highest-earning franchises, and winning a Bond Choice award for the amount of new home loan business it has generated.
“These achievements emphasise the underlying strength of the Centurion market even in tough economic times,” says Harcourts Africa CEO Martin Schultheiss. “Demand has remained steady thanks to its great location midway between Pretoria and Johannesburg, its excellent infrastructure and a wide range of property appealing to all types of buyer.
“However, they also point to the dedication and energy of our outstanding team of local agents, including Pieter, whose real estate sales performance over the past 10 years is legendary.”
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CALL HARCOURTS MARITZ
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13 November 2009, 09:25:04
The Harcourts franchise in Pretoria has been honoured as the real estate group’s top-earning office of the past year.
Harcourts Pretor principal Irene Prinsloo received the accolade for the highest revenue earned at the recent inaugural annual conference of Harcourts Africa, which is the successor to the old Homenet property group.
At the same time, Harcourts Pretor agent Soti Christodoulou was named as one of the group’s 10 top agents around the country, and the agency also won a Bond Choice award for the amount of new home loan business it has generated.
“These achievements reflect the fact that the property market in the capital city has weathered the economic downturn very well,” says Harcourts Africa CEO Martin Schultheiss. “Pretoria has the advantage of having many subsidised buyers, which means it tends not to experience the same property highs and lows as other major centres. It also has a large student population and many embassy workers, which make it an attractive proposition for long-term property investors.
“However, the earnings generated by Harcourts Pretor over the past year are primarily an indication of the skill, dedication and determination of Irene and her team, who refused to be daunted by bad economic news and just kept right on making the sales.”
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CONTACT IRENE PRINSLOO
ON 012 346 8829
OR VISIT www.harcourts.co.za
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06 November 2009, 10:04:44
International real estate group Harcourts has opened two new offices in KwaZulu-Natal to serve the area stretching from Lion’s River to Hidcote in the Midlands as well as the coastal regions around Glenashley.
These are the latest in a string of new offices that have opened under the powerful new Harcourts Africa brand following the partnership deal late last year between Harcourts International and South Africa’s Homenet group, which then began rebranding all its existing offices.
The new Harcourts Lifestyle office in the Midlands will specialise in residential properties as well as smallholdings and farms and is headed by Liz Fischer, who says: “Now is a good time to prepare for the coming upturn in the property market. The slower market offers an opportunity to get systems and training in place and I am excited about the innovations that Harcourts is bringing to the SA market.”
Waseem Moosa of the new Harcourts Gateway office in Glenashley adds that the Harcourts brand brings proven systems as well as international exposure that will greatly benefit local property buyers and sellers. “The backing of an internationally renowned property brand will sharpen our offering to our clients,” he says.
Harcourts has been rated one of the top five international real estate brands by world real estate authority Stefan Swanepoel. It is also the fastest growing group in Australia and the biggest in New Zealand and operates in China, Fiji, Indonesia, Singapore and Zambia. It currently sells more than $19,5bn worth of property every year.
Harcourts Africa CEO Martin Schultheiss says one of the key aspects of the partnership with the international company was that Homenet, as one of the biggest real estate groups in South Africa, could immediately give Harcourts International a national footprint.
“However, since then, we have also had a constant stream of applications to join Harcourts from other estate agency owners and principals wanting to tap into the new energy we are bringing to the SA real estate market. Indeed, we are currently the fastest growing property group in the country, having added more than 20 new offices in this most difficult of years.”
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031 201 1060 OR VISIT
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06 November 2009, 10:02:20
The international Harcourts real estate group is now represented in the southern suburbs of Johannesburg following the conversion of top local agencies Homenet Delta and Homenet Olympic to the powerful new brand.
This transition follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which was then renamed Harcourts Africa and is steadily re-branding all its offices around the country.
However, both Harcourts offices in the southern suburbs will continue to be headed up by their current highly-experienced principals – Colin Rodrigues at Harcourts Delta and Carlos Moreira at Harcourts Olympic.
Rodrigues, who has high expectations of the new group, says: ”Harcourts has many factors working in its favour which make for a winning formula. Its e-marketing capabilities, Property Manager programme and online training facilities
are particularly impressive and mean that we can now market properties on a truly international platform, create and synchronise all our marketing efforts in-house or brush up on how to obtain mandates or present offers at the touch of a button.”
Moreira also says the international group’s willingness to expand into SA while other companies were contracting their operations was “key to moving past the recession” and adds that Harcourts will give SA property much more exposure ahead of 2010.
“In addition, the Harcourts operating standards will undoubtedly raise the local industry bar significantly.”
Harcourts Africa CEO Martin Schultheiss concurs, saying the Harcourts value proposition is currently creating such excitement in the SA real estate industry that it is driving a huge volume of enquiries from other agency principals.
“This has meant that in addition to rebranding scores of the old Homenet offices that formed the basis of the new group, we have added more than 20 brand new offices since the start of the year - and become the fastest-growing group in the country.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
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06 November 2009, 10:00:49
Last chance to apply for a sseta estate agents bursary
The Services Sector Education and Training Authority’s decision to cut bursaries for the training and RPL (Recognition of Prior Learning) of estate agents was a blow to the industry, says Mike Greeff, CEO of Greeff Properties.
But, he says, certain agencies having paid their skills levies to SSETA, were at an early stage allocated a number of bursaries, some of which still await taking up.
One such branch, says Greeff, is their Atlantic Seaboard operation run by Marion Taylor, who with 27 years in property selling has proved to be an excellent mentor and training facilitator.
This week Taylor confirmed that she is one of the fortunate few to have NQF4 Real Estate training bursaries available for the right applicants.
“These are valuable,” said Taylor, “if the agent has to pay for his training and qualifying it will cost him or her R7 000 or more.”
There are still, she adds, a few agents “out there” who think that they will somehow be allowed to operate after 2011 without the NQF4 qualification but they are making a big mistake, said Taylor.
“The truth is that in 2012 if they still have not qualified, they will not be issued with Fidelity Fund Certificates. This, in turn, means that if they continue to work as agents, they will be acting illegally – and we are hearing reports that attorneys will be instructed by the EAAB not to pay commissions to agents not in possession of valid Fidelity Fund Certificates.”
Already, said Taylor, it is possible to distinguish between those agencies taking the matter seriously and those who are not: the latter have often not even started their RPL training process while the former have often already completed it. In her Camps Bay office, for example, all five agents are already qualified, as are the vast majority of Greeff agents – and the balance will qualify in the coming months.
“Those who would like a confidential discussion about taking up a bursary with Greeff Properties are welcome to do so,” said Taylor, “and should contact Graham Leslie, MD of Greeff Properties on 021 763 4120 or 082 388 0176.”
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06 November 2009, 09:58:57
New redefine strategy will significantly increase average value of properties in their portfolio
Redefine Properties, which since its merger with Apex-Hi and Madison Property Fund Managers, has become one of the top two JSE listed property owning companies in South Africa, is embarking on a move that will reduce the number of their properties currently (over 400) while at the same time raising their average value from ±R40 million to R100 million.
What is more, according to Redefine director, Mike Flax, who has been given control of the new strategy, they should complete this exercise within three years.
Redefine, he says, will dispose of some 40% of their portfolio – but in value terms this will represent less than 20% of the portfolio. These properties, says Flax, are often multi-tenanted and many lack the potential to be transformed.
Concurrent with implementing this process, Redefine will seek to acquire new blue-chip higher profile stock and will continue with their ongoing programme of refurbishing, upgrading or extending current stock.
One of the big advantages to the new policy, says Flax, is that it will enable Redefine’s asset managers to give more time and better service to the properties and tenants that they do manage.
Redefine have recruited Justin Roome, who has recently returned to South Africa from a high-profile USA West Coast investment brokerage, to help Flax implement the new policy. Grant Abrahams, a Redefine Fund manager, is also being moved to the new team.
Flax said that the strategy will help Redefine to continue to achieve above-average linked unit distributions while enhancing the quality of its large and diversified portfolio.
Property brokers throughout SA are being contacted and will be supplied with the relevant data regarding properties for sale. Flax has stressed that, although these properties are at the lower end of Redefine’s portfolio, most have given satisfactory returns over extended periods and will represent excellent value for the right buyers. Brokers are also being encouraged to approach Redefine about potential acquisitions.
For further information contact Mike Flax on 021 425 1000 or email mikef@redefine.co.za
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30 October 2009, 10:41:08
Informative talks on retirement scheduled by the CPOA and associates for 17th November
The next informative public talks at the Cape Peninsula Organisation for the Aged’s retirement centre, Riverside Place, will take place on 17th November at 2.30 pm and will focus, among other topics, on the need for senior people to declutter and simplify their lifestyles and to stretch the budgets as far as possible.
Attention will also be given to the contractual position of anyone signing a retirement village Life Right contract. According to Heather Cape, Development Manager at Greeff Properties, there is still a great deal of confusion in the public’s mind on this matter.
Speakers at this informative session will be Billy Rauch of the Cape Peninsula Organisation for the Aged, Andrew Lottering, the developer of Riverside Gardens, a follow-up retirement complex to Riverside Place, Penny Plougmann of the legal firm Rabie and Rabie, a recognised expert on Life Right systems, and Mike Greeff and Graham Leslie, executives at Greeff Properties.
Amongst the topics that they will discuss will be the fairly precarious position of older single women in South Africa today.
“If they live alone, as many do,” said Cape, “there is always a danger that they will be targeted by criminals who are quite ruthless about looking for people unable to offer effective resistance. Attention will also be paid to the social difficulties of older persons, who can find that their circle of friends begins to diminish once they lose their partner – and their children are not living near enough for regular visits.”
“Widows, spinsters and single women over the age of 55 should seriously consider moving to a secure retirement complex as soon as they can. Most retirement complexes accept persons over the age of 55 – and this is not too young an age to make such a move, which will then put them in touch with likeminded people who are looking for a little social activity themselves,” said Cape. “We have seen single ladies gain a new lease of life, not by suddenly becoming frenetically active and social, but simply by finding that among the 50 or more residents in their centre there are five or six to whom they can relate and become firm friends with.”
An ancillary aim of the talks at Riverside Place will be to expose potential buyers to the Life Right opportunities at Riverside Gardens, scheduled to come on stream in roughly November 2010. Life rights here start at R855,000 for a single bedroom unit, “a superb value offering” in the Cape retirement market, said Mike Greeff, CEO of Greeff Properties.
Riverside Gardens will also be owned and run by the Cape Peninsula Organisation for the Aged and will be equipped with the facilities, which are now more or less standard in their centres - a gymnasium, a heated indoor swimming pool, a library, a sports bar with big screen TV and open areas for other activities.
For further information contact Heather Cape on 021 763 4120 or email hmcape@greeff.co.za
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30 October 2009, 10:39:37
One of Rondebosch’s “grand” homes comes onto the market
Otilia Harker and Jeanne Cowan, Anne Porter Knight Frank estate agents serving Rondebosch and related areas, have secured the sole mandate for a double storey home, priced at R6,8 million which, says Harker, epitomises the gracious lifestyle enjoyed by Rondebosch’s fortunate top 10%.
The home, sited in Portland Road, is, says Harker, in the most sought-after area of Rondebosch and is within easy cycling distance of the three or four long-established schools which traditionally have attracted residents to this area.
“Although we do not have accurate records the home could be 100 years old. It has been totally refurbished and modernised (with certain areas open plan) but without detracting in any way from its original Herbert Baker type charm. It has solid Oregon pine floors, dark wood shutters, oak wood panelling in the study and living area, a deep rose-coloured tile roof, three original cast iron fireplaces and a stone plinth along the exterior base.”
The house has five bedrooms, three bathrooms, two living rooms and a large entrance hall, a family room, a study, servant’s quarters, garaging for two cars and secure parking for a further three.
Lanice Steward, MD of Anne Porter Knight Frank, said that this is the type of home most Rondebosch residents would want to own – “and that tells you all you need to know about it”.
For further information contact Jeanne Cowan on 083 448 8108 or Otilia Harker on 083 681 8646
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30 October 2009, 10:37:48
Increasingly comprehensive propstats service now of real benefit to IEASA western cape members
PropStats, the statistical data service set up by the Western Cape branch of the Institute of Estate Agents, has over the last year been upgraded and made more comprehensive with the result that it is increasingly able to provide a really useful free service to IEASA Western Cape members.
This was said recently by Annette Evans, PropStats manager.
Evans said that sales data for some 1 500 estate agents in an area from Simonstown to Swellendam to Saldanha are being submitted to PropStats. In some areas, e.g. the Atlantic Seaboard, over 90% of agents are contributing. In certain outlying areas e.g. Swartland less than 50% contribute – but this does not alter the overall veracity of the data and the number of participants rises month by month as further value is placed on this service. What is more, said Evans, this information comes through in real time i.e. as soon as the sale has been confirmed, which is well before the actual transfer takes place.
The 120 data suppliers, some working for as many as 100 agents, said Evans, give PropStats such information as the property’s address and erf number, the listed price, the actual sales price achieved, the square meterage of the home and the plot, the numbers of bedrooms, bathrooms and amenities rooms – together with additional features such as swimming pools, servants accommodation and garaging. The age and condition of the buildings and the time the home was on the market are also provided. PropStats also offers agents the facility of adding other relevant data.
“This information,” said Evans “helps an agent to evaluate other properties in the area he serves and to do so with a high degree of accuracy. It also enables the agent to justify the valuation to the seller and buyer – he can, using these individual reports, prove that his assessment is market related.”
Evans said that IEASA Western Cape had listened carefully to its members and PropStats has therefore evolved to provide the agents with the information they have asked for.
“Now,” she said, “we intend to go a step further and give an informed analysis of the data which will provide agents with a broad picture of what is happening on the residential front and in the various areas of the Western Cape.”
Asked what initial analyses have shown, Evans said that the latest figures indicate that a recovery in the housing field started about August and gained momentum from early September. This, she said, is shown by the decreased listing days taken to sell homes and by the much publicised deflation in prices now easing off – with a rise in price (the first in two years) probably becoming evident from early 2010.
PropStats, said Evans, facilitates the sharing of sales data between agents and is a free benefit of membership to IEASA.
Also available on the internet is IEASA’s own website www.ieasawcape.co.za for up to date information on the Institute of Estate Agents of the Western Cape and relevant information regarding changes to our industry at this time. Anyone wishing to join the Institute or sign up to PropStats can visit www.propstats.co.za. The site provides them with the membership application and a debit order form. (The cost of the service is only R45 per month or R540 per annum per member.)
Although PropStats data is not available to the general public, agents can provide their clients and the public with this data when doing valuations on their properties. PropStats, said Evans, can also be accessed online in a client’s home when and agent is price counselling or presenting a valuation if required.
Besides the usual agent members of the Institute, Valuers, Attorneys and Accountants, Banking Executives and other related industries are able to join as affiliate members. Each member is then provided with an individual login code and password enabling him or her to access PropStats online anywhere and call up the data 24/7
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30 October 2009, 10:36:31
Greeff properties bump up their sectional title team
Greeff Properties sectional title team, said the company’s Chief Executive, Mike Greeff, has reached the stage where, proven successes launching and selling such projects as the Evergreen retirement complex, Rondebosch Village, Intaba, Rosebank Views, Rondebosch Oaks, Monorgan Mews and various other exclusive apartments enable it to claim to be a front runner in this aspect of property marketing in these areas.
Greeff Properties executives have accordingly appointed a further agent to their sectional title team – in the confident expectation that by the middle of 2010 this sector will once again have taken off.
Lana Holt will be joining Brent Farrell as an area partner. Holt has had ten years sales experience with Anglo American Property Services in the retail property sector and six years residential/sectional title experience covering Constantia to Rondebosch. In her new position she will focus on upmarket apartments and lock-up-and-leave townhouses in the Claremont and Rondebosch
Greeff said that Holt is known to be “a people’s person”, one who understands well the importance of regular, almost daily, feedback to clients.
“This is something we in our company rate very highly and was one of the main reasons why she was chosen for this new position.
For further information contact Lana Holt on 021 763 4120 or email info@greeff.co.za
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30 October 2009, 10:30:52
As of today, new detailed maps of many South African cities and towns, including Johannesburg, Cape Town, Durban, Pretoria, Port Elizabeth and East London, are accessible on Google Maps through any web browser or via Google Maps for Mobile on data enabled handsets. Although already available in South Africa, the map data has been improved dramatically and is now available with additional features. In addition to searching online Maps, Google Maps users will now be able to find businesses and check driving directions. Businesses will be able to add their own business listings for free via Google Maps Local Business Centre.
The map data includes a substantial amount of user generated content provided via Google Map Maker as well as thousands of business listings for South African cities. The new maps also include ‘My Maps’ and hotspots of a number of South African artists and experts such as music favourites Freshlyground and Thandiswa Mazwai, and designer Desre Buirski.
Google Maps in South Africa can be viewed in several ways. The “Map” button shows the traditional map view, ideal for finding an address or planning directions between points A and B. To explore in more detail users can choose the “Satellite” button, which includes satellite and aerial photographs. The “Terrain” view shows the physical geography of a place (such as hills and mountains). This button is a great choice if you’re heading out into the countryside.
Stephen Newton, country manager for Google South Africa said:
“Google Maps is an valuable addition to the list of products that we’re launching specifically for South Africans, given the market’s importance to us. Google Maps isn’t only about searchable, digitized maps helping you to find a local place, service or product. Our goal with Maps is to make information with a geographical dimension available to everyone and to allow users to update the maps and develop on top of them. We believe more accurate, representative local information can greatly improve the breadth of information available about a given area and in turn can bolster tourism and business investment.”
Google Maps in your pocket:
Information on streets, addresses and local businesses and services will now be accessible via your mobile phone when you’re on the road or in areas you don’t know. Google Maps for Mobile can be downloaded for free. With this tool, users will be able to access detailed maps of South Africa and the world whilst on the go.
Shaun Kirk, Head of Marketing, Samsung Mobile, said, “Samsung is delighted to be partnering with Google to bring Google Maps for Mobile to South Africans. It means you can literally carry your city around in your pocket, and access information at any time you like, be it about businesses, restaurants or other services, whilst you’re on the road or in an unfamiliar area.”
Also commenting on Google Maps for Mobile, Romeo Kumalo, Executive Director: Commercial of Vodacom South Africa, said, “Being able to access Google Maps for Mobile is a great step forward, not only for finding your way around and organising your day-to-day life, but also for businesses to take advantage of the opportunities to showcase themselves to mobile users in time for 2010″.
Advertising free online without the need for a website:
Google Maps is the perfect product for local businesses, from banks to retail outlets, from tour operators to hotels. Information is available to users and customers who are seeking products or services in local areas, either on their PCs or mobile phones. Using the Local Business Centre feature, companies can now enter information about their business, including their address, opening hours, phone numbers and photo for free. For more info, see www.maps.google.com/lbc
Maps API (Application Programming Interface) for Businesses:
Johan Potgieter from CyberProp Real Estate Portal reports, “Installing the Google Maps API onto our websites was quick and easy. Seeing the maps work on the sites was rewarding, but hearing our users’ comments was even more gratifying, and that is essentially what we were after. Many of our sites feature off-the-beaten-track locations, so having Google Maps on our websites makes it easier to locate a place. No matter how big or how small the website, no matter what target market you are after, and no matter whether your potential clients have a GPS or not, you can show them where your product is on earth, how on earth to get there, and overall improve your website to target more potential clients”.
Build and share your own Maps:
Create personalized, annotated, customized maps using the My Maps feature on Google Maps. My Maps can contain placemarks, lines, shapes, text, photos or videos enabling users to share diverse information with family and friends – from favourite campsites to photos and videos of a holiday or roadtrip. To construct the maps users can also employ more sophisticated methods such as maps with advanced content (mapplet) using JavaScript. Check out some My Maps created by South African artists Freshlyground and Thandiswa Mazwai, designer Desre Buirski and popular blogger Mushy Peas on Toast.
Maps for Developers:
Google also provides APIs for Google Maps to help programmers, webmasters and designers to incorporate the functionality of Google Maps on their sites and develop new services based on local information. Today Google will also be holding a workshop for developers in Johannesburg, providing hands-on advice and tips from tech experts about how to make Maps user-friendly. To learn more, check out www.code.google.com/apis/maps
Street View:
In the future, Street View images of South Africa will be available in Google Maps and Maps for Mobile, allowing users to virtually explore and navigate a neighbourhood through 360 degree panoramic street-level images. Users can look up restaurants or hotels before travelling, explore neighbourhoods and arrange meeting points.
About Google
Google’s innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google’s targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, please visit http://www.google.com
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30 October 2009, 10:28:31
International real estate group Harcourts is opening an office in Parys with the conversion of the local Homenet estate agency to the brand.
This follows the partnership deal concluded late last year between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is attracting many new members in addition to the conversion of all former Homenet offices.
Harcourts has been rated one of the top international real estate brands by world real estate authority Stefan Swanepoel and is the fastest growing group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia. It currently has more than 600 offices world-wide, employs 4000 sales consultants and sells more than $19,5bn worth of property every year
Saal de Jager, owner of Harcourts Parys, says the infusion of new energy in the local real estate market could hardly come at a better time. “Harcourts offers excellent support, training and business systems that will bring many benefits in the current difficult market cycle.
“The shake-out in the market has seen the number of SA estate agents shrink from about 80 000 to 38 000, which leads me to believe that the remaining agents have what it takes to succeed under the toughest conditions.
“All our agents have already obtained the new mandated qualifications and are ready and eager to implement the Harcourts business system, which I believe, will differentiate our offering in the local market,” he says.
He adds that demand has increased in the Parys market. “We notice greater demand among investors, who mainly target apartments and commercial property, and increased enquiries from local buyers who plan to downscale.
“Interest in weekend and holiday properties among buyers from Gauteng is also ticking up and properties on the Vaal River, especially undeveloped stands, are preferred. Large 1,5ha stands are selling at prices of between R800 000 and R1,3m, while luxury homes on the river sell at between R2,5m and R4,5m,” he says.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
SAAL DE JAGER ON
056 817 7464 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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30 October 2009, 10:26:41
International real estate group Harcourts has arrived in the North West province with the conversion of three former Homenet offices to the global brand.
This follows the partnership deal concluded late last year between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is attracting many new members in addition to the conversion of all former Homenet offices.
Pieter Britz, owner of Harcourts Potchefstroom and Harcourts GoldRidge in Carletonville, says the new brand is inspiring growing enthusiasm in the real estate market. “It lends new momentum to service delivery and client services and is set to rewrite the manual for real estate transactions in this country.
“Harcourts’ values, with its strong emphasis on people, fits us like a glove and we are looking forward to introducing our clients to the Harcourts concept,” he says.
The third Homenet office in the province to convert to the Harcourts brand is in Klerksdorp and it will trade as Harcourts Excellence.
Owner Adèl Loots agrees with Britz that the Harcourts values will benefit local property consumers. “It strikes just the right note in the current economic climate, with the motto ‘People first, doing the right thing, being courageous and fun and laughter’,” she says.
“Another great advantage is the group’s international exposure and the innovative training that agents will have access to.”
Loots and Britz add that the conversion to the new brand comes at a very opportune moment as the regional property market is showing signs of renewed activity. “Buyers are displaying greater confidence in the market thanks to lower interest rates and better access to bond finance,” they say.
Martin Schultheiss, CEO of Harcourts Africa, says the group is pulling out all the stops to rebrand all former Homenet offices by March next year. “However, we have our job cut out since more than 20 new offices have joined the group since the beginning of the year and we are still receiving a stream of new applications from independent offices as well as disillusioned members of other real estate groups.”
Harcourts is the fastest-growing real estate group in South Africa and Australia, the biggest in New Zealand, and also operates in China, Fiji, Indonesia, Singapore and Zambia. It has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS
FOR MORE INFORMATION CONTACT
PIETER BRITZ ON
018 294 3385 OR
ADEL LOOTS ON
018 468 7089 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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19 October 2009, 09:57:27
Vineyard estates ceo puts an end to ingenious property scams
Conmen attempting to make a quick buck through dubious transactions in the property sector are often difficult to recognise: they tend to be well mannered and plausible, says Anton du Plessis, CEO of Vineyard Estates, “and it is always with a slight regret that one feels compelled to hand them over to the police”.
One such character recently contacted du Plessis about buying a home in Wynberg priced at over R1 million. Judging by his appearance, he was definitely not able to afford such an expensive purchase, says du Plessis, but he produced Lotto certificates and documents indicating that he had won R1,8 million. This, he said, would not be immediately paid out as it was lottery policy to counsel big winners before handing over their prizes.
Du Plessis contacted the lottery offices but was told that they were not allowed to confirm or deny any winners’ names. They did, however, confirm that on the date specified there had been a winner of R1,8 million.
The potential buyer asked if he could bring a builder to discuss renovations to the property – and the sellers, who were in financial difficulty, were delighted to learn that a cash buyer was at hand. The fact that the cash offer was accepted by the seller derailed a three week negotiation from a serious purchaser, who then purchased elsewhere.
Du Plessis, who had already had his suspicions, became even more sceptical when the buyer failed to produce the deposit on the due date and when he received telephone calls from prospective tenants from whom the ‘buyer’ was trying to take rental deposits.
Du Plessis accordingly had the conman arrested on a charge of fraud. Following interrogation by the police he admitted that the Lotto documents were fake. The case will be heard in court soon.
“Although at this stage nothing is proven it appears that the ‘buyer’ was simply trying to collect a few thousand rand in rental deposits on the ‘bought’ property, using our name and the sale documents to back up his claim that he was about to buy the house. Had we not become suspicious, he could have disappeared with three or four deposits from various tenants and may in fact have already collected several by the time of his arrest. We urge any victims to contact the Claremont police.”
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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19 October 2009, 09:55:57
Start doing your homework for the nca long before you make an offer
Those who plan to buy a home should very definitely not wait until they make their final choice before getting their documentation in order, said Lanice Steward, MD of Anne Porter Knight Frank.
“A buyer who has seen a bond originator and made sure of his position vis a vis the National Credit Act will be in a far better position to get his offer accepted quickly,” said Steward.
Matters which should be looked into, she said, are
Tax: it is essential to have your tax paid up to date because unpaid taxes will result in the transfer being held up. If you are buying in a spouse’s name, check that he or she has a tax number.
Proof of salary: to qualify for a bond, you will have to produce salary slips dating back at least three months. You will also have to produce an analysis of your full monthly expenditure.
FICA compliance: to get yourself cleared under the Financial Intelligence Credit Act, you have to produce not only all bank statements but also your ID book and evidence of residence.
Debts: bonds are always awarded quickest to those who have only limited debt. It will pay before you start house hunting to eliminate serious debts, including credit card sums. If for any reason you have been blacklisted by the credit bureaus, it is wise to get his matter dealt with.
“Often,” said Steward, “a homebuyer will have overlooked some minor payment or refuse a payment because of a dispute. This can result in his appearing on the bad debtors list, which could result in his having his bond application refused.”
“Any purchase as large as a home,” added Steward, “is likely to be stressful. In the circumstances, the more you can clarify your position early on, the better. The person with his bond position and documentation already sorted out is in a far stronger bargaining position.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za
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19 October 2009, 09:55:15
Diepriver’s central chelsea area taking off as the place to live
The huge property transformation which has taken place in central Diepriver has, says Lisel Blake of Greeff Properties, been noted by those property investors who time and again get in at the start of an upward curve on the value graph – but it is still largely unknown to most Capetonians.
“It may surprise those with stereotyped ideas as to what comprises a “good” Cape address to know that Diepriver is now decidedly “in”. If you are a young, upwardly mobile professional, academic or entrepreneur, this is the place to establish a home,” said Blake, “and,” she added, “with so many young vibrant couples there is a friendly community spirit here that is simply not possible in suburbs with large properties and empty streets.”
Greeff Properties’ latest offering in this area is a cottage-type home with warm wood finishes and a great entertainment flow. As often happens at Diepriver, the interior spaces are larger than visitors initially expect. They comprise three bedrooms, a study nook, a living room (with a fireplace), a dining room (also with a fireplace), and a spacious family room with large sliding glass doors leading to one of three interlinked small gardens – and this one has a pool.
Liz Robertson, also on the Greeff Diepriver team, said that this home encapsulates all that Diepriver’s Chelsea precinct can offer.
“Right now,” she said, “there can be few buys with better prospects anywhere in the Cape Peninsula. Once people have experienced central Diepriver, they are hooked.”
For further information contact Lisel Blake on 083 267 4335 or Liz Robertson on 082 895 3417
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19 October 2009, 09:54:09
Upper Claremont home offers chic, modern look – and 180¢ª views
Those Capetonians who think that there is no better mountain vista than Table Mountain’s Southern Spine, from Devil’s Peak to Constantia Nek – the view open to many lucky Bishopscourt and Upper Claremont residents – will find Greeff Properties’ latest offering, a low-profile, light and bright five bedroom home in Upper Claremont, very appealing.
“This home,” says Simon Raab, Sales Manager at Greeff Properties, “epitomises what upcountry people think of as a sophisticated Southern Suburbs lifestyle. It has wide, open plan internal living areas, long patios, extensive glazing, solid timber floors and a restrained but chic minimalist elegance.”
The home has a separate flat with its own entrance and an external Jacuzzi that takes the place of a pool.
The rear section has on site parking for no less than five cars and a triple garage. The security arrangements are sophisticated and effective.
Teaming up with Raab for this project is Carol Bracken. Their cell numbers are 082 325 8801 and 083 225 6813
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19 October 2009, 09:50:01
Franchising in all spheres, but especially property, can make up for a lack of education experience and finance, says rawson properties chairman
It is, said Bill Rawson, Chairman of Rawson Properties, ironical that at a time when the banks are probably employing more financial consultants than ever before, allocating one to every client with a turnover that exceeds a certain level, it is difficult for the young entrepreneur with good ideas to find either a loan or a mentor who will guide him through the initial years of his business.
When he first set up on his own some 35 years ago, said Rawson, bank managers, who almost always had considerable business experience in a wide spectrum of activities, were on hand to guide and advise the young businessman - and were empowered to lend him money on their assessment of his prospects.
"I owe a huge debt to such bank managers," said Rawson. "Without them we would have struggled to get started and our growth would certainly have been a lot slower."
Today, said Rawson, the entrepreneur will often find himself up against a brick wall - unless, which is unlikely, he can produce rock solid guarantees for every cent that he borrows.
This, said Rawson, is especially the case with young blacks.
"They frequently have the dual disadvantage not only of having had minimal real exposure to business but also of an education which has almost always been inferior to that of the more privileged whites. Some still 'make it' despite these handicaps, but in my experience they have had to be quite exceptional people."
In the circumstances, said Rawson, business has to take on the role of financiers and educators/guides that the banks at one stage played - and, he added, one of the best ways of doing this is through franchising.
"A good franchise system - and it has to be admitted that many are not good - will always supply initial and ongoing training and advice. In addition, the franchisor will monitor the franchisee's performance week-by-week and steer him clear of pitfalls. Furthermore, in some cases, the franchisor will secure for his franchisee some or all of the finance he needs. It is not surprising, therefore, that franchising is catching on so fast, particularly in the property sector."
Franchising, said Rawson, is especially popular among those wanting to enter residential property marketing because this has, for some, a panache and appeal that the more basic forms of retailing and engineering services lack and in the right hands real estate marketing can produce significant returns.
Rawson said that to date the property sector, although on the whole committed to transformation, has had limited success in handing over responsibility to previously disadvantaged managers. Those in the lower end 'Black' market, he said, have had limited successes but in the 'Brown' market (at least at Rawson Properties) franchising has proved very worthwhile.
"This situation, I am confident, will change and it will be franchising that makes the difference because it will in the long run pay the franchisor to be involved with inexperienced and untrained black franchisees. The process has not been as fast as we could have wished, but it still has the potential to be speeded up and to upgrade struggling ill-informed operators into sophisticated marketers."
Rawson added that in the current still difficult property scene, Rawson Developers and Home Builders were finding that they, too, could provide useful advice and resources to less experienced developers and this, he said, is likely to result in three or four new joint venture developments in the year to come.
"We have been surprised at how readily certain developers with less experience in the field than we have been prepared to tie in with us and make use of all the advice and expertise that we can give them," he said.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com
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09 October 2009, 08:08:24
The international Harcourts real estate group is now represented in Kimberley, following the conversion of leading local agency Homenet Kimberley to the powerful new brand.
And agency principal Marina Smith, who is well-known in the diamond city’s real estate market and heads up a dynamic team of seven agents, expects the conversion to attract quite a lot of attention.
“Kimberley is a relatively small place and any changes to its business make-up are picked up quickly. Such a significant shift from one brand to another will definitely not go unnoticed and that will of course mean good publicity.”
But even more important, she says, is what the changeover will mean to the city’s real estate consumers. “With 600 offices internationally, Harcourts has the experience and know-how to equip its people with the training, systems and technology that makes it possible to deliver stellar service at a completely different level than SA consumers have previously experienced.”
The transition to the Harcourts name follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
Harcourts Africa CEO Martin Schultheiss says the group represents the ‘next generation’ of estate agency practice and is creating huge excitement in the SA real estate industry. “We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.
“We have also now rebranded more than 40 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
The global group’s 600 offices employ 4000 sales consultants who sell more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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09 October 2009, 08:07:38
Renowned international property group Harcourts is making waves in East London with the conversion of four leading local estate agencies to the brand.
The four former Homenet agencies changed over to the Harcourts brand recently following a partnership deal between the two groups that has seen a new giant, Harcourts Africa, emerge in the SA real estate market.
Phil Rawstron, who has renamed his agency Harcourts Advantage, says the switch has unified the old Homenet group under an established and reputable international banner.
“A great advantage is that we are moving forward in difficult economic times, a fact that is not lost on our clients. It is also the ideal opportunity to bring my top agents in as partners to form a solid and reputable association that will boost our offering to our clients.”
Lance Gouws of Harcourts Cornerstone adds that the professional image and approach of the Harcourts group will add value. “I strongly identify with the Harcourts values of putting people first, doing the right thing, being courageous and having fun and laughter. That is precisely the way I think real estate companies should operate.”
Kim Wood of Harcourts on the Bay says Harcourts is bringing new vigour to the local property market. “It is a dynamic brand fuelled by a new energy and successfully driven by the Harcourts Africa CEO, Martin Schultheiss.”
Annie and Ronnie Coetzee of Harcourts Mercantile, the fourth agency to convert, note that Harcourts has proven systems that are re-invigorating the local real estate industry.
Harcourts has been rated as one of the top five international real estate brands by world real estate authority Stefan Swanepoel. It is the fastest growing group in Australia and the biggest in New Zealand and also operates in China, Fiji, Indonesia, Singapore and Zambia. It currently has more than 600 offices employing 4 000 sales consultants and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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29 September 2009, 12:15:53
Pretoria estate agent Ewa Schutt has been named by the Aida group as its top agent for the year – and received a string of other accolades at the group’s recent awards ceremony.
Schutt’s other awards include national top non-residential agent, and she was placed first in the categories national top agent for commission earned as well as commission earned in a metropolitan area.
Several other agents at the Pretoria office also walked away with awards, helping the agency to scoop up the national top agency award.
Sarette Genis and Betsie Summerfield took national top spot for a team working in a metro area, with colleagues Vernon and Dianne Geere in second place.
Maggie Smith was named as the group’s top rookie agent in a metro area and placed second nationally for commission earned by a rookie. Anza Visser was placed in the top three for units sold by a rookie agent in a metro area.
And Zenta Botes and Hannes van Niekerk were among the top four for units sold in a metropolitan area.
The awards were presented by Aida National Franchises’ CEO, Young Carr, who said Aida agents performed exceptionally well during a most difficult period in the real estate industry.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Pretoria: 012 348 3720
Contact: Piet Joubert
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Pretoria estate agent Ewa Schutt has been named by the Aida group as its top agent for the year, and the Aida Pretoria office owned by Neels Pretorius and Johan van der Westhuizen took national honours as the top perfoming office at the group’s recent awards ceremony.
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28 September 2009, 08:24:03
Teamwork garnered high accolades for two pairs of Aida agents in the Western Cape at the recent Aida National Franchises annual awards ceremony.
Hendrien Louw and Johan Truter of the Aida West Coast office scooped the award for the top team overall for agents working in coastal and rural areas, while Sandy and Andrew Swart of the Milnerton office took the top spot for teams working in an urban area.
They were among many Aida agents honoured for their commitment and top performance during the past year. The awards were presented by Aida National Franchises’ CEO, Young Carr, who said they had performed exceptionally well during a most difficult period in the real estate industry.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida West Coast: 022 7721395
Contact: Johan Truter
Aida Milnerton: 021 551 5025
Contact: Ricci Johannessen
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Hendrien Louw and Johan Truter of the Aida West Coast office with Aida CEO Young Carr. They claimed the national award for the top team working in a coastal or rural area.
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Sandy and Andrew Swart of the Aida Milnerton office with Aida CEO Young Carr. They claimed the national award for the top team working in an urban area.
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28 September 2009, 08:22:49
International property marketing group CENTURY 21, the worlds largest, celebrates its second anniversary in South Africa with the news that it has weathered the economic downturn well and is now gearing for the market’s upturn.
MD Colleen Gray says the strategy going forward is multi-faceted. “We already cover the whole spectrum of the market from luxury homes to the affordable. The plan now is to further strengthen our presence at the lower end of the market where growth is expected to be strong going forward based on housing backlogs and the banks’ willingness to provide finance.
“Consolidating and growing our franchise base is also key. In terms of our national footprint we have actually expanded during the worst of the property market recession, as opposed to the attrition that has been reported throughout the industry and reduced the number of agents by more than half.”
This attrition, coupled with the new demands on estate agents in terms of continued professional education, means the numbers of estate agents are not likely to swell disproportionately again, she says, and the survivors will arguably be the hard core of professionals, which is good for consumers.
“We now have an established track record which is reflected in consumer and franchisee confidence in the brand and we have positioned ourselves strategically in markets such as lifestyle estates that are beginning to show signs of a recovery.
“Moreover our international referrals network, derived from over 8500 offices in 69 countries, has proved invaluable in generating buyers from as far afield as Russia, America and Belgium. In South Africa itself we are looking to increase the number of our offices significantly over the next 18 months as the market strengthens.
“And recognising that the market is not ideal for ‘start-ups’ right now, we are focussing on existing independents. On that basis our affordable franchise offering is totally relevant and we are specifically targeting previously disadvantaged South Africans as potential franchisees with a particularly attractive package.”
Meanwhile, Gray says, CENTURY 21 has detected a distinct pick up in the market as a result of recent rates cuts. Although the easier lending promised by the banks has yet to filter through, show day turnouts have increased, volumes are up and prices have stabilised. There is definitely the sniff of a recovery in the air.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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25 September 2009, 08:27:30
71 loop street offers chic urban living
Greeff Properties now have three penthouses on the market at 71 Loop Street, in the centre of Cape Town.
The ten storey building, dating back to the 1950s, has been given a complete makeover with office floors on seven levels, limited retail space on the ground floor and six luxury apartments on the ninth and tenth floors.
Heather Cape, Greeff Properties Developments Manager, said that the units are decidedly upmarket with prices set from R2,65 million to R3,45 million and floor sizes that range from 126m² to 160m².
“The finishes,” she said, “are ‘European’, chic, sophisticated, modern and minimalist. The flush glazed large glass doors tilt outwards for ventilation and all façade glazing is double, so as to minimise air-conditioning costs and almost totally eliminate exterior sound. Floors are of solid timber (not laminated) and there are generous allowances for cupboards in the kitchens and bedrooms, with the buyer having a wide range of choices. The bathrooms have timber countertops and beautiful porcelain sanitary ware.”
The interiors, said Cape, are also notably European in that they are spacious, open plan and most of the rooms and decks enjoy panoramic views that take in the Table Mountain and Table Bay.
Parking is provided in an adjacent building. The foyer is manned round the clock by a concierge.
Mike Greeff, CEO of Greeff Properties, said that these units are among the best available in the CBD – “They are,” he said, “more sophisticated and, in my view, more attractive than most of the CBD units spawned by the CBD boom of the last eight years.”
For further information contact Heather Cape on 021 763 4120 or email hmcape@greeff.co.za
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25 September 2009, 08:26:10
28 plot and plan units being launched at hemel en aarde, hermanus
“Hemel en Aarde Hoff”, a new group housing development within the Hemel en Aarde Estate, a well known and sought-after security lifestyle residential development sited 3km from the centre of Hermanus, is now being launched.
“The launch of this development, I believe, is ideally timed due to the upswing in the property market in Hermanus that is now being experienced. It offers buyers an opportunity that up until now has not been available in this popular estate. Carefully designed properties based on all the previous experiences of other builders, developers and homeowners at this estate will be developed on a piece of land in a prime position close to the clubhouse,” said Wayne Albutt of Rawson Properties, who specialises in properties in this area.
“The first six homes are now being built and when completed will showcase the ambience of Hemel en Aarde Hoff. Buyers can view these properties and see firsthand the careful design approach and insight of Reg Whittaker, the architect, as well as be reassured of the quality of build workmanship and finishes.”
All of the new homes will be made available as plot-and-plan opportunities giving the buyer the freedom to select their own finishes based on personal taste. Minor design changes can be negotiated and considered to cater for individual needs.
“Special care and attention has been given to sticking to the estate’s architectural guidelines, while providing for Hemel en Aarde Hoff to have its own character within the greater estate,” said Albutt.
Large common areas and well positioned dwellings will ensure that privacy, indoor/outdoor liveability and views are maximised.
“Hemel en Aarde Estate has proven to be very popular among retirees, young and old Hermanus residents and as holiday homes to both foreigners and from the Western Cape. The facilities include a clubhouse, swimming pools, a fully equipped gymnasium, squash and tennis courts and steam and sauna rooms.
“Hemel en Aarde Estate Hoff will be even more popular,” added Albutt.
Contact Wayne Albutt on 082 909 2963 or Rawson Properties Hermanus on 028 3131870 for further information.
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18 September 2009, 07:50:14
 Polokwane estate agent Jerry Kganyago has been named as the Aida group’s top agent nationally for the number of units sold during the past year.
Kganyago has also scooped the award for the top selling agent of units in a metro office and was placed among the top four metro agents for commission earned.
His sterling performance helped push his office into the limelight at the recent Aida national awards ceremony – the Polokwane franchise made in into the top three for units sold during the year and was placed second nationally for commission earned. The office also took third spot in the category top national office overall.
The awards were presented by Aida National Franchises’ CEO, Young Carr, who said Aida agents had performed exceptionally well during a most difficult period in the real estate industry.
Issued by Aida National Franchises
Aida head office: 012 862 9600
Contact: Young Carr
Aida Polokwane: 015 295 3134
Contact: Jerry Kganyago
Polokwane agent Jerry Kganyago, who was recently named as Aida’s top agent nationally for the number of units sold in the past 12 months.
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18 September 2009, 07:49:26
Clear evidence of a sustained upswing at Greeff properties
Talk of green shoots, a recovery, a return to normality, an end to price deflation, and even a positive upswing has been bandied about by the PR agencies serving SA’s major real estate agency groups to the point where scepticism and even downright denial have become almost as prevalent as the more positive market hype.
In the circumstances those attending the latest client update session at Greeff Properties found it something of a relief to hear a measured, restrained analysis from Greeff’s MD Graham Leslie, - and the good news is it that it was good news.
Leslie said that since March Greeff Properties’ sales turnover had increased month by month (with the exception of May) and that since June the pickup had been “almost spectacular”.
The actual year to year figures read as follows: March up 38%, April up 4% , May down 27%, June up 91%, July up 25% and August was a staggering 232% up in the Southern Suburbs alone.
“In August,” said Leslie, “we actually notched up R84 million worth of sales, a monthly figure we last saw at the height of the 2006/7 boom.”
Mike Greeff, CEO of the group, added that what was particularly impressive was that, even after knocking two large sales off the list, the growth in August was still up substantially on August 2008.
“I am not saying we are out of the doldrums yet,” said Greeff, “but it does appear that an upward trend is now evident – and talking to the leaders of some of the other larger brand names, it would seem that they are experiencing much the same sort of trend.”
Greeff added that the figures refers only to Cape Town’s Southern Suburbs – they do not take into account any of the sales achieved by the new branches licensed by Greeff to Marion Taylor’s operations in Camps Bay, Hout Bay and the City Bowl.
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18 September 2009, 07:45:27
 Aida Rustenburg has walked away with the national award for the estate agency group’s top rental agency in the past 12 months.
This is the first year that Aida has made an award in this category in its national award presentations, and group CEO Young Carr says it decided to do so because, with the property market under pressure, rentals countrywide have grown in leaps and bounds.
“We felt it was time that offices and agents who are active in this sector of the property market receive the same recognition as their peers in other sectors.
“It was thus a great pleasure to award the top spot to Rustenburg, which had the added honour of scooping the award for our top rental agent, Michelle Easton.”
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Rustenburg: 014 592 1501
Contact: Chris Pieterse
Aida Rustenburg principal Chris Pieterse displays the national Aida award for top rental agency which his office won recently
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17 September 2009, 10:29:17
Hi there Keith
Thank you for your comments. With regards to your question "I am looking for a sandbag supplier,as I aintend building my own sandbag streucture. Can you be of assistance in this regard?" The best people to contact regarding this subject are the architects who were involved and responsible for the Sandbag Houses in Cape Town and they are MMA Architects.
Here is their website address: http://www.mmaarch.co.za/home.asp
Hope this helps you!
Kind Regards
The CyberProp Team
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17 September 2009, 07:52:51
The international Harcourts real estate group now has two offices open on the West Rand, thanks to the rebranding of leading local agencies Homenet Jon Rosenberg and Homenet Rhino.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
The newly-named Harcourts Rhino is continuing to serve homebuyers and sellers in Roodepoort and Krugersdorp, where it has operated for the past 19 years. Principals Louis Barbosa and Mauro Mosca are however excited about the transition to Harcourts which, they say, will place their real estate group in a much better position than other SA groups in that it won’t have to play “catch-up” after the recession.
“Harcourts Africa is effectively being boosted to a whole new level through the international group’s branding, marketing, training and IT systems. These tools will give us a huge head start in the struggle that local real estate companies will soon be facing if they want to compete in an increasingly multinational business that has been made even tougher by the credit crunch.”
Jon Rosenberg expresses similar sentiments, saying that Harcourts has brought much needed energy to the old Homenet group and noting that many other real estate agencies are joining Harcourts Africa as it offers an exceptional value proposition geared towards bettering agents in all spheres of industry practice.
Rosenberg, who has 27 years of industry experience, employs 12 agents and says his office, now named Harcourts Jon Rosenberg, serves homebuyers and sellers in all the areas from Auckland Park to Ruimsig.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
The global group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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17 September 2009, 07:44:38
Consumers buying property through Aida agents can now look forward to improved bond origination services.
This follows a partnership deal earlier this year between Aida’s holding company Jigsaw and Sanlam, to form Sanlam Home Solutions (SHS) and help consumers gain entry into an increasingly tough property market.
SHS has now brought the PA Group on board in a deal in terms of which SHS sales and administrative staff will be transferred to PA’s mortgage originator BetterBond.
Young Carr, CEO of Aida National Franchises, says the deal represents a great leap forward in the services that Aida clients can expect. “The partnership with BetterBond means that the number of bond consultants increases from 22 to 162, which will streamline service to Aida clients through greater capacity.
“A service level agreement has been concluded with BetterBond and the process will be managed by a dedicated sales team, which means homebuyers can look forward to professional origination services supported by the extensive BetterBond infrastructure and experience.
“We believe this step will greatly benefit our clients in a market where it has become crucial to find bond finance on the best possible terms and in the shortest possible time,” he says.
Aida clients also have access to Sanlam’s wide range of products in terms of the Sanlam agreement. “Clients have streamlined access to insurance products, including householder and homeowner policies, which further enhances Aida’s one-stop service for property consumers,” Carr says.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
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11 September 2009, 15:15:32
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FROM THE EDITOR |
Royalty in trouble? Prince Charles found himself in trouble with many British architects as he promotes classical designs over modern “carbuncles”. His hostility to modern architecture but his longstanding design crusade is now drawing accusations of abuse of power. "It is unfortunate if anybody uses their position in public life to exert undue influence on a democratic process such as planning," Ruth Reed told the BBC on Tuesday, the day after becoming the Royal Institute of British Architects RIBA's first female president.
I cannot help to wonder what would happen if President Zuma would speak about architecture designs. Would he be able to charm the architects as he has charmed his wife and nation?
Headlines: Good news for South Africans; the August oobarometer price index recorded an increase in year-on-year house prices of 6.9 percent; Property Slump over
Market update: Although the Reserve Bank’s new mortgage loan numbers remain weak, the mildly diminished rates of year-on-year decline in the value of new mortgage lending indicate a household sector that has begun to respond positively to sharp interest rate cuts. This is good news because almost all the banks have now announced a relaxation in mortgage lending, which bodes well for the property sectorHow a consortium of Malaysian developers is taking the destination to the buyer; New Home Loans show effects of interest rate cuts
Marketing focus: Property websites receive record number of visits. You can nominate our property portal CyberProp.com for the 2009 E-Commerce awards as your favorite property portal. Nominate Us Now
To follow up on their Google mapping Google announced that they are expecting to introduce their Street View option very soon in South Africa. They will be collecting images through Street View cars that are fitted with cameras that records the images as the cars are driving. These images are then put together to give you a “street view” of a specific location. According to Google it has benefits for house hunters. Send your view to news@cyberprop.com
Enjoy!
The editor
CLICK HERE FOR MORE
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CyberProp Property Count: 11/09/2009 |
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Properties for Sale: 134,533
Properties to Rent: 10,391
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11 September 2009, 09:21:47
Top agents still achieving high sales because they know their markets
The recession in the property industry has severely affected sales and led to some 60 000 agents leaving the industry.
Has this meant that even top agents are selling far less – no, apparently that is not the case.
Anton du Plessis, CEO of Vineyard Estates, says that some top agents have continued to achieve a very high level of sales despite the downturn. (He himself has recently sold five homes in five weeks – at an average price of R3,9 million).
What is it that sets the top ten to fifteen percent of agents apart from the less successful?
Du Plessis says that, after 22 years in property marketing, he has come to believe that two attributes of really good agents stand out every time.
The first is in-depth knowledge of their area and how homes in it are reacting to current circumstances.
“The client has to be confident that the agent really knows the market and can substantiate the reasons for his estimate of the home’s valuation. He must show that he knows the sales history of most similar homes in the area.”
The second factor, said du Plessis, is the ability to “match up” the home with the buyer.
“The agent must learn quickly to understand what his buyers – and their families – are really “about” – what sort of people they are. He will then show them the houses that genuinely suit them. There are few things clients find more frustrating than having to view a series of unsuitable homes purely because they are on the agent’s list.”
“Matching up buyers with homes,” said du Plessis, “calls for a well-trained, perceptiveness in listening.
“It has to be accepted that clients are often inarticulate or devious in the way they present their needs. Some will pose as poor when they are fairly rich. Others will pretend to be richer than they are. Many, while insisting that their homes should have this or that feature or characteristic will change their minds when shown something else attractive. We recently sold a charming house with a tiny garden to a couple who had been adamant that they wanted a big garden – certain other features of the house more than compensated for its lack of greenery.”
Good agents, added du Plessis, have learned to react quickly to every opportunity. They make appointments as soon as possible and they strive to get offers finalised fast. They do not waste time with buyers or sellers who are not serious.
“It is,” he said, “quite possible to end up bring a tour guide for bored people who would like to see what is on the market but have no real intention of moving home for a few more years.”
Even in today’s market, said du Plessis, top agents will find one buyer in every eight or nine that they actually take to a home.
Less competent agents will take on 20 to 30 buyers – and still end up with no sales.
“This fact,” he added, “is particularly relevant when it comes to selling your home because it can be disastrous to have a home on the market for weeks or months without its finding a buyer. Check what your agent’s sales record is – and do not accept that because the company is big their agents are necessarily the best: there are good and bad agents in most organisations.”
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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10 September 2009, 09:21:10
Tony Clarke, MD of Rawson Properties, has drawn attention to what are known as the “Rescue Provisions” in the New Companies Act no 71 of 2008.
Quoting the legal commentator, Charles Smith, Clarke said that the Act will severely restrict landlords’ rights where the tenant is a company or c.c. in financial difficulties.
“Under the new rules,” said Clarke, “any tenant company which is experiencing cash flow and other problems can now apply for a court order which results in their being voluntarily placed under court supervision, the court being given the power to institute “rescue proceedings”.
So far, so good – but, Clarke points out, while these proceedings are being put into effect, a moratorium is placed on all legal action against the company, making it impossible for the landlord to sue for unpaid debt or evict a tenant until the company either recovers its financial stability or is placed in liquidation.
“Rescue exercises could take several months,” said Clarke. “Is a landlord paying a bond on a property expected to wait out this whole period? Will the court make provision for ongoing rent payments in the interim? If not, the whole arrangement seems to be weighted in favour of the tenant without any consideration given to the fact that the landlord may also be financially stressed in times like the present.”
“Charles Smith,” added Clarke, “indicates that there could be alternative ways of securing a landlord’s rights in this situation but it is difficult to see what they could be: a company protected by the court would be exempt for a time from most debt payments.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com
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09 September 2009, 09:18:50
New on the market. Expansive badgemore, constantia home ideal for large, active family – and entertaining.
Rawson Properties’ Constantia franchise has secured a mandate for a Constantia home on an erf just under an acre in the Nova Constantia area, close to the Constantia Uitsig vineyards that, without being “over the top” has some of the best features he has ever seen in a home at this price level, says Rawson franchisee, Eugene Pienaar.
These include immaculate slatted timber ceilings, large sash windows and complementing textures like terracotta tiles, screed and wooden flooring.
The L-shaped Cape Vernacular style home, with two gables, is low a profile but extends over a large footprint to give over 600m² floor space. The home is complemented by a large flatlet. The garden has extensive lawns, ideal for lawn tennis or croquet and a well cultivated boutique Merlot Vineyard. There are also some attractive cricket nets and a modern swimming pool.
The home has four bedrooms, two en-suite and both formal and informal living areas as well as a study and a large office with its own waiting area.
“What makes this home so special,” said Pienaar, “is that it has a separate entertainment wing with a billiards room, bar with a wine cellar, barbeque area and lounge (with a fireplace), all leading onto a large veranda, again, with a slatted timber ceiling. This is a perfect summer al fresco entertainment area.”
Most of the rooms in the home look out onto the mountain and these views are open year round – the property, therefore, has a tranquil atmosphere, said Pienaar, but is well protected by state-of-the-art security systems.
The listed price for this once in a lifetime home is R8,9 million.
For further information contact Greg Kruyer on 083 445 2444 or Sandy Dicey on 083 786 4803
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08 September 2009, 16:51:18
Quoting TEBOGO PHAKOAGO "I Want To Sell a Property In Witbank and Staderton through Quick Sell a Property In Standerton and In Witbank"
For any more information regarding Quick Sell Properties please contact Aida National Franchise, as they issued tyhis particular article:
Aida head office: 012 682 9600
Contact: Young Carr
Kind Regards
Cyberprop
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08 September 2009, 16:37:56
Quoting TEBOGO PHAKOAGO "If you look at property in the Western Cape and the rest of the country; Western Cape might get a little overrated the last few years. Prices are going up immensely. Do you think 2010 will have an even higher impact on this?"
Yes we do think that 2010 will increase the prices of properties.
Kind Regards
Cyberprop
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08 September 2009, 09:17:21
Rawson Properties’ Hermanus franchise is marketing this contemporary four bedroom home, located in the upmarket mountainside suburb of Chanteclaire just 5km from the town centre of Hermanus, at a price of R5,95 million.
The home offers panoramic sea and mountain views and a large, irrigated garden. The home has a wireless alarm system and an automated gate.
There is a double-vaulted formal lounge with fireplace that leads onto an undercover braai patio and a swimming pool. There is also a study and a games room. The dining room and kitchen are open-plan with a separate laundry and scullery area with adequate space for all major appliances.
The main bedroom has a dressing room and en suite bathroom with underfloor heating and heated towel rails. It opens onto a spacious sea-facing patio with a Jacuzzi. There are a further three spacious bedrooms and bathrooms.
There is a double automated garage and off-street parking for at least two cars.
For further information contact Ronnie Young on 082 461 4845 or 028 313 1870
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04 September 2009, 15:11:00
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FROM THE EDITOR |
According to International Living magazine South Africa and the United Kingdom are two places not to retire primarily because of high real estate prices. South Africa didn’t do well in any of the categories. Wrong according to me. South Africa offers numerous reasons why it should be first choice, fantastic climate, rich in culture, high standard of living and many more. The Best Place in the World to Retire, Says International Living
It seems that the property market overall has certainly recovered well from the lows that was experienced in 2008 and parts of 2009 and that the worst is over. I’m sure that with us heading into Spring and nearing the end of 2009 we could see even more healthier activities. Looking at the latest Absa House Price Indices it is clear that the year-on-year house price deflation in the small houses, medium-sized houses and large houses segments are for sure slowing down. As for the FNB, "The FNB House Price Index's year-on-year decline continued in August, but for the second successive month we saw a diminishing price deflation rate, with the index starting to show clearer signs that the market is starting to stabilise" said John Loos, property strategist at FNB.
For those of you that is not sure in which segment your property falls;
- Small houses – (80m²-140m²),
- Medium-sized houses (141m²-220m²)
- Large houses (221m²-400m
It is not only house prices that are starting to show signs of recovery but the approach of the banks has also improved. In the affordable housing market Standard Bank is now granting 100% bonds where Absa and FNB is willing to grant bonds for those earning under R 15 000 and R 11 000. With property price starting to stabilise and the banks offering a more open hand to lending South Africa is looking forward to 2010.
If you’re thinking that maybe you should wait before you take action think twice and start doing your homework as property still stays one of the best investments that you can get involved in.
Enjoy!
The editor
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CyberProp Property Count: 04/09/2009 |
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Properties for Sale: 134,695
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03 September 2009, 08:15:10
MASSIVE SAVING on office rentals- Phenyo House is the place for PROFESSIONALS to be, with A-GRADE Offices at c-grade prices!!
Braamfontein’s revival is continuing at frenzy- hot off the heels of the Kopano House redevelopment (corner Melle and Smit Street, Braamfontein) Rejuvenate Properties is set to kick off another exciting project with the R10 million redevelopment of the old SAMRO House building , now known as Phenyo House.
Phenyo House has over 5,500m2 of lettable space. “We are looking for professionals such as accountants and lawyers as well as A-grade type tenants to occupy the building. Rentals start at an unbeatable R50 /m2 and we are offering up to 4 months rent free period over and above a generous tenant installation allowance. At these rentals tenants can enjoy high quality standards as well as make savings of up to 60% on their current rentals” comments co-developer Nicholas Katsapas.
Phenyo House (meaning ‘Victory’) is situated in a prime position on the corner of Juta and De Beer Street, Braamfontein within the same redeveloped precinct that Rejuvenate Properties other buildings are located. The building is situated within 5 blocks of the Gautrain and Park Station and the M1 highway on/off ramp is 700 meters away. A BRT station (the new bus system which links up to the Gautrain) will be built next door the building. This will ensure that all employees are able to commute hassle free. The building also has ample parking.
Justin Blend of Rejuvenate Properties explains that “the building’s upgrade will generate a very modern atmosphere- we will only use the best materials, such as porcelain tiles, granite counters and beautiful wall papers. The ground floor is well suited to hosting conferences as well as small and large meetings, as there is a huge demand for these facilities we are currently looking for a conference operator to rent this space. Tenants will also have the benefit of being able to make use of this space”.
The redevelopment of Phenyo House offers tenants the same outstanding standards as new offices such as air-conditioning, modern lobbies and lifts but with much lower rentals, resulting in quality space with a competitive advantage, helping business to fight the recession.
Blend adds “Phenyo House falls perfectly in line with our vision to redevelop as many buildings as possible in the newly revived Braamfontein, from C-grade to A-grade office space and offer extremely low rentals”.
For all enquires contact- Justin Blend 082 4611 445
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02 September 2009, 08:08:27
Bardale village moves onto phase two
Phase two of the eight phase Bardale Village, a security lifestyle village in Kuilsriver is about to be launched. This will consist of 423 residential homes of similar size and design to the 538 built so far – of which nine still remain to be sold.
As before, the homes will be in a Cape Dutch style with flat roofs, parapet walls and attractive curved gables complemented by pale ochre façades.
The price levels will be only slightly higher than the very competitive levels that have been in operation since the end 2007.
The units available range from R383 990 for a two bedroom unit (58m²) to R524 990 for a four bedroom unit (112m²).
Those who bought at the launch in 2004 have already seen a capital appreciation of 40% in the value of their homes.
Michael Bauer, the managing director of the estate agents IHPC (Pty) Ltd, who are controlling the development, said that Bardale Village is the most ambitious private enterprise affordable housing project currently on the go in Cape Town. It will, he said, consist ultimately of 3 500 homes covering a 90ha site and the marketing and construction programmes could continue right through to 2020, although a big sales pickup is expected from the middle of next year onwards.
“From the start,” said Bauer, “we have made it our aim to create value and standards that would not normally be found in this price range. We install solid wood countertops in the kitchens, built in cupboards in the bedrooms, carpeting with felt underlays in the bedrooms, baths and showers in the bathrooms, and in the larger units we have en suite bedrooms. We also lay roll-on lawns in the gardens. Nothing quite as good as this has been seen previously at these prices at the Western Cape.”
Each phase of the village, said Bauer, is encircled by its own electrified fencing and has CCTV cameras at critical points. Each phase, too, will have its own Homeowners’ Association responsible, among other things, for security and every house will also have its own burglar alarm. All communal areas are landscaped and some 2 000 trees will eventually be planted across the 90ha estate.
The communal facilities, said Bauer, will also be the most comprehensive yet seen in a Cape “affordable” project: they will include two shopping centres,, commercial and medical centres, as well as two primary and two high schools. The developer has been in talks with the Department of Education and they are hopeful that they will be given the go ahead on a public private partnership proposal aimed at greatly speed up the construction of the schools.
Bauer said that the satisfactory take-up by buyers despite the recession of the last 18 months has been due to having well trained property consultants on site as well as an on site ooba bond origination office.
“Our success rate with ooba is way above average,” he said, “partly because the banks are at last beginning to ease up on their lending criteria and, more importantly, because we are very thorough in assessing the chances of an application before we pass it on to ooba.”
The homes are also, said Bauer, attractive to investors who at the moment can get rents of R3 200 per month for a two bedroom unit and R4 200 for a four bedroom unit. This equates to gross returns, before levy deductions of 10 to 12% per month, a very unusual situation in South Africa today.
The estate is, in fact, ideally placed for commuters travelling to Bellville, Durbanville, Century City, Stellenbosch, Somerset West and the Cape Town CBD. It offers easy access to the major highways N1 and N2.
Taxi ranks and bus stops for transport travelling in all directions are close at hand and are easily accessed from Bardale Village.
For further information contact Michael Bauer on 083 255 4442 or the site sales office on 021 9090 301 or visit www.bardalevillage.co.za
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01 September 2009, 08:10:41
In line with its plan to continually set new benchmarks for estate agency practice in SA, the Harcourts Africa this week announced that it is to partner with residential letting legend Raal Nordin and has acquired a substantial stake in his new company, Only Rentals.
“This is a great deal for us,” says Harcourts Africa CEO Martin Schultheiss. “It will enable us to deliver even more value to our existing franchisees by providing them with real rental management expertise, and to further broaden our service offering to consumers. It is such an exciting development that already 20% of our members are in line to sign up for an Only Rentals operation.”
Only Rentals is the new brainchild of Nordin, the founder and original CEO of the highly successful Just Letting franchise chain, and it offers its franchisees a tried-and-tested rental property management system, proprietary software and legal backup.
“We are already a national operation with seven branches in all the major centers,” says Nordin, “but the deal with Harcourts will give us a much larger footprint in the market - and of course international clout - within a very short time. We expect to have at least 20 outlets up and running before the end of the year, and to become the biggest franchised letting company with 150 outlets by 2014.”
In terms of the deal, Harcourts franchisees will now have access to the Only Rentals systems to manage and grow their rental property portfolios. Some are also expected to dual brand their offices and others are expected to set up stand-alone Only Rentals outlets close to their Harcourts offices.
Schultheiss says there will also be major benefits in the deal for consumers.
“We are already providing our franchisees and agents with the best training, technology and systems to make them the top performers in real estate sales. And now they will be using the best rental property management system available to deliver exceptional service to landlords and tenants.”
The deal with Only Rentals follows the partnership agreement concluded late last year between the international Harcourts property group and the local Homenet group, which subsequently became Harcourts Africa - and the fastest-growing real estate group in SA.
“We have opened more than 20 brand new branches this year,” notes Schultheiss, “even though it’s reckoned to be one of the worst ever for real estate, and that’s because we are very clear that the future of real estate franchising is not just about giving our franchisees and agents a ‘brand’.
“The new game is about continuously adding value to make our business owners and agents more competitive and more successful. We are creating a new generation of estate agency practice and our agreement with Only Rentals fits perfectly into that plan.”
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
083 648 0714 OR
RAAL NORDIN ON
076 066 5222
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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31 August 2009, 08:13:21
Rawson bond origination group new selling franchises
Rawson Finance, Rawson Properties’ bond origination group which was established in 2008 is now widening its net by selling franchises.
The first two takers are Sharon Venter, who will serve north-west Johannesburg and Angela Billinghurst who will operate in the Randpark Ridge area.
Rob Lawrence, CEO of Rawson Finance, said that it is no secret that the major bond origination groups, after a three year bull run in which they had doubled and trebled turnovers, had been forced this year to cut back on staff heavily.
“This,” he said, “has presented us, as one of the newer and smaller groups in home finance, with a great opportunity to recruit really excellent staff, many of which have both the experience and drive to go on their own. Some such as Sharon Venter have already run independent companies but now wish to take advantage of a national brand.”
The new franchise operations will be known as “Yellowfin Home Loan Finance”.
“Our aim,” said Lawrence, “is to give Yellowfin franchisees all the support that a big name offers. They will benefit from nationwide advertising and a nationwide referral system, established connections with banks and finance houses, ongoing training and the use of tried and tested user-friendly systems – and they will have myself and others to call up for help at any time any day of the week.”
The new Yellowfin franchisees, he added, will enjoy no special privileges if and when they deal with Rawson property marketing franchisees but they will be free to deal with any property marketing agencies in SA and Lawrence hopes they will do this.
Lawrence said that the response to Yellowfin Home Loan Finance had been encouraging.
“It is quite clear that many bond originators have wanted the chance to go independent and now that this is possible for them, are jumping at the opportunity. We expect to establish 30 franchises in the next 12 months in Gauteng and 20 in the Western Province.”
Both the first two franchisees to sign up with Yellowfin, said Lawrence, are highly experienced. Venter operated previously as Property Choice Bonds and her team, which includes Corinne van Rensburg and Iris Wyman, has over 75 years bank and bond origination experience. She expects to be employing a staff of 20 by the end of 2010.
Angela Billinghurst’s background includes 20 years in fiduciary services, private banking and bond origination. She has a B Com (Banking) qualification. She set up “Fundamentals” in March 2009 and currently employs two staff and has plans to recruit two more by the year end.
She said recently that Yellowfin will be attractive to bond originators with a yen to be independent because, although a strong brand, its franchisees are not hemmed in by the stringent rulings enforced by the larger companies.
“This is a good time to launch a Yellowfin Home Loan Finance franchise,” said Lawrence, “because most people in residential property believe that we are very close to the bottom of the home values graph and that from now on we will see a steady though not spectacular growth in sales.”
For further information contact Rob Lawrence on 021 658 7100 or email rob@rawsonfinance.co.za
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31 August 2009, 08:11:55
Certain areas of Cape Town will benefit more than others from the world cup
There is a widespread expectation in Cape Town that certain people will make a miraculously big killing on property sales at the time of the Soccer World Cup.
Is this expectation justified and, if so, which areas are likely to benefit most?
One of the most experienced of Cape Town’s younger estate agency chief executives, Anton du Plessis of Vineyard Estates, says that certain areas, especially those which are already well known internationally are likely to find additional buyers during the Soccer World Cup period.
“Internationally, recognised names like Clifton, Camps Bay, and Llandudno will certainly benefit. It is also inevitable that the areas immediately surrounding the Green Point Stadium will receive attention and sales from the exposure.”
“If one looks at what has happened in other countries like Spain, Germany and France that have hosted big sporting events, it is quite clear that areas close to the sea or with great views will attract overseas buyers during the World Cup. Having seen the Cape for the first time, it is inevitable that even those who were not planning to buy property may find themselves doing so. We in the property sector expect nothing less than 1 000 additional property sales over this period countrywide – with Cape Town getting the highest proportion.
“Family homes in the conventional suburban areas such as Rondebosch and parts of Claremont, Kenilworth and Newlands, although no doubt attractive, are unlikely to find international buyers. The sort of buyer we can expect to sign up will be one going for a lock up and go facility in the popular recreational/resort areas already known to international buyers. We expect increased interest in such special areas as Bishopscourt and the lock-up-and-go homes of Newlands Village and Upper Claremont is also likely.
A factor that worries him, said du Plessis, is that a great many homeowners are waiting for the World Cup before placing their home on the market in anticipation of increased demand. This could cause an influx of properties for sale in an already overstocked market. The laws of supply and demand dictate that this will result in lower prices being achieved. It remains to be seen whether the increased demand will be able to absorb this supply.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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29 August 2009, 08:16:14
The international Harcourts real estate group is now represented in Edenvale thanks to the conversion of leading local agency Homenet Prime to the powerful new brand.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
Savas Nicolaides, principal of Harcourts Prime, is excited about operating under the new banner. “The South African propertyscape is changing and the property service industry also has to evolve if it is to remain viable. As an international group, Harcourts has the experience and know-how to develop the necessary tools to help agencies deliver better service and we are especially pleased to be able to tap into its technological capabilities.”
Adds Harcourts Africa CEO Martin Schultheiss. “Harcourts really does represent the ‘next generation’ of estate agency practice and is creating huge excitement and injecting new energy into the SA real estate industry.
“We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.
“We have also now rebranded more than 40 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts is the also fastest-growing real estate group in Australia, and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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28 August 2009, 15:22:13
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FROM THE EDITOR |
Second quarter national accounts data show South Africa's economy contracted for the third consecutive quarter. Though South Africa's financial system was spared the worst of the global financial crisis, finance, real estate and business services fell for the second straight quarter, constrained by tight credit.
Last week we placed an article with compelling arguments for why the property market will not recover any time soon just to follow up this week with various articles that there is light at the end of the tunnel after all. It has been reported that there is for sure an increase in demand in some area and the property experts are convinced that the residential market has bottomed out.
In this issue a release from Tony Bales of Bales Investprop on the issues surrounding bank lending in SA currently and the effect this has on the development, construction and investment sectors of the SA economy.
Enjoy!
The editor
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27 August 2009, 09:40:09
After less than a year in the real estate business, Witbank agency principal Liza de Lange has just won the Franchise Businesswoman of the Year award for Mpumalanga from the SA Council of Businesswomen.
Having previously owned and run a highly successful vehicle tracking business, De Lange has since October been the owner and principal of the Homenet franchise in Witbank - which is currently in the process of converting to the powerful international Harcourts brand - and she recently also became the Mpumalanga representative on the Harcourts Africa Franchise Council.
“Liza is a true entrepreneur,” says Martin Schultheiss, CEO of Harcourts Africa, and at the same time she has an innate understanding of the core values that must inform all the decisions and actions of a Harcourts franchisee – as well as the benefits of our training, technology and business systems.
“But more than that, I am proud to say that her Businesswoman of the Year award strongly reflects the quality of franchisees throughout the group. Indeed, this was one of the main considerations that last year led Harcourts International to choose the former Homenet group as its African partner.
“We simply have the best trained and best motivated people – and since we have begun rebranding the Homenet group to Harcourts this year we have attracted even more top real estate talent to our ranks and become the fastest-growing real estate group in the country.”
De Lange says it is already clear not only to industry observers but also to the public that while most real estate groups have been cutting back and consolidating to cope with the economic downturn, Harcourts has actually been expanding its operations, which shows it has great faith in the SA property market.
“What is more, with 600 offices internationally, the Harcourts group has the business systems, marketing methods, technology and tools to enable its franchisees and agents not only to see out the current tough times, but to succeed in the future in a sector that is rapidly being globalised.
“What we have here is the ‘next generation’ of estate agency practice and my team and I are proud and excited to be part of it.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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25 August 2009, 09:49:12
FNB’s Quick Sell Plan not only helps to find buyers for homeowners in financial distress but also presents very good opportunities for property investors.
So says Young Carr, CEO of Aida National Franchises, which has been nominated as a real estate partner for the plan. He notes that buyers introduced by an FNB partner agent can qualify for home loans on Quick Sell Plan properties of up to 100% and receive a 50% discount on transfer costs and bond registration fees.
“This is a very appealing offer in the current tight credit climate, where home buyers are generally required to have a cash deposit of at least 20 percent, plus an amount equal to at least 4% of the property’s value to cover closing costs.”
Buying a Quick Sell Plan property through Aida can make a huge difference to the returns an investor can expect. “To purchase a normal property costing R800 000, for example, most buyers would currently need a deposit of at least R160 000, plus around R32 000 for transfer and bond costs."
“However, the investor who buys an FNB Quick Sell property costing R800 000 with 100% loan, will only need a cash amount of R16 000, half the transfer and bond costs – and once property prices start to rise again, the additional leverage will mean much higher returns for the investor."
“In addition, buying an FNB Quick Sell property limits the investor’s risk. Putting down R16 000 on a property is a lot less risky than putting down R192 000 of your cash.”
Carr cautions, however, that investors should not get carried away and over-extend themselves financially. “Although properties offered in terms of the FNB Quick Sell plan can be viewed as bargains, it would not benefit investors to buy them if they then just ended up having to resell because they bit off more than they could chew and had become distressed sellers themselves.”
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
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24 August 2009, 09:51:05
Average prices in camps bay have risen by 2,24% year on year
Statements from estate agents to the effect that this or that area is bucking the trend, has bottomed out or is now witnessing a revival, are often treated with skepticism of the “that is, after all, is what we expect from estate agents” variety.
However, when an agent with 27 years experience in property marketing says that prices in her area have risen 2,24% in one year, property watchers should take note.
Marion Taylor, who is CEO of Greeff Properties Camps Bay, City Bowl and Hout Bay branches, says that that is the situation in Camps Bay – despite a slight drop in sales volumes.
In April, May and June 2008, says Taylor, 13 houses and five apartments were sold at an average price of R6 880 018 – a surprisingly high figure considering that apartments at that stage were selling at an average price of only R3,2 million, and therefore reduced the overall average significantly.
In April, May, June 2009 ten houses and three apartments were sold at an average price of R7 701 282 – a very substantial increase – on the averages.
What is more, says Taylor, at this point in the property cycle she cannot see Camps Bay prices going anywhere except upwards.
“Over the last six months,” she said, “many of the real estate leaders, including the CEO of Greeff Properties, Mike Greeff, have been advising clients that now is the right time to buy if they want to get in ahead of the next rising market. I, too, am now saying that, especially in relation to Camps Bay. The prices at which houses are now being sold will not be repeated and, by the end of 2010, I expect most will have risen by at least 10%.”
Taylor said that on her Camps Bay list right now are houses priced from R4,95 to R27 million. These, she said, reflect a wide spectrum of what is available. Camps Bay, in her opinion, has become so popular that many buyers find that the only way they can get the type of property they want is to buy an old house and demolish it. Others are waiting for a further drop in prices and the opportunity to make a killing but, says Taylor, this is unrealistic thinking.
For further information contact Marion Taylor on 083 448 0300 or email marion.taylor@greeff.co.za
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24 August 2009, 09:42:09
There is among critics of the SA government – and indeed any government worldwide – a perception that, while private enterprise always strives to find savings wherever possible, those handling state expenditure, having not earned their budgets, tend to be spendthrift.
In the circumstances, says Anton du Plessis, CEO of Vineyard Estates, it was to him a revelatory experience to see just how careful the Western Cape Public Works Department is in spending cash allocated to it.
Vineyard Estates was one of several agencies mandated to find homes in Cape Town’s central Southern Suburbs for new ministers. These had all to be within a specified price range, the top end of which was below R10 million – but getting the PWD to make an offer, says du Plessis, “was no pushover”.
“They looked at almost a dozen homes before selecting one that they considered suitable. They then spent three weeks negotiating to make quite sure that they were getting a price as genuinely competitive as today’s tough market makes possible. In the end, the home they bought was secured at 15 % below the listed price.”
“The team with which he had to negotiate, said du Plessis, included professionals from the valuation, finance and security sectors – and they were highly knowledgeable.”
Once a home is purchased by the PWD for a minister, other teams move in to decorate and make the homes more secure – in the process adding considerable value to the property.
Du Plessis said that he expects to find at least one more home for the team looking for new ministerial homes – and, once again, he accepts that no loopholes will be overlooked by the PWD in ensuring they get the lowest price possible.
Du Plessis commented that those living close to any home purchased for a minister can be grateful because they will benefit from the increased round-the-clock police protection in the area.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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23 August 2009, 09:52:30
Port Elizabeth has its first Harcourts office, thanks to the recent conversion of the Homenet Windmill agency in Newton Park to the powerful international brand.
Named Harcourts Alpha, the office is owned by Denton Henning, who gained extensive business experience in the motor and construction sectors before entering real estate and is enthusiastic about his agency’s prospects as a member of a huge international group.
“The Harcourts referral system, professional outlook, national and international network, behavioural guidelines and general standards are a really a cut above the rest, and its ‘people first’ methodology and training are also very progressive. It gives us all the ingredients to build very successful agencies.”
The conversion of the office to the Harcourts brand follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
However, says Harcourts Africa CEO Martin Schultheiss: “We are very clear that the future of real estate franchising is not just about giving our franchisees and agents a ‘brand’. The new game is about adding value and making your business owners and agents successful and the Harcourts value proposition is already creating huge excitement in the SA real estate industry.
“We see this in the volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups, and in the fact that we have added 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.
“We have also now rebranded more than 40 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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21 August 2009, 15:03:42
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FROM THE EDITOR |
Although home loan payments are now more than 25%
lower than what they were in December last year there was
not much feedback from the property industry on last
week’s decision of the Reserve Bank to cut the repo rate.
I find this difficult to understand if you take in consideration
that Mboweni cited falling house prices among one of
the factors that was taken in account. One would expect the
property industry to be jubilant. Or are they just careful?
Herschel Jawitz chief executive of Jawitz Properties says
that any cut will take pressure off existing homeowners
and that property is now becoming more affordable.
MD of Rawson Properties Tony Clarke was one of the few that
was “more or less” expecting a cut in the repo rate.
“The weak domestic growth,” said Clarke,
“in my view calls for a further drop as soon as possible.”
A survey of real estate executives in 27 countries
showed South Africa, the United States and New Zealand faring
worst as the market downturn worsens. Distressed sales
of global comm. properties rise-RICS
Last week we asked you if you are thinking of upgrading your
property or even looking at building that dream home
and gave advice from two of the property industry gurus. Lew
Geffen, chairman of Sotheby’s International Realty answers
this week in Upgrade in time for the upturn
Enjoy!
The editor
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Limpopo,
Haenertsburg
Property Type: Hotel | Bedrooms: 18 | Bathrooms: 20
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19 August 2009, 08:47:05
The international Harcourts real estate group will soon be represented in Queenstown, as leading local agency Homenet Queenstown changes over to the powerful new brand.
And agency principal Moira Pappas, who has been in the real estate industry for the past four years, is excited at the prospect. She says Harcourts’ technological systems, fresh approach to business and international backing give its member agencies what it takes to “make it” in South Africa despite the current economic downturn.
“And instead of sticking its head in the sand at this time, Harcourts is deliberately investing and expanding its operations. Such a bold move by an international property group of this calibre will do much to up the mood of the South African property industry overall.”
The transition to the Harcourts brand follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
One of the key aspects of this deal, says Harcourts Africa CEO Martin Schultheiss, was that as one of the biggest real estate groups in SA, Homenet could immediately give Harcourts International a national footprint, even in small centers such as Queenstown, so that the brand could immediately make a strong impact in SA.
“And we have already rebranded more than 40 of the old Homenet offices that formed the basis of the group, which puts us on track to have the whole rebrand exercise completed by March 2010
“However, the Harcourts value proposition has also created huge excitement in the greater industry, as evidenced by the large volume of enquiries we are getting from both independent agencies and disillusioned members of other real estate groups. This has enabled us to add 18 brand new offices to the group since the start of the year – making us by far the fastest-growing group in the country at the moment.”
Harcourts is also the fastest-growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
Globally, the group currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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18 August 2009, 08:56:23
Rawson’s MD reveals big increase in sales
Is the residential property sector going through the worst recession since the 1939-1941 slump – or are the difficulties exaggerated?
Bill Rawson, Chairman of Rawson Properties, has said that in his view this recession is not as bad as that of 1969 and 1991 and the 1976-1977 Soweto riots period – while Rawson’s MD, Tony Clarke, said this week that, although he does not foresee a real recovery for 12 months, some of his group’s latest sales figures have been very encouraging.
“We have a company policy of not revealing figures – but I can say that our sales in July were 57% up on those of June, which itself was a reasonably good month.”
Clarke said that the only really reliable guide to trends in property sales are based on six months’ performance but, here again, he said, the overall trends indicate that by this year there will have been half a year’s steady growth.
“Overall growth in the second and third quarters seems now certain,” he said.
Asked to what he attributes this, Clarke said the banks are slowly easing up on their lending criteria and many indecisive, hesitant buyers who were hanging back waiting for signs that the market was at its lowest point are now investing.
“In general,” he said, “they are taking twice as long as before to make up their minds and are much more demanding of value than previously but they are no longer just waiting.”
Although Rawsons has traditionally been strongest in the middle and lower middle categories, any review of sales, said Clarke, will show that they are now a force to be reckoned with in the upper brackets – not only in Cape Town but also in the northern suburbs of Johannesburg such as Dainfern, Fourways and Bryanston.
For further information contact Tony Clarke on 021658 7100 or email tony@rawsonproperties.com
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18 August 2009, 08:54:52
Upper Kenilworth Provencal style home has real design merit, say APKF staff
Every now and then, says Lanice Steward, MD of Anne Porter Knight Frank, a home comes on to their sales list that is unmistakably superior to the vast majority of Cape residences.
One such in Upper Kenilworth, she says, is now on the APKF lists at a price of R7,2 million - and in her view would represent superb value at even 10% more than that figure.
"Although quite clearly upmarket, this house is priced in the middle to upper middle category and is a bargain at the asking price."
Di Hosty, who is handling this APKF marketing task, said that the home, designed by Denis Maas of Maas & Coetzee Architects, is authentically Provencal: with an occasional Cape vernacular feature here and there it has, says Hosty, the ‘Divine Ratio’ (1:1,6) in windows flanked by grey-green wooden shutters and topped by a light grey low pitch roof, above which a single tall chimney with attractive mouldings rises. A small lantern tower on the roof ridge allows extra light into the living rooms and the north-facing front facade is protected from sun by a deep shaded veranda with fold-up canvas blinds and a thick low hedge. This patio is approached by a flight of a dozen narrow, semi-planted steps.
Living areas are open plan with high ceilings, Cemwash-coated walls and sophisticated, ochre-coloured floor screeds laid to have a tile look, without appearing to imitate tiles. The home has three bedrooms, all en suite and all, like the patio and living areas, offering unimpeded views of Devils Peak and the southern spine of Table Mountain.
The kitchen, says Harker, is ultra-modern with marble countertops and a link to the open plan living and dining area.
The garden, she adds, is also Provencal in style and layout (with a herb section) and has a “wonderfully natural” rock pool fed by mountain water.
A large double garage is able to accommodate two big vehicles or three small vehicles and the property has secure parking for four cars.
Steward said that the home has to be viewed to be fully appreciated.
"It has all the distinction conferred by really good taste applied without pretension or attempts to impress: this is a truly well-designed home with everything in the right place."
For further information contact Di Hosty on 082 775 2777
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18 August 2009, 08:52:10
Two agents claiming commission? It can happen
What happens when an agent produces an offer on a property that has recently been mandated to another agent?
In the present property market conditions, says Anton du Plessis, CEO of Vineyard Estates, people are sometimes taking several weeks, or even months to make up their minds about whether or not to buy.
This, he says, has on occasion led to a difficult situation in which, after a client has awarded a Sole Mandate to a second agent as a result of the original agent’s not achieving a sale, the first agent suddenly returns with an offer from a buyer whom he has introduced to the home previously.
The original agent will then demand his commission while the second agent will probably insist on sharing this – or may even claim that, as the mandate had expired, no fee is due.
Clients, said du Plessis, on signing a new mandate should make provision for potential buyers already introduced to the home, and should have a clear cut policy in place for dealing with this issue.
The Institute of Estate Agents’ Code of Conduct, added du Plessis, lays down rules on this matter – but regrettably, as only 25% of agents in the Western Cape are member of this institute, many are not bound by this code.
On the other hand, he says, the Estate Agency Affairs Board clearly stipulates that no estate agent should accept “a sole mandate unless he has explained to the client in writing the legal implications of selling or letting that property without his assistance or through the intervention of another agent”.
The wording of the EAAB resolution, says du Plessis, clearly places the onus on the second agent to warn his client about the possible problems. However, as no all-encompassing standard rule applies here, sellers too should clarify exactly what will happen if a former potential agent or buyer suddenly comes up with an offer after his mandate has expired.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za
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17 August 2009, 11:00:52
Property group CENTURY 21 has introduced an innovative offer to ‘incentivise’ franchise purchases for a limited period.
The initiative, dubbed the “Golden Ticket”, is aimed at established estate agencies with a proven track record, says Colleen Gray, MD of CENTURY 21 South Africa.
“Essentially what we are offering selectively are fully-fledged CENTURY21 franchises with all the usual attributes of training programmes, technology, marketing support and business tools associated with any franchise agreement we sign.
“The difference in this instance however, is that for a limited period, commencing in August, these franchises will be available at an incentivised level of pricing which we believe makes our quality brand the most attractive offer available to the market at this time.”
She says the company is looking for established estate agencies which would benefit most from CENTURY21’s global and local branding and which would turn to good account the value of that brand in what continues to be an extremely tough market.
“We recognise that agencies have been through arguably the toughest business cycle in decades, a situation that’s reflected in the fact that as many as 50 000 agents have reportedly left the sector.
“The hard core of about 38 000 agents who are still in business have proven their ability to survive tough times by a combination of good management, cost controls and adaptability to demanding consumer conditions, notwithstanding the lack of bank finance and consumer wariness of debt in whatever form.
“These are therefore people who are clearly at the top of their game but equally they remain challenged on numerous levels not least of which of course, are costs.
“Moreover, they need all the support they can get in current conditions to remain in business pending the arrival of the inevitable upturn. It’s this market to which we are targeting and we have little doubt that there will be a tremendous response.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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17 August 2009, 10:56:15
R5,5 million upper Constantia home good entry level buy
Greeff Properties Upper Constantia team has a mandate to sell a large four bedroom Upper Constantia home under Mazista slate at a “very reasonable price” of R5,5 million.
It would, say the Greeff agents, suit a young family and has the potential to be renovated. The double garage could be included in the living area of the house and a new double garage with direct access into the kitchen could be built.
The newly upgraded kitchen has wood and granite countertops, an electric hob, Gemini Defy oven and extractor fan plus a well designed pantry cupboard and separate laundry.
Underfloor heating ensures that the home is cosy and warm in winter and an outdoor verandah with built in braai facilitates year round entertaining. This sunny property is in pristine condition. The plot measures 1 583m².
The house is situated in a quiet street but is conveniently located close to the Constantia Sports Complex with its gym, bowling greens, tennis courts, rugby and hockey fields. The position offers easy access to the M3 and Constantia Shopping Village.
Mike Greeff, CEO of Greeff Properties, commented,
“This is the sort of home on which we established our reputation. It is always a good strategy to buy the less expensive homes in a very expensive area (such as Upper Constantia) and the purchasers of this plot will be acquiring an asset with huge value increase potential.
For further information contact Greeff Properties on 021 763 4120 or email info@greeff.co.za.
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17 August 2009, 10:51:08
Top Constantia Georgian home offered at “knock down” price of r11,9 million
An excellent example of modern Georgian architecture with a strong rural ambience has come on the market in Bishopscourt at a price of R11 995 000. What is more, the entire house was recently renovated.
Marketed by Ford King, Simon Raab and Carol Bracken of Greeff Properties, the home is close to Kirstenbosch Gardens’ upper gate and has 180¢ª views across the Constantia Valley all the way to False Bay, while the north facing side of the building looks across to Devil’s Peak.
“With well over 5 000m² of ground, the home has beautiful gardens with a large swimming pool and high boundary trees, in a beautiful private setting at the end of a leafy country lane,” said King.
The house has four bedrooms, two en suite, a family bathroom, four exceptionally large reception areas, a Jacuzzi, a double garage (and parking for a further eight cars) plus self-contained staff quarters. A particular attraction, said King, is that the home has state-of-the-art security.
The owner, who obviously has a liking for things rural, has moved to a farm in Stellenbosch, with the result that immediate occupation can be given to this wonderful family home.
For further information contact Ford King on 083 226 2946, Simon Raab on 082 325 8801 or Carol Bracken on 083 226 6813.
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17 August 2009, 10:37:59
Stock shortages boost Rondebosch residential prices
Demand for Rondebosch homes never drops off - it is one of the most popular suburbs in Cape Town, says Jeanne Cowan of Anne Porter Knight Frank, who, along with Otilia Harker, is selling property throughout this area.
However, adds Cowan, the number of sale offerings becoming available in Rondebosch is always very limited.
“Once people have lived here they simply do not want to move elsewhere,” she said. “They will often stay on in their homes long past the time when they should have downscaled or moved to a retirement village.”
The big attraction of Rondebosch, said Cowan, is its proximity to many good schools and to UCT. But Anne Porter Knight Frank’s experience is that residents will stay on here long after their children have been educated and/or graduated from university.
For all these reasons when a home does come onto the market, said Cowan, it is “exciting”, especially when, as in this case, it is on the sought after “Silver Mile”.
“The home that we are now selling might have been a fairly typical affluent but rather conventional 1970s type family residence, but it has recently been totally renovated in very good taste to give it a new sophistication. Thankfully this has been done without in any way detracting from its original comfort and charm.”
The refurbished home has stripped wooden floorboards, open plan living and dining areas, a spacious kitchen with granite countertops, black floor tiles and a state-of-the-art oven and hob.
There are altogether three bedrooms and two bathrooms, but one bedroom has long been used as a study and is ideally suited to this purpose.
On top of all this, the 1,000 m2 double plot also contains a small one-bedroom flat and a double garage. All buildings on the property are protected by a comprehensive security system.
Cowan said that the home has the potential to be extended upwards into the attic because the structure was designed for additional weight loading.
The home is priced at R2,950,000, which, said Lanice Steward, MD of Anne Porter Knight Frank, is a price that genuinely does reflect the 20% plus decline in prices since the high points reached in 2007.
“This home is very competitively priced for today’s market and has the potential to appreciate rapidly in value once the current downturn ends,” she said.
For further information contact Jeanne Cowan and Otilia Harker on 021 671 9120 or email info@anneporter.co.za
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17 August 2009, 08:57:33
Victor’s Kloof “palace” comes on the market
Victor’s Kloof (off Valley Road) is thought by many to be the most prestigious precinct in Hout Bay – and the latest home to be marketed there by Greeff Properties’ new Hout Bay branch is, says the manager of that branch, Gerald Romanovsky, is the jewel in the area’s crown.
“There is only one description that fits such a home,” said Romanovsky. “It is a 20th Century palace.”
“Occupying a commanding elevated position in one of Victorkloof’s most sought-after streets, the beautifully finished residence,” said Romanovsky, “defines ultra contemporary living.
Architecturally designed for an active family lifestyle, the home provides two levels of living and entertaining areas. It also offers panoramic views across the bay, with an interplay of light and space with a terrace that is light filled year round by north light.
Priced at R14,95 million, the property in fact is made up of three separate buildings, the main house and two cottages, all of which, says Romanovksy, are luxuriously fitted out with every modern convenience, including under-floor heating.
The main house has six bedrooms, three of which have their own bathrooms, while the main bedroom is fitted with a plasma TV and has its own private lounge with a fireplace. It also has a steam room for Turkish baths.
The spacious open plan kitchen has Tasmanian oak and granite tops, a Eurogas stove, a Siemens refrigerator and microwave oven.
Travertine tiles have been laid throughout all rooms and Balau timber decks lead off all the bedrooms.
A wine cellar is situated on the lower ground floor and the home has double garaging and additional parking for four cars.
The larger cottage has three bedrooms, all en suite and the same Travertine tiling.
The smaller cottage has one bedroom, an open plan living area, Travertine tiles and a sandstone patio.
Of interest to those who like local history is the fact a plaque on the road testifies to the fact that the original entry road from Llandudno area passed through this property – giving a gentler descent than the notorious Suikerbossie hill, the last and most daunting climb in the annual Cape Argus/Pick ‘n Pay Cycle Tour.
Romanovsky said that there is a widespread realisation that Hout Bay now offers “incredible value”.
“If this home were in Fresnaye, Camps Bay or Constantia, the price would be double what is now being asked,” he said.
For further information contact Gerald Romanovsky on 021 790 8983 or email gerald@greeff.co.za
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14 August 2009, 15:06:32
Tax breaks for homebuyers could lift the real estate market from the doldrums and give the flagging economy a boost in the process.
This is the view of Berry Everitt, CEO of the Chas Everitt International property group, who says government should seriously consider such tax relief in the face of the current economic climate and South Africa’s need to encourage and promote homeownership.
“There are many examples around the world where particularly first-time buyers are encouraged to buy their own homes through tax incentives, which can either be in the form of deductions or credits.
“We are strongly in favour of a system where the interest portion of home loan repayments is tax deductible. This would benefit buyers especially in the first years after purchase, since repayments initially consist nearly entirely of interest payments, with very little capital being paid off.
“Such a system would assist homebuyers in no small degree and make homeownership both more attractive and affordable. Arguments that the fiscus would lose a sizeable source of income do not really hold water, since the savings would be available to consumers, who would likely plough the freed-up cash back into the economy.
“This is very pertinent at the moment as the economy as a whole would hugely benefit by an injection of increased spending, which would have a multiplier effect,” Everitt says. “And ultimately such spending would boost the taxman’s revenue.”
A second alternative is a once-off tax credit for homebuyers. This would help new buyers financially in the first year after buying property by freeing up cash for the many incidental costs associated with homeownership, Everitt says.
“Both options, however, would benefit the real estate market as well as the wider economy and would also go a long way to build a bigger middle class, which would ensure long-term economic stability in the country.”
Issued by Chas Everitt International
For further information call
Berry Everitt on
011 801 2500 or visit
www.everitt.co.za
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14 August 2009, 14:51:10
Cyberprop.com Weekly News Letter
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Edition 32 of 2009, Friday, 14 August 2009
Dear Reader
 The
Reserve Bank took markets and analysts by surprise yesterday, cutting
lending rates despite stubborn price pressures in a bid to help
jolt the economy out of recession. SA appeared to be “lagging”
a global recovery and “adverse economic conditions” had
tilted risks to the inflation outlook downwards, governor Tito Mboweni
said. That was the reason given for the unexpected decision of the
Bank’s monetary policy committee (MPC) to cut its key repo
rate half a percentage point to 7% — its lowest in more than
three years. (Business Day)
What does it mean for you the homeowner or how does it help your
current situation? To put it simply, when the Reserve bank cut the
repo rate the financial institutions follows by cutting the interest
rate. It reduces what it cost to borrow money from the banks. This
encourage businesses and consumers to spend. Well, if you are a
homeowners with an adjustable-rate mortgages, you like it. If you
have an adjustable rate home equity loan, you like it. If
you are a homeowners with a good credit rating and can refinance
at lower rates, you like it. If you are a potential homeowner looking
for that first home, you like it. Do you think that as a
homeowner that the time is right to fix your interest rate on your
mortgage or should you wait a little longer? Send your viewpoints
to news@cyberprop.com
Are you thinking of upgrading your property or even looking
at building that dream home? Advice from Bill Rawson, Chairman
of the Rawson Properties group and Gerhard Kotzé, CEO of
the ERA South Africa property group;
- Now is a good time to undertake building upgrades, but the cost
of truly skilled work can be prohibitively high, says Rawson
- Don’t hire a builder before you know all about him
Centre of the Klein Karoo and 'ostrich-feather capital' of the
world, as well as having the famous Cango Caves. A lush oasis catering
for adventure, cultural and geological tourists and one of the most-visited
towns in the country. Focus on, Oudtshoorn, Garden Route,
South Africa
Enjoy!
The editors
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14 August 2009, 10:33:36
Harfield village prices and sales continue to rise despite the recession
One of Cape Peninsula’s best known residential property developers has produced another strikingly modern duplex townhouse in Harfield Village, originally intended for personal use.
Anne Porter Knight Frank agents Jenny Zinn and Sylvia Muzzell who are marketing this north-facing property say that, with three bedrooms, two bathrooms and two open plan living/dining rooms as well as a garage and parking bay, this townhouse has far more floor area than most of the freestanding homes in the precinct. What is more, said Zinn, the finishes are truly upmarket: they include granite countertops in the kitchen, aluminium framed sliding doors and windows and wrought iron staircase balustrades. The home, said Zinn, has exceptionally large cupboards and storage areas.
“One has to recognise,” said Zinn, “that at a price of R1 749 000 this house is coming onto the market at a discount of at least 40% on what would be paid for exactly the same sort of home in Kirstenhof, Tokai or other nearby suburbs. This is further proof that Harfield Village still offers superb value, although this situation will not last for ever.”
Lanice Steward, MD of Anne Porter Knight Frank, commented that Harfield Village property is performing “beyond expectation”. Referring to a bar chart drawn up by her agents, Steward showed that in the January to June period this year, not only were sales in the Harfield Village area much higher than those of similar precincts such as Kenilworth East and Claremont Village, but also that, unlike them, values increased this year.
“In Harfield Village,” said Steward, “there were 27 sales from 1st January to 30th June, an increase of 28% on the same period last year. Furthermore, the average price rose despite the recession from R1,206,000 to R1,290,370 this year.
Harfield Village, with its lively communal life, friendly residents and coffee shops and bistros, added Steward, attracts exactly the same sort of young, vibrant, upwardly mobile buyers as are found in Newlands Village, Chelsea Wynberg and Little Mowbray. However, the prices in Harfield Village are “way below” those of these other higher profile precincts.
If you are looking for a tip on an area likely to appreciate fast from a fairly low base,” said Steward, “Harfield Village would be top of my list.”
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13 August 2009, 10:29:13
Discounted prices at “soho on south” make units good value
Few precincts in South Africa have witnessed such rapid ongoing development at Table View and its adjacent areas, says Mike Abrahamse, Rawson Properties’ franchisee for this area – and, he adds, right now the recession has made more good buys in this territory available than at any previous stage in his 24 years of property selling.
At Pearson Projects’ new R15 million Soho on South right now, says Abrahamse, it is possible to buy one of six remaining units (the others in this new project have long since been sold) at prices that are some 22% off what was originally asked at the launch.
That means that a one bedroom unit originally priced at R574 000 can now be bought for R450 000 while a two bedroom unit launched at R635 000 can now be had at R500 000. What is more, these prices are inclusive of VAT, so there is no transfer duty payable.
The project, says Abrahamse, has three factors very much in its favour: it is surrounded by a high wall in which there is only one electronically controlled entrance and exit gate; it is designed in a chic, minimalist Manhattan style with mono-pitch roofs, aluminium window and sliding door frames, Cretestone walls and slate tiles in the living, bathroom and kitchen areas, the last being fitted out with stainless steel ovens and hobs; and, being right in the heart of Table View, it is within easy walking distance of retail centres, schools, churches and medical facilities.
The development has its own swimming pool and a “wonderful communal atmosphere” has already been built up in the project.
The units for sale are, says Abrahamse, particularly well suited to investors because they already have tenants in them who are paying R3 500 to R3 600 per month – giving an average before-levies return of 7,2%.
Until a month or two ago, said Abrahamse, sales had been slowed up by the banks’ inability to give big bonds – now, he says, Rawson-sourced buyers are finding that they can get 90 and 95% bonds: one has even achieved a 100% bond “as in the old days”.
Abrahamse said that the principals of Pearson Projects, Donovan and Suzanne Pearson, have a long history of delivering excellent developments on the Atlantic West Coast, including the recently completed “On Athens”.
“Every project we have sold for them has had distinction,” said Abrahamse, “and the only reason why they are selling at lower prices now is that they are moving on to their next project.”
All West Coast residential property north of Paarden Eiland, added Abrahamse, will benefit from the new Rapid Transport bus lanes now being added to the freeways that link Milnerton, Table View, Parklands and Blouberg.
“The Table View to town journey,” said Abrahamse, “will be cut to 30 minutes travel and ten to fifteen minutes walk to most offices. This will be a saving for most people of at least one hour – and it will transform the whole lifestyle of the West Coast suburbs, allowing them to revert to their previous status of being within easy commuting distance of the CBD.”
For further information contact Mike Abrahamse on 021 557 5514 or email blaauwberg@rawsonproperties.com
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12 August 2009, 10:24:11
Eight unit “spring tide” development launched
Well known Western Cape property developer, Gary Vos, representing the Blouberg Coastal Property Trust, has just launched a new R12 million, eight apartment development, “Spring Tide”, and Rawson Properties Blaauwberg franchise, owned by principal Mike Abrahamse, is doing the marketing, with Abrahamse playing the key role.
Abrahamse said recently that this follows on from their previous associations at the Sandy Bay and The Breakers developments, all of which had great design merit, were competitively priced and sold fast.
“Right now,” he added, “it is not at all easy for developers to access bank finance but Gary Vos has achieved this, a further indication of the position he now holds in the development sector.”
Spring Tide is, said Abrahamse, “right in the heart of Blouberg” – it is just half a block from the beach and an easy walking distance from the area’s well known restaurants, bistros and coffee shops.
The project will, said Abrahamse, have a cotemporary style with ultra-modern mono-pitch roofs and Cape Cod type timbered façade claddings. Its units, said Abrahamse, will vary in size from 70m² to 100m² and, as on Vos’ previous developments, its open plan layouts will be characterised by upmarket finishes such as sandstone tiles, quality granite countertops in the kitchens, down-lighters, black aluminium framed windows and balcony doors and stainless steel balustrades. In general, said Abrahamse, the bathrooms (with corner baths) and the kitchens will be particularly luxurious and typical of the quality of this developer’s projects.
The units are all/mostly north facing and views from the majority of the apartments will take in the Tygerberg hills.
The development will, said Abrahamse, have a landscaped communal courtyard with braai facilities and seats.
Garages will be sited underneath the duplex units (making this a three storey project). Six of the apartments are two bedroom with two bathrooms and two have three bedrooms, with two bathrooms. Two of the ground floor units have gardens.
Take-up, said Abrahamse, has been fast, with the result that there are now only one three bedroom unit (100m²) and three two bedroom units (70m²) still available. These are priced from R998 000 (exclusive of a garage) to R1 565 000 (for a three bedroom unit with a double garage).
Abrahamse said that these prices are almost ludicrously low for a project of this quality and reflect the current state of the market – but, he predicted, within four to five years the same units will be selling at double what the developers are now asking.
“In my 23 years in property marketing,” he said, “I have been involved in 33 new projects in the area but this development is without question one of the top two or three and its quality finishes will be enhanced by it being in such a sought-after upmarket and central area. The development is designed fro the discerning buyer who seeks exclusivity, quality finishes and a safe and secure lock up ‘n go lifestyle.”
Completion of “Spring Tide” is scheduled for December this year with transfers taking place in March/April 2010.
“This,” added Abrahamse, “means that a shrewd buyer, doing his marketing early on, could earn himself up to R150 000 per month in rentals over the two month 2010 World Cup period.”
For further information contact Mike Abrahamse on 021 557 5514 or email blaauwberg@rawsonproperties.com.
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11 August 2009, 10:19:16
Shelley point’s new four star suites progressing well
Herman Theart, Chief Executive of Ekosto 1091, Shelley Point Hotel, Spa and Country Club’s contractor now working on the new R35 million 42 suite block extension (which will bring the total number of suites available at Shelley Point to 86 in all), reports that he is on schedule and on budget for an early completion by the end of March 2010.
“This building,” said Theart, “was designed by the Cape architects Le Roux Basson to be very similar to the first block (completed in September last year), but we have made these suites just that much better, more comfortable and more efficient.”
The building, he said, will be on three levels and will, like its predecessor, have a white walled Cape Vernacular style with a thatched roof (constructed by Lucas Quality Thatchers), the beams and thatch of which will be visible to occupants of the top floor - an attractive feature.
The suites are of two types: 64m2 simplex units on the ground floor and 72m2 duplex units above these. The larger units will have separate living and bedroom areas.
All units will have 600m2 of sandstone/porcelain tiles. The bathrooms will have Meranti shutter doors that can be folded back to link to the bedrooms. Plasma TV screens, visible from the bathroom and the living room will be standard in all units.
The ground floor areas will be lit with subtle down lighting and track lighting will be used on the upper floors.
Theart’s contract includes the provision of all furniture and fittings, including king size beds with imported flax linen, woollen blankets, top grade carpets, leather-type upholstered sofas and comfortable chairs.
“The plain truth,” said Theart, “is that nothing as good as this has ever before been provided on this scale in a Cape West Coast hospitality venue. Shelley Point is setting a new benchmark.”
Allan Burgoyne, Resident Director for Dale Capital, who have now purchased the Shelley Point Hotel, Spa and Country Club, said that they plan to sell roughly half of the 80 units under sectional title at prices from R1 million to R1,4 million. The sales campaign will be launched soon.
For further information contact Allan Burgoyne on 082 929 6882 or email allanb@dale-capital.com.
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10 August 2009, 10:16:13
Rawson Bergvliet franchise proves that commission cutting and mandate sharing not essential in a dedicated team
One of the Rawson Group’s most successful agencies, Bergvliet, owned and run by John Weston, has, it seems, proved that if you give real service, there is no need to drop your commission – and you can insist that you handle all mandates on an exclusive sales basis.
Writing for the Rawson in-house magazine, Weston said that, on reviewing their efforts two years ago, he and his team felt that they were putting so much time and money into every sale that there was absolutely no need for them to cut commissions – and most clients, accepting their dedication, were happy to sign a sole mandate agreement.
Weston also started turning down mandates where the client insisted on radical overpricing.
The formula, said Weston, has proved successful. Sales last year were 20% up and this year is likely to see a similar improvement.
Explaining where he is “coming from” Weston said that he and his colleagues aim to establish a completely Christian, 100% ethical agency in which the clients’ interests will always be put ahead of their own.
This, he said, involves their learning to act as “consultants” not as “sales agents”.
“Our first goal is to do what is best for the client – this could involve helping a desperate seller to hold onto rather then to sell his home or persuading him to help his offspring finance a new home now rather than after his death. It also involves taking immense care with bond applications to see that they conform to National Credit Act criteria – 90% of our bond applications are successful and many clients are getting 85 or 90% bonds.”
Weston’s team operate throughout Bergvliet, Meadowridge, Diep River, Heathfield, Plumstead and Southfield. The wide diversity of homes in this area, he said, enables him to serve the upwardly mobile and the downscalers in a price bracket of R400 000 to R5 million plus.
For further information contact John Weston on 021 715 5674 or email bergvliet@rawsonrproperties.com.
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07 August 2009, 09:57:40
Homes in the affordable sector of the market are selling readily in Springs on the East Rand in spite of continuing problems with obtaining bonds.
Elizabeth Masemola, who recently opened a RealNet agency in the town, reports that there is particularly healthy demand for properties costing less than R500 000 but that properties across the price spectrum are still drawing buyers.
Masemola, who has been active in Springs for the past six years as an agent with two different real estate groups, decided to open her own franchise, encouraged by her stellar sales performance in the area. Her decision was vindicated within the first month of opening when her office sold a total of 17 units, followed by 13 more the second month.
“Although the RealNet brand is relatively unknown in this area, we have made a very satisfying impact on the local market and expect to push up our performance as we become better known,” says Masemola. “We are already seeing an increase in the number of walk-in clients as well as clients referred by satisfied buyers. And bringing the brand to neighbouring towns on the East Rand is part of our longer term goal.”
Local buyers looking to get a foothold in the market are targeting affordable housing. Masemola says basic two-bedroom units in KwaThema can still be had at prices starting from about R200 000.
“Most transactions are indeed taking place in the more affordable price spectrum, but there is a sprinkling of sales in price categories up to R2m. The Springs property market is mainly supported by local buyers upgrading or entering the market thanks to lower interest rates, but buyers transferred to the East Rand by their companies are also evident,” she says.
Springs offers all the amenities of an established town and Masemola adds that it benefits from a sound infrastructure and good access to highways linking it to Johannesburg and the rest of the East Rand.
Issued by RealNet
For further information call
Elizabeth Masemola on
011 362 2788 or visit
www.realnet.co.za
Elizabeth Masemola of RealNet is selling up a storm in Springs
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07 August 2009, 08:50:40
As the “new kid on the block” among SA’s big estate agency groups, Harcourts is punching well above its weight.
“We received a high percentage of the national industry accolades at the recent Nedbank Property Professional Awards even though we have not been established long,” says CEO Martin Schultheiss, ”and while other companies are in recession mode and focusing on survival, we are continuing to expand.”
Steve Caradoc-Davies, owner of Harcourts Platinum in Somerset West, was honoured with one of only three Young Lions awards made this year, in recognition of the numerous innovations he has brought to the industry in recent years, while Dr Wllie Marais, owner of Harcourts Maxima in Pretoria, was one of just five longstanding members of the real estate industry who were honoured this year as Movers & Shakers.
“This is undoubtedly an outstanding result for a new group,” says Shultheiss, “and we know there will be even more awards forthcoming when we are more established and have really had a chance to put down roots.”
Meanwhile, he notes, the process of putting down those roots is well under way. “Harcourts continues to attract both independent agencies and disillusioned members of other real estate groups, and has added 18 brand new offices to the group since the start of the year.
“We have also now rebranded more than 30 of the old Homenet offices that formed the basis of the group, and are on track to have the whole rebrand exercise completed by March 2010.”
Harcourts Africa came into being late last year when the international Harcourts group signed a partnership agreement with long-established SA group Homenet.
However, says Schultheiss, it is not just fresh branding that appeals to the principals and agents joining the group. “It is the fact that Harcourts offers them a whole new way of doing things – a radically different approach to selling real estate, as well as advanced business systems and technologies that other local groups are unlikely to be able to duplicate for several years, if at all.
“This will enable Harcourts Africa members to hold their own in a real estate market that is already becoming much more globalised.”
ISSUED BY HARCOURTS
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031 201 1060 OR VISIT
www.harcourts.co.za
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03 August 2009, 08:48:13
Cyberprop.com Weekly News Letter
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Edition 30 of 2009, Friday, 31 July 2009
Dear Reader
The property industry often reminds me of parenthood. Should
you tell harmless lies to your children? What do you tell your children
when they ask you about Santa? I believe that you don’t have
to dumb things down for children to convince them. It is in order
for them to have a good imagination. After all is that not what
is needed in today’s real estate market, a good imagination.
Let’s take two of the articles placed in today’s newsletter;
The average price of a property in South Africa increased
by 1.2% year-on-year in June, according to the latest property
price index. Residential property prices in South Africa show
year on year rise
and
House prices were forecast to decline by about 3.5 percent
in nominal terms this year after growing by 3.7 percent in 2008,
Absa analyst Jacques du Toit said in the bank's latest housing review.
Your house will be worth less by Xmas
I’m sure that you will agree with me that to understand these
two articles you have to have a good imagination.
Realesteweb - Estate agents have welcomed the decision
by some banks to offer bonds to the emerging market and are holding
out hope for further easing of banks' stringent lending policies.
Mortgage volumes are roughly half of what they were this time last
year, and last year's volumes were dramatically lower than the year
before - which gives an indication of the dire conditions being
experienced in the residential property market. According
to Ivan Neethling chairman of the Institute of Estate Agents in
the Western Cape, FNB and Absa's move to offer bonds to families
earning salaries of below R15 000 and R11 000 respectively shows
a growing confidence in the affordable market.
 Jan
Kleynhans, chief executive officer of FNB Home Loans, says
the bank's loan to value criteria, an aspect of lending policy,
have been reviewed from 85-90% to a maximum of 95% for new customers.
 Standard
Bank's residential mortgage lending criteria remains unchanged
and is constantly being reviewed, says Lasath Punyadeera, director
of Standard Bank Home Loans Product. He says Standard Bank adopted
new lending criteria in November 2008 and has not changed these
since. However, these loan-to-value criteria are constantly being
reviewed and could be revised in the future.
 Absa
says it is not relaxing its lending criteria but is looking at the
clients' affordability when assessing home loan applications.
Absa clients are granted up to 85% loans and non-Absa clients 70%,
says Luthando Vutula, Absa Home Loans managing executive. Absa customers,
therefore, pay a deposit of 15% and non-Absa customers pay 30% deposit
in order to secure a home loan.
 Clive
van Horen, managing executive for retail secured lending at Nedbank
Home Loans, says: "Nedbank is conscious of the interplay
between banks' willingness to lend and property prices, and so we
remain open for business but with a relatively cautious stance."
The Musina tribe discovered copper and settled here. In the 20th
century European prospectors rediscovered the large copper deposits
and established the town of Messina. The spelling of the name was
changed to Musina in 2003 to correct the colonial-era misspelling
of the name of the Musina people. Musina is situated in the lovely
Limpopo Valley, close to the border to Zimbabwe. Sub-tropical climate,
in the midst of game and nature reserves, this is an ultimate destination
for a traveller in Southern Africa. Focus on Musina, Limpopo,
South Africa
Enjoy!
The editors
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31 July 2009, 08:17:51
The recently-established Chas Everitt International franchise in Pretoria East is now expanding its operation into Akasia to cover the metro’s northern suburbs.
That’s the news from co-owner Christo Steyn, who says market prospects are good in areas such as Karen Park, Orchards, Chantelle, Rosslyn, Soshanguve, Amandasig, Heatherdale and Hestea Park.
“Stock is plentiful and we already have a foot in the door here. We are currently marketing two developments in the northern suburbs and four of our agents are currently operating in the area, so we decided the time had come to open a local office.”
The first of the developments being marketed is in Rosslyn close to the BMW and Nissan vehicle plants. Named N’kwe (meaning leopard), this affordable housing project offers 841 two, three and four-bedroom homes in a gated estate. About 600 have already been sold at prices between R400 000 and R750 000.
The other development now selling is Summer Place in Wintersnest. Aimed at middle-income earners, it features two-bedroom sectional title units complete with high quality finishes, at prices from R550 000.
Steyn’s team will soon also be marketing two more residential developments in the northern suburbs that are due to be completed in 2010.
ISSUED BY
CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
CHRISTO STEYN ON
012 369 9040 OR VISIT
www.everitt.co.za
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31 July 2009, 08:16:24
Rawson’s northern region on the hunt for 15 new franchisees
Rawson Properties Northern Region, run by director Sean McCauley, now has over 40 franchises, some in adjacent provinces but most in Gauteng - and they plan to establish another 15 by the end of March 2010.
"The good news," says McCauley,” is that we have an exceptionally high franchise success rate. We are becoming more and more proficient at identifying those with the ability to succeed in real estate.”
Rawson Properties, he said, is now one of the fastest (if not the fastest) growing real estate brands in South-Africa. This is shown in the results of the 2008 real estate franchise survey conducted by a specialist franchising company, which revealed that the average real estate company opened six new business units during the year, whereas we opened in excess of 20 units.”
Rawsons, said McCauley, is expanding at a rate three times faster than that of the average real estate company.
In the year ahead, he said, those with the right credentials and enthusiasm could make some excellent franchise buys: especially in the Sandton CBD, Edenvale and many of the northern suburbs where Rawsons still has territories they wish to service and where property values are now on an upward path.
“The Rawson group prides itself on giving a more comprehensive franchisee backup service than most (with user-friendly, easy to understand computer systems) and is, said McCauley, particularly strong right now on training for the National Qualifications Framework four and five levels for agents and franchisees respectively.
The group, he added, has developed an “agent portal” and a Rawson agents’ Property Transfer Information System, by means of which, using his password, any agent can keep up to date with the group’s and his own stock position and can access Deeds Office information throughout South Africa – one of the several innovative “tools” which assist the agent greatly in doing valuations and tracking owners.
Other big advantages of signing as a Rawson franchisee, said McCauley, are that both the northern and southern regions have dedicated business development managers available 24 hours a day to advise and assist franchisees. The group also has its own bond origination division (Rawson Finance) which, working strictly to bank criteria, has a better-than-average success rate in securing bonds.
Finally, said McCauley, Rawson’s “big step forward” in tying up with FNB on their Quick Sell Plan will enable franchisees to be helpful to homeowners in serious financial difficulty – “another very definite plus factor in the Rawson package”.
For further information contact Sean McCauley on 011 463 1092 or email sean@rawsonproperties.com
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31 July 2009, 08:15:00
The highly successful Chas Everitt International franchise serving the northern suburbs of Cape Town is now extending its reach to encompass Milnerton and the suburbs along the Atlantic Seaboard.
Franchise owner Charl Louw says a team of agents under the leadership of Ingrid le Roux will apply the experience and reputation they have gained in areas such as Century City, Goodwood, Parow, Panorama, Monte Vista, Plattekloof, Welgelegen, Edgemead and Bothasig and should shortly have significant market share in the new areas.
In addition, he anticipates taking on agents who are already established in Milnerton and the Atlantic Seaboard but need the stability and marketing clout that the Chas Everitt International group can offer.
“We are delighted to be able to extend our services to Milnerton and the Atlantic Seaboard,” he says. “We have a great track record and have managed in these tough times not only to sustain our business but also to expand our footprint in the Northern Suburbs, and we believe the new areas will benefit from our expertise.
“Our success is due in large part to pricing properties correctly and carefully matching buyers and sellers. Up to 70% of home loan applications are being turned down in some areas but we are getting better results because we make a point of presenting our buyers to the banks in the best possible light.”
Louw says that whether clients in Milnerton or the Atlantic Seaboard want to sell, buy, rent or let property, his team will provide the highest standards of service, and adds that most of his agents have completed the RPL (recognition of prior learning) requirements for the new national estate agent qualifications.
He notes that although property sales have slowed in general, more than 450 transactions have taken place in the Milnerton and Atlantic Seaboard areas over the past 12 months.
“In a nutshell, these areas are still attractive from a business and investment perspective, and a very wide price range means they can effectively offer something for everyone.”
ISSUED BY
CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
CHARL LOUW ON
021 915 4800 OR VISIT
www.everitt.co.za
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31 July 2009, 08:13:22
New interactive property previewing service will save time
Making greater use of technology in their operations their primary focus, the Rawson Properties Table View franchise has introduced to their market a computerised interactive property previewing service as a prelude to house visits and show house days.
This mapping software introduced by this franchise allows clients to view specific suitable properties and gives them details of each home in response to the client logging in their requirements.
“Many buyers are very specific as to the areas in which they wish to live – and the price they are willing to pay. This software gives them the opportunity to view the homes that meet their needs, in effect giving them a preliminary "virtual show house" drive, while still in the Rawson offices,” said Gary Claven, a co-franchisee of the Rawson Table View franchise.
The system, added Claven, saves considerable time, “a precious commodity in today’s world” and introduces to buyers many properties that they possibly would not have seen as certain sellers do not open their houses for viewing on Sundays.
“Through the SPS (Select Property Services) multi listing service,” said Claven, “we have access at any time to some 350 homes for sale in our area which encompasses Blaauwberg, Tableview, Flamingo Vlei, Parklands, Sunningdale, Big Bay and Sunset Beach.”
With the new system, he said, the client enters into the computer the basic criteria of the home he/she wants, e.g. the desired area, number of bedrooms and garages, whether or not they want a pool and similar facts. The client is then able via the computer to navigate to each property, allowing him to be more focussed and to avoid wasting time driving to properties that would not suit him.
“With the new system,” said Claven, “the entire database can be worked through in one afternoon and the agent can then make the necessary viewing appointments at times to suit the client.”
Daphney Klopper, also co-franchisee at Rawson’s Table View, says that the system is bound to increase the popularity of their agency because “it is simply revolutionary”- it can cut out days of fruitless viewing of properties. With the upswing in activity in the market now being experienced, the buyer avoids losing out on properties of which they were not aware.
Klopper added that although prices are still low, the last weeks have seen more offers closer to the asking price and recently certain sellers have had more than one offer to choose from.
“We have seen buyers miss out on their ideal home by a matter of hours – and that is another reason why this system can be so useful,” she said.
This targeted approach introduced by Table View, said Brett Boyd, award winning Rawson agent, also suits sellers who may not be able to make their property available for show days. These sellers’ homes, he said, are now included in the interactive search for the buyers to see. The system also, he said, facilitates comparative valuations because it enables the client to see how other similar homes in the area are priced.
Asked whether this system does not make an agent redundant, the Rawson team said that the agent assisting the client plays an important role in advising on additional features and options and other relevant factors which standard advertising cannot replicate.
“Adapting to the changing needs of clients and their increasing demand for information has resulted in Rawson Table View leading the industry in the new service it is offering to clients,” said Claven.
For further information visit the Rawson Table View office opposite Bayside Mall this weekend and take the opportunity to become one of the first to “test drive” this new property viewing vehicle.
This service is available at the offices of Rawson Tableview during regular show house hours, i.e. Sunday 2pm to 5pm or by appointment during the week. Contact 021 5564414 or email tableview@rawsonproperties.com
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24 July 2009, 11:54:29
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Edition 29 of 2009, Friday, 24 July 2009
Dear Reader
 The City of Johannesburg is looking at ways to finance the continues provision of public transport. One way to fund this service is to higher tax on properties where the value has risen because of the their proximity to the newly created transport infrastructure. We’ve spent R27bn on Gautrain and made some property owners very, very rich, and isn’t there an issue there?” This according to the Deputy Transport Minister Jeremy Cronin. Fair or not fair? Send your viewpoint to news@cyberprop.com
 They say two is a pair. We cover all the bases by placing two views regarding the pricing of property, be careful for overpriced property and don’t choose the price before the area;
Although it has to be admitted that the recession probably has another nine months to run, Anne Porter Knight Frank, the Claremont headquartered estate agency (with a fast growing Atlantic Seaboard branch), is finding that optimism is now returning to the residential property sector, says Lanice Steward, the company’s MD. New optimism in the market once again leads to overpricing, says APKF managing director
And
If you’re house hunting, you should carefully choose the areas you want to look in before you pick out any properties. That’s the advice of Harcourts Africa CEO Martin Schultheiss, who says: “In the heat of the moment, buyers often forget that location, location and location are still the most important aspects of a property purchase. Don’t put home price before area
 The cost of parking your car in Cape Town's central business district (CBD) is almost double that of Johannesburg, according to a survey released on Wednesday. Park n Pay (lots!) And yet it is also the cheapest parking in the world; At the opposite pole, the lowest monthly parking costs can be found in Johannesburg, Durban and Pretoria, all in South Africa. Colliers: Parking place in Bucharest costs more than in Berlin or Lisbon
 What’s happening in the Clarens property market? We have experienced a renewed interest in the property market in Clarens over the past few months and feel positive about the future, especially with 2010 around the corner. Clarens is a tourist hotspot. After Cape Town and Kruger National Park, Clarens ranks as the third most visited area in South Africa. Read more in Focus on, Clarens, Free State, South Africa
Enjoy!
The editors
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23 July 2009, 12:11:36
Office bearers of the Institute of Estate Agents (IEASA) made a strong showing in the line-up of industry winners at the Nedbank Property Association Awards at the weekend.
Three national directors were named Movers & Shakers in the industry, while a national director and a regional director were among the finalists for the Property Professional of the Year award.
The three Movers & Shakers are IEASA national president Dr Willie Marais, and national directors Tjaart van der Walt and Sindile Faku. Kerry Warburg, a national as well as regional director, and regional director Werner Eksteen were among the finalists in the Property Professional category.
Marais says it is very pleasing that serving members of the IEASA were recognised at the awards. "This is the first time in many years that IEASA has made a showing at the awards, a forum that gives national recognition to estate agents and other roleplayers for their contributions to the well being of the industry.
"And in this respect, it is especially pleasing that three of the eight national Movers & Shakers awards this year were made to IEASA directors."
Marais, whose main achievement since being appointed national president of IEASA in 2006 is the unification of the real estate industry, says the recognition given by the Property Association to serving IEASA members is a great step forward in achieving still closer co-operation within the industry.
"This augers well for an industry that has to face many challenges. Closer co-operation will strengthen it and enhance the professional image of estate agents."
IEASA was recently restructured in terms of the Labour Act and the Services SETA to enhance its role as a viable and growing professional representative body. It is also enjoying growing international recognition due to the achievements of the local estate agency profession and through its affiliation with international real estate bodies such as the National Association of Realtors in the US and the International Consortium of Real Estate Associations.
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22 July 2009, 12:09:01
Home repossessions are everybody's business, so even those who are not feeling the pinch of unemployment or a strained household budget should welcome and encourage any measures taken by the banks to help those homeowners who are in distress.
So says Colleen Gray, MD of CENTURY 21 in South Africa, who notes that the major banks have moved relatively fast in this recession to introduce some anti-repossession measures.
Apart from a readiness to negotiate with homeowners in trouble and reschedule their debt, these measures include bringing estate agents and auctioneers on board to help sell properties in danger of being repossessed, so that their owners are not left with no home and a huge debt to pay, and also offering home loans on favourable terms to the buyers of distressed properties.
"And they are not before time," she notes, "because estimates are that at least 1000 homes a month are already being repossessed - a phenomenon that threatens to place a major drag on overall market recovery, with all those homes adding to the inventory that has to be mopped up before prices can start to rise again and banks can ease their home loan restrictions."
As it is, Gray says, one of the biggest factors currently holding banks back from granting new home loans is the fear that the properties which secure those loans may not be able to hold their value - especially if the incidence of default and repossession rises.
"They know only too well that repossessions also affect the value of surrounding properties, and while there are no SA figures available to show this, one can gauge the scale of the possible effect on the overall market from recent figures released by the US Centre for Responsible Lending.
"These show that every repossessed or foreclosed property reduces the value of neighbouring properties by $7200 each (about R57 000), for two reasons.
"The first is that owners who cannot afford their bond repayments usually also cannot afford to maintain their homes, and that properties in disrepair lower the tone of the area and the home prices that prospective buyers are willing to pay. The second reason is that homes auctioned off by the banks at less than market value lower the average price for the area going forward."
Consequently, she says, it is critical that banks do not let repossessions get out of hand as they did in the late Nineties, and all property owners and investors should welcome their proactive stance this time around. "This will, we believe, assist the property market to begin recovery in line with a general economic recovery next year."
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21 July 2009, 12:03:44
Sellers have repeatedly been exhorted in recent months to keep market conditions in mind when setting property prices - but now it is buyers' turn to a swallow a spoonful of reality.
This is the view of Tjaart van der Walt, CEO of the RealNet property group. "Much has been said about educating sellers to drop their prices in order to achieve sales in the current market. But buyers also need to be educated," he says.
Consumers who want to take advantage of the current market and buy property now are advised to keep their acquisitions modest. Van der Walt says this is not the time for consumers to stretch themselves financially and suggests that buyers target properties costing about 25% less than the maximum bond they would qualify for.
"Not only is it easier to obtain a home loan when you can show that you are buying well within your abilities, but it will be that much easier to keep up with your bond repayments. In the second place, a lower monthly bond instalment will give buyers the choice of paying slightly more than required.
"And paying even a relatively modest additional amount on a home loan every month saves an impressive amount on interest over the lifetime of the loan. For most average homebuyers, this is probably the single most effective way of saving a substantial amount of money over the long term."
On the other hand, he says, buyers who elect not to pay more than the minimum instalment will have the advantage of better cash flow - and reserve capacity is no small matter in the current uncertain times.
"Having a bit of money in reserve every month lessens the likelihood that consumers will be wrong-footed by increases in food or fuel costs, or even rising interest rates. We are living in stressful times where everyone should reconsider their lifestyles and aim to live more simply and less expensively.
"It is indeed a good time to buy small - and enjoy peace of mind."
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20 July 2009, 12:07:39
The Amanzimtoti area of the KwaZulu-Natal south coast is seeing increased movement in the residential property market and a flurry of activity among cash buyers reports Terry Cousins, Pam Golding Properties area principal. The rentals market is also showing steady movement.
"We are experiencing a resurgence of buyers in the holiday homes market, with most of these being cash buyers mainly in the price range from R1.1-R1.3 million. These are mostly out of town purchasers from Gauteng, who feel the market is at a point where they can capitalise on the good buys available before the market turns and prices start rising once more," says Cousins.
"At present such buyers are securing excellent value for money, acquiring front row beachfront homes comprising three bedrooms and two bathrooms - along prime Beach Road - for these prices. Interestingly at the lower end of the market in the R450 000 / R500 000 price bracket there are also buyers paying cash or with high cash equity. For these prices you can buy a two bedroom, one bathroom townhouse in the Amanzimtoti or Berea areas."
"There's also an upturn in enquiries from local buyers seeking primary residences in the R1.5-R3 million price range. Many of these have been renting homes and now wish to acquire their own home at a time when they can benefit from lower prices."
Cousins says being holiday season at present the area is buzzing with visitors. "However most of our enquiries are either off the Internet or showboards rather than 'walk-in's'. The positive news is that our agents are very busy with enquiries once more and the fact that the new Galleria shopping centre is soon to open is further boosting interest in the area." He says a new trend noted is a demand from those currently residing in areas such as Isipingo who wish to upgrade to areas such as Athlone Park.
He adds the long term rentals market is showing a marked improvement with PGP's office seeing a 30 percent increase in units let compared with six months ago. "While the average enquiry is for a home in the region of R4 000 per month, we are also seeing a good demand for upmarket homes and have recently concluded a number of leases for three bedroom homes in the R12 500-R15 000 per month price range, as well as a four bedroom home let for R16 000 a month. One of these is a three bedroom apartment in Lagoon Point, one of the more upmarket buildings, let for R15 000 per month."
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17 July 2009, 12:22:24
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Greeff properties expand to take in the Atlantic seaboard
The Greeff Properties network carefully nurtured since their foundation in 2001, is being expanded to take in the Atlantic Seaboard, the City Bowl and Hout Bay.
Marion Taylor, formerly principal in these areas for a large estate agency with international connections, has signed on with Greeff to operate under his banner – and has brought 12 of her agents with her, including her Hout Bay manager, Gerald Romanovsky and her City Bowl manager, Tristan McLennan, who will hold the same positions in the new setup. Marion Taylor herself will run Greeff’s new Camps Bay office.
“We have to stress,” said Mike Greeff, CEO of Greeff Properties, “that we are not growing for growth’s sake. We always have been a niche operation and we will continue to be so in these areas. The only difference is that Marion Taylor will provide the hands-on management here rather than myself and our MD, Graham Leslie – with us taking over some of the administrative burden and monitoring the whole exercise.”
Marion Taylor said that this suited her well because she has always known that her strengths lie on the selling side, which she prefers and which has been where she has been most successful.
The three offices run by Marion Taylor together average approximately half the sales that Greeff achieves in his Southern Suburbs operations – but, says Greeff, the potential to grow this new side of the Greeff operation is good.
Taylor said that, after deciding it was time to move on from her previous brand, she had had little difficultly in selecting Greeff for a new tie-up.
“They have had phenomenal growth in the nine years since starting. This, I believe, is due to the enthusiasm and professionalism with which they tackle their tasks. They have an exceptionally good reputation and it is a privilege to be able to tie up with them.”
Greeff was equally complimentary about Taylor, pointing out that in over 30 years in property, she has always been successful.
“She is the type of person we like to associate with – open, transparent and highly motivated”, he said.
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The new deal was effective from 2 July 2009.
For further information contact Mike Greeff on 021 763 4120 or 083 679 1809. |
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17 July 2009, 11:50:41
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Edition 28 of 2009, Friday, 17 July 2009
Dear Reader
So do I regret owning a home? Heck, no. It’s not a get-rich scheme. Owning a home has given my family a series of anchors to cling to as we’ve moved around the country for my job. And paying down a mortgage is a form of forced savings, which should help us in retirement. I estimate close to a 10% loss on our investment since we bought it last year. That’s the brutal financial reality of home ownership in today’s market. But the consolation is this: I really like our house, our neighbours and the quaint suburban town where we’re now putting down roots. In other words, I’m happy being a tenant in this building I happen to own. Does this sound like you? Home Ownership was never a road to riches
Still in the news this week, FNB;
 The decision by certain South African banks to offer bonds to the emerging market is welcome, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of Estate Agents - but it should raise questions about the banks’ policies on bonds in general, he says. Neethling was commenting on FNB’s decision to offer bonds to individuals or families whose monthly earnings are below R15 000 and ABSA’s decision to make bonds available to those earning below R11 000. Hopes grow as emerging markets gain access to bonds
 A mild recovery in residential property demand from late last year is continuing, shows the FNB Residential Property Barometer survey released on Wednesday. But don't get too excited at this stage, warned FNB Home Loans strategist John Loos. Recovery! Kind of…
 The revival of the residential property sector has been held back by the banks’ reluctance or inability to fund bonds on their previous scale – but there are, says Lanice Steward, MD of Anne Porter Knight Frank, now signs that the situation is changing gradually.“FNB,” said Steward, “is now offering 95% bonds to certain qualified buyers. This will be a big help to the market as a whole.” FNB’s 95% bonds to selected buyers could be the catalyst that the residential sector needs, says Lanice Steward
 “The FNB Quick Sell Plan (QSP),” says Tony Clarke, MD of Rawson Properties, “enables distressed homeowners to sell their properties – voluntarily – in the shortest possible time and to move forward, clear of a debt burden that they can no longer service. It greatly reduces the time and expense of the usual recovery processes.” Rawson Properties join FNB in their innovative programme to assist financially stressed home owners
Also read what one of our readers Kevin Harris from Colliers Sell Sure East London has to say; To the editor
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The editors
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17 July 2009, 09:09:44
Four Homenet branches in the southern Cape have become the latest to convert to the Harcourts brand.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
The Homenet Trio offices in Mossel Bay, Hartenbos and Great Brak River as well as Homenet Stillbaai have now all converted and Marlene Tait, general manager of the new Harcourts Trio branches, says the change is a pivotal move that will elevate the local real estate group into the international property sphere.
“Harcourts has 120 years of industry experience and has ties with a number of international markets. I am particularly looking forward to taking advantage of their extensive referral network.
“An alliance with such a prominent international company will do wonders for our exposure and will undoubtedly up our game considerably. Certainly the change has already had a palpable effect on our agents”.
Esté Maree, principal of Harcourts Stillbaai, believes that given the current state of the economy and property market, the rebranding will gain the respect of the property industry and public in general.
“At a time when most companies are retrenching workers and cutting corners, Harcourts is doing just the opposite through expanding and injecting new blood into a somewhat stale property industry. This speaks volumes about Harcourt’s confidence in our abilities and that will be noticed. What is more is that our clients will experience the benefits of our far superior, value-added service”.
Already the fastest growing real estate group in Australia and the biggest in New Zealand, Harcourts also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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012-333-6644,
073-946-9649 or
megw@telkomsa.net
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17 July 2009, 09:08:17
Colleague praises bill Rawson’s investment advice
With arguments being tossed back and forth on whether or not this is the right time to be investing in residential property, it was interesting to hear a colleague of the Rawson Group who has had 16 years association with them, tell a gathering of new franchisees that he had faithfully followed Bill Rawson's advice columns in the Cape press and had from 2003 to 2007 invested in five residential properties, all of which had been in new developments. Most had, too, been conceived, developed and marketed by Rawson Developers with the original prices being from R259 000 to R500 000.
All of these units, he said, had appreciated at approximately 12% per annum, with the result that they are now giving rentals totalling close on R12 000 per month – with plus-minus R3 000 per month being deducted for levy costs, rates taxes, administration fees, repairs and maintenance and other items.
The colleague added that he had also taken Rawson's advice on paying above the stipulated monthly bond rate whenever he could, usually by at least 15%, sometimes more. The amounts still owing, said the colleague, are now relatively insignificant – and the "profit" is now in the region of R7 000 per month – and still growing.
"The moral of the story," said Rawson's colleague, "is that, although price rises from now on are unlikely to be as high as they were in the boom period and appreciation will therefore slow down, I can nevertheless recommend anyone looking for a safe, long-term investment to take Rawson's advice and get into the market now. He has repeatedly said that the present is an excellent time to buy and, as this is proved valid in the past, is there any reason why we should not trust him now?"
Asked if a sensible selection of shares on the JSE might not have given a better overall return, the colleague said that, while this is possibly true, the average monthly paid employee simply does not have the information and insight to choose a really good portfolio of stocks and shares.
"I myself did well, in a small way, with WBHO and M&R shares – but the gains here were offset by the substantial recent decline in the value of certain other shares and unit trusts, many of which last year lost up to 60% of their value. In any case, the returns from such shares are not paid monthly and it is a monthly income that I'm trying to build up."
Tony Clarke , MD of Rawson Properties, commented that he too had invested steadily in property over the years and could testify in that his returns had been wholly satisfactory.
For further information contact Bill Rawson on 021 658 7100 or email bill@rawsonproperties.com.
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17 July 2009, 09:01:21
The international real estate group Harcourts has now opened an office to serve the northern suburbs of Johannesburg, including Bryanston, Fourways, Lonehill, Douglasdale and Paulshof.
Named Harcourts Lifestyle Properties and located in Olivedale, the office is headed up by John Bradford, Gavin Fairon and John Constable, who collectively have 30 years of property industry experience.
Bradford and Fairon were running an independent operation until recently, when they decided to join Harcourts Africa because of the strength of the group’s value proposition. Constable was then brought on board, having just returned from a year-long construction sojourn in Dubai.
Bradford will be general manager of the new operation, Fairon will be the business and financial manager and Constable will be operations manager.
The new office opening follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is attracting many new members around the country.
Bradford says Harcourt’s experience, integrity, training and value systems will set Harcourts Africa apart. “Harcourts is injecting much needed energy into the local property industry and its ‘people first’ ethos instils and consolidates the belief that it is not just a ‘sell and run’ setup. These factors, coupled with the fact that we also hold integrity, commitment and customer relations paramount in our own operations made the move an obvious one for us”.
Fairon and Constable appreciate the fact that Harcourts is a tried and tested, well established company that employs meaningful structures, controls and disciplines. They add that every aspect of its operations is compartmentalised and streamlined for maximum efficiency, which makes for a winning formula.
Anticipating growth, Harcourts Lifestyle Properties is already on a recruitment drive and aiming to employ up to 15 agents. The management team say applicants should embody the ‘four Es’ – that is enthusiasm, enterprise, energy and efficiency. Technological proficiency is also preferable, adds Bradford.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT JOHN BRADFORD
ON 083 268 0882 OR VISIT
www.harcourts.co.za
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16 July 2009, 15:51:20
South Africa's national planning minister, Trevor Manuel, said on Tuesday that the approach to price stability in South Africa via inflation targeting must not be abandoned just because it is difficult to achieve.
"Price stability is a constitutional imperative, and a mandate has been given to the central bank in the form of inflation targeting," he said.
Manuel was launching his first five-year plan as planning minister, called the medium-term strategic framework.
"In managing this, the Reserve Bank is outside of the [3-6 percent] the approach to price stability in South Africa via inflation targeting must not be abandoned just because it is difficult to achieve target, but the objective remains. We don't abandon the approach because it is difficult to obtain and at the same time don't say get back into target come hell or high water," he said.
Manuel said an approach like that could have the opposite effect of weakening the economy and deepening the recession.
"I am satisfied the Reserve Bank has demonstrated a reasonable mind," concluded Manuel.
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15 July 2009, 15:48:15
In response to the global recession which has impacted severely on South African residential property, FNB has come up with a new home loan Debt Remedy Programme designed to help customers who are experiencing financial difficulties and struggling to repay their mortgage bonds.
"The FNB Quick Sell Plan (QSP)," says Tony Clarke, MD of Rawson Properties, "enables distressed homeowners to sell their properties — voluntarily — in the shortest possible time and to move forward, clear of a debt burden that they can no longer service. It greatly reduces the time and expense of the usual recovery processes."
Potential homeowners who agree to the QSP are asked to sign a customer mandate to provide the chosen estate agency with relevant information on the home, to allow access to FNB’s appointed estate agents and to potential buyers. The home is then marketed and sold in the quickest possible time at the best possible price. In addition, once the a sale is secured, FNB Home Loans undertakes to execute a quick and efficient transfer of the property.
If an offer is accepted but there is a shortfall between the offer and the amount still owed to the bank on the home loan account, a repayment term of up to 20 years can be negotiated between the customer and the bank for the outstanding settlement amount.
Clarke said that FNB is confident that the QSP will prove beneficial countrywide.
"FNB has," he said, "made the QSP attractive to potential buyers by offering those who qualify up to 100 percent bonds on houses acquired through this programme and by cutting the transfer costs and registration fees by 50 percent. The system, I feel, is bound to attract qualified buyers through the wide network of FNB nominated agents. Furthermore, FNB’s legal and financial consultants will be on hand to ensure a trouble-free experience for the seller.
"I do seriously advise those in financial difficulty (which these days very often come about through no fault of their own) to consider QSP and to take quick action rather than to hang on in the hope that things will change. In our experience, this very seldom happens and the distressed mortgage payer gets himself deeper and deeper into debt. The time to take action is, almost without exception, now."
Rawsons, said Clarke, congratulate FNB’s management on this innovative initiative which, he said, will go a long way to ensuring that the credit worthiness of their clients is kept intact through these difficult times.
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14 July 2009, 13:17:30
Insights from the South African Property Transfer Guide (SAPTG) research team reveals changing trends in property buying that property professionals and investors should consider when formulating their respective marketing and buying strategies…
Marketing insights company Knowledge Factory has released a report based on data derived from SAPTG that highlights two of the most noteworthy current trends in the South African property market.
The financial downturn has changed buying patterns significantly. Drawing on property sales data from national figures in South Africa for the past five years, the report reveals the rise of cash sales as a percentage of total property sales.
Is this just due to the rise in repossessions or are there other factors to consider?
Additionally the report shows the steady convergence of full title and sectional title prices. This in spite of the fact that the number of sectional title units sold has suffered a greater year-on-year decline than full title units.
So what are the underlying reasons?
Knowledge Factory’s Dieter Deppisch, Property Data Research National Manager, will be discusses these trends in detail...
Trend 1: Cash is king
The first trend that stands out when reviewing the data is that 'cash sales' — defined as transactions where no bond was registered at the time of transfer — are increasing as a percentage of total sales year-on-year. From a high in the 2003/2004 period, cash sales steadily declined as a percentage of total sales over the next five years. However, this trend started reversing in the period 2006/2007 and cash sales of full title and sectional title properties rose to 33 percent or one in three sales during 2008/2009. 35 percent of all sales of full title properties were cash compared to 30 percent of all sectional titles. In addition, a considerable 35 percent of the total Rand value of all transactions accounted for were cash sales.
Dieter Deppisch, who heads property data research at SAPTG, highlights the introduction of the National Credit Act (NCA) in June 2007 as a catalyst for the decrease in the ratio of bonded sales to cash sales. "As expected, the introduction of the NCA and subsequent tighter lending criteria has driven cash sales upward as a percentage of all sales," Deppisch confirms. "Many people who could obtain financial assistance for their property purchases in the past are now excluded. According to the largest bond originator in South Africa, only one out of two (50.5 percent) potential buyers applying for bonds are currently being approved."
Other reasons for the rise in cash sales as a percentage are, predictably, related to the current financial crisis. "With repossessions on the rise the fortunate few with sufficient liquidity are picking up bargains at auctions," Deppisch observes. "Property is also an increasingly attractive asset class for investors disappointed by recent poor returns in the equity market and other investment classes. Property, while no get-rich-quick-scheme, is being favoured as a 'safe haven' that will yield healthy returns in the long term."
Deppisch also believes the trend is being magnified by the growing numbers of estate agents that are responding to the market downturn, tight lending criteria and high bond decline-ratio by actively targeting cash buyers.
Trend 2: Sectional title prices rising
The second trend is the convergence of sectional title and full title property prices, confounding the common logic that apartments and townhouses are simply entry-level buys. According to SAPTG data, which tracks the median price trend, the two price medians have been getting steadily closer since 2004/2005. In that year the median prices of full title and sectional title were separated by R61 435, in subsequent periods by R50 000 then R32 000 then R16 000 and finally at the end of 2008 they crossed over, with the median sectional title value actually R20 000 more than their full title counterparts.
This does not mean that sectional title is now the most popular property type. Overall the volume of sectional title units sold has declined at a rate more rapid than that of full title properties. While SAPTG research indicates a 34 percent decline year-on-year in full title it shows a 36 percent decline in sectional title (footnote: properties within the R200 000 and R5-million range between April 2007 and March 2008 and the corresponding period in 2008/2009).
The converging effect then has been in rand value. What has stimulated the positive growth in sectional title prices and the negative growth in full title prices?
Recessionary economic drivers are contributing factors, as Deppisch elaborates. "We have seen a rise in the debt-to-disposable-income ratio over the past two years. Many buyers have responded to pressure on their household budgets by purchasing smaller living spaces that are perceived to be cheaper, offer value for money and are less costly to maintain," he explains. "These changes are also part of larger shifts in lifestyle as buyers opt to move closer to their places of work to save fuel costs or even to move to different suburbs in order to save face with their friends if they can no longer maintain their previous lifestyles."
Deppisch cites security as another factor. "Sectional title properties are perceived to be more secure because many complexes implement centralised security measures such as 24-hour guards and secure access," he asserts, "and buyers are comforted by the notion that there is safety in numbers."
Property developers have also played a role in the rising price of sectional title properties. "They have responded to the changing demographics of buyers by upgrading finishes within sectional title units," confirms Deppisch, "which, in turn, made them an attractive option, especially for those who were downscaling and wanted to keep as many of the comforts they previously had in their full title home."
Finally, some (cautionary) good news
Conceding that the property market has, in many respects, suffered the brunt of the financial crisis, Deppisch concludes on an upbeat note. "The significant decline in insolvencies growth, decreasing debt-to-income-ratio, expansion in the retail sector, strong public-sector spending, falling inflation, low interest rates boosted by the 2010 positive sentiment will generate in property buyers, indicates a bottoming out in the current cycle."
However, he maintains: "While we are not out of the woods yet, given reduced tax revenue, job losses and volatile commodity prices adding to a list of ongoing risks, it does mean that we can anticipate that the situation won’t deteriorate any further. Buyers remain skittish and it may take six months or more for the impact of lower interest rates to filter through to the real-estate market in general. Indeed we expect the cyclical movement to a seller’s market to begin in the first quarter of 2010. Meanwhile cash buyers will continue to benefit from lower property prices as many sellers still drown in debt. Prudent management of personal finances has never been more necessary given the ongoing risks we face in this unfolding drama we call the South African economy!"
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13 July 2009, 13:03:55
Question:
I own a sectional title unit in Lonehill. Each home has a garage and a carport. My garage has very bad damp. I have been informed that the garage does not belong to me, but the body corporate (board of trustees) does not want to take responsibility for repairing it.
It will cost more than R5500 to fix it; am I responsible to repair this?
Answer:
You refer to the garage in question as 'my garage', but say that you have been informed that it does not belong to you. The first thing you need to do is to establish the legal nature of the garage as that will determine who is responsible for repairing and maintaining it. In a sectional title scheme there are always two and often three different types of property.
The three types of property are:
sections;
common property; and
common property subject to exclusive use rights
A section is owned exclusively by an owner to the midpoint of its dividing floors, walls and ceilings. The owner of a section is solely responsible to ensure that his or her section is maintained and repaired in a state of good repair. If the garage is a section owned by you then you will be responsible to fix the damp problem within the section. However, remember that you only own your section to the midpoint of its walls and therefore the outer half of the garage walls or its 'outer skin' and its roof are considered common property. This means that the garage consists of two different types of property, a section and a portion of common property. If the cause of the damp is a defect in the roof or the outer side of the walls, it may well be a defect in the common property that the body corporate is responsible to fix.
The common property is owned by all owners in undivided shares. The body corporate is responsible to repair and maintain the common property in a state of good repair. If the garage is entirely common property and there are no exclusive use rights over it, then it is solely the body corporate's responsibility to fix the damp problem.
Common property subject to exclusive use rights, or an exclusive use area, is an area of common property which is owned by all owners in undivided shares, but which is reserved for the use of only one owner or a number of owners exclusively.
Exclusive use rights may be shown on the scheme's sectional plan or may be contained in the rules applicable to the scheme. The exclusive use area is still an area of common property and therefore the body corporate is responsible to repair and maintain it, but it is obliged to recover the amounts it spends on that area from the owner/s entitled to use that area exclusively. Some schemes have rules in place that provide that an owner who benefits from an exclusive use right will repair and maintain the exclusive use area as if it were part of his or her section. But in the absence of such a rule, it is the body corporate's responsibility to maintain and repair the exclusive use area and to recover the costs of doing so from the owner/s entitled to the exclusive use rights.
Therefore if the garage in question is common property subject to exclusive use rights in your favour, the body corporate would be responsible to repair the damp but it would be obliged to recover the costs of repairing the damp from you.
As mentioned, however, your scheme may have rules in place which require the owners entitled to exclusive use rights to repair and maintain the exclusive use areas themselves. If this is the case in your scheme then you would be responsible for repairing the damp.
In order to ascertain the nature of the garage you should obtain a copy of your scheme's sectional plan which you can do at your local Deeds Registry or Surveyor-General’s office. You will also need to inspect the rules of your scheme which you can also obtain from your local Deeds Registry or you can request a copy of the rules from the trustees or the scheme's managing agent.
I would then advise you to employ the services of a damp expert to report on the exact source of the damp so that you can determine whether the defect is in your section, the common property or your exclusive use area.
Once you know in what type of property the defect is situated, you will know who is responsible to repair it.
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10 July 2009, 11:48:25
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Edition 27 of 2009, Friday, 10 July 2009
Dear Reader
Over the last few months we’ve reported that the banks attitude of withholding home grants are hugely to carry the blame for the poor performance of the residential sector and that the lack of credit was undermining the property market. We’ve seen cries from various of the larger property groups for the banks to come to the party and we’ve received various emails from readers requesting for the banks to do away with the required deposits.
FNB's chief executive of home loans, Jan Kleynhans, this week raised his head above the parapet to dispel what he believes are some unfair criticisms that have developed around the granting of finance for property deals. And, he gave some pointers as to what buyers, sellers and estate agents need to do to improve their prospects of finalising deals. In an article published on Realestateweb about FNB's home loan policy, Kleynhans writes that property sales remain poor and prices continue to slide because of some "deep-seated misconceptions". Property lessons from a home loan heavyweight
MR. Kleynhans, earlier this month, said that although FNB is not a dominant mortgage-granter and secures about 15 percent of the property market they are slowly increasing their share and that more than 50 percent of declined home loan applications is due to a combination of excessive debt, high living costs or poor credit records.
Will we see responses from the other banks on what FNB had to say? What is your viewpoint on what was said? Send it to news@cyberprop.com
 Tenants often labour under a misconception that their personal belongings are covered under their landlord’s insurance cover for the property. So says Berry Everitt, CEO of the Chas Everitt International property group, who notes that the confusion usually arises because the insurance policy on the property owner’s bricks-and-mortar may well cover damage to a tenant’s belongings if that damage is caused by something that went wrong with the building itself – a burst geyser, for example. One of the tips he shares is to get at least three quotes from different companies. Tenants need to insure their own belongings
Dear Mr Thorne,
 It has come to our attention through complaints by other tenants at the building that you have a dog at your premises. Under the agreement you signed as part of the Strata, animals are not permitted.
Please call or email me to discuss this matter as soon as possible.
Yours sincerely,
Does this sound familiar? Read more in No pets allowed?!
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The editors
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10 July 2009, 08:40:09
The international Harcourts real estate group will shortly have two offices open in Germiston, thanks to the rebranding of the Homenet Full Circle and Homenet Heloman agencies.
This follows last year’s partnership deal between Harcourts International and South Africa’s Homenet group, which has now been renamed Harcourts Africa and is in the process of re-branding all its offices around the country.
Simon John Smith, principal of Harcourts Full Circle in Lambton, says the conversion is very exciting and that the new technologies that Harcourts has implemented will greatly enhance operations.
“Technology is definitely the way forward and Harcourts has pioneered a number of firsts in this field. It was the first real estate organisation in New Zealand, where it originated, to upload listings to its own website and the first to develop a fully online programme for its offices to manage their business. Most recently it was the first to upload all of its listings to Google”.
Smith has been in the property industry for six years and his agency employs 10 sales agents, three of whom have already qualified through the Harcourts Training Academy and the rest of whom will soon follow suit, he says.
Leonora Swart, who heads up Harcourts Heloman, says the Harcourts group offers a winning formula which will quickly gain a following in South Africa.
“The Harcourts philosophy of people first, doing the right thing, being courageous and having fun resonates with many and will no doubt provide much encouragement in these difficult economic times.”
At present, four agents are currently working for Swart, one of whom has already qualified through the Harcourts Training Academy.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. It also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060 OR VISIT
www.harcourts.co.za
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Pse direct any enquiries to
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10 July 2009, 08:38:28
One of Hermanus’ most opulent mansions comes onto the market
A home which Rawson Properties agent Wayne Albutt has described as one of the top ten in Hermanus - and quite probably, in fact, one of the top five - has come onto the market at a price of R33 million.
Situated in Fernkloof with beautiful views of both the surrounding mountains and the sea and close to the golf course, the home was built some 20 years ago by the semi-precious stones entrepreneur, the late Hannes Kleynhans, whose business operated across the length and breadth of Southern Africa.
Albutt said recently that, although almost two decades old, the home is still one of the most modern and sophisticated in Hermanus and certainly one of the most opulently finished. Its three floor areas cover a staggering 2,095m2. The upper (second) floor has four bedrooms with the master bedroom being exceptionally large.
The living areas and the study are also very large. The home also has a separate guest cottage (or staff accommodation) with two further bedrooms, a kitchen and a living room.
The north and south façades have extensive full-length glazing and open up the views mentioned above.
In addition to spacious living, dining, reception and family areas, the ground and lower ground floors have a wine cellar, a bar/pool room, a sauna, an extra bathroom and a many patios. On the first floor there is also a fully equipped gymnasium.
Being involved in the stone mining industry, Kleynhans was, said Albutt, able to source and install quality stone finishes on the floors and countertops. There is over 700m2 of Namibian white marble flooring in the home. The banister of the staircase and various other indoor and outdoor features (including many of the doorknobs) have been custom made from semi-precious stone.
The garage can take four vehicles and a large boat or caravan and there are two large storage areas in excess of 200m2.
The grounds are extensive, their size complementing the home. They cover 9,117m2 and Mr Kleynhans had established an attractive golf chip and putt area in one section for his own use.
Albutt said that the home would be best suited to a captain of industry with a family coming from the same mould as Hannes Kleynhans, particularly if such a person has a liking for large scale entertainment, golf, fishing and mountain walks.
For further information contact Wayne Albutt on 028 313 1870 or email hermanus@rawsonproperties.com.
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10 July 2009, 08:37:22
Flagship home at Shelley point on the market
A home that is almost certainly the most luxurious and upmarket on the Cape West Coast has come onto the market at a price of R12,5 million.
Sited facing north-east onto Stompneus Bay (part of St Helena Bay), the home is the flagship residence of the 160ha Shelley Point development – and was, in fact, conceived by Shelley Point’s owner, Gert Joubert, using as an architect Hein Gerstner who has been responsible for the overall design guidelines at Shelley Point. All external walls of the home are, therefore, white plastered and the roof is of grey-blue slate.
The home is on two storeys linked by a staircase on which all the steps are solid marble. Marble floor coverings are also much in evidence elsewhere in the home (and on the kitchen counters) and even the steps to the nearby beach are covered in attractive pale white-grey stone.
The house was completed late last year. It has four bedrooms, all en suite, and all leading to view balconies. The ground floor living/TV areas are open plan and, in addition to space for a giant dining table, have their own bar corner with seating. The ground floor patio opens onto a heated pool which also has views of the bay where whales are resident five months a year.
Claudia Strydom of the Shelley Point sales team said that in all her experience no home had ever compared with this one for the quality of fittings (including Bosch equipment in the kitchen). Many of the taps and light fittings are imported, she said.
“The exceptionally high standards throughout, she said, make the home a bargain at R12,5 million. If we were not in a recession, this home would be listed at R16 million.”
Shelley Point residents enjoy a large measure of security as the estate is bounded on three sides by the sea and on the inland boundary has security fencing. The two gates are manned 24/7. All residents have access to the estate’s nine hole golf course, tennis courts, bowling green, swimming pool, restaurant, coffee shop, spa (with qualified health consultants), gymnasium and jogging trails.
From now until late November, St Helena Bay is home to some 70 whales, making it one of the best whale watching precincts in Africa.
For further information contact Claudia Strydom on 083 441 8386 or email claudia@shelleypointdirect.com.
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10 July 2009, 08:35:13
Luxury four bedroom Bantry bay home has sea and mountain views
The value of Anne Porter Knight Frank’s connection with the UK headquartered international property group, Knight Frank, has been proved time and again, says Lanice Steward, MD of this agency and Helen Hoekstra, the new manager of APKF’s Atlantic Seaboard branch, reports that her team has regularly been given mandates to sell homes owned at the Cape by Knight Frank clients and associates.
The latest of these to come on the market is in Bantry Bay. It is an impressive ultra-modern (almost cubist) home on three levels with extensive outdoor entertainment areas. The price of R13,5 million, says Hoekstra, takes into account that the market for this type of home has dropped some 20% in the last 18 months.
“This is, therefore, a very good buy with huge potential for value growth over the next three years,” she said.
The home looks out directly onto the sea and the Twelve Apostles mountain range and has an outdoor swimming pool patio which opens out these views and links in with sun-filled open plan living and dining areas.
There are four bedrooms and four bathrooms, as well as a playroom/TV room, scullery, and double garage. The home is tiled throughout, except for the bedrooms which are luxuriously carpeted. The large kitchen, says APKF’s Sabine Ehrman, is “completely 21st Century” and is equipped with Siemens appliances.
Lanice Steward commented that this is the type of home supports her often-quoted statement that “when it comes to modern architecture, Cape Town designers are, in my opinion, better than most of their UK and European colleagues”.
“Sited on the French Riviera this home would be selling not for R13,5 million but for at least double that amount,” said Hoekstra.
For further information contact Helen Hoekstra on 021 434 3517 or email atlanticseaboard@anneporter.co.za.
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09 July 2009, 15:56:18
Angola's capital Luanda has again been rated the most expensive city in the world for expat workers, followed by Tokyo, according to a survey published Wednesday.
The latest Cost of Living Survey by human resources consultancy ECA International saw Luanda maintain top spot on the world priciest locations for foreigners, while Maseru in the small mountain state Lesotho was the cheapest.
The next three cities in the ranking after Luanda and Tokyo were all in Japan — Nagoya, Yokohama and Kobe — according to the report.
Oil rich Angola's has enjoyed an unprecedented economic boom since a 27-year civil war ended in 2002 which has attracted an influx of foreign workers.
The country's war-damaged industry and poor infrastructure means the bulk of food, construction materials and other goods have to be imported, driving up costs.
Decent Luanda apartments with water and electricity go for upwards of $15 000 a month, a basic meal out can top 100 dollars and imported European cheese sells for over 15 dollars a piece.
The high prices sit incongruously next to the rest of Angola's poverty with two thirds of the population living on less than two dollars a day.
Maintaining their position in the top ten were Copenhagen in Denmark, Oslo in Norway, Geneva and the Swiss cities of Geneva, Zurich and Basel.
ECA's cost of living data, conducted twice a year, compares a selection of 125 consumer goods and services in over 370 locations worldwide.
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08 July 2009, 15:54:10
Blouberg, an area in the Cape renowned for its great views of Table Mountain and still relatively affordable property, seems to be chartering a course towards the top rung of the property ladder.
Taking a closer look at the property market, Fanie Lategan, principal of Chas Everitt Western Seaboard, says that while sales are down on last year the market is still buoyant compared to other areas of Cape Town. "The challenge," he says, "lies with the banks’ strict credit policies meaning only about one third of home loan applications are approved."
The rental market in Blouberg is extremely buoyant. "This," says Lategan, "is due to the fact that people are struggling to get bonds, which is forcing them to rent rather than buy." He says rentals between R3000 and R5000 per month are in high demand, with homes closer to the beach renting for about R10 000 per month.
Deon Lessing, marketing director at bond originator Betterbond, agrees with Lategan saying originators are also experiencing difficulties even though they are working hard to get bonds approved. "But," says Lessing, "it is encouraging to note that the number of bonds granted by the banks is on the increase, with the ratio between bonds submitted and bonds granted steadily improving."
Average selling prices for Blouberg property on the other hand range from around R900 000 in Parklands to R2-million in Big Bay. Lategan says entry level prices are still below R500 000, but some properties close to the beach are on the market for R20-million plus.
"The contraction of the market has once again brought about more apparent value for investors and buyers," says Lessing who goes on to say that value can still be found in the market and excellent property opportunities await the astute investor.
Factors that are set to stimulate the Blouberg market even further, in Lategan’s view, include the rapid transport system currently being rolled out in the area, which he believes will have a significant impact on area and alleviate traffic problems. "It will contribute to the area’s popularity and provide easy and convenient access to the Cape Town CBD," he says.
Going forward, Lategan says that Blouberg is expected to become a natural extension of the Camps Bay, Clifton and Bantry Bay lifestyle due to its far greater affordability and location on the Atlantic Ocean.
"Blouberg/Parklands are the most significant growth areas close to the Cape Town CBD. They offer affordable property and are therefore popular with young families. Blouberg is also a popular tourist destination with spectacular views of Table Mountain and one of the best kite surfing beaches in the world," Lategan says. "I think we have seen the worst and I expect the market to turn in the latter part of the year and continue to improve substantially during 2010 — depending on the banks’ credit policy," he concludes.
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07 July 2009, 16:02:53
Banks have recently gone from offering 108 percent bonds to requiring that you have anything from a 10 percent to a 30 percent deposit and that you fund all costs related to acquiring the property from your own pocket.
On a purchase of a R1-million, with a 10 percent deposit, this translates to having approximately R150 000 available. This is with a 10 percent deposit; heaven help you if the bank insists on a larger deposit!
The crucial question is; how many young people have this kind of available cash under their mattresses?
Fortunately, some banks have had a look at this situation and came up with a workable solution to assist those who wish to purchase a home, but do not have the available funds to cover the deposit and the property-related costs.
Using your pension as security, you are now able to obtain a loan for the shortfall.
The requirements
You need to belong to a good pension scheme or provident fund.
You need to establish your withdrawal benefit currently available in the scheme.
The property must be your primary residence. This product is not suited for investment properties. It is designed to assist those who wish to purchase a home.
As per the National Credit Act (NCA) requirement, you need to be able to afford both the mortgage bond and the loan secured by the pension scheme.
Your loan needs to be repaid before you retire, resign from the scheme, sell the property or on death.
The advantages
Provided you can afford the loan and there is sufficient withdrawal benefit available, you can raise the deposit and property related costs through a pension secured loan.
The product entails two separate accounts, one being the mortgage bond and the other being the loan secured by the pension scheme.
You can have your mortgage bond at the bank that offers you the best home loan product, while you have your pension-secured loan at one of the banks that offer this product.
The home loan and pension-secured loan account don’t have to be for the same repayment term. You should repay your pension-secured loan as soon as possible, releasing the burden on your pension.
If you are married, you can use your spouse’s pension fund or yours, or both.
Many first-time home buyers will now be able to own their home. Bear in mind that this product not only affects your finances now, but right until the day you retire. Speak to a mortgage bond consultant who is well-versed in this product and who will be able to advise you accordingly.
For further information contact Tess Rodrigues of Property Factor CC on 0861 106 306 or info@propertyfactor.co.za.
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03 July 2009, 11:47:23
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Edition 26 of 2009, Friday, 03 July 2009
Dear Reader
 South Africa like so many other countries are going through tough economical times. This is not new to us. For those of you who have been following the newsletter on a regular basis will know that the real estate sector is one of the sectors that are currently experiencing the most difficult times. Home owners that are looking at selling their properties and also home owners that are looking at renting out their properties knows what I’m referring to. Unfortunately it seems that there are still not light at the end of the tunnel;
 The total number of liquidations recorded for May 2009 increased by 6.8% year-on-year from April’s 41.3% increase, data released on Monday by Statistics South Africa shows. The highest number of liquidations occurred in the financing, insurance, real estate and business services sector at 120, although this is off the 150 seen in the previous month. Next worst was wholesale and retail trade, catering and accommodation at 77, followed by manufacturing at 34. Mining and quarrying only saw one liquidation from 24 a year ago. I-Net Bridge
Days after SA Reserve Bank governor Tito Mboweni took a break from lowering South Africa's interest rates, house price data and analysis from two big banks shows property values are still falling. FNB's June house price index shows the "accelerating deflation trend remains intact" while Standard Bank's monthly property report and median house price figure confirm that the strain has not alleviated in the residential market. Unfortunately, says Standard Bank, the weakness in the market is set to continue, it said. House prices: Warnings of worse to come Residential House prices and Standard: House prices decline 4.9% y/y
With the FIFA Confederation cup now out of the way South Africans is preparing to cash in on 2010. This we see even on the “soapies” showing on national television. Is renting out your property for 2010 the right thing to do? Beware!
- Rental scams commandeer real ads from Internet
- How to cash in on property in 2010
- To the editor
In answer to last week’s newsletter, What will the impact of this decision be on the real estate industry? Eskom's 31.3 percent electricity tariff increase will have a negative effect on the commercial property industry, the SA Property Owners Association (Sapoa) said on Thursday. "The huge increase will definitely have an effect on the property industry in an economy where vacancy rates are now higher, arrears are not uncommon and many retailers are closing down," said Douw de Kock, chairman of Sapoa's energy efficiency task team. Eskom buggers property
Homes in every sector of the market in Somerset West are attracting families and investors keen to own property in this popular Western Cape town, with the majority of properties offering good value for money. That’s the word from Joan Gibb, principal of the local Chas Everitt International franchise, who says the Somerset West market has rallied well in the face of the economic crisis and property downturn in contrast to surrounding areas. In the area – Somerset West
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The editors
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03 July 2009, 08:55:52
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Nedbank private bank moves into new northern suburbs Johannesburg home
The Johannesburg branch of Nedbank Private Bank has become the second tenant to move into The District, a R65 million 4,500m2 office building developed by the Inframax subsidiary, Africast, in joint venture with Basil Logan.
Sited on the northern edge of Rivonia with almost direct access to the Western Bypass freeway, “The District” has already been recognised by property watchers as one of the more upmarket office complexes in Johannesburg’s northern suburbs, an area known for impressive office developments.
John Weaver, an Inframax Developments Director, said that Nedbank have signed a five year lease for 1 482m2 of space (inclusive of balconies) and 50 parking bays.
“Nedbank’s premises,” said Weaver, “add distinction to an already upmarket building.”
“The group’s corporate colour scheme,” he said, “complements the bold, contemporary look of the powerful, almost cubist, building.”
Weaver said that the Nedbank lease, together with that of Shell, will result in half of the available space at “The District” being taken up – at rentals above R100 per m2. Both, he said, are considered by Inframax as prestige clients and have set the tone for the leasing of the balance of the building.
The new building has been targeted at the corporate market, those looking for upmarket, high profile premises, but we are able to accept tenants needing as little as 250m2 and are currently in negotiations with two smaller possible tenants.
The attractions of the new building have been listed as:
- a noticeable profile, clearly visible from the Rivonia Road Extension and, as mentioned, fast access to the Western Bypass.
- an attractive design with A-grade finishes throughout, and
- a generator which will generate electricity whenever Eskom power is not available.
The District, a R65 million 4,500m2 office building developed by the Inframax subsidiary, Africast, in joint venture with Basil Logan, where Nedbank Private Bank and Shell have now signed leases.
In an earlier statement Weaver pointed out that The District development had been carried out on the last significant plot still awaiting development at Sunninghill.
“These offices,” he said, “will in time be seen as some of the most desirable in Johannesburg, especially by those who recognise that the business hub of the city is now in Sandton/Rivonia, a precinct which has the big advantages - not only of being new and attractive, but also of cutting out much of the commuting, which today’s time-conscious staff increasingly see as irksome and wholly unproductive.
For further information contact John Weaver on 021 530 5760 or email jweaver@inframax.co.za |
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03 July 2009, 08:53:05
Rawson properties khayelitsha south franchisee sets his sights on growth
Bill Rawson, Chairman of Rawson Properties, said recently that it is never easy for a new arrival to make his way and become established in residential property selling – but for those who try to do this in the townships it is five times as difficult as for those operating in areas where agencies and property trading have long been an accepted way of their lives.
“One has to congratulate those who do crack it in the townships,” said Rawson. “It takes courage and great perseverance.”
Rawsons have, in fact, been among the frontrunners in establishing franchises in previously disadvantaged areas – they have 22 such franchisees – and right now one such is showing particular promise.
This is Benedict Ngxongwana of the Khayelitsha franchise whose team, so it is said, will be achieving five to ten sales per month by the end of this year.
Ngxongwana’s association with Bill Rawson goes back many years. His mother, a single parent with three children, worked as a domestic for the Rawson family and it was through her that Bill Rawson learned of Benedict’s sporting and academic excellence: he was one of the top scholars at his Khayelitsha school.
Rawson agreed to sponsor Benedict (who is known as Benito to his friends) to do a year’s computer studies (a very comprehensive course) at the St Francis School in Langa.
On qualifying Benedict was employed for two years by Rawson to handle their fully computerised referral system.
Rawson then suggested that he join Peter Sonwabiso as a Rawson franchisee in Khayelitsha. They worked together for four months before splitting the partnership into two, Khayelitsha north and south, with Benedict responsible for the latter, which he took over on 1st May 2009.
“The first three to six months in a new franchise will always be a real struggle,” said Benedict, “but we now have five agents and we have seen that in a good month we can sell four or five houses – so the future is promising.”
In the area he services, there are three categories of houses – in Litha Park and Kulani Park these will cost R500 000 plus. In other areas the majority will be priced at R200 000 to R350 000 or R250 000 to R300 000.
“These prices are 100% up on those we saw only four years ago,” says Benedict. “This shows just how strong demand here is.”
Throughout Khayelitsha, he says, there is a growing awareness that a home is a transferable asset and a road to wealth. Many are now taking the bold step of preferring to buy into appreciating brinks and mortar rather then rapidly depreciating “wheels”, which a few years back were always the option for the upwardly mobile.
As a result of the demand for homes in Khayelitsha, he adds, these are now regularly upgraded and the standard is improving year to year.
However, less than 40% of bond applications prove successful and this is the major reason for the market not yet being as buoyant as it might be.
“Since the National Credit Act became law,” said Benedict, “anyone who is even quite moderately in debt will have a difficult time getting a bond – and the many who are blacklisted, often on account of quite small unpaid bills, will certainly be turned down.
“As a first step, therefore, we have to get potential buyers to cancel some credit cards and accounts and settle outstanding debts.”
Benedict is now fully qualified – in terms of the Estate Agency Affairs Board’s new rulings and is therefore entitled to mentor his rookie recruits. (He is also one of the few township agents who has a Fidelity Fund Certificate.)
With a wife and an infant to support he has, he says, no option but to make this work. A factor to his advantage, however, is that, as a well known runner, rugby and soccer player and martial arts expert, who devotes considerable time to training Khayelitsha’s youth, he is well known in the area.
His sporting interest, along with his Christian faith, are central to his life – he will regularly run to Somerset West, a distance of 40km and as a qualified Sensei (karate instructor), he is also kept busy with training others.
“Khayelitsha is in a transformation period and could be a gold mine for good estate agencies,” says Benedict. “As Bill Rawson has indicated, there are good reasons to think that my franchise will become a market leader in Khayelitsha. We have our feet on the ground, we know how this business works and, I believe, we give a more professional service that has usually been the case here.”
For further information contact Benedict Ngxongwana on 072 124 0772 or email khayelitsha.ps@rawsonproperties.com.
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03 July 2009, 08:49:49
Construction of the first homes in the new Lombardy Estate and Health Spa to the east of Pretoria is well under way and homeowners are eagerly awaiting delivery of their properties.
That’s the news from Christo Steyn, principal of the Chas Everitt International branch in Pretoria East, which has the mandate to market the estate.
He says that many of the Lake Lombardy luxury townhouses and Lombardy Fountains boutique homes in the development have already been sold, as have many of the open stands. A number of private residences are under construction on these stands with some homeowners already taking occupation. Prices for homes in the Lake Lombardy section start at R2,9m and for those properties in Lombardy Fountains at R990 000.
The estate will feature tranquil water features, fountains and lakes within a fully-secured environment. Once it is completed, residents will also have access to communal parks and walkways, tennis courts, a function centre, quality restaurants and a five star hotel and health spa that will all add to the estate’s lifestyle appeal.
The townhouses in Lake Lombardy feature generously proportioned rooms with ensuite bathrooms, fully fitted modern kitchens and spacious patios with pools. Private courtyards are also included and under-floor heating, air-conditioning and a spa bath come standard.
In Lombardy Fountains, the one, two and three-bedroom full title homes range in size from 154sqm to 285sqm and all have ensuite bathrooms, fully-fitted modern kitchens and spacious patios. Most balconies also feature a water view.
The five-star hotel on the estate is already fully operational and the spa and wellness centre is currently in the pre-construction phase.
A marketing office has been established on site and sales consultants are on hand full time.
ISSUED BY
CHAS EVERITT INTERNATIONAL
FOR MORE INFORMATION CALL
CHRISTO STEYN ON
012 369 9041 OR VISIT
www.everitt.co.za
The townhouses in the Lake Lombardy section of the Lombardy Estate east of Pretoria feature generously proportioned rooms with ensuite bathrooms, fully fitted modern kitchens and spacious patios with pools. Under-floor heating, air-conditioning and a spa bath come standard and prices start at R2,9m.
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073-946-9649 or
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03 July 2009, 08:49:05
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Go-getter manager joins apkf atlantic seaboard
Anne Porter Knight Frank has appointed a new, dynamic manager at their Sea Point/Atlantic Seaboard branch.
She is Helen Hoekstra. She comes to APKF after six years of selling on the Atlantic Seaboard for other agencies including Sothebys (where she was their top agent in Hout Bay and Llandudno for three years) and O’Shea.
Prior to that, Hoekstra, who was schooled and raised in Johannesburg, had ten years in London and Belgium where she was a consultant to the Bank of England, responsible for reporting to them on other banks’ Capital Aadequacy, as directed by the Basle Accord. While in the UK and Belgium she studied and completed her UNISA B Com degree, which she was awarded in 2001.
Helen Hoekstra lives in Hout Bay, is married and has two children aged eight and three.
Her hobbies are hiking, travelling, reading and scuba diving.
In an initial interview she said that it should be possible to build up a team of 15 APKF agents covering an area from the City Bowl and the Waterfront to Hout Bay.
Hoekstra is now setting up an APKF branch in Camps Bay, servicing the Atlantic Seaboard, as she believes there is great value to be had in property along this coastline, and now is an ideal time to get into the market before prices begin to increase within the next twelve months
For further information contact Helen Hoekstra on 021 434 3517 or email atlanticseaboard@anneporter.co.za.
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03 July 2009, 08:10:44
RealNet opens in Jeffreys Bay
RealNet has added Jeffreys Bay to its list of offices countrywide, following the conversion of local estate agency Rachie Badenhorst Properties to the national brand.
Co-owner Rachie Badenhorst says that as part of the group her office will be able to bring a superior real estate offering to local property buyers and sellers.
“Although our agency has flourished since its opening in 2006, my partner James Hinton and I decided the time was ripe for joining a larger group, and we selected the RealNet group based on its values, sound business model and its personal involvement with franchisees, the last of which closely mirrors our own approach to clients.”
She adds that the local market is hunkering down and that buyers are wary of commiting themselves. “Pressure on prices has, however, given rise to excellent buying opportunities in Jeffreys Bay, one of the country’s prime holiday spots.”
Small bachelor apartments can now be had at prices of about R330 000 while residential homes in the middle segment of the market sell at between R800 000 and R950 000. Badenhorst adds that investors can also buy “brilliant” apartments in this price category.
“And the top market bracket now offers unparalleled buying opportunities. Demand is weak, which means buyers can pick up real bargains. There is room for serious price negotiations, with some sellers willing to lower their price expectations by up to 40% if they are pressured to sell.”
Meanwhile “commuters” who work in Cape Town or Gauteng are still evident in the market. Badenhorst says this type of buyer settles their family in Jeffreys Bay, noted for its excellent schools and beach-town lifestyle, and returns home at weekends. “We are also seeing more buyers who have overseas working contracts settling their families here. And in many cases, they pay in cash.”
Issued by RealNet
For further information call
Rachie Badenhorst on
042 293 2776 or visit
www.realnet.co.za
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01 July 2009, 16:19:49
In 2008, high interest rates, the National Credit Act (NCA), the lending policies of commercial banks and a global financial crisis were all held accountable for poor property sales and falling house prices.
Now, a year later, conditions have hardly improved. Property sales remain poor and prices continue to slide. Yet, interest rates have reduced significantly back to 2006 levels and many commentators are saying that the worst of the financial crisis may be behind us.
"This gridlock in the industry can only be attributed to a series of deep-seated misconceptions in the minds of owners, buyers, agents and even some property market commentators," says Jan Kleynhans, CEO of FNB Home Loans.
"Rocketing prices and rapidly expanding demand some three to four years ago have left many people with a deep-seated belief that these conditions will return and they should therefore price to sell and bid to buy accordingly. Sellers — specifically — have difficulty in accepting that the value of their house is falling and are extremely wary of selling in a low market if they believe a recovery is around the corner."
FNB's recent Residential Property Barometer (Q1/2009) surveyed agents who indicated that the percentage of properties sold at less than asking price remains above 80 percent, suggesting that many sellers are still not realistic in their pricing.
FNB's view is that recovery will be slow and that we may see further weakness extending into 2010. It is this scenario that is partially shaping the bank's decision-making when it considers an application for residential mortgage finance.
"Property values need a number of preconditions for growth. The most important of these is underlying economic vitality. And this condition has been lacking for some time, particularly in terms of consumer affordability levels and sluggish income growth or even income contraction. This is exacerbated by lower consumer confidence levels as the average potential property buyer is concerned about losing their job or at best a reduction in income growth. It should come as no surprise, then, that prices continue fall in consecutive surveys reported in the FNB Property Barometer and every other report on the residential property market. Thus one finds an oversupply of properties, typically by those needing to sell and sluggish demand due to low consumer confidence levels," says Kleynhans.
Bank lending policy
"Financing residential property remains an active business. Across the banks, thousands of new mortgages are granted every week. While FNB is not a dominant mortgage-granter and secures about 15 percent of the market, we are slowly increasing our market share and continually seeking new business opportunities despite the lackluster business environment," says Kleynhans.
Recent statements in the media suggesting that banks are actively withholding residential lending to the point that a lack of credit is undermining the market are, however, far from the truth. FNB's decline ratio stands at around 50 percent of all applications and this level has only increased moderately in the past 12 months.
From a credit decision-making viewpoint, FNB looks at the following:
The NCA requires a comprehensive analysis of the customer's financial position, specifically in terms of home loan affordability at the time of assessing the loan.
The Act requires that credit-granters are diligent and methodical in their approach to ensure reckless lending does not occur.
The underlying asset must represent sound value particularly as the risk of customer default is highest in the first few years of the home loan being granted.
That the underlying value of the property will provide sufficient security for the loan given default. Where the loan value is deemed to be too high, the bank may offer a lower loan aligned to the value of the property or decline the application.
A property report by a bank assessor.
A review of sectional title financial statements.
Buyer equity in the property in the form of a deposit.
More than 50 percent of people applying to FNB Home Loans are declined due to a combination of excessive debt, high living costs or poor credit records.
For customers in good standing, however, FNB is currently reviewing its earlier requirement of a 10 to 15 percent deposit 'across the board'. While deposits will continue to be a requirement in mortgage finance, lower deposit requirements will aid affordability without either compromising the customer's debt ratio or exposing the bank to potential losses arising from a non-performing loan.
"We have lived through such a rapid transition from boom-times to a recession that we all need to review our attitudes towards our financial affairs. In boom-times when asset prices were rising, it made little sense to save. In a recession, exactly the opposite is true," asserts Kleynhans.
"Consumers need to adopt a habit of saving. It may take a year to two to accumulate a deposit, but that is exactly the sort of change in behaviour South African consumers need to make. South Africa's traditionally low savings rate has been exacerbated by previously low deposit requirements on mortgage loans," says Kleynhans.
Property Economist at FNB Home Loans, John Loos is cautiously optimistic about the immediate future. "Although interest rate cuts may well spark a mild rise in new loans granted, it will probably be a long time before the growth in the total mortgage or household credit outstanding turns the corner due to leads and lags between new lending trend changes and capital repayments catching up. Given the shaky global and local economic conditions, any rise in new lending is expected to be mild, as it is unlikely that lending institutions will come 'out of the starting blocks' quickly this time around."
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29 June 2009, 08:58:59
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Edition 25 of 2009, Friday, 26 June 2009
Dear Reader
 “So close and yet so far” This is what we can say today regarding Bafana Bafana’s soccer match last night against Brazil. This is also what we can say regarding another interest rate cut. But unfortunately this is not what we can say about the National Energy Regulator of SA’s grant of a 31.3 % interim tariff increase for Eskom to fund its operational costs. What will the impact of this decision be on the real estate industry? Send us your viewpoints to news@cyberprop.com
Barclays Wealth survey snapshot: The rich says they will allocate more money to real estate The report doesn't include South Africa as a country in its list of results; nevertheless in this era of globalization it gives a good snapshot about investment sentiment among the world's wealthiest people. And, the Barclays Wealth survey lends weight to recent reports that property sales are better-than-expected in some prime South African locations. Real Estate news – Rich investors vote for real estate
SA banks’ cutback credit from 1 June 2007 when the National Credit Act came into effect. This resulted in a down slide in the property industry. It does seems that the bank’s are easing down.
- Hopes for an easier home loan climate
- Easier bonds boost southern suburbs sales
- Don’t rush into fixing your bond interest just yet, says Neethling
An article of interest; it is on a recent rare legislative concession that that will allow individuals to transfer their domestic residence out of a company or close-corporation, for a period of two years, tax-free. David Warneke, a tax expert at Cameron & Prentice, an accounting firm, explains that although similar relief was previously available, the current proposal is narrower than the previous relief in a number of respects. He also urges those affected by this to take advantage of this opportunity. Rare legislative concession gives tax relief on domestic residence
Read more in To the Editor
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The editors
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26 June 2009, 09:50:16
Estate agents and sectional title managing agents must be registered as debt collectors before they can collect rental arrears, the council for debt collectors said on Wednesday.
"If they do so they are acting illegally and are contravening the Debt Collectors Act," chairman Jasper Noeth told a media briefing in Pretoria.
He said on 6 June, a council committee made a landmark ruling that estate agents and sectional title managing agents cannot collect arrears without being registered as debt collectors.
He said it was pointed out that when estate agents and sectional title managing agents recover rentals and levies in arrears, they were collecting debts as defined by the Debt Collectors Act.
They were thus acting as debt collectors and must be registered with the council for debt collectors.
The ruling means agents would be subjected to the council's prescribed fees.
"This decision will undoubtedly safeguard the public against any possibility of exploitation of fees asked."
He said it has been found that exorbitant fees were being charged and the public was exposed to abusive practices.
"The prescribed fee, as stipulated in the Debt Collectors Act, for a letter of demand is R12.60," he said, mentioning a case in which amounts of R175 to R250 were charged for letters of demand.
He said during the past financial year the council had received numerous complaints about debt collecting and had acted on these matters in a fair and responsible manner.
In one case the council found that 287 false emolument attachment orders were issued and no files existed at the magistrate's court where the orders were supposedly issued.
An emoluments attachment order is issued by a court to a debtor's employer directing that a specific amount of the employee's salary be paid directly to the creditor.
The debt collectors concerned were found guilty and would be sentenced soon. The total amount to be collected in terms of these orders, over a period of time, amounted to more than R3.6-million.
"In various disciplinary matters it was found that the public had been overcharged with fees.
"In these cases the disciplinary committees of the council ordered a repayment of the amounts overcharged to the debtors concerned. The amounts to be repaid varied from R30 000, R25 000, R10 000 and numerous smaller amounts."
The council for debt collectors was created by Parliament to protect and inform the public about their rights in terms of the Debtor Collectors Act.
The council exercises control over debt collectors in their interaction with the general public.
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26 June 2009, 09:44:09
Inflation slowed less than expected last month, but this is unlikely to stop the Reserve Bank trimming interest rates by another half a percentage point today.
Consumer prices rose eight percent compared with the same month last year, down from a rise of 8.4 percent the previous month and its lowest level for 19 months, Statistics SA said yesterday.
The outcome was above forecasts for a rise of 7.9 percent, and showed that service prices rose 8.4 percent – the same pace as in April.
But mounting job losses and the sharp contraction in SA's economy so far this year will carry more weight in the decision of the Bank's monetary policy committee (MPC).
"It's a little discomforting that consumer inflation remains high ... but it would be a mistake to read too much into this," said Standard Chartered's regional research head for Africa, Razia Khan. The MPC "should still cut by 50 basis points".
The Bank has cut interest rates by 4.5 percentage points since last December, taking the repo rate down to 7.5 percent.
"Not in the mood" for reductions
Each of the four cuts this year have amounted to a full percentage point, but the Bank's governor, Tito Mboweni, warned last month that the MPC was "not in the mood" for further significant reductions, due to "sticky" inflation.
Today's expected rate cut may be the last in this cycle, given price pressures generated by rising oil prices, electricity tariffs and double digit wage settlements.
"Given that the inflation outlook remains relatively uncertain, we expect the Bank to remain a bit more conservative this week," Absa Capital economist Jeffrey Schultz said. "We expect a half percentage point cut, which will probably mark the end of the rate cutting cycle."
Changes in interest rates take up to two years to make themselves fully felt, but the MPC is unlikely to stop lowering them yet in the wake of a barrage of grim economic data.
The Organisation for Economic Co-operation and Development yesterday forecast a deeper than expected recession for SA, predicting that the economy will shrink by two percent this year. Earlier this week the World Bank forecast a 1.5 percent contraction.
Business sector shed 179 000 jobs
Market consensus sees output contracting by about 1.5 percent after a 6.4 percent fall in the first quarter of the year – the steepest in 25 years.
In that period the formal business sector shed 179 000 jobs.
Inflation has breached its 3 percent – 6 percent official target range for more than two years, and is subsiding more slowly than expected.
That is due partly to stubborn food prices, which rose 12.3 percent versus the same month last year – an improvement on 13.7 percent in April.
During the month itself, the consumer price index (CPI) rose by 0.4 percent, compared with 0.5 percent in April.
Vehicle prices – which have a weight of 11 percent in the CPI – rose by a robust 1.4 percent last month.
Prices for most of the inflation basket's components rose by more than 6 percent, the data showed.
Rand improves the inflation outlook
"Overall, the resilience in retail inflation so far defies expectations by the Bank that the widening output gap will bring inflation down," said Thebe Securities economist Monale Ratsoma. He was referring to the difference between actual economic output, which is shrinking, and its potential growth rate, which the Bank puts at 4.5 percent.
Gains in the rand, which firmed by two percent to nearly R8/ yesterday, improves the inflation outlook.
"If the rand holds at its current levels ... consumer inflation could fall within the target range in the fourth quarter," said Nedbank economist Carmen Altenkirch.
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25 June 2009, 09:49:53
South Africa's producer price index (PPI) registered deflation of 3.0 percent year-on-year (y/y) in May from inflation of 2.9 percent y/y in April, Statistics South Africa (Stats SA) data on Thursday showed. This is the ninth consecutive decrease in the producer price inflation headline number.
The PPI decreased 1.1 percent on a monthly basis after April's monthly decrease of 0.2 percent.
The PPI was expected to have decreased at 2.0 percent y/y according to a survey of leading economists by I-Net Bridge, with forecasts ranging from -1.2 percent to -3.7 percent y/y. PPI was at an elevated 16.4 percent a year ago.
Economists react to the PPI data:
Fanie Joubert, Efficient:
"It's more than the market consensus. This confirms that on the producer side, prices are in a deflationary environment for the first time since 2003.
"It's a positive development, but we must remember that it's coming from a very high base created in the first of 2008."
Carmen Altenkirch, Nedbank
"Today's producer inflation data is extremely encouraging. The high base established in 2008 combined with falling domestic and international demand should keep producer price inflation in negative territory for much of the remainder of this year. Lower input prices as well as contracting domestic demand should continue to put downward pressure on consumer inflation.
"This is good news for the medium-term inflation outlook, which the Reserve Bank will be focusing on at today's meeting. So, we're expecting 50 basis points".
Annabel Bishop, Investec:
"PPI inflation came out much lower than expected, recording the first month of deflation since December 2003. We continue to believe the SARB will cut interest rates by 50bp today and 50bp in August. The release of the Q2.09 GDP figures are likely to show the economy contracted by more than the authorities expect, we forecast a Q2.09 figure of -4.2 percent qqsaa, if not closer to -5.0 percent qqsaa.
"The larger-than-expected fall in the PPI on the year was due to a sharp drop in the rand oil price and, to a lesser extent basic metals."
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24 June 2009, 08:55:09
The international Harcourts real estate group now has four offices open on the East Rand, following the rebranding of the local Homenet agencies.
This is in line with last year’s purchase by Harcourts International of a share in the Homenet group, which has now become Harcourts Africa and is in the process of re-branding all its offices around the country.
Brian Dugmore, principal of Harcourts Anchor in Boksburg says the international group offers the most sophisticated real estate systems in the world and that its marketing strategies will give the Harcourts Africa offices a competitive edge. He notes that local consumers have already noticed the change and that his team feels more professional because of their new Harcourt’s apparel, branding and support structures.
Johannes Barnard of Harcourts Falcons in Brakpan is also pleased about the conversion and looking forward to taking advantage of Harcourts’ superior technology and training academy.
Says Barnard: “There are many benefits to amalgamating with an international company such as Harcourts. We will have access to a number of international property markets and our agents will be able to offer a far superior service. It’s definitely a step in the right direction which will up the ante in the local property industry considerably.”
Slavo Bantich whose Harcourts office focuses on new residential developments as well as commercial and industrial projects across the East rand, says the re-branding process has gone smoothly and that he is already utilising Harcourts systems to great effect.
Lance van Heerden of Harcourts George Rennie in Benoni also believes that the change is definitely for the better and very exciting. He adds that the partnership with Harcourts is another great step in their evolution as realtors.
Harcourts is one of the fastest growing real estate groups in Australia and the biggest in New Zealand. The group also operates in China, Fiji, Indonesia, Singapore and Zambia, and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property every year.
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CONTACT MARTIN SCHULTHEISS
ON 031 201 1060 OR VISIT
www.harcourts.co.za
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23 June 2009, 08:59:24
Sa developed wall plaster is one of few that are 100% waterproof and can be applied on top of pva paint or to facebricks
With winter rains once again lashing homes and other buildings of the Western Cape – and with low-cost housing particularly vulnerable to damp penetration, where can developers, specifiers and others look to find an effective, easily applied and not overpriced protective wall plaster?
Mike Grose, Chairman of Technical Finishes, a company which makes some 250 products for the construction industry, says that those troubled by water penetration problems on the buildings they own or manage should take note that the Cape Metro authorities have become enthusiastic users of Skimplaster, a cement-based plaster developed by his company to provide 100% water resistance for walls. The product, says Grose, has the big advantages that
- it is easy to apply and adheres to all walls, even when applied by an amateur. This makes it ideal for the DIY market and reduces wastage to minimal amounts.
- it is supplied ready-mixed, the powders needing only water to be added. There is no chance, therefore, of the mix being wrong and the applicator can make as little or as much as he needs – on site.
- it can be applied to PVA painted surfaces and to face bricks. Other plasters will not adhere to these.
it does not need a paint coating – the plaster is itself waterproof.
as it is so strong and effective, a coat only 3mm thick is needed. This makes it more economical than other plasters. Its application time is roughly half that of other plasters.
It is covered by Agrement Certification, awarded to Technical Finishes in 2005, #313.
On low-cost housing, adds Grose, the quality of the finish will literally transform any block-built building – and applications made to houses up to ten years ago are still completely intact.
For further information contact Mike Grose on 021 535 4455 or email mike@technicalfinishes.com.
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23 June 2009, 08:58:06
Striking neo-georgian homes to be built in upper claremont
A 2 000m² erf in Upper Claremont on which the striking Maister residence was built, circa 1938, has been bought by Classico Developers who will develop a further two 400m² double storey houses on the northern portion of the erf.
The new homes are designed to sell at R5,5 to R6 million, says Anton du Plessis, CEO of Vineyard Estates who is selling the new units, having already onsold the existing residence at a price close to the R3 million mark. The new homes are, says du Plessis, competitively priced for new houses of this size and quality in this area – particularly those with unobstructed mountain views.
Transfer is scheduled to take place on both units around mid-2010.
Du Plessis said that buyers will be impressed by the spacious 500m² erven and the neo-Georgian style. These homes, he said, conceived by Raubenheimer Hervey and Associates, will have four bedrooms each and floor to ceiling custom joinery windows to highlight the dramatic views afforded by the site, as well as an impressive list of standard and optional features.
These include underfloor heating, solid wood floors, slide back frameless doors on some living areas, granite countertops in the bathroom and kitchens, solar powered geysers, imported ovens and hobs, and, a truly innovative feature, glass doors at the back of the garage, allowing much-needed light into these traditionally gloomy areas.
For further information contact Anton du Plessis 083 234 2909 or email anton@vineyardestates.co.za.
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23 June 2009, 08:56:54
One unit available at central southern suburbs security estate
Anton du Plessis, CEO of Vineyard Estates, says that “however you look at it” there can be no arguing that the eight unit Boshof Estate has proved to be one of the development successes of the last decade at the Cape. Completed in 2004/2005 most of the units have been held onto by those who bought them originally but, he says, one has now come back onto the market at a price of R8 million.
“This, in my view, is an opportunity that any serious investor should investigate,” said du Plessis.
Sited in Boshof Road, Fernwood, often said to be the most prestigious part of Newlands, each home has a ± 900m² erf and is separated from the other townhouses in the development. Each home has three bedrooms, all with their own bathroom, an upstairs open-plan study, a family room with a wood burning fireplace and double doors leading to a patio and swimming pool and a guest suite/bedroom or staff accommodation. Plans have been approved for a large fourth bedroom with an en-suite bathroom.
“The estate,” says du Plessis, “is one of the only guarded security estates in the central Southern Suburbs. What is more, the chances of more security estates coming onto the market in this area are virtually nil because the cost of the acquisition and demolition of existing properties would be prohibitive.”
For further information contact Anton du Plessis on 021 674 4444 or 083 234 2909.
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22 June 2009, 09:47:23
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Edition 24 of 2009, Friday, 19 June 2009
Dear Reader
 According to Wikipedia an economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, or a speculative mania) is “trade in high volumes at prices that are considerably at variance with intrinsic values”. A real estate or property bubble on the other hand is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterised by rapid increases in valuation of real estate property such as residential property until they reach unsustainable levels relative to incomes and other economic elements.
Peter Boone, chairman of Effective Intervention and Simon Johnson, a professor of entrepreneurship, believes that the next global bubble is already under way. The Bubble Next Time
Author Steve Bergsman writes; “When bubbles burst, the effects almost always last a long time. When real estate bubbles deflate, it is never a short-term problem. Bergsman's message: Proceed with caution, be patient and realise that there are many kinds of real estate markets -- each with particular potentials and pitfalls. He continues with the following statements;
- Money still can be made on real estate, but it will take time and a specific approach to types of property and their locations
- It is not likely, nor a desirable thing, that the real estate bubble will re-inflate to its former false glory
- Distressed property is moving slowly because it’s priced too high
- In 2009 and 2010 more commercial properties will come on to the market
- Sold and rented housing that is part of in-fill development, urban and suburban, will outperform stand-alone single homes that require long commutes to work
- Industrial real estate will remain resilient and could take off if the economy sustains a recovery
Read more in After the Fall: Opportunities and strategies for real estate investing in the coming decade
Builders, interior decorators and other suppliers of goods and services in the new residential property arena can expect the tough times to continue. The number of building plans passed by local government officials is down dramatically on recent years, latest statistics show. In a note released by Absa Home Loans, senior property analyst Jacques du Toit said residential building activity is expected to remain depressed for the rest of the year. New residential property: more pain looms
Last week we placed an article written by Chuka Uroko from Nigeria in which he wrote about the measures developed countries like United States, United Kingdom, United Arab Emirate and even South Africa are taking to improve the real estate industry. Some of these measures are cuts in interest rates on mortgage lending and housing. In answer to this article we received feedback from John Fuller, principal of Chas Everitt International Property Group, Plettenbergbay. “It always brings a smile to my face when I hear comparisons being made about our finance rates and those of many other countries, and I have on several occasions had the pleasure of educating buyers from Europe when they have compared our mortgage rates to theirs. Most people are unaware that there is a vast difference between the calculation methods used to determine financing rates in most African and European countries compared to South Africa”. Read more in To the Editor
Enjoy!
The editor
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22 June 2009, 09:00:31
One of the biggest benefits of the huge new Rama City development project to the north-west of Pretoria will be the skills training in various fields that will be available to members of the Rama community to improve their employment prospects and assist them to start their own businesses.
And this is no empty promise, as evidenced by the fact that the first 50 learners from the community are already on a 13-week computer proficiency course that will help them gain an NQF level-3 qualification. This training is being carried out by MSL Strategies, which is accredited by ISETSETA and currently also running certain programmes for the Umsobomvu youth fund.
Another five people have already started training as skills development facilitators and plans for the implementation of training in construction skills are well advanced. This will also enable the community to take part in the building works to take place at Rama City from next year.
As the project develops, the training courses available will increase to include design, communication and various aspects of management as well as specialist construction skills from bricklaying and carpentry to plumbing and electrical work.
These training schemes, which form an integrated part of the overall development plan, are being put in place by the developer, Rama Horizon Developments, working in co-operation with the relevant government departments and sector training authorities (SETAs) to ensure that they comply with NQF requirements and will lead to recognised and useful qualifications.
“The community is very excited about what this will mean to them,” says MSL’s Kevin Gilbert. “The training can take place while developing their new home town, Rama City, and will enable the participants to find employment and even create their own businesses as the town grows. In this way the Rama City property development will contribute in another very real way to the upliftment of the community.”
The Rama community was forcibly removed from its land during the apartheid years but successfully claimed it back in 1998 in the land restitution programme, and has now partnered with Rama Horizon Developments to create whole new town in the area, complete with shops, schools and community facilities as well as more than 10 000 new homes.
Called Rama City, this town will lie some 22km to the north-west of Pretoria and within easy commuting distance of the employment opportunities in Rosslyn, Brits and Akasia. As such, it will be of enormous practical benefit to the Rama community and the formation of the development partnership is already being hailed as a move that could provide a resettlement blueprint for other communities that were victims of forced removals and have now successfully reclaimed their land.
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19 June 2009, 08:26:06
3,2ha farm property in the heart of Constantia on the market through vineyard estates
Property investors looking for a good, but very long term property prospect or simply a charming, though slightly old and ramshackle farmhouse on 3,2 hectares of ground in the heart of Constantia will be interested to know that a farm property, Cymbidium, has come onto the market – at a price of R18 million.
The agent is Vineyard Estates.
The property is close to the historic Alphen Hotel and was, in fact, originally part of the Alphen farm, which in 1949 was sub-divided by the owner, Hugh Bairnsfather Cloete, who later sold it to Grace Mildred Roper. She, in turn, sold it in 1955 to the well-known Cape veterinarian, Dr C H Basson.
Dr Basson grew vines (and qualified for a KWV quota), vegetables and orchids. The farm, in fact, was named after a popular orchid variety. He also ran a small prize-winning Friesland stud.
In 1991 Dr Basson retired, leaving the farm in a trust, which for 17 years has rented it out. However, Dr Basson’s children have now decided to sell, provided they can find a buyer with a passion for the estate and an ability to restore it to its former glory.
Anton du Plessis, Chief Executive of Vineyard Estates, said that there can be very few places in the world where a property of this beauty and size is set within metropolitan precincts. The farm, he said, is just 1,3km (as the crow flies) from Constantia Village Shopping Centre and 3,2km from Cavendish Square. Its rural zoning ensures that it cannot be sub-divided into parcels less than 21,500m2.
“Obviously,” said du Plessis, “the question that will be asked is, ‘Is there any prospect of this property eventually being sub-divided?’ Given the City Council’s stated policy of densification, and the fact that the farm of this size is not really agriculturally viable, it is likely that a rezoning application would eventually prevail. I am convinced that the time will come when very attractive one or possibly two acre plots will be allowed here.”
Views from the property take in the Wolwekloof and a river, the Burgersboskloof, which runs through the estate. Being low lying, the land is very fertile and well protected from the wind.
The large single storey ranch-style house is, said du Plessis, now fairly rundown but still habitable and comfortable.
“I would imagine that any serious buyer would replace it, but it has served several generations of people well.
Ideally, said du Plessis, the farm’s new owner should be able to farm it commercially, as did Dr Basson, and as it is part of the suburb Constantia, quality wines can be produced with the valuable right to feature “Constantia” on the label.
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19 June 2009, 08:24:59
Grand Maison comes up for sale in Constantia
A large home in Constantia, a “grand maison” originally built for the Portuguese Consulate General, is on the market for R4,95 million.
The agency handling the sale is Anne Porter Knight Frank, represented in this case by Anne Wilkinson.
Wilkinson said recently that the home, situated in Spaanschemat River Road, on 2 076m², has four spacious bedrooms, two and a half bathrooms, three reception rooms, a fully fitted beechwood kitchen, a small separate cottage, which can be used for a work from home facility, domestic accommodation or as a guest suite.
The main house has two spacious outdoor entertainment areas, overlooking a heated pool and park-like gardens.
Lanice Steward, MD of Anne Porter Knight Frank, commented that this section of Constantia is thought of by many as “the” place to live in the Cape Peninsula.
“At under R5 million, it represents good value in the current market,” she said.
For further information contact Anne Wilkinson on 021 671 9120 or email anne.wilkinson@anneporter.co.za.
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18 June 2009, 08:21:51
Sweeping changes are occurring in the KwaZulu-Natal Midlands propertyscape where a host of Homenet branches will this month officially convert to the international Harcourts branding.
Homenet 1st Realtors, Homenet Ed Patrick, Homenet Hilton, Homenet Ashburton and Homenet Emanuel are all currently in the process of changing over to the global real estate brand, following last year’s purchase by Harcourts International of a share in the Homenet group, which has now become Harcourts Africa.
Albie Timmerman, principal of Homenet 1st Realtors, is looking forward to the conversion citing the mutual benefits both Harcourts and Homenet will receive as being fundamental to their success going forward.
“Harcourts has operated in Australasia for 120 years and as such is a very professional company. We’ve always enjoyed a good rapport with Harcourts and we’ve already sent three of our eight agents through the Harcourts Training Academy. Suffice it to say this partnership is definitely a step in the right direction”.
David Patrick, principal of Homenet Ed Patrick, which will be renamed Harcourts Park Lane and which incidentally is celebrating its 31st anniversary this month, believes that the Harcourts value proposition is giving Homenet the opportunity to reinvent itself at a time when most companies are shying away from change.
“While everyone else has gone into hibernation, Harcourts Africa is doing just the opposite, offering agents an unbeatable value proposition and a positive way forward. Given that the local property market has taken a knock, such action is encouraging and will help us rally in these difficult times.”
Andrew Line of Homenet Hilton who has enjoyed a 65% market share over the past 15 years and Heidi Johnston of Homenet Ashburton feel the same, saying that Harcourt’s cutting edge technology, international links and “people first” philosophy makes for a winning combination which will elevate the Harcourts Africa group to a whole new level.
Roy Emanuel, principal of Homenet Emanuel which will become Harcourts Town and Country, says the fact that Harcourts was willing to invest in Homenet during such uncertain economic times speaks volumes about its confidence in the local group’s. Emanuel has operated in the Estcourt market for the past 36 years specialising in agricultural sales and he is upbeat about the conversion.
Harcourts is the fastest growing real estate group in Australia and the biggest in New Zealand. The group also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants, and sells more than $19,5bn worth of property a year.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
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15 June 2009, 08:54:45
A rare opportunity: 5ha estates for sale on historic Boland wine farm near Stellenbosch
Greeff Properties have secured the sole mandate for five Boland smallholdings that their CEO, Mike Greeff, has described as “without a doubt one of the most beautifully sited properties his company has ever handled”.
Each estate on the Slaley wine farm covers a ±3 to 5ha site, situated on the foothills of the Simonsberg 6km from Stellenbosch and 18km from Paarl, just off the R44. This site, said Greeff, is the epicentre of the Stellenbosch wine route. Nearby estates such as Muratie, Delheim, Kanonkop, Warwick, Le Bonheur, Simonsig, Uitkuik and Liefland – as well as others – are all world-famous wine producers. Ninety five percent of the grapes grown on Slaley go into a range of reds (Merlot, Cabernet, Pinotage and Shiraz) and a few whites that are sold overseas at prices of R250 plus per bottle.
The owner of this section of the Slaley Farm Estate is Johann Buitendag, a property developer whose company, Prime Lifestyle Developments, is now known throughout South Africa as a result of a number of successful medical centre and retirement village developments.
Buitendag, who bought this portion of the Slaley farm in 2006, said, that it is quite possibly the only piece of agricultural land in the entire Stellenbosch winelands on which subdivisions into properties under 5ha have been allowed. This is because this subdivision was put through in 1953, before the law limiting such subdivisions came into effect.
“This is, therefore, a once in a lifetime opportunity: anyone buying smallholdings elsewhere in the Boland today will find it very difficult indeed to get even a 20ha piece of winelands property, let alone one of 5ha, the majority being between 90 and 120ha in this most sought after and expensive wine growing precinct.”
(Wine estates in the Stellenbosch district, in fact, currently attract prices of R400 000 to R1,5 million per hectare.)
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Buitendag said that he had spent the first 18 months after the acquisition, installing services (roads, reservoirs and sewers) as well as high quality electric and palisade fencing. One of the defining characteristics of this development, he said, will be a high level of security, with a single entrance gate manned 24 hours a day.
The vineyards and olive groves on the property will continue to be farmed by the previous owner, Lindsay Hunting, who also farms on the Slaley Farm. The Lindsay family has grown grapes here for some 60 years, their original estate being 600ha in size. Title deeds on Slaley date the property back to Huguenot times, i.e. to the 17th Century.
Owners of the Slaley Farm smallholdings will be precluded from interfering in any way with the farming operation. This provision, however, also means that they will not bear any of the costs of the farm (which, said Buitendag, would involve an initial outlay of several hundred thousand rands and ongoing costs of at least R100 000 per annum). Owners will also, however, be in no away involved in any losses incurred on the farm as a result of poor season, disease, a slump in the market or any other causes. They will be entitled to 24 cases of wine of their choice each year.
The land is priced from R6,4 million, the average price being R6,6 million for a stand. The sites on the higher ground with panoramic views are the more expensive ones.
Buitendag and his architect, Koen Greyling, have drawn up a footprint layout for a home on each stand. Although they are convinced this is in every case in the most appropriate building position, it is not binding on the new owners. Buitendag has completed three houses on the smallholdings so far. These are for sale at an average price of R10 million.
Those who build for themselves will be obliged to adhere to architectural guidelines which will ensure that all houses on the estate conform to an attractive, modern farmhouse style, characterised by neutral tone façades (at the moment mostly pale grey green), charcoal, black or grey Chromadek roofs, spacious interiors, some with fireplaces, deep-set verandahs and patios – and extensive use of natural materials such as timber (especially for decks) and stone. Window and door frames, it is suggested, should always be a dark aluminium or timber.
As most of the footprints of the homes are on slopes, it is envisaged that virtually all will have split levels. Two of the completed homes have superb views over the existing farm dams. Those on the higher ground will have spectacular 360¢ª views that take in most of Simonsberg, the Paarl Mountain, Table Mountain (just 30km away) and most of False Bay.
RMB Private Bank have agreed to advance 70% bonds to financially approved buyers.
Greeff said that, in his view, these properties must represent one of the best buying opportunities to become available in the Stellenbosch Winelands in the last decade.
“Let me repeat,” he said, “that few other smallholdings of this convenient size are ever likely to become available in the Stellenbosch wine district because conservation legislation is dead set against subdivision of agricultural land and the Stellenbosch municipality is also determined not to extend its urban boundary.”
Heather Cape, Greeff’s development manager, who is available to show visitors around the estate, said, “This is a once in lifetime chance to enjoy the winelands lifestyle in a really attractive setting without having to bear the cost of running a farm and without the hassles of living on a large estate. Our management team has predicted that we will see these estates double in value by 2015 – and I can see no reason to disagree with them.”
For further information contact Heather Cape on 021 763 4120 or email info@greeff.co.za.
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15 June 2009, 08:45:13
High profile property executive takes over Rawson Port Elizabeth franchise
Rawson Properties have sold their large Port Elizabeth franchise to a franchise principal, Verity Bigara, who has had 12 years of successful marketing selling and management in property and who, says Tony Clarke, MD of Rawson Properties, has also managed a Pam Golding Properties branch.
Bigara started her property career in KZN, moved to George for five years and then to Port Elizabeth, where she was a branch manager for five years. Her husband, Duncan, is a senior partner in MDA Architects.
She was approached by Rawsons to take over this franchise because, says Clarke, she has an impressive track record.
The franchise’s office is at 8 Whaley Place, Walmer, but Bigara plans to open a second office in the western sector of PE and is also looking for an independent franchisee for the Uitenhage and Despatch area.
“We aim to become a dominant presence in PE by mid-2010,” she says.
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Right now, she adds, the Port Elizabeth residential market is at what is likely to be its lowest point, from which, she predicts, it will begin to climb upwards towards the end of this year.
“Prices are on average 30% down from their early 2007 levels. However, we are in the strong position of having low overheads and of running a rental property agency, so we can only grow from here. We are also not confined to any one market, or area – we can handle anything from an entry level home to a multimillion rand luxury home.
Her own strengths, she says, have traditionally lain in the upmarket sector which at PE has survived the recession slightly better than other sectors, but she will definitely not be confining herself or her agents to this.
By mid-2010, says Bigara, she plans to have at least six agents on her staff – and by then, she predicts, the market will be humming.
“We are, however, very selective and will be looking only for agents with good track records and proven successes.”
All Bigara’s operations to date, comments Clarke, have been characterised by high ethical standards and transparency.
Bigara confirmed this: “We know that value of building up trust and forging long-term links with clients. This will be our goal here. We are quite confident we can be a major player in the PE property world within a year because we are getting great back-up from our head office and the Rawson brand is much respected.”
For further information contact Verity Bigara on 041 581 7708 or email portelizabeth@rawsonproperties.com
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15 June 2009, 08:23:19
Rawson properties move into upper Constantia
Rawson Properties’ move into Upper Constantia and other upmarket Cape suburbs has borne fruit this year, says Bill Rawson, Chairman of Rawson Properties.
“Many agents,” he said, “shy away from handling the more affluent homes because they realise that success here is not easily come by. Fortunately, for us, since Eugene Pienaar took over the Constantia franchise, Rawsons has been increasingly successful here.”
The latest home on offer from Pienaar and his team, says Rawson, is exceptionally well priced (for Constantia) at R3,8 million. It is a double storey home with great charm, beautiful views and a feeling of being closely linked to its natural surroundings.
What is more, says Pienaar, the home has been immaculately cared for and is in top condition.
“Very few homes have such good indoor-outdoor space correlation,” said Pienaar. “Easy links between the communal areas and outdoor patios make this home suited to entertaining and outdoor meals.”
The home is characterised by having curved semi-circular windows above full-length glazed doors. There are four bedrooms and two bathrooms – and a separate flat. Garaging for two cars is on offer.
For further information contact Eugene Pienaar on 083 279 3909 or Sandy Dicey on 082 785 4803.
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12 June 2009, 09:57:21
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Edition 23 of 2009, Friday, 12 June 2009
Dear Reader
The Republic of South Africa, a small country located at the southern tip of Africa. Who would have thought that such a small country could play such an important role in the continent of Africa? Who would have thought that the eyes of the world would be on this rainbow nation? It was with great interest that I read a Nigerian property related article and read about my own country.
As the global economic crisis persists, different countries of the world have devised measures for responding to its impact on real estate. CHUKA UROKO writes that top of these measures are cuts in interest rates on mortgage lending and housing loans Developed economies like United States, United Kingdom, United Arab Emirate and even South Africa.
Countries where property market had experienced a boom before the crisis-are at the forefront of nations have adopted friendly measures in the bid to stave off the effect of the global financial crisis on mortgages and housing loans. South Africa has also cut its lending rate but unlike UK, interest rate in the country was not cut heavily. It was cut by just one percent from 12 percent to 11 percent. Whatever the case, at the end of the day, you find that it has made mortgages cheaper and more affordable. Meltdown: Nigeria in context of global response to impact on real estate
What is the most read property related article on iafrica.com for the past year? “SA’s priciest property” Sought-after by those at the very pinnacle of the social hierarchy, South Africa's most expensive properties are everything you'd expect — extremely luxurious and very private. Personal lifts, scurrying housekeepers, a butler or three, spas and fully equipped home gyms are just some of the humble pleasures that the distinguished owners of these homes have come to expect. More in SA’s priciest property
To renovate or not to renovate? We’ve placed two articles this week on renovations that could help you to answer on this question;
· To Renovate or not to Renovate? - that is the question
· Tackling renovation in a down market
It’s been 10 years since the 'rebirth' of Cape Town’s Central City as a residential zone got underway. And although the historic facades of the area may have remained largely unchanged — albeit cleaned up — the profile of buyers has certainly shifted. In the area 2 – Cape Town CBD
Enjoy!
The editor
CLICK HERE FOR MORE
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12 June 2009, 09:04:09
A “life rights” system is an effective, inexpensive way to secure a comfortable retirement, says greeff manager
“Life Rights” is today the most commonly used retirement unit funding system in the USA, Europe Australia and South Africa as well as many other countries.
It entails that the money paid to the owner/developer secures the purchaser the right to live in a unit for as long they wish or in perpetuity i.e. until the death or departure of both the husband and spouse.
The Cape Peninsula Organisation for the Aged, Greeff Properties and Lloyd Properties are holding a seminar on Thursday, 18th June at 2:30pm on the issues faced by those planning to retire. The venue is the Riverside Place Retirement Centre in Alnwick Road, Diep River.
The discussions will cover a wide variety of issues, but will relate these in many instances to the new Riverside Gardens Retirement Centre, a follow-up to the very successful Riverside Place nearby.
“One of the real benefits of a Life Right,” says Greeff Properties Development Manager, Heather Cape, “is that it is not a property deal and, therefore, no transfer duty or VAT is payable, nor are there any bond or registration fees.”
Cape said that when she deals with would be retirees, similar questions are always asked. The following concerns come up time and again:
- If I put down a deposit now can I be assured that the project will in fact go ahead and that the money is safe?
- If I sell my house now is it possible that I will get too little for it in the current market?
- What happens if my home is sold before my unit is ready?
- If the levies are more than I can afford (due to escalation clauses) – is there any solution?
- I dislike of the idea of having to part with some of my favourite furniture and/or books.
- There could be disagreements in the family about the move. (One of the retiring couple might want it but the other does not). Similarly some of the children think it is a good idea, others disagree.
- How secure will I be in this new development?
- What happens if I get sick or incapacitated?
In reply Cape says the following facts are always relevant.
“It is always advisable to have the Cape Peninsula Organisation for the Aged involved on any project – as is the case at Riverside Gardens, the developer can then draw on their knowledge and administrative ability. They are trusted, with 22 schemes to their credit and 50 years experience to draw on, and are widely recognised as totally reliable. DNL have built many schemes and are reliable and reputable developers. CPOA will be the owners and managers of Riverside Place.”
On the issue of selling of your home in the current market, Cape says that this is quite understandably a cause for concern. However, in most retirement schemes, including Riverside Gardens, the developers ask only for a 10% deposit on signing, the rest to be paid on occupation. Riverside Gardens, in fact, will not become available until October 2010. By then, the housing market should have recovered significantly.
Most schemes, too, have an arrangement to provide retirees with temporary accommodation for three or four months. For Riverside Gardens buyers, temporary accommodation in Riverside Place or any other CPOA scheme can be arranged.
On the levies issue, Life Right contracts must disclose the annual escalation in levies and is usually fixed for an initial period. In many cases the levy fund is subsidised by contributions from the resale of Life Rights and levy increases are, therefore, kept below inflation. Special levies to meet unforeseen expenditure should not be necessary.
At Riverside Gardens, although not included in the levies, dining and frail care facilities are available if required.
On the subject of parting with possessions, Cape said,
“While it is true that it can be difficult to part with certain items when moving in,” said Cape, “our experience has shown that older folk adjust to enjoying a less cluttered and more manageable lifestyle. Children are very often able to take over some of the excess furniture, books and other items.”
Discussing the disagreements likely to arise, Cape said,
“Family disagreements are a common problem when retirees contemplate moving. Experience, however indicates clearly that once the retiree has settled, the majority are glad to have made the move. Also, it is simply not true that older folk enjoy solitude. All retirement villages will tell you that older people usually benefit from having company – and their children are grateful to have them in a secure environment and have help at hand whenever needed.”
On the security issue, sale documents need to guarantee such items as electric fences, 24 hour guards, CCTV coverage of the complex, panic buttons( in units) and emergency/armed response. Riverside Gardens will have all these in place by the time of occupation.
On health care matters, the Life Rights contract ensures that health care is available to all members. Moving for health reasons later in life can be traumatic, so it is advisable to get into retirement centres with this “extra” sooner rather than later.
Mike Greeff, Chief Executive of Greeff Properties, comments that the fundamental problem facing virtually all retirees is the dislike (shared by all of us) of any big change in our lives – even though the change can be shown to be largely beneficial.
“Our job is always to be sympathetic, to allay these fears and to point out the huge benefits of CPOA complexes such as Riverside Gardens.”
Greeff Properties and Lloyd Properties are currently marketing 59 units in the Riverside Gardens retirement village in Diep River which is sold on the Life Rights system. Prices start from R855 000 to R1,65 million depending on the unit size.
For further information please contact Angela Labuschagne on 021 763 4120 or email angela@greeff.co.za
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12 June 2009, 09:02:10
Luxurious milnerton home comes on the market through rawson properties
Bill Rawson’s Chairman’s Choice recommendation was recently a Milnerton home which, a year ago, would have probably been sold for R1 million more than the current asking price of R2,95 million – an indication of the bargains now available on the market which, says Rawson, will not last for ever.
“This is, in every sense of the word, a luxury home,” said Karen Schwarz of Rawson’s Milnerton franchise. “It is s sited on a quiet crescent on a 1 288m2 plot and has superior finishes – full length glazing on certain façades, solid birch wood floors, maple cupboards and very subtle lighting.
“There are three bedrooms, two bathrooms, a fully equipped gourmet kitchen, a separate scullery and a cellar which currently serves as the owner’s private gymnasium but which could also be used as a family rumpus room, a workshop or to store wines.”
The garden is fully landscaped and the home has a swimming pool. It is close to all amenities, the beach, schools and the golf course. The Cape Town CBD and the V&A Waterfront are only ten minutes away (out of peak traffic hours) and the views of Table Mountain and Lion’s Head from most of the rooms, said Karen Schwarz, are “breathtaking”.
For further information contact Karen Schwarz on 082 899 8790 or Reinhard Schwarz on 082 440 3334.
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12 June 2009, 09:00:31
High Profile Property Executive Takes Over Rawson Port Elizabeth Franchise
Rawson Properties have sold their large Port Elizabeth franchise to a franchise principal, Verity Bigara, who has had 12 years of successful marketing selling and management in property and who, says Tony Clarke, MD of Rawson Properties, has also managed a Pam Golding Properties branch.
Bigara started her property career in KZN, moved to George for five years and then to Port Elizabeth, where she was a branch manager for five years. Her husband, Duncan, is a senior partner in MDA Architects.
She was approached by Rawsons to take over this franchise because, says Clarke, she has an impressive track record.
The franchise’s office is at 8 Whaley Place, Walmer, but Bigara plans to open a second office in the western sector of PE and is also looking for an independent franchisee for the Uitenhage and Despatch area.
“We aim to become a dominant presence in PE by mid-2010,” she says.
Right now, she adds, the Port Elizabeth residential market is at what is likely to be its lowest point, from which, she predicts, it will begin to climb upwards towards the end of this year.
“Prices are on average 30% down from their early 2007 levels. However, we are in the strong position of having low overheads and of running a rental property agency, so we can only grow from here. We are also not confined to any one market, or area – we can handle anything from an entry level home to a multimillion rand luxury home.
Her own strengths, she says, have traditionally lain in the upmarket sector which at PE has survived the recession slightly better than other sectors, but she will definitely not be confining herself or her agents to this.
By mid-2010, says Bigara, she plans to have at least six agents on her staff – and by then, she predicts, the market will be humming.
“We are, however, very selective and will be looking only for agents with good track records and proven successes.”
All Bigara’s operations to date, comments Clarke, have been characterised by high ethical standards and transparency.
Bigara confirmed this: “We know that value of building up trust and forging long-term links with clients. This will be our goal here. We are quite confident we can be a major player in the PE property world within a year because we are getting great back-up from our head office and the Rawson brand is much respected.”
For further information contact Verity Bigara on 041 581 7708 or email portelizabeth@rawsonproperties.com.
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12 June 2009, 08:59:24
International estate agency group Harcourts now has an office open in Plettenberg Bay, where a top team of agents from another large real estate company have converted to the new brand.
The office, located in the Bayview Centre, is headed by Debbie Cairns, a well-known local property personality, along with teammates Sue Harvey and Stephen and Lisa Ritchie, who collectively have 33 years of real estate experience and have won a stack of industry awards.
Says Cairns: “Harcourts is a dynamic company that is doing great things. The training and systems enable us to offer a superior client service and we’re looking forward to being part of this exciting global group and channelling the benefits to homebuyers and sellers in Plett.”
She notes that while the Plett property market has been affected by the recession, it is set to turn around within the next nine months. At present properties at the low and high ends of the market are selling the best, with cash buyers coming to the fore.
The introduction of the Harcourts brand to SA follows last year’s purchase by Harcourts International of a share in the Homenet group, which has now become Harcourts Africa and is in the process of rebranding all its offices around the country.
Already the fastest growing real estate group in Australia and the biggest in New Zealand, Harcourts also operates in China, Fiji, Indonesia, Singapore and Zambia and has been rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands.
It currently has more than 600 offices employing 4000 sales consultants who sell more than $19,5bn worth of property every year.
“It is also a fresh and dynamic brand that represents the next generation of estate agency practice and will inject new energy into the generally stale SA real estate industry,” says Harcourts Africa CEO Martin Schultheiss.
“All our franchisees are already starting to implement the Harcourts International business systems, marketing methods, technology and tools, and these will also give them a huge head start in the struggle that local real estate companies will soon be facing if they want to compete in an increasingly multinational business.
“What is more, their clients will see the benefits in a far superior, value-added service offering.”
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION
CONTACT DEBBIE CAIRNS
ON 082 854 1812 OR VISIT
www.harcourts.co.za
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Pse direct any enquiries to
012-333-6644,
073-946-9649 or
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05 June 2009, 09:55:22
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Edition 22 of 2009, Friday, 05 June 2009
Dear Reader
In his first major speech President Jaco Zuma on Wednesday said that South Africa must act now to minimise the impact of the global financial crisis on the poor but still has to spend wisely. Yes this might be true but easier said than done. Housing, having your own property, currently stays a problem. Where is it all going to end? The million rand question, who is to be believed?
 “Things are definitely looking up in the residential property market, with a number of factors combining now to give consumers their confidence back.” This according to Chas Everitt’s CEO, Berry Everitt. “The first of these, of course, is the series of rate cuts since December that has brought significant relief to those with home loans to pay off - and helped many people to keep their homes. The second is the fact that the banks are much more approachable than they were in previous economic downturns and are really making great efforts to assist homeowners who are still in financial distress and in default on their home loan installments. They are offering several different options to help these owners avoid having their properties repossessed. The third factor is the re-emergence of serious buyers and investors who perceive that the market is primed for an upturn and that prices are not likely to get much lower than they are now.
Many of these buyers have significant cash resources and are not looking for 100% bonds - and at the same time we are seeing the banks become somewhat more flexible on their deposit requirements anyway, so the bond approval rate is starting to rise.
And this of course means more successful sales, which combined with rising economic confidence as we go into the final phase of preparations for the 2010 Soccer World Cup, bodes very well for the coming summer.”
There’s a wintry chill blowing through SA’s residential property data. Generally, prices will keep falling, perhaps until the end of this year. However, despite the hammering property has been given globally and locally, the SA house market has shown itself to be amazingly resilient, with an expected 10% to 15% peak-to-trough fall far milder than that of many other countries. Pam Golding Properties executive director Ronald Ennik sticks to his forecast of a 10% fall in 2009.
| Seeff chairman Samuel Seeff reckons that by the end of 2009 the national average price will be as much as 15% down from its 2007 peak. No winter warmth here |
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| “With South Africa officially now in recession, conditions in the South African economy are hampering the pace of residential demand growth despite a series of interest rate cuts having already taken place," FNB property strategist John Loos said. Home values still falling |
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| South Africa is unlikely to see another residential property boom in the foreseeable future and a full-scale revival in residential property is probably two to three years off, says Bill Rawson, Chairman of Rawson Properties – but, he adds, the turnaround point and the beginning of the upswing have already been reached and several encouraging signs are now already evident. Bill Rawson still sees signs for hope |
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| Despite the fact that the economy is now in recession - or perhaps because it is – the residential property market is currently in a rare state of perfect equilibrium. So says Lew Geffen, chairman of Sotheby’s International Realty in SA, who notes that financially capable homebuyers who were simply “not interested” last year are now coming out of hiding as they perceive the market to be at or near the bottom of its cycle and set for an upturn. “With buyers still very cautious and cagey, sellers should definitely not read this interest rate decrease – or the next one – as a signal to raise their asking prices. They should rather take the opportunity to conclude a deal more easily and move on to their next home at an advantageous price.” Market now perfectly balanced, says Geffen |
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It is a year ago that Mr. Geffen’s, in a company memo to his agents, warned that the property market was even worse than the banks have been suggested. Who can still remember the shock waves this memo created in the property industry? Was he right?
South Africans face other economic challenges with the result that the cut in the interest rates is to have a mute effect on the property market. Do you agree? Send your viewpoint to news@cyberprop.com
Enjoy!
The editor
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05 June 2009, 08:16:16
Harcourts Africa is expanding rapidly, having added a total of 18 new offices to its stable since the introduction of the brand to SA at the start of the year.
“And this is on top of our 100 existing Homenet offices that are in the process of converting to the new brand,” says Harcourts Africa CEO Martin Schultheiss.
“All our franchisees have already started to implement the Harcourts International business systems, marketing methods, technology and tools, and these will give them a huge head start in the struggle that local real estate companies will soon be facing if they want to compete in an increasingly multinational business,” he says.
He adds that the rate at which new offices are joining the group is accelerating. “We are now signing up offices at the rate of one every three to four days,” he says.
The new offices are spread right across the country and with representation in most regions. Four offices on the West Coast, several in KwaZulu-Natal as well as offices in Gauteng and on the Garden Route have joined the brand, with a particularly strong showing in and around Cape Town.
“The Harcourts brand, ranked among the top five in the world, is in effect injecting new DNA into the local real estate market. We are critically aware that consumers are faced with tough economic conditions and that they want the best possible value for their money.
“The Harcourts model has proved its mettle internationally and combines top technology, e-commerce and training with a dedication to service and putting people first – a vision that will undoubtedly find favour among consumers facing challenging times.”
The Harcourts International group currently has more than 600 offices worldwide employing 4000 sales consultants that sell more than $19,5bn worth of property every year. It is the fastest-growing real estate group in Australia and the biggest in New Zealand and also operates in China, Fiji, Indonesia, Singapore and Zambia.
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL
MARTIN SCHULTHEISS ON
031 201 1060 OR VISIT
www.harcourts.co.za
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05 June 2009, 08:15:08
CENTURY 21, the world’s biggest property group, has now opened an office to serve homebuyers and sellers in Johannesburg’s “new South”.
Based in Mulbarton, CENTURY 21 Royal Properties will address the needs of property consumers across the market spectrum, selling everything from entry-level flats to multi-storey mansions, says principal and owner Neels Potgieter.
“There is a lingering perception that the southern suburbs are somewhat downmarket. Nonetheless there is a widening appreciation of the South’s selling points: good infrastructure in terms of roads such as the M1 and the N12, good schools and shopping facilities such as Southgate, The Glen and Comaro Crossing and good access to all points of the Johannesburg compass.
“What’s missing from the South are more employment opportunities, but in time this too will no doubt be remedied as businesses increasingly identify and explore the potential of the area.
“Moreover, the economic vibrancy of the area is underlined by a sound property market which has weathered the downturn better than most.”
Potgieter says prices start at around R800 000 for a three bedroom home in Mondeor, ranging up to the multi-millions in the more upmarket suburbs such as Bassonia, Glenvista and Mulbarton, which have been virtually immune to the economic woes.
“On the other hand, as might be expected, entry level areas such as Mayfield Park, Kibler Park and Winchester Hills have been affected, with prices having dropped by about 10 to15%, and this spells opportunity for keen buyers.”
In this climate, he notes, the new office is doing exceptionally well because of its close relationships with the lending institutions and the emphasis placed on pre-qualifying buyers for bonds.
“Indeed, we are successful with about 60% of our bond applications, as opposed to the market average which I understand, is as low as 30% in some areas – and we are seeing the property market in the South really come into its own.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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04 June 2009, 11:43:44
The SACCI Business Confidence Index (BCI) declined marginally to 81.8 in May from 81.9 in April, again confirming that there is no evidence yet of an approaching recovery.
From a slow start of 82.4 in January 2009, the BCI has now remained around the 82 level for the last few months. The index average for the first five months has been 81.9 - which is 11.7 points lower than the average for the first five months of 2008.
"Business confidence was under less downward pressure in May as the business environment recovered from the impact of fewer business days in April 2009. Nonetheless, liquidations were 47 percent higher in the first four months of 2009 than in the first four months of 2008 while negative month-on-month changes were also recorded for the sub-indices on real retail sales, import volumes and export volumes. An exceptional number of six of the thirteen sub- indices remained virtually unchanged between April and May 2009," SACCI said.
Emerging trends suggest that improved prospects for the world economy are on the horizon. Although sentiment helped to move markets ahead of real performance, it nevertheless signals a changing business mood, SACCI added.
"The path to recovery from the global recession may be drawn-out as some structural corrections have to take place in advanced economies before filtering through and impacting developing and emerging economies.
"The recession is causing adjustments in the local economy that could result in structural difficulties over the longer term. Noticeably, the decline in manufacturing output could hold serious consequences for investment and job prospects," SACCI said.
"SACCI believes that the recovery in business confidence will be characterised by a laboured process rather than a sudden turnaround," it added.
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03 June 2009, 11:40:15
The rise in popularity of sectional title ownership over the last three and a half decades is a testament to the fact that sectional title ownership is fast becoming the preferred home ownership option for both resident owners and buy-to-let investors. Yet this complex form of ownership is still widely misunderstood. Many people put pen to paper without fully or even vaguely understanding the concepts relating to sectional title.
Here is a list of the basics to help get you started…
Unit
When buying into a sectional title scheme, you buy a composite thing called a 'unit' which consists of a section plus an undivided share in the common property.
Section
A section is what people often refer to as a 'flat'/'townhouse'/'apartment' and is exclusively owned by the owner to the mid-point of its floors, walls and ceilings.
Common Property
The common property is the rest of the land and buildings not contained in sections, such as garden areas, driveways, foyers, lifts, staircases, passages and so on. Every owner of a section also owns an undivided share in the common property which means that theoretically every owner may use every part of the common property and that no owner may appropriate a portion of the common property for his sole use.
Exclusive Use Areas
In practice parts of the common property, such as parking bays and balconies, may be set aside for the exclusive use of a particular owner/s and these parts are referred to as 'exclusive use areas'. This does not mean that the holders of exclusive use rights own these areas; they simply have the right to use them to the exclusion of the other owners. Exclusive use areas remain part of the common property and are therefore owned by all owners of sections in undivided shares.
Participation Quota
The participation quota is a fraction or percentage used to determine such things as the size of an owner’s share in the common property, the value of an owner’s vote, an owner’s financial contribution towards the running of the scheme (his levy) and the portion of an owner’s share of the debts of the body corporate. In a wholly residential scheme an owner’s participation quota is always calculated by dividing the floor area of his section by the total floor area of all the sections in the scheme.
Body Corporate
The body corporate is the management body that exists to administer the land and buildings that make up the scheme. Unit owners are automatically members of the body corporate from the moment transfer takes places and they continue to be members until they cease to own a unit in the scheme.
Trustees
These are persons elected by the body corporate (by owners at the annual general meeting) to carry out its functions and duties. The trustees make day-to-day decisions on behalf of the body corporate but it is important to note that the trustees are not 'in charge' of the scheme. They are the servants of the body corporate; owners hold the ultimate decision-making power and can give the trustees binding instructions.
Managing agent
In most medium-sized and large schemes the trustees appoint a professional manager to help them carry out the functions and duties of the body corporate. This person is referred to as a managing agent and is required to possess a valid Fidelity Fund Certificate if s/he in anyway manages a scheme’s levy income.
Management and Conduct Rules
The Sectional Titles Act 95 of 1986 ('the Act') is the legislation that governs sectional title schemes in South Africa. The Act prescribes two sets of rules, the Management and Conduct Rules, which control the administration of schemes and the behavior of owners and occupiers. A developer of a scheme may choose to adopt these rules in their prescribed form, or to adapt the rules to suit the particular needs of the scheme. The body corporate can also amend their provisions at a later stage. These rules, in their prescribed or adapted form, are binding on both owners and occupiers of sectional title schemes.
Ordinary Levies
The trustees estimate the body corporate’s expected expenditure for each forthcoming financial year, take this budget to the Annual General Meeting for approval by owners and, once approved, they divide the estimated expenditure between the owners (generally in accordance with each owner’s participation quota) to work out each owner’s ordinary levy. After notice each owner is liable to pay levy contributions, generally in monthly instalments.
Special Levies
If a necessary expense arises during the course of the year for which the body corporate did not budget, the trustees are entitled to raise a 'special levy'. The trustees can decide whether the special levy is to be paid in one lump sum or in instalments.
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02 June 2009, 11:42:25
Have you been declaring the rental income received on your investment properties? Non-declaration of rentals received — after deducting the appropriate expenditure — is a contravention of the Income Tax Act.
With the constant improvements in the efficiency of tax collections by the South African Revenue Service (SARS), it is very likely that such non-declarations will be detected, says Paul Nelson, director of Johannesburg-based auditing firm Nelson Financial.
Sars requires landlords to draw up financial statements declaring the profits made on any rented property. If several properties are let by the same landlord, these statements can be consolidated.
Writing in the Property Signposts newsletter, Nelson notes that any expense actually incurred in relation to the letting of the property or properties may be noted in the statements and deducted from the gross rental when determining the taxable profit.
Such expenses are typically interest paid on the bond, assessment rates, costs of repairing and maintaining the property, insurance paid on the property and any levies paid (sectional title and home owners' associations).
"The Act generally allows for revised assessments to be issued for three years after an assessment is issued. However, where income has actually been omitted this three-year period does not apply allowing Sars to re-open any year of assessment for which income has been omitted," he says.
"And if you have not declared your rental income in past periods it is advisable to approach SARS and settle the matter rather than to adopt the wait-and-see approach. This will save you worry and perhaps the cost of paying the additional taxes and interest that SARS can impose.
"It is recommended, though, that you make use of the services of a reputable tax consultant or accountant to approach Sars on your behalf — and to ensure that the net rental income received is properly calculated and disclosed in your current tax return."
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01 June 2009, 09:40:43
The international Harcourts real estate group has opened its first Gauteng office in Boksburg.
Named Harcourts Premier, the office is headed up by Samantha Laing, who was previously a member of another real estate franchise group but decided on the strength of the Harcourts value proposition to convert to the new brand.
Recently rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands, Harcourts operates in Australia, New Zealand, China, Fiji, Indonesia, Singapore, Zambia and Botswana as well as South Africa and has more than 600 offices, 4000 sales consultants and a sales volume in excess of $19,5bn a year.
Following last year’s purchase by Harcourts of a majority share in the Homenet group, all Homenet branches in SA will in due course also convert to the Harcourts brand.
“Harcourts is exceptionally professional and their training is world class,” says Laing. “They offer great networking capabilities and we’ve experienced fantastic support from head office and the marketing team. The difference is really tangible and Harcourts’ positive attitude has already rubbed off on my own staff. We’re looking forward to being a part of this international brand.
“And the timing couldn’t be better. Buyer sentiment is improving and sales, activity and enquiries are increasing across the board. Indeed, Boksburg homes priced between R800 000 and R1,2m are selling well at present.”
Laing has been involved in the real estate industry for almost five years. She holds a BCom in Communications and has only to submit her “portfolio of evidence” to become RPL accredited.
According to the Swanepoel Trends Report for 2009, Harcourts International is an organisation that is leading the charge in expanding successfully into other countries and continents, thanks to its clear purpose and youthful business philosophy.
Martin Schultheiss, CEO of Harcourts Africa, says it is also a “fresh and dynamic brand” that is going to make a huge impact on a generally stale SA real estate industry by lifting its local franchisees to the next level of operation.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CALL
SAMANTHA LAING ON
082 447 7211 OR VISIT
www.harcourts.co.za
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012-333-6644,
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29 May 2009, 09:32:13
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Edition 21 of 2009, Friday, 29 May 2009
Dear Reader
 Thank you! The SA Reserve Bank cut the repo rate by 100-basis-points to leave prime at 11 percent. This cut will for sure bring a relief to homeowners and also the consumer. Be warned! There would be no further significant rate cuts was the advice from the SARB Governor Tito Mboweni.
The rate cut was not the top story this week. The fact that South Africa is now in a recession, the first in 17 years, stole the lime light this week. The finance and real estate industry, which makes up a fifth of the economy, dropped an annualised 2.3 percent in the first quarter, compared with 3 percent growth in the previous three months. South Africa Falls Into First Recession in 17 Years
 What’s happening around the world? Slowing economic activity and a credit crunch contributed to a decline in housing activity, prices and construction in most major economies. South Africa experienced the biggest drop in property prices in two decades in April as the economy moved towards recession. Due to low consumer confidence, soaring unemployment and challenging credit conditions which limit access to financing, the housing sector will face further stress especially as interest rates continue to be high in real terms. The State of Real Estate Around the World: No Signs of Stabilization?
The household sector, plagued by lower levels of employment and declining real disposable income, was expected to continue experiencing financial strain this year, Absa said on Monday. This was in spite of declining interest rates, according to senior property analyst Jacques du Toit. House prices under strain
Book review by Bev Hermanson from:
Title: The Long Emergency
Author: James Howard Kunstler
You may wonder what this alarmist book has to do with property development in this country. It is written in an emphatic style and is, from cover to cover, a long wail about what American society could be facing. However, it’s a sad fact that when America sneezes, the rest of the world catches a cold. And as we subscribe to modern living in our cities, we would be well advised to take note of some of his points, as they relate to our state of being just as much. Trying times for suburban development
Enjoy!
The editor
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25 May 2009, 10:59:13
Your new house has to meet the needs of your lifestyle. When you visit a new property, keep your requirements in mind. Assess the neighbourhood as well as the house's internal and external state of repair. Look at other structural and physical criteria and don't feel shy about questioning why the current owners are moving!
Here's a checklist of questions you should ask:
Ask the seller
Why are you moving?
How long have you stayed here?
Any break-ins?
What are the neighbours like?
Ask the estate agent
What are the price trends in the area?
How long has the house been on the market?
What is the average turnaround for house sales this area? Why?
Check out the neighbourhood
Is it close to work/schools/friends and family/hospital/doctor/etc?
Is it positioned near shopping centres/highway/sports facilities/central business district?
Is there a police station/fire station in the neighbourhood?
Is it near power lines/vacant land?
Are there developments scheduled in the area/is the area well established?
Is the area noisy?
What is the traffic like at peak times into and out of the area?
Check out the property
Is there adequate parking space for guests?
How many garages/carports?
Pool/outside entertainment area?
Established garden?
Is there space to extend?
Check out the inside of the house
Number of bedrooms/bathrooms?
Is the kitchen modern/fully fitted?
Do al the taps/lights work and do the toilets flush properly?
Are there odd shaped rooms or colour schemes?
Dining room/TV room?
Indoor entertainment area/games room/study?
Laundry room?
Check out the security
Is the crime rate high/is there an adequate security system installed?
Is the perimeter walled?
Number of gates/what type of fencing?
Burglar bars?
Alarm system/armed response?
Security booms/neighbourhood watch?
Street lights?
Ask about any possible problem areas
Damp/cracked wall or paving?
Leaks/drainage?
Lifting tiles/stains?
Wood rot?
Other?
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25 May 2009, 10:56:55
Financing mistakes can sink a deal
Financing property in the wrong way will make you pay more in the long run and can put unnecessary strain on your cash flow.
With the help of some creative financing I have been able to buy commercial property and finance it fully, without the use of other properties or securities. I have also bought property for 'free' using only the bank’s money as my rent covered the bond and rates and taxes from day one.
I have seen that using the correct people, channels and structures have led me to be able to negotiate a better rate and give me better terms on the financing side.
For example: getting a better rate of only 0.5 percent on a R1-million bond with a 15 percent interest rate will lead to a saving of about R305.70 every month over a 20 year period. If this saving was invested on a monthly basis, yielding 15 percent (either by putting it back in the bond which saves 15 percent or investing elsewhere) for the whole 20 years the total amount would be an extra R457 706.11 after 20 years. Not too bad if you do this on two, three or four properties over this period!
One of the biggest 'clichés' that I have found to be true is that your own bank is your friend and because of the 'relationship' they have with you they will give you the best rate.
My dad banked with a specific bank (for his whole life as far as I know) and they also graciously allowed me to study all my years at Stellenbosch University by giving me a student loan. I also opened up my first 'real' non-student account with them and just knew that they would obviously credit me with the Venter generations’ commitment to them. When it became time for them to prove their commitment back when I bought my first property, they did not perform according to plan and were not keen to help.
In following property deals I have approached them directly and since then they have been very willing to lend me money. I guess that once you’ve bought your first property they believe you can do it again. The only thing was that the bank across the road was really looking for my business and was willing to give me a better rate, which I was very glad to accept.
I then started working through bond originators who were sharp and understood the system. They were able to determine which bank would give me the best rate and if I wasn’t pleased with the rate, the originator just logged the already compiled documents with another bank.
Banks have realized that their customers don’t like admin and don't understand the system; they would rather just accept the first bond offered to them by their own bank than go through the whole administrative process again.
This has led many banks to not quote their absolute best rate if an individual approaches his/her own bank directly rather than through an originator.
I have tested this and found that the rate my originator was able to negotiate with my own bank was better than the rate I was able to negotiate myself. At first I wanted to feel sentimental about this, but I soon realized that the feeling was not mutual and that my bank was only in it for one thing: to make money!
Since that day my originator has been very helpful when I buy a property by saving me money and loads of time and frustrating administration.
A good bond-originator therefore acts as an agent between you and the bank and negotiates on your behalf with a bank or banks to get you the best possible deal, saving you time and money because they understand the system.
They charge no fee and will not cost you a cent, because the banks pay them an amount for the administrative and business function they fulfil.
In order to get the most for your property, you must price according to the market
Establishing what the market is willing to pay for your house is essential in getting the most for your property in the end. Determining this price is possible through data from the deeds office. This makes it possible to determine what properties in your area have been selling for in the recent past. Any seller must take this into consideration when pricing his property to sell within a reasonable time. Most buyers will be using this same data when buying a property to make an informed decision on what the market price for a property is.
Remember that there is a difference between your property and the properties that have sold in that area. This difference can be with regards to three factors that also determine whether your home will sell for more or for less than the last few properties that have already sold.
The three factors that determine your price (in order of importance) are location, size and amenities. Of these three, location will always be the most important because it is permanent and cannot be changed.
Size will be second and amenities will account for the least. One of the reasons for amenities being less important is because people are different and they have different styles and tastes. I have seen in my work how people have changed or revamped a property only to have the new owner come in and change it again.
How did you determine the value of the home you are living in right now when you bought it? You compared it with other homes for sale and that have sold. Buyers still determine value by comparing your home for sale with other homes for sale at the same time and also with homes that have sold in the recent past. The internet has made this task a lot easier today than 10 years ago and it is likely that more information will be available to buyers in the future.
To see whether a property will sell within a reasonable time or not, I have a system in place which shows a seller what the selling price should be and what the financial and practical effect would be of not pricing in that range.
This has proved to be very valuable to sellers in setting an objective standard against which they can measure their price and thereby sell within a reasonable time. Not being able to sell within the desired timeframe leads to many other hindrances such as emotional stress, friction and a lot of time and effort which cannot always be quantified in rands and cents.
The right property with the wrong tenant is the wrong property
To illustrate my point best I’ll share an example from my own life. I bought a property in the North West Province in a little mining town called Stilfontein some years ago. I was very pleased with the price and the rent was able to cover my bond.
I was still reasonably new to being a landlord and had no system in place to determine whether the tenants I placed in my property were good tenants. They appeared very nice, seemed to have good, stable jobs and even kept the place in a reasonable condition without me asking. They even paid on time!
However, my problems began when either the police or my dad who lived in a town close by phoned me (I can’t remember who phoned first, because one tends to forget bad experiences!). My dear tenants have decided to leave overnight and without telling anyone.
Until today I am still not sure where they are. With me not living close to the property I had no idea they were gone and nobody would have noticed until some local people thought that they had better use some parts of my house that stood all by itself.
I had no idea that a house could be broken down into so many parts (if one can use the word 'parts'). They helped themselves to a good working geyser, a toilet, taps and even the little copper-like things that kept the windows in place. The electrical system also had value to them as well as anything that looked like a handle or door.
I have no idea how some of those little things could add value anywhere else, but I am convinced that if they were able to they would have broken down the bricks and sold them one by one. The damage amounted to about R30 000 if I remember correctly and after a lot of administration my insurance paid most of this amount. This was, however, only the start of my problems.
As soon as I had fixed the property I found new tenants. While waiting for them to move in our entrepreneurial friends saw another opportunity, this time with brand new items to pick from the tree and sell to their same customers.
They repeated their crimes and I had to go through the same building project all over again. I had to employ a fulltime security guard that cost me a small fortune during the building period before my tenants could move in. (I think I had to find new tenants again and also spent about R10 000 extra to increase the security on the premises.) Why this long story? All of this could have been avoided if only I had some very basic systems in place when it comes to finding, screening and contracting with new tenants.
Today I have a basic set of rules and procedures that I follow which has made my life as a landlord an absolute breeze and the risks absolutely minimal.
Tenants are usually creatures of habit and tend to repeat what they have done in the past. Determining their history has been priceless in my screening process when determining which tenant to allow in my property.
Even if I work through a rental agency I still have some basic screening procedures in place to verify that they check the credit rating of my prospective tenants (and their spouse!), their salary amount, employment time and references from previous landlords they had.
Work with people who practice what they preach
I have made a decision to work primarily only with people who practice what they preach. A doctor that is always sick due to an unhealthy lifestyle will probably not be able to keep me healthy. In the same way, a financial advisor who is broke is not the one who is going to get my money.
Whoever wants to get my business in a specific area must first have shown themselves to be faithful and successful in the very area which they say they can help me in. That they in fact have something to offer out of an overflow and not out of a need.
The property attorney I use when buying or selling property is a property investor herself. The person I get my health advice from (my wife) is a successful and very healthy (and very good looking!) biochemist. The person who does my tax could retire at the age of 38; he's a brilliant businessperson and doesn't hand SARS 'n cent more than he has to.
Wherever it is possible, I enjoy buying property through an agent who understands property, talks property and also walks property.
Warren Buffet says he'd be worried if the CEO of a company is not buying his own company's shares. I believe if someone is trying to sell you something they are not buying themselves, be worried!
In property it is important to have a team around you when buying or selling.
Only allow competent and trustworthy people to advise you. My wife is trustworthy, but should I be in need of someone to take out my tonsils, using her would mean suicide!
Both competence and trustworthiness are required. Competence is usually shown by a proven track record of success in a certain area and trustworthiness by getting to know someone personally or finding out about them from other people.
There are many different areas where it helps to tap into the expertise of professionals and I have built up a trusted team of advisors that supports me when I buy or sell a property. This includes an attorney, a bond originator (financing agent), a handyman, a town planner, an architect, a short term and life insurance agent, a good tax advisor plus a few other critical contacts.
I’d advise you to build up your own team of people whom you trust.
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25 May 2009, 10:55:45
Price growth likely, not guaranteed.
Over the past eight years I have seen properties in most areas performing phenomenally and many people have said you cannot go wrong. Being involved as an agent, though, I see many properties that cannot sell in the current market for what was paid for it a few years earlier.
Many disheartened sellers are looking to blame someone, but it remains a fact that you make your money in property when you buy the property and not when you sell. Buying at the right price still remains the most important factor. You should therefore make sure that when you buy you are paying a market related price and that you are able to pay the bond repayments should the interest rate rise significantly for a few years.
I have seen capital growth of 40 percent in three months and I have also seen negative capital growth over a period of two years.
My advice would be to work with an agent who buys property him-/herself and who can give hands-on advice and not just 'book knowledge', because they practice what they preach.
This is my recommendation even if you are not buying primarily as an investment, but also as a house to live in, because your home could ultimately help you to become wealthy or, if you are uninformed, poor. Book knowledge is important, but it is only the starting point!
Some areas have better growth than others.
Knowing which areas have grown well in the past is a good basis to start from. Most up-to-date realtors (estate agents) in town will be able to give you these figures as a print out which would give you a basic indication.
Current trends and developments in, and perceptions about, the city or town you're interested in will also have an effect on prices. This should only be used as a starting point and not as an absolute for what the future holds.
Cash flow can make or break you.
During the past few months I have spoken to many anxious sellers that have bargained on massive capital gains which did not realize. Instead their monthly cash flow was placed under tremendous strain. For some the only alternative was to sell at a price where they had to cut their losses and move on. Some were not that fortunate as the banks had to take back their properties.
I have only been around in the property industry long enough to see one upswing and one downswing, but through literally tons of courses that I have done I have gained valuable insight from people that have been around through various cycles in the market.
It is certain that property prices grow in cycles and have been growing in value literally for centuries. The way to capitalise on this growth is to buy property for the long run and to hardly ever sell.
Attending some of the latest bank execution auctions has made me realise that cash flow (or the lack of it) can definitely make or break a property investor or owner. When doing sums before buying a property I advise clients to be very conservative in their approach.
Take the highest interest rate over the past 10 years and see whether you’d be able to keep on paying your bond should interest rates rise to that level again. Personally I do not think they will go that high again, but then again there are no guarantees.
The highest interest rate in this period was in 1999 when interest rates made a turn at an incredible 25.5 percent. To those whom this is not news, I know that you were influenced by this.
To the rest of us I believe it is important to look and learn from history and never to over-commit financially. The current economic crisis (2009) was caused and fuelled primarily by one thing: greed!
When calculating whether or not you can afford a property, remember to take into consideration all expenses. This will include rates and taxes, levies, insurance (long term and short), home owner’s association fees if applicable and a portion for general repairs as well as maintenance. Also allow a conservative vacancy rate of at least one month a year.
It is important to do a calculation of the tax that will be payable if the property is bought to be sold for a profit, either income or capital gains tax depending on your situation.
There are opportunities to buy properties well below market value.
Some of the properties on auctions are currently selling at about 60 percent or less of the outstanding bond amount.
As an example, let’s suppose that someone owes R1-million on his property bond and he falls into arrears. The bank will in some areas allow the property to be sold for about R600 000.
This results in a serious opportunity to buy below market value, if you know beforehand how the banks are doing their calculations and at what price they’d be willing to sell the property.
There are a few things that must be incorporated into your calculation if you are buying at bank auctions. (Please note that these auctions that I’m mentioning are not the auctions that big companies are advertising in the newspapers on weekends. They are properties that are still in the name of the owner and are about to be sold in execution. They are also not 'properties in possession', which means that the bank decided to buy an execution property back and are now trying to sell it at a price that is either market related or very close to the market price.)
I know of people that went to execution bank auctions uninformed and have burnt their fingers really badly, not knowing what extra costs they should have incorporated in their sum of whether they should buy or not. Some even bought property bidding for the maximum price and only realized afterwards that they only bought a 50 percent share in a property with the other 50 percent partner being someone they really don’t want to be involved with in a business sense.
I am currently buying these kinds of properties myself and am using a skilled person who understands the system and who provides me with valuable information that is crucial in the decision making process.
Because of differing rules in different areas in South Africa I cannot see myself doing this without his help.
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25 May 2009, 10:54:38
The City of Cape Town has announced a R786-million upgrade to its existing water and sanitation infrastructure.
This is an important part of the city's current five-year development plan and amounts to almost 15 percent of the total R5.5-billion capital expenditure budget for the forthcoming financial year.
With the latest project Cape Town aims to further enhance its attractiveness as both a tourist and investment destination.
Historic
Cape Town is South Africa's oldest city and traces its history back to the arrival of the first Dutch settlers in 1652, although Portuguese navigators had discovered the area some three centuries before. The existing infrastructure, while not quite as old as the city itself, therefore needs careful and constant maintenance.
Old and leaking pipes are a financial burden to the city. Cape Town loses almost 19 percent of its piped water to burst pipes and leaks in homes and offices. This costs the city more than R4-million every year. The international standard for such losses in other world-class cities is 15 percent.
A complete replacement of Cape Town's water system would cost R23-billion, said Clive Justus, the mayoral committee member for utility services. "The backlog of water mains replacement would become unmanageable if infrastructural replacement is not accelerated now," he commented in a statement.
Forward planning
By investing into and accelerating the replacement of faulty water mains, city management plans to avert a crisis such as that experienced by power utility Eskom in early 2008 when inadequate infrastructure was unable to meet the country's power demands. The Western Cape was the hardest hit and suffered rolling blackouts for many weeks, as well as a severe dent to its economy.
The international norm for water pipe replacement in terms of distance per year is one percent of the total network. Cape Town is currently replacing water pipes at a rate of 30 kilometres per year, but this is a big improvement on the 7.4 kilometres per year that was achieved just three years ago. The immediate goal is the replacement of 40 kilometres of pipes by mid-2009, which still amounts to just 0.5 percent of the total Cape Town network.
The 8000 kilometre wastewater system is also due for treatment. In the northern suburbs, where development is rapid, the system is under particular stress. From July 2009, a R56-million upgrade project will see the replacement of pipelines where it is most needed.
Other projects currently underway include the allocation of R280-million to increase the capacity of the Potsdam Wastewater Treatment Works from 32 megalitres per day to 47. The project is scheduled for completion in mid-2009. Another state-of-the-art greenfield facility is under construction at Fisantekraal, situated 10 kilometres north of Durbanville. Greenfield refers to a plant that is built on previously undeveloped land.
Both plants together will provide treatment capacity for about 140 000 homes in Cape Town.
Extensive upgrades
The city is in the throes of extensive upgrades in several sectors.
The refurbishment of Green Point Stadium, a 2010 Fifa World Cup venue, is around 70 percent complete and, according to the city, is on track for completion and handover in December 2009. The R4.5-billion project is set to become an eye-catching landmark, while the surrounding area of Green Point Common has also been revamped and will include a golf course and other sporting facilities by the time it is complete in March 2010.
Cape Town's public transport system is getting a massive overhaul with the implementation of the Integrated Rapid Transit system. Phase one, which encompasses the airport-city and the city-stadium routes, is expected to be on the road in time for the World Cup in 2010.
City planners are also developing a stronger network of roads in suburban areas. This will include developments such as walking and cycling routes and better provision for public transport.
Africa's leading airport
Cape Town International Airport, voted by the World Travel Awards as Africa's leading airport no less than seven times, will see the opening of its new Terminal 2010 at the end of 2009. About R1-billion has been ploughed into the terminal, which will accommodate the domestic and international volume until 2015. Two new parkades are also nearing completion.
Business, education and private internet usage are getting a R400-million boost in the form of a brand-new fibre optic network. Phase one, the laying of about 202 kilometres of cable and connection points in key municipal and educational buildings, is in progress and the second phase will involve the expansion of the network to the suburbs, especially those that have no access to modern telecommunications.
The fibre optic network is one of the factors that earned Cape Town a spot on the Intelligent Community Forum's 2008 list of the world's most intelligent cities. It also fulfils Fifa's stringent telecomms requirements for 2010.
As if this weren't enough, Cape Town is also investing heavily into the business of entertainment, with a R430-million film studio under construction just 20 kilometres out of the city. The Cape Town Film Studio will boost the filming industry in Cape Town, which is already the darling of international filmmakers. The city has seen film crews for both high-profile feature films such as Free Willy 4, Goodbye Bafana, 24: Redemption and Blood Diamond, as well as commercials, scurrying around its streets.
The studio complex is expected to open its doors early in 2010.
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22 May 2009, 08:39:24
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Edition 20 of 2009, Friday, 22 May 2009
Dear Reader
“We keep a close watch on the UK property market because SA selling price trends tend to be in line with theirs’, with this difference, that we have traditionally been less spendthrift and less inclined to over-borrow. The “Sunday Times” optimism ties in with what we have been saying locally for some time and it is encouraging to find that they see the end of price falls as not far off.” says Mike Greeff of Greeff Properties. This week we take a closer look at the International property market and place four articles of interest to our readers;
- Real Estate news - Dubai property market suffers as Western cash dries up - Dubai
- Recession-ravaged employees resist relocation
- Overseas investor interest in rural property skyrockets – New Zealand
- Foreigners circle local market, hunting bargains – Australia
 There has been an outcry over Standard Bank's home loan administration fee hike but it is not alone in jolting prices. An investigation by Realestateweb.co.za has found that the other big three have either increased or plan to hike their fees. It is not just Standard Bank
Co-ownership is the mother of all disputes. If you live or own a unit in a sectional title scheme and haven’t heard of this phrase — you will probably have experienced it in practice. Living in close proximity to other people often with different backgrounds and cultural beliefs, as well as co-owning areas of the land and building about which decisions need to be made, creates ample opportunities for tempers to rage and nostrils to flare. Bury the hatchet
KwaZulu-Natal is a province of South Africa, with an area of 86 967 sq kilometres. It is bounded by Lesotho, which is known as the mountain kingdom, Gauteng Province (west), by Swaziland and Mozambique (North), and by the Indian Ocean (East). During the past four centuries, many thousands of people from Britain and Europe have left their homes and sailed across the oceans, in order to make new homes in other countries, including South Africa. In Natal (Kwazulu Natal), the first settlement on the shores of Durban Bay was established in 1824 when two Englishmen, Lieutenants Farewell and King, obtained a grant of land from the Zulu king Shaka. This province is now also the “home” of the Comrades Marathon. The first Comrades Marathon took place on 24th May 1921, Empire Day, starting outside the City Hall in Pietermaritzburg with 34 runners. Today we see thousands of runners running this week. This weekend is Comrades weekend and we wish all our readers that will be participating “strong legs”. In Focus on, we take a closer look at Kwazulu Natal, South Africa
Enjoy!
The editor
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22 May 2009, 08:21:08
The Aida Roodepoort North estate agency, one of the flagship operations in the Aida National Franchises stable, has changed ownership.
The new owners, Tarryn Williams and Charl Els, are taking over from real estate stalwart Verna Herbst, who has spent the past three decades in the industry.
“We are young and ambitious,” says Williams, “with a sound sales background. Although we are new to the property industry, we have years of sales experience and a deep conviction that property represents the most meaningful investment for the average consumer. People are our number one priority and we hope to build lifelong partnerships with our clients by securing them the best deals possible.
“We are also lucky enough that Verna has agreed to stay on as an agent and to act as our mentor for the first year, which will contribute to a smooth transition. Agent Jason Parker, the specialist agent for the prestigious Featherbrooke Estate, will also remain in our team,” she says.
While delighted with their new venture, the couple does not take the real estate industry lightly. “We believe the new qualification system for agents will ensure that only professionals who can offer high service levels will remain – it is definitely not a playground for agents who want to make a quick buck,” Williams says.
“The next three years are likely to be challenging, but we believe market conditions will improve. Interest rates are likely to stabilise at levels of between 8% and 10% while a review of banks’ lending criteria by 2010 may bring relief to borrowers – hopefully we will see the return of 100% bonds.”
The agency’s franchise area is extensive and a wide variety of property is available at prices ranging from around R550 000 to R15m. However Williams says most average family homes in the area can still be bought for less than R1,3m while exclusive properties in upmarket suburbs such as Constantia Kloof, Ruimsig, Featherbrooke Estate, Floracliff and others compare very favourably with the best that Gauteng can offer.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Roodepoort North: 011 462 3905
Contact: Tarryn Williams
Distributed by/ versprei deur
The Mega/ Press Network
Pse direct any enquiries to
012-333-6644,
073-946-9649 or
megw@telkomsa.net
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15 May 2009, 08:37:18
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Edition 19 of 2009, Friday, 15 May 2009
Dear Reader
South Africans are watching the Indian Premier League (IPL) day after day. For those who did not know the IPD was started by the Board of Cricket Control in India in 2008 and it is a new format of cricket called Twenty 20. But, it’s not all about cricket. It’s also about a festive time for cricket fans and it is a multi-billion dollar affair. It has emerged as the richest cricket league because it offers US$ 12 million prize money to the winning team. The runner-ups will get US$ 6 million. Two teams who lose the semi-finals will earn US$ 3 Million each. Even the teams who lose the game will also receive attractive prize money of US$ 1 Million.
Why focus on the IPL this week? The title sponsor for the league is real estate tycoon, DLF Universal. The DLF Group was founded by Chaudhury Raghuvendra Singh. The company is currently headed by Indian billionaire Kushal Pal Singh, who inherited the company from Chaudhury. Kushal Pal Singh, according to the Forbes listing of richest billionaires in 2009, now stands as the 98th richest man in the world. Will the property industry see new real estate tycoons or is the market “kaput”? Send your view points to news@cyberprop.com
Property trend analysts are impressed that in the first week of April mortgage loans granted in the US were 77% up on the April 2008 figure. A similar, though not quite so spectacular, rise was recorded in the UK for the same period, says Tony Clarke, MD of Rawson Properties. "Does this indicate that the recovery has begun? If one accepts the old maxim that USA and the UK set the economic patterns for the world, is it possible that in SA the long-awaited revival is not far off?" he says. New data gives good reasons for optimism
The finance, real estate and business services‘ sector including banks, insurance, property sales and rentals, lawyers and architects was found to be the chief money-spinner in South Africa. Bucks bigger in SA tourism than farming
NEWS! Residents in Bertrams, Soweto and surrounding areas should expect scheduled water cuts next week, Johannesburg Water said on Thursday. On 19 May these areas will be affected: Doornfontein, New Doornfontein, Troyeville, Fairview, Jeppestown, Jeppestown South, Malvern, Reynolds View and Kensington, the company said in a statement. The water interruptions will take place from 8am to 4pm, due to infrastructure upgrades. On 20 May, Soweto residents will be without water for eight hours, between 8am to 4pm. Water tankers will rotate around the affected areas, while additional tankers will be placed at Shell and BP filling stations and at the Shoprite supermarket.
Mining in this region of Mpumalanga dates back many centuries, when unknown miners worked quartz reefs in the area for gold. Proof of these diggings can still be found in this area. The history of this small delightful village dates back to 1873 when a miner, Alex Patterson, discovered alluvial gold on the farm named Ponieskrantz. He had left the Mac-Mac area to search for a place that was less congested. Though the discovery was kept as a secret, the inevitable happened when a second prospector William Trafford also discovered gold close by. What they had found in this beautiful valley drew optimistic gold panners and prospectors from all over the country and the World (news of gold strikes of this magnitude travel fast !).by www.pilgrimsrest.org.za Focus on Pilgrims Rest, Mpumalanga, South Africa
Enjoy!
The editor
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14 May 2009, 15:27:22
Homeowners under pressure to sell their property because of credit difficulties are advised to manage the process as far as possible.
Dr Willie Marais, national president of the Institute of Estate Agents (IEASA), says selling your home when you fall behind on mortgage repayments should be a last resort, especially if you owe more than the property is currently worth.
"This is what is called a 'short sale' in the US and it means that the home seller has to pay the bank the difference between the selling price and the outstanding bond amount — and on top of that find alternative accommodation. However, it may be necessary to protect the seller’s all-important credit record so that he or she can qualify for home financing in the future."
Get help managing the process
He says consumers who do find themselves in this situation should urgently enlist the help of a trained estate agent who will be able to manage the whole process efficiently and obtain the best possible price in the shortest possible time.
"Sellers should also inform their bank of their intentions if the selling price is likely to be less than the outstanding bond amount. They will also have to sign a debt agreement with the institution and make arrangements to pay off the shortfall."
Marais adds that it is quite human to keep hoping that matters will improve when you find yourself in a difficult spot, but says a more pro-active approach may well prevent more serious consequences.
Try to reschedule the debt
"The first response should be to approach the lending institution and try to reschedule the debt. The bank might be willing to extend the period over which the bond is repayable — for instance up to 30 years — in cases where the borrower’s financial difficulties are likely to be temporary."
Another option may be to rent out the home and scale down to cheaper rental property yourself — although this will only work if the property will achieve rental income considerably higher than the rental that the owner will have to pay for alternative accommodation.
"And if all other measures fail, homeowners can go for debt counselling in which case the bank will be informed and an intermediary will attempt to negotiate an acceptable agreement. Part of the agreement may be that the property is surrendered to the bank after which it will be attached after due legal process. Although this will wipe the debt slate clean, owners will not be able to obtain credit again before they have been rehabilitated in terms of insolvency legislation."
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12 May 2009, 15:50:36
Absa recorded the fastest drop in residential property values since November 1986, the bank said on Wednesday as it launched its April 2009 house price indices.
April 2009 saw the average nominal price of middle-segment housing declining by 2.7 percent year-on-year to R941 600, Absa said.
As was the case in recent months, house prices in April fell the most when it came to larger properties while small houses posted the smallest decline, Absa said.
"This is regarded as an indication of the strain experienced in the market for larger and more expensive properties, with buyers focusing on smaller and more affordable homes," Absa said.
Data recently released with regard to various short-term economic indicators such as manufacturing, production, mining production, retail sales, new vehicle sales and electricity production and consumption, pointed to the economy experiencing recessionary conditions.
Projections were for a contraction in the economy in the first half of 2009 before bottoming and recovering gradually in the second half of the year, Absa said.
Against this background, real gross domestic product growth for 2009 was forecast at -0.5 percent, putting pressure on employment and household income.
"In view of an expected poor economic performance this year, impacting employment and income levels, many households may remain under financial pressure despite the 3.5 percentage points worth of interest rate cuts since December last year and expectations of some further cuts in the near term."
Absa expected the housing market to continue experiencing relatively low levels of activity and downward pressure on prices until late 2009.
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12 May 2009, 15:48:08
Have you been declaring the rental income received on your investment properties? Non-declaration of rentals received — after deducting the appropriate expenditure — is a contravention of the Income Tax Act.
With the constant improvements in the efficiency of tax collections by the South African Revenue Service (SARS), it is very likely that such non-declarations will be detected, says Paul Nelson, director of Johannesburg-based auditing firm Nelson Financial.
Sars requires landlords to draw up financial statements declaring the profits made on any rented property. If several properties are let by the same landlord, these statements can be consolidated.
Writing in the Property Signposts newsletter, Nelson notes that any expense actually incurred in relation to the letting of the property or properties may be noted in the statements and deducted from the gross rental when determining the taxable profit.
Such expenses are typically interest paid on the bond, assessment rates, costs of repairing and maintaining the property, insurance paid on the property and any levies paid (sectional title and home owners' associations).
"The Act generally allows for revised assessments to be issued for three years after an assessment is issued. However, where income has actually been omitted this three-year period does not apply allowing Sars to re-open any year of assessment for which income has been omitted," he says.
"And if you have not declared your rental income in past periods it is advisable to approach SARS and settle the matter rather than to adopt the wait-and-see approach. This will save you worry and perhaps the cost of paying the additional taxes and interest that SARS can impose.
"It is recommended, though, that you make use of the services of a reputable tax consultant or accountant to approach Sars on your behalf — and to ensure that the net rental income received is properly calculated and disclosed in your current tax return."
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11 May 2009, 15:51:14
As house prices fall, buyers are becoming far fussier and are no longer settling for less than what they truly want — all the more reason for sellers to make their homes as appealing as possible.
Saul Geffen, CEO of ooba, says that sellers should be mindful of the "mood of selectiveness and increased desire for value for money" that currently pervades buyers’ mindsets.
"It’s a lot different to a few years ago," notes Geffen. "Buyers are now looking very carefully at properties and spending more time 'kicking the tires'.
"House prices are falling, so sellers should do all they can to present their property as attractively as possible to meet buyer preferences and realise full value on their properties."
Here are nine crucial things that will make a potential buyer want to pay less:
Rooms overcrowded with furniture
It might seem cosy to you, but if there’s no space to even turn around it’s not going to appeal to someone who likes space — and everybody likes space.
Bright carpets with patterns
You might be nostalgic for the 70's and retro is certain to be popular again someday, but carpets from decades past may not be your buyer’s psychedelic dream.
Badly-built extensions
If your home has an awkward extra room that disrupts the flow and form of the house, it’s not going to appeal to many people even though it means extra space.
Carpets in the kitchen or bathroom
This is probably quite an icky thing in most people’s minds and buyers will be thinking of the cost of removing the carpets. It might also lead people to think that you’re trying to hide something underneath.
Too many clashing colours
If your interior decorating looks like it was done so no colours felt left out, potential buyers may be looking for some money off.
Garden gnomes
Hide, hide, hide. Some people may think they’re really cute, but why take the risk of turning off buyers before they have even stepped inside?
Lime scale and dirt in the bathroom
When your potential buyers peer into the bathroom and see grime everywhere, they may well question what other surprises are tucked away and what else is in poor condition.
Gloomy lighting
Poor lighting can give a rather depressed ambience to any home. Bright equals cheerfulness so good illumination is a must.
Dirty light switches
If you haven’t cleaned your light switches for a long time, then be warned; to a potential buyer it could suggest that the wiring might be bad.
Says Geffen, "Although you may currently have one or more of the things listed above in your home, fixing them is a lot cheaper than ignoring them."
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08 May 2009, 11:03:33
Commercial lessee beware: check your contract to ensure that it ties in with your wishes
A recent court case has shown how absolutely essential it is for a tenant in a retail/commercial centre to understand in full the conditions under which he signed his lease.
Drawing attention to this case, Tony Clarke, MD of Rawson Properties, said that a pharmacist had bought an existing pharmacy in a mall complex and had then signed a lease in which, as in the previous owner’s lease, he was guaranteed that his would be the only retail of its kind in the centre.
To his dismay, he then found that the supermarket in the centre had a pharmaceutical division which offered stiff competition and which also had exclusive trading rights in its lease agreement.
The pharmacist accordingly took the landlord to court for breach of contract pointing out that the previous pharmacy owner had also had an exclusive trade clause in his lease.
On examining the documentation the court found that all three contracts, i.e. the two with the pharmacists and the one with the supermarket, had exclusivity clauses.
In the circumstances, said Clarke, the court was forced to stick to the accepted maxim, “He who is prior in time is stronger in right” and ruled in favour of the supermarket being allowed to continue to sell pharmaceutical products. Had the pharmacist not obtained a new lease but simply held onto the first lease (signed prior to that of the supermarket) the court would have ruled in his favour.
“Exclusive trading rights,” said Clarke, “are beneficial for specialised businesses such as real estate agencies, liquor stores, cinemas or photo shops but this case shows how vitally important it is to check that no other tenants have the same agreement.”
In certain cases, e.g. a food hall, said Clarke, businesses could actually benefit from being clustered together with rival operations but this is the exception rather the rule.
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08 May 2009, 08:29:13
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Edition 18 of 2009, Friday, 08 May 2009
Dear Reader
 The property industry lost a friend this week. Rodney Hayter South Africa’s most senior and respected property media entrepreneur and journalist died after a battle with cancer. Over the last five years Rodney provided our CyberProp.com newsletter subscribers with up-to-the-minute property news. Rodney’s articles will be missed.
 When will our economy reach the bottom? According to economist one of the best measuring tools is the house-price indicators and according to these we have not yet reach the bottom. The most recent Economist house-price indicators show that 16 of the countries surveyed had recorded year-on-year declines (up from 6 three months earlier).
BUT, I do believe that the latest interest rate cut will stimulate the economy and we will see the results in the South African property market within the next few months. Do you agree? Send your viewpoints to news@cyberprop.com
"For every million rand bonded, a homeowner will save R704.90 a month relative to their previous repayments, given the new prime rate of 12 percemt" says Brian Falconer, MD of Colliers International Residential. Let the floodgates open
If it’s your aim to purchase property at the bottom of the market while prices are at their lowest, then you’d better buy within the next nine months. That’s the advice of Lew Geffen, chairman of Sotheby’s International Realty in SA, who says all the signs are that prices will start to move upwards again at this time next year You've got nine months to cash in
 You'll do less time for murder. Velvet-tongued jailbird Maurice de Grandhomme was sentenced to 30 years for conning about R2m out of wannabee golf estate investors. He met his victims on a driving range at Pollsmoor Prison while he was still serving time for fraud, nogal. That intriguing news snippet was in the Cape Times on Friday where on the same page we were told that Niel Philips, 39, who murdered the mother of his daughter, was finally apprehended a decade later. Jail time: Murder vs Property crimes
Named after the Groot Marico River, one of the few perennial rivers in this area, the town is well-known for its beautiful African bushveld surroundings, hospitality of its people and through the books of well-known author Herman Charles Bosman. The Art Factory is a small shop situated in the Information Centre in the main street of Groot-Marico. Local artists are given the opportunity to present and sell their wares. All items are handmade. Oom Piet van Niekerk is an expert in the art of wip making. Focus on Groot Marico, North West, South Africa
Enjoy!
The editor
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05 May 2009, 16:37:08
After building mega-resorts from the Bahamas to Dubai, tycoon Sol Kerzner is back home in South Africa with a posh new 100-million-dollar hotel, 15 years after pulling up his stakes here in a cloud of controversy.
Richer, older, and with more celebrities in tow, South Africa's most infamous billionaire last month opened the One&Only hotel in Cape Town, featuring a 4,000-dollar a night suite with commanding views of the landmark Table Mountain and the ocean.
"It takes hotels to another level in South Africa," he told AFP in an interview.
It's the latest jewel in a byzantine business empire reportedly worth at least two billion dollars, which he studiously avoids discussing.
"We just don't talk the details and numbers," he said.
Once the epitome of hedonism under calvinistic white-minority rule, the diminutive 73-year-old made his name skirting an apartheid-era ban on gambling by building the Las Vegas-style Sun City resort in the 1970s in an ostensibly self-governing black homeland.
Just about two hours drive from Johannesburg, the resort was a place where black and white could mingle and drew in performers like Elton John and Paul Simon.
But the resort sparked international controversy as global opposition to apartheid grew in the 1980s, painting Kerzner as profiteering from the violently enforced system of segregation.
He's also been the target of a series of bribery investigations around the world, but never convicted.
His gruff demeanour has only fueled an unflattering media image.
He is known to make those crossing his path quiver in fear with his notorious temper, with the Daily Mail once reporting he liked to start meetings declaring "What the fuck's going on?"
Kerzner said he "doesn't care" about his image, which has softened over the years as he pulled celebrities into his circle and opened a series of larger-than-life resorts around the world.
"People have called me a perfectionist and that's what I expect," he said. "There shouldn't be a limit to one's imagination."
"For me, it's quite emotional. I always say in our business you can't afford to fall in love with your assets," Kerzner tells AFP of the journey back to South Africa.
He sold his stakes in South African hotels during the transition from apartheid, as the democratically elected government moved to legalise gambling.
Kerzner went on to build the Atlantis in the Bahamas and the Middle East's biggest hotel -- the outerwordly 580-million-dollar The Palm in Dubai. With properties from Mauritius to Mexico, Kerzner has been dubbed South Africa's Donald Trump.
Dubbed the Sun King after the name of his first hotel chain, Kerzner says his new One&Only hotel, is his best to date.
A penthouse on top of the hotel sold last year for 110 million rand (12 million dollars), making it the most expensive property in Africa.
He counts among his friends no less than Nelson Mandela, whom he met shortly after his release from prison in 1990.
"We became really good friends and had dinner from time to time at my home. It was very unusual," he said of the 90-year-old who joined him for a private lunch at the hotel's opening.
"He was in very good form, he is one of my oldest friends I am proud to say. He doesn't appear much in public but he came out to do the lunch as a friend."
Other friends such as Sharon Stone, Robert de Niro, Morgan Freeman, Matt Damon and Mariah Carey swept into town for an intimate and shmoozy cocktail party celebrating the hotel's opening, which he says is a vote of confidence in the new South Africa.
"I have been an optimist all these years. The fact that we built this hotel, and as I say it is about as good, the best we've ever built, says more than anything that I believe in the future of the country as a growing dynamic economy."
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05 May 2009, 11:28:42
The steady decline in house values continued in April, according to FNB's latest House Price Index that was made public on Monday.
This was a result of a sizeable oversupply that had built-up in the residential market.
The number of owners trying to sell houses due to financial pressure was a key driver of the oversupply.
According to property economist John Loos, the April FNB House Price Index had reached double-digit year-on-year average house price deflation for the first time, to the tune of -10.2 percent.
This put the average house price level back to the level at the end of 2006, Loos said.
"This weakness reflects the cumulative impact of a host of negative economic factors still feeding through, including high interest rates and consumer inflation until recently as well as recessionary conditions that are hampering domestic job creation and purchasing power," Loos said.
Looking forward, he said, house price decline might be around for the entire year despite some positive stimulus for residential demand coming from interest rate cuts.
"The reasoning is that, even should demand begin to improve, there exists a significant oversupply of property on the market that will take some time to be mopped up."
Loos said the key threat to the housing market emanated from a troubled global economy and its impact on South Africa's own economy and disposable income.
"However, May is an important month for the market domestically, too, with some key political matters to be settled.
"These include the inauguration of the new president Jacob Zuma and the market will be looking for comfort in the final composition of his Cabinet as well as, obviously, the fate of people such as [Finance] Minister Trevor Manuel."
Loos said political matters could be key in a thin residential market as there had been a surge of selling due to emigration last year after the political upheaval at the ANC's Polokwane conference and Eskom's power supply problems.
"This emigration selling appears to have subsided and it is crucial that we get the right signals from the new political leadership this month to avoid a similar emigration surge doing similar damage," Loos said.
The ongoing mismatch between supply and demand (oversupply) led to the forecast of a -9.5 percent decline in the average 2009 price compared to the 2008 average with mild price inflation only returning in 2010, Loos added.
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04 May 2009, 11:43:31
Cyberprop.com Weekly News Letter
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Edition 13 of 2009, Friday, 3 April 2009
Dear Reader
Vehicle news – Naamsa, The National Association of
Automobile Manufacturers reported that vehicle sales plunged by
30.1% to 33326 units last month compared to the same months in previous
years. I don’t know about you but I’m curious to see the
outcome for April 2009 after the 1% interest cut we’ve seen
last week. Will South Africans shop more?
 Commercial
property – Although it fell sharply last year it still
managed to beat inflation. This according to the SA Property Owners
Association/IPD property index. Is it the right time to buy commercial
property? We place two articles that can help you in answering
this question. Commercial real estate still beats inflation
- for now and Commercial real estate: world's top
returns
 Residential
property – According to the National Association of Realtors
US pending home sales have edged up, hinting at a possible
pickup of sales activity in coming months. Currently the property
market is still underperforming. No good news in the South African
property market as the prices of residential property
continue to come down. We bring you news from three of the Banks;
- FNB - March house prices down
- ABSA - House prices still falling
- Standard Bank - Falling interest rates to boost house
prices
Can things get worse? Dr Johan Botha, of Standard
Bank's economics division told Realestateweb that the property
market would probably be in the doldrums until the end of this
year. "I don't think we have reached the bottom yet. There
could be bargains at the moment and going forward."
Dr Neal Bruton, of RGT Smart Market Intelligence Ltd, said he expects
the interest rate to come down by another 2%, which would mean consumers
would enjoy a roughly 29% cut in their debt financing costs compared
to December.
Summit TV spoke to Mike Schussler from Economists.co.za about the
growing evidence that without further rate cuts South Africa is
going to experience a severe recession and more job losses
Tricky times ahead
Last week we reported that Standard Bank is still not accepting
new home loan application that has been submitted through
a bond originator. This week we can report that Standard Bank said
it is reconsidering their participation in the origination market.
It’s still a hard time for mortgage originators as commissions
are cut and the low approval of bonds continue.
What is carbon footprint? A carbon footprint is the
measure of the impact that our activities have on the environment.
According to Designs> if
you are lucky enough (or insane enough) to be planning the construction
of a new home, you are in the right place to make a huge difference
to the future of the planet. Before you even start with assessing
materials and construction methods, take a look at the orientation
of your home. As we are in the southern hemisphere, a building
norm is to have living areas facing north, north-east or north-west,
with service areas such as bathrooms and kitchens facing south.
It’s astounding how often builders and developers get this
wrong! How changes in the home can make a difference to carbon
emissions by:
Uniondale is better known for its ghost than for the scenic roads
it has to offer the tourist. These roads must be the Karoo's best
kept secret. Uniondale is ideally situated to form part of circular
tourist routes that include destinations such as Oudtshoorn, Baviaanskloof,
Port Elizabeth, Knysna and George. Read more in Focus on Uniondale,
Western Cape, South Africa
Enjoy!
The editor
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04 May 2009, 11:41:55
The Highland Gate golf and trout-fishing estate in the popular weekend destination of Dullstroom, which was put into provisional liquidation in August last year, will be auctioned by the Alliance Group on 13 May.
This will be a landmark event as the property includes two hotel sites and an 18-hole Ernie Els signature golf course. It is also the first time since 2003 that an entire liquidated golf course and estate has come to the market. "The last two bankrupt golf courses, which were both sold by the Alliance Group, were the Riviera Golf Estate in Vereeniging and the Simola Golf Estate in Knysna," comments Rael Levitt, CEO of Alliance Group. "In both instances new property developers took these estates and made a huge success of them. We envisage the same story applying at Highland Gate."
SA a premier golfing destination
According to the auctioneers, who have been advertising the sale since the weekend, there has been serious interest from golf estate developers from around the world, particularly Europe and the Middle East. "Despite a downturn in the leisure property sector, South Africa is still seen as a premier golfing destination and with 2010 around the corner we are seeing renewed interest from international companies focusing on our market," adds Levitt.
The more than 700 hectare development was at an advanced stage and the entire necessary infrastructure is in place. It comprises 455 stands, 267 of which have been sold and handed over at prices ranging between R700 000 and R1-million. Thirteen holes of the 18-hole golf course are complete as well as the gatehouse and service buildings. Seven houses are also finished, two are under construction and another 40 are planned. Roads and access control are also all in place. The Highland Gate Homeowners Association has been formed and all owners are contributing to the maintenance of the common property.
This is not the first property development that has hit the wall as a result of the downturn in the residential market, but it is the biggest to date — even though many of its stands have been sold since the launch of the estate in 2004.
Liquidation followed the petering out of sales
The previous estate manager Bryce Clarence said the provisional liquidation followed the petering out of sales last year. "The financiers wanted to withdraw and proposed that another funder be sought, after which the development was provisionally liquidated."
Enver Motala, chairperson of the SBT trust and one of the liquidators, says that a rescue mission was set in motion for the project, which entailed finding a suitable buyer to take it over and complete it. "The auction will now facilitate a speedy and unsuspensive sale."
All assets held by the initial developer, Gate Developments (Pty) Ltd, will be sold as one lot. The sale will include 185 serviced residential erven, the 18-hole Ernie Els signature golf course, two hotel/lodge sites, two complete fractional ownership houses and potential 'bulk' sites for future development. Plans for the development include a wellness centre, trout club and various eco-trails.
Due to its proximity to Johannesburg and its plentiful fishing waters, Dullstroom has become a much-loved destination for those wanting a retreat to nature. Highland Gate is a premier trout fishing destination that boasts magnificent scenery and is perfect for all wild game lovers as the Kruger National Park is less than two hours away.
"This truly is a once in a lifetime opportunity to acquire a world class property within close proximity of Kruger National Park," says Levitt. "The development presents an unrivalled opportunity for a new developer to infuse fresh energy into this prime project."
The auction takes place on 13 May 2009 (12.00pm) at the Southern Sun, Grayston Drive.
The troubles elsewhere
The global recession has hit property markets and the golf industry badly, but the South African sectors remain internationally competitive compared to those of the US and UK markets.
A £40-million luxury golf course designed by Jack Nicklaus seems to be the latest victim of the global recession in the UK and in Ireland some golf courses are cutting their green fees in half with one even throwing in a steak dinner with mid-week rounds. In the United States about 100 courses are expected to close this year versus the 80 or so that are expected to open.
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04 May 2009, 11:38:57
In stark contrast to prevailing conditions, the Lydenburg property market is positively buoyant.
That’s the news from Mandy Blom, principal of Homenet Lydenburg, who says that the local property market is directly affected by the performance of the area’s platinum mines which to date has held up well notwithstanding the drop in platinum prices on world markets.
In recent years platinum mining operations in the area have increased and with it the population. The mining companies built a number of homes in Lydenburg, but the influx of permanent and contract workers seeking accommodation was such that demand quickly outstripped supply despite the addition of subsidised mine housing.
According to Blom, developers have been slow to respond to the demand due to the lack of infrastructure. Consequently, in the past five years, property prices have doubled and properties that sold for R400 000 in 2003 are now selling for R900 000 on average.
"What is more, residential development is still relatively thin on the ground thanks to the current economic crisis and lack of electricity approvals. This has underpinned the prices of existing stock and most correctly priced properties that do come on to the market sell like hot cakes," she adds.
The Lydenburg rental market has also skyrocketed. At present a three-bedroom, two-bathroom home in Lydenburg lets for around R6000 per month. Sectional title units are popular with the rental market and investors are buying units for between R560 000 and R750 000.
Nearby Steelpoort has also experienced a major population growth spurt and available properties are practically non-existent. Steelpoort municipal services and schools have subsequently come under pressure.
Fortunately there are now plans to construct a major new security development, 'Spitzkop Village', near the Tubatse Golf Course in the town which should help alleviate some of the strain. This project encompasses over 2500 stands, a shopping node and a school. It’s envisaged that the development will greatly enhance the quality of life of many Steelpoort residents.
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04 May 2009, 11:36:13
Rentals in Cape Town's popular City Bowl are escalating rapidly as strict bank lending protocols take the wind out of potential buyers’ sails.
So says Yazid Khan, letting agent for the Chas Everitt International franchise in the area, who notes that many of those keen to buy property in the City Bowl are having trouble qualifying for the home loans they would need.
The majority of those looking to live in the City Bowl are young, up-and-coming professionals who have either returned from the UK or are moving up in the world and wish to acquire their first major asset. Sometimes parents are also footing the bill for their student children who wish to live there. The area’s aesthetic appeal, lively nightlife, upmarket coffee shops, cafés and trendy retailers make it an obvious choice for this market.
However, he says, the properties these buyers would really like to purchase generally range in price from R1.2-million to R2.5-million which is currently beyond their means. And so, rather than cut back on their lifestyle, many are renting instead in the hope that their financial situation will improve and they will be able to afford the properties they want at a later stage.
"As a result, the City Bowl rental market has been inundated and landlords can now pick and choose their tenants. Rental prices have also risen and even doubled in some instances — although they are still far lower than in areas such as Clifton and Camps Bay.
"Mandela Rhodes Place, Mutual Heights, The Adderley, The Studios, The Rockwell, Wembley Square, Icon, Harbour’s Edge, Flat Rock and Hip Hop Plaza are just some of the sought-after City Bowl addresses where rents have risen fast. One- and two-bedroom apartments in these complexes now rent from R6000 per month to R9000 per month and more, compared to a year ago when they were renting from R4000 per month.
"What is more," says Khan, "tenants as well as landlords are currently favouring long-term leases which suggests that they see rentals going even higher and wish to guard against sudden increases."
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24 April 2009, 08:42:27
The RealNet property group keeps growing in spite of the negative effects that tough economic conditions are having on the property market.
The group has opened six new franchises in the past six months, with new offices covering Port Elizabeth, the Bluff and Berea in Durban, Sedgefield/Wilderness, Kleinmond and Vereeniging/Sebokeng.
What is more, CEO Tjaart van der Walt says the group plans to add another 20 to 25 offices countrywide to its operations in the current financial year.
“We are receiving applications from seasoned professionals and are vetting the best principals. The current economic climate is fuelling the franchising model because entrepreneurs who want to start businesses or grow their current operations know that as members of a well-established group with value added services, they can count on support services that will boost their chances of success,” he says.
“The fact that the real estate business has lost its reputation as a job of last resort, and has instead grown in stature as a profession, creates opportunities to re-invent the estate agency franchising model. Franchises now enjoy better opportunities to become optimally profitable by, for instance, diversifying income streams through better use of technology.
“And the RealNet group has taken up the challenge to develop and design systems to enable our agents to become more productive and to work smarter. We are also in the process of aligning with professional business partners to further enhance our business offering to franchisees,” Van der Walt says.
He adds that that only the best qualified and most professional agents and principals are likely to survive the challenges of the current market. “Our franchise model, however, goes a step further by pulling out all the stops to equip our franchisees with the necessary skills and support to not only survive, but to be successful.”
Issued by RealNet
For further information call
Tjaart van der Walt on
012 460 4605 or visit
www.realnet.co.za
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24 April 2009, 08:40:38
A new era dawns in the cape estate agency sector
The new era of “true professionalism” promised by the Western Cape branch of the Institute of Estate Agents has become a reality: this month saw the first 800 estate agents to qualify under the new National Qualifications Framework Level 4 receive their certificates at a function at the Grand West Casino.
The occasion was sponsored and organised by SSETA (Services Sector Education and Training Authority), the award being made by their CEO, Ivor Blumenthal. Every one of the candidates received a R9 000 SSETA bursary through their training body to cover the cost of the training.
Ivan Neethling, Chairman of the Western Cape Institute of Estate Agents, said that the training through which these agents have successfully worked involved a complete reappraisal of their roles and abilities and a complete updating of the technical legal, financial and negotiation skills and knowledge required for the profession.
“Many agents,” he said, “feared that all this would be beyond them but the courses are structured to nurture those who are struggling and in the end everyone succeeded in completing their RPL portfolio. .”
The ages of the newly qualified agents, he said, range from 23 to 72 years. Those who had already acquired practical experience and/or educational qualifications received recognition for this via the RPL (Recognition of Prior Learning) arrangement and their achievements to date are recorded in their personal portfolios which in future can be continuously updated..
Experienced agents who have held a Fidelity Fund Certificate for more than five consecutive years, said Neethling, will not be expected to write final examinations but those newer to the profession will be doing this from the end of 2009.
“As in all good training,” said Neethling, “the candidates have gained a new respect not just for the way real estate profession should be tackled but also for their own skills. Many have come to realise that they have experience and skills that are not widely available today.
“Now that the “ball is rolling” and the supposed difficulties of the course have been shown to be largely mythical, we expect the rest of the Industry to respond favourably to the need to be requalified - but it should be appreciated by those contemplating joining the profession that NQF4 is now compulsory and involves a full time learnership commitment of 12 months involving both s study and practical training.
For further information contact Ivan Neethling on 083 527 2626 or email startprop@icon.co.za.
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24 April 2009, 08:39:36
The international CENTURY 21 property group has opened a Plettenberg Bay office under the banner of CENTURY 21 Pringle Estates.
The timing of the opening is seen as ideal to capitalise on the opportunities that will arise from the inevitable upswing in the property market.
The office is under the management of husband and wife team John and Christy van Coller, both of whom have an extensive track record in the discerning property market of the area.
Pringle Estates was a small family-owned business established in Plettenberg Bay in 1999. “But we wanted the benefits for our clients of joining a global brand with its international and local referral system, comprehensive training, management and other support,” says John, who had an engineering career before entering the property market.
Christy has a financial services history that includes stockbroking and investment banking.
Plett, as it is affectionately known, has a special place in the South African property psyche, says John. “Values are still strong and although volumes have slowed there is still definitely business to be done.”
Entry level prices for freehold properties in the area are currently around R1,4m for a three bed, two bathroom house and about R670 000 for a two bed, two bath unit approximately 100sqm in extent.
“There has been some softening of prices at the lower end of the market, but that presents opportunities for buyers while the middle segment has held up well. The top end of the market, where beachfront properties start at around R19m and range up to R35m, has been largely unaffected by current conditions, “ he says.
Buy-to-let is not a major issue among Plett property owners other than at the lower end of the market. Rather, market drivers include upgrading, downsizing to retire, relocations and “semigration”.
Generally, John expects Plett to benefit from 2010 Soccer World Cup spin-offs and from the re-introduction of direct flights to the area. “We are extremely optimistic about our prospects,” he says.
ISSUED BY CENTURY 21 SA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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24 April 2009, 08:37:27
Well branded and niche agencies favoured in current market
Cape estate agencies are folding rapidly: in recent months a further six have closed their doors in Cape Town alone, says Mike Greeff, Chief Executive of Greeff Properties, and have amalgamated to reduce overheads. More, says Greeff, will go before the expected upturn comes about in the third and fourth quarter of the year.
What effect is this having on the market? Does it make conditions for the property seller and buyer easier or more difficult?
Greeff says that certain companies have spent time and money on establishing their brand, through marketing, advertising, company magazines and promotional functions, and have become “personalities” in their marketplace. These, he says, now enjoy higher levels of support from customers and are gaining market share despite the tough conditions because “nobody wants to deal with an agency that might not be around in a month or two”.
This situation, however, can work to the disadvantage of buyers and sellers because the larger companies, with their higher overheads, cannot afford to allow their agents to operate on the lower commissions which some of the smaller players over the last four years found acceptable – in some cases forcing the large companies to follow suit.
“Cuts in commission were previously possible due to increased turnover, but are no longer feasible in today’s economic environment where it can take four to six months to sell a home, compared to the average time of four weeks 18 months ago.”
The good news, says Greeff, is that some of the well branded but smaller, niche agencies with staffs of 30 to 50 now tend to be the fastest movers and more flexible in their approach to the market – and are benefiting from this.
“In today’s conditions purchasing decisions are often drawn out and have a discouraging tendency to end nowhere. However, the agency that has trained its agents to listen and to respond quickly to clients’ needs will also be ready to negotiate and be flexible. The smaller niche operators with specialist knowledge of specific areas are showing that they are still open to negotiation and can do deals that benefit both buyers and sellers.”
For further information contact Mike Greeff on 021 763 4120 or email mike@greeff.co.za.
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20 April 2009, 16:46:39
Cash-flush Europeans splash out in KwaZulu-Natal as prices fall
BRITISH and German jet-setters are bucking the global credit crunch and splashing out in euros for prime coastal homes and estates that have seen asking prices slashed.
Estate agents in Durban this week said they had recorded a flood of cash sales of between R3-million and R6-million for modest homes and sea-facing apartments since December. Rolling out the red carpet and stuffing buyers with lobster and champagne, the estate agents said other cash-flush Europeans, between the ages of 40 and 55 years, were snapping up homes priced between R1-million and R5-million.
One property that has attracted interest from foreign buyers is a R22-million beachfront penthouse located in Pearl Tides in Umhlanga, KwaZulu-Natal.
Boasting 180-degree ocean views, the 600m² double-level penthouse features three en-suite bedrooms, an open-plan living area and a private rim-flow pool.
Pam Golding Properties’ Elwyn Schenk, whose branch recently sold a four-bedroom apartment in Umhlanga for R11-million, said sales in the suburb were increasing month on month.
Foreign buyers include investors, corporate executives, celebrities, socialites and civil servants eager to cash in on South Africa’s property slump.
In June last year, The Times revealed that Hollywood stars Nicolas Cage, Leonardo DiCaprio, and Jude Law’s former wife, Sadie Frost, were just a few of the international celebrities discreetly hunting for houses in Umhlanga.
At the time, property analysts said international buyers were at last finding Cape Town’s seafront suburbs — where prices range from R5-million for a one-bedroom apartment to R60-million for a beach bungalow — too expensive, and were turning their attention to prime property along the KwaZulu- Natal coast.
Last week PGP said it had recently showcased homes, stretching from Umhlanga to Clifton in the Western Cape, to high-net-worth individuals at the Sud-Afrika Tage 2009 show in Germany.
The show, which attracts exhibitors ranging from tour operators and immigration experts to property brokers of luxury hotels and wine farms, was staged in Mainz, on the outskirts of Frankfurt, in Neuss in the Koln, Dusseldorf region and in Hamburg.
Dina Porteous, who runs PGP’s operations in Margate, said: “Our exhibit attracted a great deal of interest. It is clear that what attracted interested buyers is our abundance of sunshine, coupled with our friendly people and beautiful homes.”
Gaby Moessner, manager of PGP group’s German office, said: “This is a discerning market and overseas buyers are extremely well informed about the South African property market. The advantage of acquiring lock-up-and-go apartments and homes was also a major drawcard.”
He said potential German buyers in general preferred stand-alone homes rather than those in golfing or townhouse developments.
“In Germany space is at a premium so this is a top priority when it comes to buying property in South Africa,” said Moessner.
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17 April 2009, 15:53:03
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Edition 15 of 2009, Friday, 17 April 2009
Dear Reader
 All eyes will be on South Africa this coming week as 22 April 2009 is approaching. We’ve heard and will still hear plenty more promises in the days to come. “Interest rate cuts are among the policy responses proposed to minimise the impact of the global financial downturn”, ANC treasurer-general Mathews Phosa said on Wednesday. "Reserve Bank consideration of lower interest rates, as will now be done on a monthly basis...[and] removing internal hurdles to competition," were among the proposed responses outlined by Phosa. Rates to be razed?
What is Politics?
A little boy goes to his dad and asks, "What is politics?” Dad says, "Well son, let me try to explain it this way: I'm the breadwinner of the family, so let's call me capitalism. Your Mom, she's the administrator of the money, so we'll call her the Government. We're here to take care of your needs, so we'll call you the people. The nanny, we'll consider her the Working Class. And your baby brother, we'll call him the Future. Now, think about this and see if it makes sense.
What is Property?
A big, burly man visited the pastor's home and asked to see the minister's wife, a woman well known for her charitable impulses. "Madam," he said in a broken voice, "I wish to draw your attention to the terrible plight of a poor family in this district. The father is dead, the mother is too ill to work, and the nine children are starving. They’re about to be turned into the cold, empty streets unless someone pays their rent, which amounts to R 5,500.00" "How terrible!" exclaimed the preacher's wife. "May I ask who you are?" The sympathetic visitor applied his handkerchief to his eyes. "I'm the landlord," he sobbed.
My question to you this week, “How does politics and property compare”? Send your view point to news@cyberprop.com
Three interest rate cuts since December have failed as yet to have any real impact on the residential market, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents – and the reason for this, he says is still the banks’ much criticised reluctance to engage with the bond market as expected of them – and as promise at least by some. Neethling points a finger at the banks for the “disastrous” drop off in homes sales
In the area, last week we focused on Marister (Benoni) and in response we received the following from one of our readers;
Thank you for reporting on our lovely spot. Why did you have to call on quad bikes to come and pester us? One cannot have peace and quiet, bird live etc. with idiots racing up and down the road the whole day!!. We have to listen to one revving up his motor as I write!! Keep up with the other good articles we receive!. Thanks Chris! I’ve come to a conclusion, “You just cannot win them all”
Enjoy!
The editor
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17 April 2009, 08:19:36
Many cape homes not insured for fire, says steward
Some 240 fires have broken out in the Greater Cape Town area this year and although these have resulted in the total destruction of only a few homes, many others have been badly damaged. In the informal settlements the number is far higher, close to 1 000.
Commenting on this, Lanice Steward, MD of Anne Porter Knight Frank, pointed out that time and again people who thought that their homes were insured for fire discovered they were not – and, she added, the usual reason for this has been that the insurance was linked to the bond and ended when that was paid up – without the owner realising this.
"The insurance companies," said Steward, "have been very remiss in not contacting owners in this situation, especially as these homes are usually 20 or more years old and therefore a far greater fire risk"
Reverting to a topic she has covered in many agents’ training sessions, Steward reminded homeowners that most fires originate with an electrical fault and for this reason a regular check and, if possible, upgrading of the electrical network are a good idea. Certification by an electrician is, in any case, required by law when a house is sold.
"Fires," said Steward, "are always seen as disasters that happen to others, not to oneself – but they do occur in homes with ghastly frequency, so make sure your insurance is in place."
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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17 April 2009, 08:15:23
Third generation thatchers set up on their own
New company aims for major contracts
One of the more frustrating aspects of the thatching industry, at least to those who are relatively small operators, is that much of the work they get comes in the form of subcontracts to the few big name companies – who tend to cream off the profit while paying low for the work they commission.
It was this realisation that led to the Cape cousins, Clarence and Gerhardus de Wet, deciding to set up on their own.
In both their families, thatching goes back at least three generations. Both, too, were trained and taught by their own relatives and both believe that they have skills which are unrivalled in the Western Cape.
The organisation they have formed is Thatch Wood c.c., the name emphasising, they hope, the fact that they have in-depth experience in both the structural and the thatching work.
“This means that we can handle anything from a garden lapa or a poolside gazebo to a complete new home or a roof conversion,” said Gerhardus. “No job is too big, and unlike the major companies, we can also say that no job is too small.”
Right now, say the de Wets, some 70% of their work is servicing.
“A well made thatch roof which is exposed to the sun and given a chance to dry out will last 40 to 60 years,” says Clarence, “provided that it is serviced.”
This, he explained, means the dead ends of the thatch are pulled out and broken off. Such a treatment can give even the blackest and oldest looking roofs a brand new light brown look and in most cases, this needs only to be done every five to seven years.
“We offer this service because we know we do it better than most and we know how important it is if you want your roof to last. Some thatch roof owners still, however, do not appreciate this.”
Thatching, says Gerhardus, is catching on throughout the Western Cape for three obvious reasons. Firstly, a thatched roof or even simple 6m x 6m gazebo in the garden will add significantly to the property’s value.
Conversions done by the de Wets, replacing, for example, tiled roofs with thatch, have increased the home’s value by 30 to 40% and in general new thatched homes are priced way above those with other roofs.
Secondly, thatch is ideal for the Cape because of its thermal qualities, which are far greater than those of tiled or metal roofing. Excessive heat is held out in summer but internal heat from fireplaces or under-floor heating is retained in winter.
Thirdly, the aesthetic qualities of thatch appeal to many, especially when it is seen from inside.
“The ability to eliminate a ceiling,” said Gerhardus, “can be a huge design plus. Ceilings are boring, but the curves and structures of a thatched roof are attractive.”
So why does not everyone go for thatch?
The main reasons, say the de Wets, is a fear of fire.
“Like log homes,” he said, “thatch is wrongly perceived to be a fire risk – but this is illogical. The figures show clearly that the percentage of thatched homes burnt down is no higher than that of homes with metal or tiled roofs.”
What is more, he says, modern technology has greatly reduced the fire threat. The use of both fire retardant blankets inserted at regular intervals in the thatch and roof water sprinklers has almost completely eliminated the danger of fires destroying homes – and Thatch Wood is in a position to provide both types of technology.
Another factor which should predispose Capetonians to use thatch, say the de Wets, is that the reeds used by Thatch Wood – and others – are among the very best in the world today. Most are grown near Albertina and, unlike those used in Europe, are dry, woody and strong. European thatch, say the de Wets, is all too often soft and sappy and does not always dry out and retain its strength on the roof.
“Albertina thatch has been used all over the world. I myself have worked with it in Dubai and I can tell you that it is the best available,” says Gerhardus.
Thatch Wood executives are available to discuss the possibilities and the design criteria of thatching with architects – free of charge.
“It really makes no sense that thatch, the traditional Cape roofing material, is still so little used in Cape Town. A change is overdue, especially as, with a team like ours, in which the management are very much part of the work force, Thatch Wood can undercut the bigger operators on price and give costs that are close to those of alternative roofing materials.”
For further information contact Gerhardus de Wet (079 771 3142) or Clarence de Wet (083 518 7080) or 021 857 1987 or via email on thatchwood@telkomsa.net.
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17 April 2009, 08:11:00
Five independent agencies in the Western Cape have signed up to join the burgeoning Harcourts group in the past month and another four will soon swell their ranks.
So says Jeanne van Jaarsveldt, recently appointed as the new GM of Harcourts Africa, who is currently overseeing the group’s expansion in the Western Cape.
“Following last year’s purchase by Harcourts of a majority share in the Homenet group, all the Homenet branches in the Cape are of course now in the process of rolling out their new Harcourts branding,” he notes.
“But the agencies we have signed up in the past month were never part of the Homenet group. They were independents and other established brands who have decided on the strength of the Harcourts value proposition to join the group.”
Recently rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands, Harcourts operates in Australia, New Zealand, China, Fiji, Indonesia, Singapore, Zambia and Botswana as well as South Africa and has more than 600 offices, 4000 sales consultants and a sales volume in excess of $19,5bn a year.
This supported by its association with Leading Real Estate Companies of the World, which further expands its international reach to more than 35 countries and more than 170 000 agents around the globe.
“And at a time when other real estate groups are cutting back on their value offering, Harcourts is actually expanding and gaining bigger market share, by giving franchisees the systems, training and technologies to be successful in any market. Other agencies have picked up on this and are already gravitating strongly towards the brand,” says Van Jaarsveldt.
The five new offices that are already operating as Harcourts branches are located in Langebaan, Velddrif, Malmesbury, Durbanville and Bellville, and four more will be following suit soon.
Martin Schultheiss, CEO of Harcourts Africa, says the rapid inroads that the company is making in the Western Cape reflect the fact that Harcourts is fresh and dynamic brand that is going to take the local industry by storm. “What will take most real estate companies in South Africa millions of rands and years to develop,” he says, “we are able to introduce to our franchisees right now, and that is going to put them on a totally different level to the rest of the industry.”
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CALL
JEANNE VAN JAARSVELDT ON
083 641 6603 OR VISIT
www.harcourts.net
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16 April 2009, 16:30:34
Three interest rate cuts since December have failed as yet to have any real impact on the residential market, says Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents. He says the reason for this is the banks' much criticised reluctance to engage with the bond market as expected of them - and as promised, at least by some. Here are his comments:
I came away from a recent meeting with three major banks convinced that they are finding reasons not to invest in the bond market rather than looking for reliable bond applicants.
The reason for this is that the South African banks appear to fear further repercussions from the global credit crisis and continued job losses (up to 400 000 before the year end).
The banks give the impression of believing that the global economic problems will impact on South Africa for a further 18 to 24 months before we get real relief, a view which I see as unrealistically pessimistic. Yes, we have to acknowledge that South Africa is not fully insulated from the world's financial problems and the direst effects of these are only now being felt - but the current bond rejection rate is in the view of almost all estate agents unjustified.
Unless there is a marked change in the banks' attitude, every type of property company will have within the next few months to readjust their expenditure and cut back further on staff, advertising, marketing and other overheads.
Already in the bond origination and conveyancing sectors we have seen really severe cuts that no one would have expected a year ago.
I asked how the banks plan to survive if they cut back strongly on bond lending. My impression is that a great deal of reliance is being placed on the spin-offs generated by the government's infrastructural development programme - but this can only partially compensate for a healthy bond loan business.
In any case, there is a certain injustice in penalising the consumer at this point because it is his taxes that have funded much of the government's spending programme from which in general only a select few are benefiting.
In the housing sector, there is now great awareness of the National Credit Act criteria and this has had a noticeable effect on making loan applications far more conservative and more realistic than they have ever been before.
Very few bond applications today come from chancers. The industry has become self-regulating. No one wants to waste time on a bond that is likely to be refused. Those applications that have been processed almost invariably have come from sound, reliable credit-worthy people who should qualify for a bond - but all too often do not. This situation has simply got to change if the state has any intention of seeing the housing sector revive and of realising its dream of South Africans becoming a home-owning nation.
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16 April 2009, 16:25:42
Estate agents with little or no experience and the banks' extreme tightening on home loan lending are two factors destabilising residential property prices.
Consequently, current selling prices had been slashed to those of about three years ago, Chris Pearson, owner of RE/MAX said in a statement on Tuesday.
Pearson has urged the real estate industry's major players to use stricter vetting levels in the hiring and training of new staff and for greater lending realism on home loans from the major banks.
Pearson said the market, in part, was paying for the industry's many years of failing to train and supervise its staff.
"The man in the street often has a greater knowledge of property than some of the agents themselves," he said.
Pearson blamed unqualified agents for their inability to price correctly and to educate the seller.
He said these agents had "an overwhelming desire to justify their continued employment" to their employee by signing up overpriced sole-mandates regardless that it might seriously impair the seller's rights and that, because of its inflated price, was little more than worthless stock.
Desperation to 'fill desks at all costs' by principals meant the market had been beleaguered by the problem for years.
This was now seriously coming home to roost on the back of the banks' tightening up on their home lending, which Pearson said was rigid.
This combination was now mainly responsible for prices falling to those of three years ago, which Pearson warned could seriously harm banks if more homeowners fell into marginal negative equity situations.
Acknowledging the lending industry's long history of swaying from feast to famine in loan grants, Pearson believed its iron glove approach this time was 'over-reactive'.
He said South African banks should realise that there had been improvements in home sales in the US, UK, Australian and New Zealand markets.
There had also, globally, been a resurgence in first-time buyer activity in all markets.
"Our banks need to recognise this revival and their importance in regenerating our property markets not through high-risk lending, but through more balanced assessment of home loan applications even through the structuring of tailored packages to offset any of their perceived threats in the current market."
In keeping with most industry leaders, Pearson said the recent rate cuts by the SA Reserve Bank would 'soften some of the market's current brutality'.
However, he warned that 'true salvation' would only come from a strong shift in bank's lending attitudes.
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16 April 2009, 16:24:41
How do you know for sure that the beautiful beamed ceilings that made you buy your dream house are not filled with termites and turning to dust? Or that the majestic thatched roof is about as watertight as a sieve?
Unless you are an expert in construction you will only find out when it’s too late to have any recourse to the seller.
Homeowners have been under a lot of financial pressure over the last few years and just haven’t had the resources to keep up proper maintenance of their homes. If you are looking to buy a house the property could end up costing you a lot more than the amount on the contract.
To protect yourself from buying a house that will fall apart around you, hire a few experts to give you a clear picture of the condition. It may cost you a few hundred rand extra in the short term but it could save you thousands in the long run.
The most common problem areas in older homes are the plumbing systems, electrical systems and the condition of the roof. Structural soundness should also be checked.
If there are problems you can renegotiate the price or decide not to go ahead with the purchase. Beware of a seller that promises to make the improvements themselves. They will probably get the job done for the least money possible, causing quality issues further down the road.
Here is a checklist for buying an older home:
- Get a roofing expert to check that the roof is sound. It may look fine to an amateur but an expert will soon point out problem areas. Look for signs of leakage inside the house.
- Perimeter walls are often not built to required specifications. People have been extending the height of their walls without putting in proper supports. A few gusts of strong wind during a storm could blow it down.
- Make sure that the electrical systems in the house have been checked and you receive a certificate to that effect.
- Turn the taps on in the bathrooms. There is nothing worse than getting into the shower of your new home to find that there is as much water pressure as a squirt gun. Get the geyser checked out — a new one will set you back many thousands of rands.
- Examine the trees on the property as some could pose a risk if they are dead or planted too close to a retaining wall.
- Ask the owner about flooding during a rainstorm. The last thing you want is a swamp at the bottom of your garden.
- And finally, ask about the neighbours. If they have psytrance parties every weekend it may not cost you money, but it will sure cost you a peaceful night's sleep.
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15 April 2009, 16:14:23
A whole list of successfully managed international sports events has proved to the world that South Africa is a safe haven for this type of activity — and has the skills and dedication to see that they run smoothly.
This was according to Tony Clarke, MD of Rawson Properties, who listed 24 major events ranging from the Rugby World Cup, the A1 Grand Prix and the Nedbank Golf Challenge to the Comrades Marathon and certain surf-ski and mountain biking events to bear witness to his statement.
"The latest coup, the winning of the 2009 DLF Indian Premier League, is additional evidence that the world trusts us to organise these events," said Clarke. "It shows yet again that we can be competent sports organisers. The FIFA World Cup will, we believe, be the cherry on the top and further boost our image."
All this top level sporting activity, said Clarke, will focus attention on South Africa as never before — and is bound to have spin-offs for those marketing property here.
Easy to buy property in SA
"Many people," said Clarke, "think that it is extremely difficult for a foreigner to buy property in South Africa. This is definitely not the case. Anyone reading the admirably lucid Smith Tabata Buchanan Boyes booklet on the subject will discover that the only people prohibited from buying property here are illegal aliens which in practice means only those with a criminal or terrorist record."
Clarke went on to make a few salient points: Should the buyer, he said, not wish to purchase the property in his own name the purchase vehicle must nevertheless be locally registered and it must comply with the South African laws, particularly those relating to South African companies, trusts or closed corporations.
This, however, does not, said Clarke, prevent the purchase being made in the name of an overseas company or trust.
Quoting the STBB booklet, "It is important," added Clarke, "that the entity chosen to hold the acquired property is set up before the offer to purchase is made because a change of the holding vehicle after transfer will almost invariably carry a penalty."
No need for buyer to be in SA
Non-residents are allowed to buy South African property over the Internet and it is not essential to be in the country to finalise the deal.
Transfer and bond documents, said Clarke, can be signed overseas provided that this is done in the presence of a notary public or at the local South African Embassy and foreign funds can be paid into any South African bank account. In practice, said Clarke, this will usually be the trust account of the attorneys handling the deed of sale and, he said, this is a safe form of investment as these trusts are regulated by professional bodies of which lawyers are members.
Asked about the position of foreigners raising bonds in South Africa, Clarke said that even if the overseas buyer does not intend to live in South Africa fulltime he is still allowed to raise a bond here. However, this is limited to 50 percent of the total sale price. It is also, he said, acceptable to the South African Revenue Services for part or all of the remaining 50 percent to be in the form of a bond raised overseas — it does not have to be paid in cash.
As is the case with South African residents, however, the foreigner borrowing here will have to prove that his earnings are sufficient to pay the monthly instalments. Proof of substantial assets held by the purchaser, said Clarke, is not in itself sufficient to qualify for a South African bond these days — a monthly income stream has to be assured as well.
Buyers subject to a FICA investigation
Buyers will also be subject to a FICA (Financial Intelligence Centre Act) investigation, the purpose of which is to ascertain that the funds used have been legally acquired.
The big question always asked by foreign buyers, said Clarke, is what rules apply to the repatriation of the money if and when the property is sold. In this regard there are no problems provided the original deed of sale has specified that the buyer is a non-resident and provided the sums still owing on the property are paid as the sale goes through. The rest of the money can be repatriated.
If the foreigner decides at some stage to become a permanent resident (which involves declaring his foreign assets to the South African Reserve Bank) he may not repatriate funds within five years of being accepted as a South African citizen.
All funds repatriated are subject to Capital Gains Tax and the non-resident will pay this on the full amount, even if it is his only South African home — unlike the South African resident who pays Capital Gains Tax only if the profit on his primary residence is above R1.5-million.
Foreign residents buying in SA are exempt from tax on overseas earnings
Unlike South African residents, foreign residents buying in South Africa, said Clarke, are exempt from South African income tax on overseas earnings — they pay only on money earned here (if any).
The Capital Gains Tax on the sale of a property registered in the name of an individual (i.e. not a trust or a company), will be 25 percent of the capital gain and will be taxed at the individual’s marginal income tax rate which at present may not exceed 40 percent. This, said Clarke, translates to a maximum rate of 10 percent on the capital gain which by any standards can hardly be deemed a high tax imposition.
As some foreign buyers in the past have avoided paying Capital Gains Tax on their property sale, the South African Revenue Services now stipulate that any buyer of a property sold by a non-resident for R2-million or more has to retain a percentage of the purchase price and pay it to the South African Revenue Services within 40 days of the transfer. If the non-resident seller is an individual, the amount retained is five percent. If the seller is a non-resident company the amount is seven percent and if the seller is a non-resident trust the amount will be 10 percent.
All in all, said Clarke, South Africa remains a country friendly to foreign buyers and very easy for them to deal with. The tax laws, he said, are enlightened and not onerous and the local legal professionals are adequately trained to ensure a smooth transfer of ownership.
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14 April 2009, 16:12:39
Though the rate of new development has slowed dramatically in most parts of the country on the back of the economic downturn, Hatfield in Tshwane (Pretoria) remains a relative hive of residential and corporate activity.
According to Johann Basson, principal of Realty 1 International Property Group in Hatfield, the suburb stands out from others as truly cosmopolitan, filled as it is with street-fronting restaurants, bars and shops. Its pavements have a character of their own with street vendors, artists, students and suit-clad executives providing an endless source of interest to el fresco diners and other watchers. That said, it’s also a suburb on the move. "Hatfield is experiencing ongoing development, both in the form of new residential construction and conversions of old houses into offices which are then being bought by or let to head offices and corporates," he says.
Hatfield Gautrain station
Driven in part by unflagging demand for student accommodation and partly by its status as host to a large collection of international embassies and trade missions, Hatfield’s growth received an additional boost when it was chosen as a site for a Gautrain station, Basson adds. "Located close to the N1 and N4 freeways, Hatfield is well on its way to fulfilling the municipality’s vision of being a desirable and user-friendly environment which will ensure its ability to retain existing business and attract further investment. This in turn is ensuring that property values do not depreciate."
Among the many projects currently underway there is the Hatfield Gautrain station, which Basson envisages playing a significant role in helping grow the CID (city improvement district) and attracting mixed-use developments. Further, construction on a new high-rise block of studio units near Hatfield Square — intended for students and young professionals — is about to begin.
On the corporate side, a 'stunning' 4000m² office block on Duncan Road is nearing completion. According to Basson, office space can be purchased or rented at very competitive prices. Plans are also afoot for a new 4500m² office block on the corner of Schoeman and Festival Streets, which will be developed in line with tenants’ requirements.
Ongoing refurbishment of existing buildings
In addition to new development, he says the refurbishment of existing buildings, including blocks of flats and shopping centres, is ongoing. Examples include The Fields, a recently completed City Property Project in Burnett Street, which boasts an assortment of shops, restaurants and state-of-the-art rental accommodation.
Among the most expensive corporate properties on Basson’s books right now are a 5000m² office block with a price tag of R50-million and a smaller office block for R26-million. Both close to the Gautrain Station, the pricing indicates where demand is currently focused, he says.
Residential accommodation starts at around R480 000 for a studio unit, though some of the newest ones are priced at R1-million or more. One bedroom flats range from R600 000 to R1-million, he continues, while two bedroom flats can fetch as much as R1.3-million. For an average house 'typical of Hatfield 50 years or more ago', one can expect to pay anywhere from R1.3-million to R3.5-million or more. It’s a case of supply and demand, he explains, since no more new houses are being built. Instead, the trend is for the old ones to be demolished and replaced with blocks of flats or offices.
The best investment buys on Basson’s books include a three bedroom, two bathroom house with a separate, modern unit built to accommodate seven students. Considering its location — within walking distance of the Gautrain station — and the ease with which it could be turned into a guest house in time to meet 2010 FIFA World Cup demand, the R3.8-million price tag is very reasonable, he says. Another excellent investment prospect is a 36-room student dormitory on the market for R8.5-million. Close to both the University and Loftus, it is fully let with a monthly nett income of R55 000.
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13 April 2009, 16:11:21
In a move that shows great confidence in the Western Cape's future (particularly the St Helena Bay precinct) as a holiday and tourist destination, the Dale Capital Partners Group has bought west coast developer Gert Joubert’s new hotel, spa and country club at Shelley Point and is immediately going ahead with extensions and new facilities.
The cost of the acquisition and the work to be undertaken this year is just on R100-million.
The Dale Group is the financial services and leisure investment arm of the Stock Exchange of Mauritius-listed Trinity Financial Group. Trinity Group’s core function is asset management with a focus on African mining and resources, information technology and, via Dale, all aspects of financial services and the leisure industry. It is also a sizeable shareholder in the Mauritius based AfrAsia Bank which will soon launch a representative office in Cape Town.
The group, now heading towards its tenth year in operation, controls assets of approximately R500-million. Through Dale it is a significant shareholder in the JSE (Altx listed) hotels and leisure services company Queensgate Hotels and Leisure, one of the fastest growing hospitality groups in South Africa. It manages several South African hotels and game lodges including the Radisson and Park Inn hotels in Cape Town and a Kruger Park lodge.
Shelley Point: Dale and Queensgate venture
Queensgate is currently expanding into Durban, Johannesburg and Port Elizabeth hospitality centres and, says Mr Norman Noland, Chairman of the Dale Group, is now for the first time co-investing with Dale in hotel ownership. Shelley Point will be the second joint venture between Dale and Queensgate, the first being a new four star near Grand Baie in Mauritius, which is now being built and, as indicated above, will be complete in mid-2010, in time for the World Cup.
Queensgate will manage the new hotel and spa at Shelley Point. The spa will fall under the control of its subsidiary One Wellness, which specialises in this type of operation and manages spas throughout South Africa.
"From the outset," said Noland, "it has been our ambition to establish a Mauritian style beach hotel at the Cape and Shelley Point, in our view, is ideal for this as it fits exactly the profile we were looking for. One of its big advantages is that, although it is only a one-and-a-half hours from Cape Town, it is a world apart with beautiful landscaping and a very high standard of design and finishes."
The facilities here, he added, include over 500km² of calm, well protected water in St Helena Bay which is ideal for any type of water sport and provides visitors with some of the best whale and dolphin watching on the entire Southern African continent.
New hotel, spa and country club
The new double storey hotel, spa and country club facility at Shelley Point came on stream in August last year. It has a first-floor restaurant and bar, a large lounge/living area, a wellness centre, a hairdressing facility, an attractive nine hole golf course, a golf pro shop, a small children’s play area, a teenager section (with staff to supervise both) and an outdoor pool which complements the heated and conventional indoor pools of the spa.
Guests at the hotel currently stay in an adjacent 46-suite two-level building where some of the suites have their own small kitchens and living areas.
Dale Capital are now appointing contractors to start work in the later part of April on a second 49-suite block which will be complete in time for the 2010 World Cup tourist invasion. Both blocks have thatched roofs, their styles entirely in keeping with the white-walled, low profile architectural style which is mandatory throughout the Shelley Point estate.
The extensions will include work on an upmarket 'Mauritius influenced but West Coast flavoured' beach club for the use of hotel guests and resident country club members. It will serve light meals, drinks and snacks almost round-the-clock and will offer water-skiing, water scooters, rubber-ducking, kayaking, snorkelling and dolphin and whale watching.
"This type of service," said Noland, "has played a big part in enhancing the popularity of Mauritian tourist facilities and, if done well, adds extra value to any upmarket tourist facility."
Noland stressed that much of his confidence in the Shelley Point purchase stems from the fact that Queensgate will manage it.
"Experience has shown that this group is highly competent and their hotels experience excellent occupancy levels," he said. "This is exactly the sort of operation which suits their skills."
"To date," said Noland, "Gert Joubert has received relatively little credit for creating two magnificent developments: Britannia Bay and Shelley Point. We see it as a privilege to be able to join him in realising his vision for this area. We anticipate this resort becoming favoured by local and international visitors and expect it to rank among the top hospitality venues in Southern Africa. The Shelley Point and West Coast region has tremendous potential and we will use all our skill and resources to promote this Southern African gem on the international market and locally."
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10 April 2009, 16:08:45
Interest rate cuts are among the policy responses proposed to minimise the impact of the global financial downturn, ANC treasurer-general Mathews Phosa said on Wednesday.
The slowdown in foreign exchange due to the commodities "meltdown", is one of the country's biggest challenges, he told a gathering of the ANC's Progressive Business Forum at Gallagher Estate in Midrand.
Innovative
The challenge for government was to find "innovative solutions" to this and other consequences of the global financial crisis.
"Reserve Bank consideration of lower interest rates, as will now be done on a monthly basis...[and] removing internal hurdles to competition," were among the proposed responses outlined by Phosa.
"The banking crisis world-wide is reconfiguring itself in South Africa with an unacceptably high number of house owners due to default on their payments," he said.
This placed social cohesion and the principle of ownership at risk, Phosa added.
"Declining commodity process and demand have a serious impact on our exports, which brings its own negative implications for employment."
Due to these and other factors, government revenues were set to decline and business and consumer confidence were low, he said.
The expanded public works programme was in place to address this and the ruling party proposed an increased focus on the 2010 soccer World Cup, increasing government spending in health and education and promoting external investment as other appropriate policy responses.
"In all of the above... our main aim will be to protect the vulnerable and do everything in our power to alleviate poverty," he said.
Dampening enthusiasm
Deputy Sport Minister Gert Oosthuizen told the forum the world's financial woes did not seem to be dampening enthusiasm for the upcoming World Cup and Confederations Cup.
"More than 1.6 million applications [for tickets] have been received from almost 200 countries," he said.
The country's direct spending in the soccer spectacular stood at R15.6-billion, with the event set to contribute R55.7-billion to the country's gross domestic product and generate R19.3-billion in tax income.
The Confederations Cup later this year would be a "dry run" for the Fifa World Cup with South Africa hosting the world's best players from across the globe.
"Gone is the gloom and doom, the doubts over whether a developing country like ours can indeed host such a huge event, gone is plan B and all the other countries that are supposed to be on standby," Oosthuizen said, outlining South Africa's readiness to host the sporting events.
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09 April 2009, 08:39:44
Tony Clarke critical of Cape Town’s deeds office performance
In a hard-hitting, no-holds-barred interview, Tony Clarke, MD of Rawson Properties, has asked the question, “What is going on at the Cape Town Deeds Office?” - and has answered his own question by saying, “Whatever it is, it is not in the interests of property sellers and buyers and those of us who are working in the industry.”
At the height of the 2004 to 2006 boom, said Clarke, the Deeds Office had examined up to 200 deeds per day and on average taking ten working days to go through each deed prior to transfer. Now, he said, the average turnaround time from the submission of the documents to the point where they effect a transfer is up by 50% - to 15 working days, a “ridiculous” situation.
“Considering that the number of deeds now being processed dropped by two thirds, these delays,” said Clarke, “need to be explained.”
“In practice,” he said, “the 15 working days equate to almost 30 calendar days and I need hardly remind those involved that these delays are costing the sellers, the buyers, the banks and the estate agents a great deal of money. They are also causing the conveyancers embarrassment because the man in the street, wrongly, blames them for the hold-ups.”
Clarke said that the Deeds Office had done a “scientific” calculation on the number of deeds that an examiner should be able to handle in a day – and had settled on a figure of ten to 15 per examiner.
“As the office has up to 50 people allocated to the examination process, it is a mystery to all of us why they are processing so few deeds.”
Clarke said that there had been suggestions that the delays are being deliberately caused by some individuals who want to earn overtime pay. These suspicions, he said, have been further fuelled by a proliferation of rejections on minor, non-material matters such as typing and spelling errors that do not alter the validity of the documents. These delays, he added, have become particularly prevalent over the December and Easter holiday periods and this, too, is leading to suspicions.
Apart from the money uselessly tied up by these delays, said Clarke, they have also caused immense inconvenience.
“Let’s face it,” said Clarke, “people go ahead and plan their lives post-transfer. These plans have in the last year had to be changed time and again.”
“It is time,” said Clarke, “that someone was held accountable for the disruption these totally unjustifiable hold-ups are causing. It is ironic, to say the least, that an office that could cope quite well in a boom period should now be falling behind more and more seriously in today’s far easier, less demanding circumstances.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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09 April 2009, 08:37:29
Residential property ownership in S:A for non-south Africans is uncomplicated and has no hidden disadvantages
A whole list of successfully managed international sports events has proved to the world that South Africa is a safe haven for this type of activity – and has the skills and dedication to see that they run smoothly.
This was said this week by Tony Clarke, MD of Rawson Properties, who then listed 24 major events- from the Rugby World Cup, the A1 Grand Prix and the Nedbank Golf Challenge to the Comrades Marathon and certain surf-ski and mountain biking events to bear witness to his statement.
“The latest coup, the winning of the 2009 DLF Indian Premier League, is additional evidence that the world trusts us to organise these events,” said Clarke. “It shows yet again that we can be competent sports organisers. The FIFA World Cup will, we believe, be the cherry on the top and further boost our image.”
All this top level sporting activity, said Clarke, will focus attention on SA as never before – and is bound to have spin-offs for those marketing property here.
“Many people,” said Clarke, “think that it is extremely difficult for a foreigner to buy property in South Africa. This is definitely not the case: anyone reading the admirably lucid Smith Tabata Buchanan Boyes booklet on the subject will discover that the only people prohibited from buying property here are illegal aliens, which in practice means only those with a criminal or terrorist record.”
Clarke went on to make a few salient points: should the buyer, he said, not wish to purchase the property in his own name, the purchase vehicle must, nevertheless, be locally registered and it must comply with the South African laws, particularly those relating to South African companies, trusts or closed corporations.
This, however, does not, said Clarke, prevent the purchase being made in the name of an overseas company or trust.
Quoting the STBB booklet, “It is important,” added Clarke, “that the entity chosen to hold the acquired property be set up before the offer to purchase is made because a change of the holding vehicle after transfer will almost invariably carry a penalty.”
Non-residents are allowed to buy South African property over the Internet and it is not essential to be in the country to finalise the deal.
Transfer and bond documents, said Clarke, can be signed overseas provided that this is done in the presence of a notary public or at the local South African Embassy and foreign funds can be paid into any South African bank account. In practice, said Clarke, this will usually be the trust account of the attorneys handling the deed of sale and, he said, this is a safe form of investment as these trusts are regulated by professional bodies, of which lawyers are members.
Asked about the position of foreigners raising bonds in South Africa, Clarke said that even if the overseas buyer does not intend to live in South Africa fulltime he is still allowed to raise a bond here. However, this is limited to 50% of the total sale price. It is also, he said, acceptable to the South African Revenue Services for part or all of the remaining 50% to be in the form of a bond raised overseas - it does not have to be paid in cash.
As is the case with South African residents, however, the foreigner borrowing here will have to prove that his earnings are sufficient to pay the monthly instalments. Proof of substantial assets held by the purchaser, said Clarke, is not in itself sufficient to qualify for a South African bond these days - a monthly income stream has to be assured as well.
Buyers will also be subject to a FICA (Financial Intelligence Centre Act) investigation, the purpose of which is to ascertain that the funds used have been legally acquired.
The big question always asked by foreign buyers, said Clarke, is what rules apply to the repatriation of the money if and when the property is sold - but there are no problems here provided the original deed of sale has specified that the buyer is a non-resident and provided the sums still owing on the property are paid as the sale goes through. The rest of the money can be repatriated.
If the foreigner decides at some stage to become a permanent resident (which involves declaring his foreign assets to the South African Reserve Bank) he may not repatriate funds within five years of being accepted as a South African citizen.
All funds repatriated are subject to Capital Gains Tax and the non-resident will pay this on the full amount, even if it is his only South African home - unlike the South African resident who pays Capital Gains Tax only if the profit on his primary residence is above R1,5 million.
Unlike South African residents, foreign residents buying in South Africa, said Clarke, are exempt from South African income tax on overseas earnings – they pay only on money earned here (if any).
The Capital Gains Tax on the sale of a property registered in the name of an individual, i.e. not a trust or a company, will be 25% of the capital gain and will be taxed at the individual’s marginal income tax rate, which at present may not exceed 40%. This, said Clarke, translates to a maximum rate of 10% on the capital gain, which by any standards can hardly be deemed a high tax imposition.
As some foreign buyers in the past have avoided paying Capital Gains Tax on their property sale, the South African Revenue Services now stipulate that any buyer of a property sold by a non-resident for R2 million or more has to retain a percentage of the purchase price and pay it to the South African Revenue Services within 40 days of the transfer. If the non-resident seller is an individual, the amount retained is 5%. If the seller is a non-resident company the amount is 7% and if the seller is a non-resident trust the amount will be 10%.
All in all, said Clarke, South Africa remains a country friendly to foreign buyers and very easy for them to deal with. The tax laws, he said, are enlightened and not onerous and the local legal professions are adequately trained to ensure a smooth transfer of ownership.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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09 April 2009, 08:35:42
The capital gains tax should not be a deterrent to property investment, says steward
Repeating a message that she has put out regularly over the last six months, Lanice Steward, MD of Anne Porter Knight Frank, told her agents this week that they can safely advise investors to buy into residential property right now because the bottoming out of sales prices has become a reality.
“This,” said Steward, “is accepted by most investors today – but, surprisingly, we still have people who fear this type of investment because it is liable to Capital Gains Tax.”
“This,” said Steward, “is almost invariably illogical and based on misinformation.”
“The simple facts are that when a secondary property (i.e. not the investor’s own home) is sold, it is subject to Capital Gains Tax amounting to 25% of the gain since the property was acquired – without any allowance for inflation.”
This figure should be listed in the individual’s tax returns.
Steward pointed out that, as the maximum individual tax rate is now ±40%, the taxed person will pay at most 10% of the Capital Gain on the property, “not an excessive amount by any standards, especially when it is reputed that he base cost includes the original transfer costs, transfer duty, VAT, all professional fees and the cost of extensions (but not repairs and maintenance)”. The costs incurred in the resale are also tax deductible.
Steward stressed, however, that investors should commit themselves to a four or five year – or even longer – haul.
“The quick turnarounds of 2003-2005 where up to 40% per annum returns were possible are not out of the question but anyone hanging in there for five years must benefit – quite possibly to a great degree than on the JSE Securities Exchange.”
Steward added that those going this route should consult a tax consultant on the relative merits of the property being listed in the buyer’s name, in a close corporation or trusts (which pay higher taxes but are exempt from estate duty).
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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09 April 2009, 08:33:27
Aida has increased its footprint in KwaZulu-Natal by opening a new franchise in Pinetown, and owner and principal Jackie Letsatsi is upbeat about the prospects of the office, in spite of the current slow-down in the property market.
“I take a long-term view and see many opportunities opening up in the local property market. We have a enormous pool of aspiring property owners in South Africa who increasingly view having their own home as a valuable asset.
“Just think of the long way that township properties have come in the past few years and how values have grown,” she says.
“Many consumers living in townships are now firmly established on the property ladder and as they move up the rungs, entry-level buyers will be waiting in the wings. To me this implies a healthy and sustainable market.”
Letsatsi adds that Pinetown has a lot to offer to a very wide range of buyers. “The market caters for everybody, with prices for large two-bedroom flats in older blocks starting as low as R400 000. Units in new townhouse developments cost between R500 000 and R800 000, while family homes sell at prices ranging from R700 000 to R2m.
“But while entry-level properties offer very good value, we are not just targeting the lower end of the market,” she says. “ We will also be serving Westville, Reservoir Hills and Kloof.”
Letsatsi, who has spent the past decade as a commercial and retail leasing agent with various big SA companies, says she decided to open her own estate agency after moving from Johannesburg to Westville near Pinetown.
“Coming from Johannesburg, I have been well aware of Aida’s reputation as an outstanding real estate brand. However, I have done my homework and approached several large property groups but when the chips were down, Aida came out tops.
“The group’s quick and professional response, its attention to detail and work ethic swayed my decision in favour of joining Aida. Since signing up, I have been very impressed with the measure of support I have received and am very confident of continued support,” she says.
“Being associated with a well-known brand such as Aida, which offers excellent training to franchisees as well as agents, and the best tools and business model, will give us a sound footing in the market.”
The office, which is fully BEE compliant, is already open for business and Letsatsi plans to increase the current complement of two agents to eight by the end of May.
Issued by Aida National Franchises
Aida head office: 012 682 9600
Contact: Young Carr
Aida Pinetown: 031 266 5625
Contact: Jackie Letsatsi
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07 April 2009, 15:43:09
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Edition 13 of 2009, Friday, 3 April 2009
Dear Reader
Vehicle news – Naamsa, The National Association of Automobile Manufacturers reported that vehicle sales plunged by 30.1% to 33326 units last month compared to the same months in previous years. I don’t know about you but I’m curious to see the outcome for April 2009 after the 1% interest cut we’ve seen last week. Will South Africans shop more?
Commercial property – Although it fell sharply last year it still managed to beat inflation. This according to the SA Property Owners Association/IPD property index. Is it the right time to buy commercial property? We place two articles that can help you in answering this question. Commercial real estate still beats inflation - for now and Commercial real estate: world's top returns
Residential property – According to the National Association of Realtors US pending home sales have edged up, hinting at a possible pickup of sales activity in coming months. Currently the property market is still underperforming. No good news in the South African property market as the prices of residential property continue to come down. We bring you news from three of the Banks;
- FNB - March house prices down
- ABSA - House prices still falling
- Standard Bank - Falling interest rates to boost house prices
Can things get worse? Dr Johan Botha, of Standard Bank's economics division told Realestateweb that the property market would probably be in the doldrums until the end of this year. "I don't think we have reached the bottom yet. There could be bargains at the moment and going forward."
Dr Neal Bruton, of RGT Smart Market Intelligence Ltd, said he expects the interest rate to come down by another 2%, which would mean consumers would enjoy a roughly 29% cut in their debt financing costs compared to December.
Summit TV spoke to Mike Schussler from Economists.co.za about the growing evidence that without further rate cuts South Africa is going to experience a severe recession and more job losses Tricky times ahead
Last week we reported that Standard Bank is still not accepting new home loan application that has been submitted through a bond originator. This week we can report that Standard Bank said it is reconsidering their participation in the origination market. It’s still a hard time for mortgage originators as commissions are cut and the low approval of bonds continue.
What is carbon footprint? A carbon footprint is the measure of the impact that our activities have on the environment. According to Designs> if you are lucky enough (or insane enough) to be planning the construction of a new home, you are in the right place to make a huge difference to the future of the planet. Before you even start with assessing materials and construction methods, take a look at the orientation of your home. As we are in the southern hemisphere, a building norm is to have living areas facing north, north-east or north-west, with service areas such as bathrooms and kitchens facing south. It’s astounding how often builders and developers get this wrong! How changes in the home can make a difference to carbon emissions by:
Uniondale is better known for its ghost than for the scenic roads it has to offer the tourist. These roads must be the Karoo's best kept secret. Uniondale is ideally situated to form part of circular tourist routes that include destinations such as Oudtshoorn, Baviaanskloof, Port Elizabeth, Knysna and George. Read more in Focus on Uniondale, Western Cape, South Africa
Enjoy!
The editor
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03 April 2009, 14:42:37
The first South African branch of the international Harcourts real estate group opened in Somerset West in the Western Cape this week.
Top local agency Homenet Platinum has converted to the new brand and relocated to larger premises as part of the national Harcourts rollout following the last year’s purchase by the international group of a major stake in Homenet, which has now been renamed Harcourts Africa.
Recently rated by world real estate authority Stefan Swanepoel as one of the top five international real estate brands, Harcourts operates in Australia, New Zealand, China, Fiji, Indonesia, Singapore, Zambia and Botswana as well as South Africa and has more than 600 offices, 4000 sales consultants and a sales volume in excess of $19,5bn a year.
It is, says the Swanepoel Trends Report for 2009, an organisation that is leading the change in expanding successfully into other countries and continents, thanks to its clear purpose and youthful business philosophy
Martin Schultheiss, CEO of Harcourts Africa, says it is also a “fresh and dynamic brand that is going to make a huge impact on a generally stale local real estate industry by lifting our newly-branded Harcourt branches to the next level of operation.
“While most real estate companies are recording their worst results in history, Harcourts International is breaking new ground and gaining bigger market share. It is doing that by putting people before brand and equipping them with the best training, systems and technology to thrive in a tough market, and rapid access to all that is the advantage that our franchisees will now have.
“What will take most companies in South Africa millions of rands and years to develop, we are able to introduce instantaneously to our franchisees and more importantly, we will be able to continue to evolve at the pace of international change without requiring massive dollar inputs.”
Steve Caradoc-Davies, principal of the new Harcourts agency in Somerset West, has been keen to convert since the Homenet/ Harcourts merger occurred. “The two groups are an excellent fit in that their core values are the same. At the same time alignment with Harcourts will give us access to their excellent systems, technology, training and marketing and enable us to substantially add to our already impressive offering to buyers and sellers,” he says.
ISSUED BY HARCOURTS AFRICA
FOR MORE INFORMATION CALL
MARTIN SCHULTHEISS ON
031-201-1060 OR VISIT
www.homenet.co.za
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02 April 2009, 15:49:56
 World-renowned personal finance guru Suze Orman is obviously no slouch when it comes to picking good investments and one of her most recent is a home in South Africa — an apartment in the über-plush The Cliffs development in Northcliff, Johannesburg.
This speaks volumes about the positive prospects for South Africa’s property market — especially at the upper end — as this is the only country besides the US where Orman has chosen to buy. (She also owns a townhouse in San Francisco, a condominium in Fort Lauderdale and two apartments in New York.)
Her purchase underlines the growing investment potential, in world terms, of upmarket properties in Johannesburg in particular — even though the city has long been regarded as the poor cousin of Cape Town with its multi-millionaires’ playground along the Atlantic Seaboard
Position, position, position
Indeed, Orman says she bought the Northcliff property "for the same reason I invested in the number one property markets in the USA — San Francisco, Florida and New York — position, position and position."
Johannesburg’s attraction, says Lew Geffen, chairman of Sotheby’s International Realty in SA, is that it is increasingly recognised by the international business community as the 'real gateway' to potentially lucrative South African and African markets.
"Cape Town has natural beauty and glamour, but it’s where the money goes on holiday. Jo'burg has the business infrastructure and connections: it’s where the money lives and works. It is one of the three biggest cities in Africa and rated as the best of them to live in, so if you’re an international businessman looking to set up an African operation, Jo’burg is the place to start.
A great place to buy luxury property
"And because of its growing global reputation, it’s a great place to buy luxury property especially if you are buying in dollars, euros or pounds. Mansions in suburbs such as Sandhurst and Hyde Park cost a fraction of what they would in the upper income suburbs of American and European cities and for high-flying executives who prefer lock-up-and-go properties there are apartments such as those in the Melrose Arch, Michelangelo and The Cliffs developments that are also very well-priced in world terms."
At The Cliffs, for example, the three apartments left are priced at between R5-million and R9-million — or around $500 000 to $900 000 which is an easy reach for someone like Orman who makes about $80 000 per speaking engagement as well as the revenue from her books, columns and TV shows.
And as for position, Northcliff is not called 'the rooftop of the City of Gold' for nothing. It is quiet, exclusive and boasts many architecturally designed homes as well as spectacular and unrestricted views that are the perfect backdrop for The Cliffs's sleekly modern apartments. "It is," says Geffen, "an oasis of luxurious calm which is actually not unlike the Atlantic Seaboard in that its property has an increasing rarity premium."
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02 April 2009, 15:45:18
As expected, according to the latest FNB house price index that was released on Wednesday, house prices are down by 7.8 percent year-on-year in March after declining by 6.2 percent year-on-year in February.
This was despite the FNB Residential Property Barometer already having shown some improvement in residential demand since late 2008 and is believed to be the result of a significant oversupply of stock still prevalent in the market.
Such oversupplies come from a household sector that still faces significant financial stress. On a quarter-on-quarter annualised basis, the SA Reserve Bank reported last week that real disposable income had seen negative growth to the tune of minus 1.9 percent in the fourth quarter of last year, the second successive quarter of negative growth, driven by the onset of recessionary conditions in the South African economy.
"The weak economic environment is contributing to a significant amount of 'offloading' of property with the FNB Property Barometer survey reporting estate agents' estimates that about 26 percent of total sellers are selling in order to downscale due to financial pressure," said FNB property strategist John Loos.
Decline will continue for most of 2009
"As a result of oversupplies, it remains likely that this situation of national year-on year house price decline will continue for most of 2009."
On a month-on-month basis minus two percent deflation was recorded, unchanged from the minus two percent of the previous month.
"Whereas until recently it was the market for two-bedroom houses and less where the weakness appeared to be worst, as compared to the three-bedroom market, it would appear that the differential has narrowed as the three-bedroom market also reflects increasing strain," Loos said.
According to the index, for the first quarter of 2009, the average freehold two-bedroom house price — R315 468 — declined by 13.2 percent year-on-year.
This represents a further deterioration from minus 10.3 percent year-on-year in the previous quarter. This is believed to be reflective of the financial strain that lower income groups are experiencing as much of this segment is believed to be found in such lower income areas.
The sectional title 'two-bedroom and less' market continued to fare considerably better than its freehold counterpart, but nevertheless continued with its very weak performance in the first quarter.
The average price of sectional title two-bedroom houses — R623 613 — showed a mild 1.2 percent year-on-year rise using revised figures while the average price of sectional title units with less than two bedrooms — R442 896 — declined by 3.3 percent.
The three-bedroom market has seen most of its recent price inflation coming to an end.
The average price for sectional title three-bedroom units — R903 544 — showed slight year-on-year price inflation of 0.2 percent in the first quarter, down from 2.2 percent in the previous quarter while the average price of the mildly more affordable freehold three-bedroom category — R799 087 — also inflated by a mere 0.2 percent, down from 3.9 percent.
"It is still believed that the apparent superiority in performance of the three-bedroom market until very recently, compared to two-bedroom and less sectional title property, is explained by the belief that much of the buy-to-let surge back in the boom years was focused on the sectional title two-bedroom and less market as was much of the first time buying attention that we saw at the time, and that these forms of demand are more cyclical than established family demand that possibly dominates the three-bedroom market," said Loos.
Tough economic times have recently become a major problem for most market segments
"However, tough economic times have more recently become a major problem for most market segments and this may well have negated any apparent advantage that the three-bedroom market may have had due to a lack of reliance on the more cyclical buy-to-let and first-time buying demand."
Looking ahead, Loos said: "Little changes to our expected outlook for 2009. Tough economic times make for a slow road back to health in the market.
"The downward trend in debt-to-disposable income ratio is expected to resume in the first quarter and the debt-service ratio should get additional downward impetus from interest rate cuts this year," he said.
He noted that improvements in the debt service ratio were a great predictor of future improvement in mortgage loan default rates and as such it is realistic to expect that non-performing mortgage loans will start to decline later this year.
"The bottom line, though, is that weak economic conditions and poor disposable income growth make that progress towards a more manageable household debt situation slower and this in turn can be expected to contain the pace of residential demand growth as well as the recovery in house price inflation.
"Therefore mild residential demand recovery as 2009 progresses remains the expectation, but year-on-year house price deflation is expected to be with us for most of the year until such time as oversupplies are mopped," he said.
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02 April 2009, 15:44:17
South Africa remains a popular choice for Germans who are looking to relocate to warmer climes, says Dina Porteous, area principal in the Margate area for Pam Golding Properties.
Yvonne Booysen, manager of PGP Margate's rental division, together with Gaby Moessner, manager of the Pam Golding Property group's German office, recently attended the high-profile Süd-afrika Tage 2009 show in Germany, an event which attracted high net worth investors and incorporated travel, trade and business meetings. The latter included a business conference highlighting investment opportunities in Southern Africa.
"Our exhibit was a focal point of the expo," says Porteous, "attracting a great deal of interest from visitors. It is abundantly clear that what sells South Africa abroad — and in Germany — is our abundance of sunshine coupled with our friendly people and beautiful homes including those in our portfolio of properties which we marketed over there."
Süd-Afrika Magazine, a publication which focuses on Southern Africa and is a popular subscription magazine in Germany, hosts this annual show. Three locations in various parts of Germany are selected by the publishers of the magazine and they then invite their subscribers and the general public to attend these annual exhibitions, offering them the opportunity to have one-on-one contact with exhibitors.
This year the show was held in Mainz on the outskirts of Frankfurt, in Neuss in the Koln, Dusseldorf region and in Hamburg. Each show was a two-day event linked to food, music and general information on Southern Africa. The exhibitors ranged from tour operators and immigration experts to arts and crafts specialists, 4 x 4 trails, luxury hotels and wine farms.
Shows based around a SA theme
"The shows are based around a South African theme and specially prepared lunches and dinners form part of the event," says Porteous. "Guests are invited to experience a 'taste' of Africa with a selection of South African dishes on offer. Boerewors was on the menu at the dinner in Hamburg — not quite the same as the boerewors back home but close."
"This is a discerning market and overseas buyers are extremely well informed about the South African property market — in particular regarding market related prices," comments Gaby Moessner. "Those visiting the PGP stand were mainly between 40 and 55 years of age and focused on acquiring property as a business or as a second home for holidays — also with rental income in mind. The advantage of acquiring lock-up-and-go apartments and homes was also a major draw card among those seeking property in South Africa. Of interest were homes across the board and priced from as little as R1-million to over R5-million.
"Many clients who had previously been in contact with our German office and were in the process of planning a trip to South Africa during 2009 took the opportunity to talk to us in person and discuss their investment ideas in detail. We also saw a large number of new clients planning to invest in South Africa who asked us for advice regarding the best areas to consider taking into account price, climate and their business considerations. The process of making such an investment decision often takes up to 12 months and this expo was the ideal platform to discuss matters in detail," says Moessner.
"There is still keen interest from the German market regarding the purchase of property in South Africa — surprisingly so at a time when the global economic climate is volatile and occupies almost every news bulletin, both in Germany and elsewhere on the globe," says Porteous. "Positively, the crime issue does not feature too much in conversations about day to day life in South Africa."
The Western Cape remains the most popular relocation choice
Porteous says potential German buyers in general prefer standalone homes rather than those in golfing or townhouse developments. "In Germany space is at a premium so this is a top priority when it comes to buying property in South Africa. The Western Cape — including the Overberg region — remains the most popular relocation choice with bed and breakfast properties a fashionable choice for the younger generation who wants to generate an income from an investment in South Africa. This is followed by the Eastern Cape — with the focus on natural, unspoilt environments and value for money. The hot climate in KwaZulu-Natal often deters German buyers from purchasing property in this region with the climate in the Western Cape more suited to their needs.
"It was refreshing to gain another perspective of South Africa from those in another country such as Germany and reinforced how lucky we are to live in this delightful, interesting and complex country," adds Porteous.
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02 April 2009, 15:37:37
Burgundy Estate is an entirely new suburb which is building its own distinct identity on one of the last remaining valuable pockets of land bordering Durbanville's wine farms and the historic De Grendel wine estate.
For a limited period of time, Better Homes is exclusively offering to pay a 15 percent deposit on behalf of all buyers purchasing a family home within the estate.
Ranging from R1.8-million to R2.3-million you only need to qualify for an 85 percent bond to secure one of these upmarket homes, and there are no transfer duties payable.
The brand new three- and four-bedroom homes are available for immediate occupation. Plots range from 520m² to 620m² and homes from 170m² to 280m².
Just 20 kilometres from Cape Town CBD and 10 kilometres from Century City, the estate will be completely self contained and will have its own junior and senior private schools; a shopping centre; mashie golf course; as well as other recreational facilities. There will also be proactive security measures in place.
For more information on this special and other Burgundy Estate properties please contact Jolene Alterskye +27 82 447 6169 or email info@burgundyrealestate.co.za.
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30 March 2009, 09:00:30
'To bid or not to bid — that is the question…' Hamlet's ambivalence in the famous 'to be or not to be' soliloquy is comparable to the quandary in which those considering buying property on auction have found themselves. Not only is there conflicting opinions about when to buy residential property from national as well as international experts, but buying on auction is often misunderstood. It then becomes daunting. Without a bona fide Nostradamus to predict market movements accurately, it all remains speculative. The further 100 basis point drop announced recently is however a positive move by the Reserve Bank to ease the mortgages of many borrowers and move one step closer to a property market recovery. There is one certainty though: Sale by auction is quickly becoming the preferred way to buy all property — not just the wave of sales from distressed mortgages.
So what is happening globally? In the USA sale by auction is bringing in billions of dollars. Across the country shrewd investors alert to outrageous bargains are beginning to stir. In California and Florida thousands of small investors are crowding auction venues. There are even 'foreclosure bus tours' with free champagne and onboard messages. Some analysts believe it’s the first wave of bargain hunters who will tell us when a housing recovery will happen. They are the ones diligently buying excess supplies and restoring some sort of equilibrium out of the chaos.
Optimism is as prevalent as pessimism
In the UK some experts predict that the market will never recover to its previous levels as it suffered greater depreciation than other countries. Others feel that there is a risk of another housing bubble because demand has not evaporated and once mortgage lending returns there is a danger that the huge demand will be unleashed resulting in ever increasing house prices again. There are even some that are predicting the decline will continue to the end of 2009 with a further 15 percent or even 30 percent drop to go. But nobody can predict with certainty exactly what is going to happen — optimism is as prevalent as pessimism.
In the USA auction companies will sell up to 5000 houses at one mammoth auction sale whilst in the City of London there are distressed auctions selling up to 500 houses a day. The sales are quick and efficient so the lender is able to monetise their defaulting loans immediately. And Australia is no different. A staggering 85 percent of real estate property is today sold by auction.
In this current economic climate where progress is measured in terms of a reduction in the decline in growth a conservative monthly German poll, far from brimming with optimism, has shown investor sentiment to have slightly improved.
Once-in-a-decade opportunity
Experts suggest that there is currently a once-in-a-decade opportunity to pick up residential property at bargain basement prices. Alliance Group, South Africa’s largest auction company, believe that with interest rates dropping and rentals strengthening there could be no better time to get into the market. One of the positive indicators that the residential property market is still active is that buying activity of distressed houses has surged.
Jacques du Toit, Senior Property Analyst at Absa comments: "The expectation is for the residential property market to continue experiencing relatively difficult conditions for most of 2009 despite declining interest rates. It is probably the time to buy property as an investment, taking into account demand and supply conditions and recent price trends."
Alliance Group also believes that 2009 will remain a tough year despite interest rate drops which have been having a muted effect. Throughout most of last year the sector of the residential market that was most affected were single residential units previously valued in the R1-million to R3-million category with particular problems in the secondary and leisure housing markets.
John Loos, Property Strategist for FNB, agrees, "Our FNB property barometer survey of agents suggests that as much as 26 percent of total selling could be in order to downscale due to financial pressure. So there is still financial stress and desperate selling. I expect non-performing loans of banks to start declining later in 2009, but that means that there will still be a high level of repossession and sales in execution for most of this year before it gets better. There is an opportunity for investors to climb in and scoop some desperate sellers’ properties."
And Rael Levitt, CEO of Alliance Group, believes that many of these will be residential developments, development land and incomplete developments. These are the sectors which will experience most of the pain this year. In mid-2008 the upper end of the residential market and particularly the luxury market over R10-million was not affected by the downturn as wealthy buyers continued investing in affluent areas. Now there is no doubt that these markets will be affected and whilst there is still muted buyer demand, it will be the buyers who will dictate prices."
Hordes of opportunistic buyers picking up properties at distressed auction floors
Distressed auction floors across the country are burgeoning and there are hordes of opportunistic buyers looking to pick up properties at lower prices. In the last downturn banks couldn’t give away distressed properties and had to keep them on their books as properties in possession. Shrewd investors know that at the moment they can get high rentals which offer a great investment while they wait for the market to rise. They are in a win-win situation.
"Now there are multitudes of buyers who have access to financing and see the current period as a period of opportunity as unprecedented volumes of houses hit auction floors," comments Levitt.
What is certain is that whenever you decide to enter the property market, buying on auction is the way to go. You only have to look at international trends to see that property going under the gavel is increasing at an exponential rate in sharp contrast to the snails pace of private transactions.
In South Africa, figures speak for themselves. Over 5000 buyers by auction in the last six months can’t be wrong as Alliance Group prepares to take more than 600 properties to auction in the next two weeks.
"House price deflation may start to bottom late in 2009 and that means that currently there is no better time to pick up real estate at lows which have not been experienced in South Africa in decades," adds Levitt. As investment guru Warren Buffet says, "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it". According to Levitt, "we are urging all potential investors to go to our auctions to get an idea of the extent of bargains which are available. Now is the time to profit off the folly of the last five years' boom".
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30 March 2009, 08:59:57
The RealNet property group is reporting sharply increased property sales in its non-metro franchises.
"These offices are reporting exceptional sales in stark contrast to the end of last year when several of our non-metro outlets had few, if any, sales for consecutive months," says Hennie Combrinck, area manager of the group’s non-metro region which includes centres such as Nelspruit, Thabazimbi, Polokwane, Tzaneen and Witbank.
"One example is Tzaneen," says Combrinck. "The market was very flat in the last four months of last year and the office recorded no sales. But by the end of January it had facilitated six successful transactions with another two under negotiation."
Other non-metro offices in the RealNet stable that have reported an upsurge in sales include Rustenburg and Brits in North West and Witbank and Nelspruit in Mpumalanga. Nelspruit has reported a marked increase in the local residential as well as commercial market.
Combrinck adds that increased buyer activity is also reflected in a sharp increase in inter-franchise buyer referrals. "On top of that the ratio of referrals to successful transactions has climbed from 3:7 at the end of last year to 4:6," he says.
It is still too early to predict whether this trend will be sustained, says Combrinck, and at this stage it is only possible to speculate about the reason for the sudden spike in sales.
"One possibility is that investors now deem the market to be at its lowest turning point which creates good investment opportunities, especially in the light of a lower interest rate cycle. This view is borne out by the fact that some recent buyers in our non-metro areas have bought multiple properties.
"A second possible explanation is that the lower interest rate cycle is spurring renewed activity among buyers who had previously adopted a wait-and-see attitude. The spike would then represent a sudden release of pent-up demand that is likely to be sustained by further rate decreases that will make property even more affordable."
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30 March 2009, 08:46:50
February was a good month for sales of residential property in the wider western and north-western Johannesburg areas, RE/MAX estate agents said on Tuesday.
The agency recorded 33 sales in February in the price range of R335 000 for a one bedroom older apartment in Florida to a R2.9-million luxury home in upmarket Florida Hills, said RE/MAX's Gavin Bouwer.
"All transactions, which included two other apartments of R400 000 each, involved some form of cash deposit with five of the sales being concluded for cash," Bouwer said.
The agency's average selling price for February, at just under R1-million, was higher than earlier months. However, Bouwer said he was uncertain of the market's future stability as banks were 'still blowing cold on lending'.
Bouwer said that early March sales returns already suggested a leaner month.
This was in spite of no shortage of potential buyers still trawling the market particularly in the 'blue collar' lower price ranges where prices, he said, had now settled around those of about two years ago.
In the upper price range, above R2-million, homes were being discounted by some 10 percent on 2007 prices, he added.
Buyer interest remained high, price-focused and mainly in response to print media and internet advertising with show houses having lost much of their traditional appeal and attracting poor attendances.
Bouwer said his staff was showing homes to financially able buyers, but their attitude towards signing offers was largely cautious.
"It could be from uncertainty over the depth or unknown length of the recession or just hanging on for further rate cuts, or even prospects of bargain buys, but there's no shortage of buyer interest from all racial groups, just of their willingness to commit."
Tight lending, high interest rates and the extensive media coverage given to the general recessionary conditions, Bouwer said, had seen sellers change their attitudes towards realistic asking prices and negotiability. He gave the example of a February seller who accepted an offer of R1.35-million on his asking price of R1.5-million, but when the financing on the deal failed he quickly agreed to a lower offer of R1.2-million.
Emigration remained a distant second reason to that of selling for financial reasons, Bouwer said.
Against the confused mix of general market conditions, he advised those home owners who did not have to sell to wait for an improvement which he expected on the back of lower interest rates.
He also anticipated more stable lending from the banks, which he classified as 'pretty erratic' in terms of deposit requirements.
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27 March 2009, 08:14:22
A new era in home buying dawns – 100% bonds available for certain buyers
Rob Lawrence, National Manager of the bond origination company, Rawson Finance, has drawn attention to the fact that, for those in the right income bracket and buying at the approved price levels, 100% bonds are still available – and his company, he said, is making a point of punting this throughout SA.
“Certain press reports,” said Lawrence, “have implied that the banks have turned their backs on 100% loans, possibly in perpetuity – but here at Rawson Finance through one enlightened bank we can slot suitable clients into finance at this level.”
To qualify for a 100% bond, he said, the applicant must not earn more than R11,210 per month and, if a couple purchase, although their incomes will be added together, neither can exceed that individual limit. Effectively, said Lawrence, this means their joint incomes may not exceed R22,420 and , if they buy jointly, the house they plan to buy must not cost more than ±R540,000. In some cases, with this product, all or some of the acquisition costs may be included in the bond.
“The banks’ offering is, therefore, ideal for couples, young or old, who may be buying for the first time or who are moving up from an RDP house.”
Unfortunately, uninformed reporting had, said Lawrence, led to “considerable despair” at the lower level of the market and the belief among many that they would never become homeowners – but the availability of these 100% bonds can, he said, change all that.
Lawrence advised those who will now go house hunting with renewed hope to cut right back on their personal debts – because these have to be taken into account by the banks if they are to comply with the National Credit Act as a pre-requisite to qualify for these bonds to ensure that they have an “absolutely clear and squeaky clean” credit record, rectifying as soon as possible any missed or short-paid accounts.
For further information contact Rob Lawrence on 021 658 7100 or email rob@rawsonfinance.co.za.
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27 March 2009, 08:13:22
Cape residential property
Institute chairman says big interest rate cuts now “absolutely essential”
Another high profile figure in the Cape property sector, Ivan Neethling, Chairman of the Western Cape branch of the Institute of South African Estate Agents, has joined the growing numbers of industry leaders from all sectors who are saying that the South African Reserve Bank’s monetary policy is now hopelessly conservative and a significant drop in interest rates is essential in the near future.
“The release of the dismal fourth quarter, 2008, GDP figures,” said Neethling, “should, in many people’s view, have stirred the South African Reserve Bank into action and made them realise that they cannot delay an interest rate cut any longer.”
A minimum cut of 2% followed by further cuts in mid-year, said Neethling, had been expected not only by the property sector but also by many economists and the business community as a whole.
“It does appear,” said Neethling, “that the cries of ordinary South Africans, the business sector and leading politicians are falling on deaf ears. Mr Mboweni, it seems, is so determined to fight off the international credit crisis by keeping interest rates high that he is prepared to let the economy shrink further.
“It has to be accepted that if we are serious about turning this recession around, stimulating the economy and creating urgently needed jobs, a radical reduction in interest rates is now absolutely imperative.”
Neethling said that State institutions like the South African Reserve Bank should never see their task purely in regulatory terms, i.e. in imposing fiscal disciplines.
“They are at all times, but particularly in difficult times like the present, also responsible for using the tools at their disposal to stimulate business confidence.”
Right now, said Neethling, the rigorous application of the National Credit Act, “for which the government has, quite rightly, been highly praised”, has in the housing sector, and more so in deprived communities, created a huge bottle neck to accessing housing finance.. If any progress is to be made towards housing the poor, decisive intervention will be required by Government.
“Industry leaders,” he added, “also appreciate the need to attract foreign direct investment by offering high interest rates ” “but the general consensus is that this is impacting very negatively on local business and is leading to huge job losses for firms which can no longer keep their doors open in this punitive economic environment.”
The South African economy, unlike many others, said Neethling, should be sufficiently strong to be self-sustaining and self-financing.
“A 3% to 5% growth rate is needed if we as an emerging economy hope to create jobs and remain a meaningful player on the world stage. We cannot sacrifice all else merely to attract more foreign direct investment.”
The irony of the current situation, said Neethling, is that the South African Reserve Bank appears to be standing alone instead of collaborating closely with other stakeholders such as the Department of Finance, who are providing huge stimulation through its works programmes.
“Surely these initiatives should be driven concurrently,” he said.
For further information contact Ivan Neethling on 083 527 2626.
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27 March 2009, 08:11:57
Helderberg estate agency chief blames auctions for some low property prices
Like certain other senior staff involved in real estate marketing, Schalk van der Merwe, franchisee of Rawson Properties’ Somerset West and Strand franchises, believes that, while it is inevitable in the current tight property market, the growing power of auctioneers in real estate is having a negative effect on prices.
“All too often,” said van der Merwe, “the client who resorts to the use of an auctioneer will be the one who has become desperate. He has to go for a quick sale at whatever price he can get because he is under pressure from his bank. He may have lost a job or found himself lumbered with a new debt – but he needs a speedy solution. In these circumstances, the chances of the home selling at its true market value are slight. Sellers in this situation often fail to contact a good estate agency for an alternative option.
“What will usually happen on auction is that a shrewd buyer will get the house at well below the market value and then a few weeks later put it back on the market via an agent. The price will still be well below its true value but the quick in-and-out speculator will probably make 10 to 15% on the deal in under three months.”
Whether bought on auction or via an agency, said van der Merwe, the lower priced units in Strand and, to a lesser degree, in Somerset West (i.e. in the R250 000 to R450 000 bracket) are now an exceptionally good proposition for buy-to-rent investors.
“Demand for rental properties has picked up since the National Credit Act came into being,” he said. “The returns on this type of property can be very good. For example, on a R250 000 apartment in our area, it is quite possible to get a rent of R2 000 to R2 300 per month. This, in turn, means that from fairly early on – possibly in some cases from the outset – the owner can cover his full monthly bond repayments, a situation that is still not typical elsewhere in the Greater Cape Town area.”
Drawing on his four years’ experience in the London property market, where he still owns property, van der Merwe said, “I do assure you that despite – or because of – the huge drop in London property values, buying-to-rent there is going well. The lesson to be learned from that market, I believe, is that in a recession, the buy-to-rent market tends to flourish.”
For further information contact Schalk van der Merwe on 082 880 7071 or email schalk.sr@rawson.co.za.
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27 March 2009, 08:08:21
Cape residential rental market still not booming – but the future looks brighter
Over the last year there have been ongoing reports that rentals of residential properties will rise faster than they have done for a decade or more.
This, says Greeff Properties Rental Consultant, Caren de Nobrega, has not, in fact, happened to anything like the degree predicted.
“It was thought that the lack of bond finance, the higher interest rates and the increased cost of living would cut into the demand for owned homes and this would boost the rental market. However, the near-recessionary conditions have also made people tighten their belts and cut back on every aspect of expenditure – including rentals.”
Landlords, says de Nobrega, will probably this year have to accept that annual rental rises of only 8 to 10% are likely to be the norm, at least until early 2010, and in some cases it may even be necessary to forgo an increase to hold onto a good tenant. Right now, she says, the lower priced properties commanding rents well under R10,000 per month are performing rather better than the high rent properties. Rentals for homes and apartments in the upper bracket are now often overpriced and these premises are sometimes standing empty for months. In general, she says, any property renting at over R25 000 per month probably needs a R5 000 downward adjustment in the rental.
Greeff Properties Rental Division has some 65 managed properties and specialises in Southern Suburbs rentals. In most cases they administer the property, providing a service which includes maintenance, regular inspections and rent collection (for a fee of 12% of the monthly rental) – but they also run an active tenant finding service (for which they charge 7% of the first year’s rental), leaving the owners to do their own management/administration.
One of the big advantages of employing an experienced rental agent, says de Nobrega, is that they know how to check accurately the applicant’s monetary and renting history. They know, too, how to deal with recalcitrant tenants who believe that the landlord is the last creditor they should pay.
Mike Greeff, Chief Executive of Greeff Properties, says that de Nobrega’s comments should not deter people from buying to rent. Returns, he believes, should be calculated over a four or five year span and investment property should never be short-term.
“The plain truth,” he said, “is that at this time, when many JSE Securities Exchange stocks have lost over 50% of their value, the Cape Town Southern Suburbs property sector has by contrast been a star performer and this can be seen in the portfolios we handle. Very few of our landlords have had any real difficulty with rental payments and most units have continued to show satisfactory to good capital appreciation year-on-year. The upside is that as interest rates are likely to decrease as predicted in the year ahead, so the returns on bonded units will increase.”
For further information contact Mike Greeff on 021 763 4120 or email info@greeff.co.za.
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27 March 2009, 08:06:18
Accurate evaluations can set an agency apart from its rivals, says Rawson Somerset west manager
Despite the drop off in sales over the last six months, Rawson Properties Strand and Somerset West branches, which have since August 2006 and February 2008 been run by Schalk van der Merwe (son of Johann van der Merwe, the franchisee) are both still able to employ six agents.
“So far,” says van der Merwe junior, “almost all our agents have worked exceptionally hard and found it possible to stay in business. Certain other local agencies, however, have been far less successful in keeping staff.”
A factor which he believes is making a big difference to the public’s perception of Rawson is that all his team accept that it is ethically essential to value houses accurately and scientifically and to avoid the temptation to overvalue so as to get the mandate.
“This policy,” he said, “has won the respect of the local market: we are now trusted to a greater degree than most.”
Valuations, he said, are calculated on three points: the replacement costs, the likely capital growth and the comparative current sale prices as recorded in the Deeds Office and in rival companies’ advertisements.
“If you put all these statistics into the mix, you will usually end with a reliable figure.”
Currently, says van der Merwe, most Somerset West prices being achieved by his agents are 10% to 20% down on the high points of 2007 while in Strand drops have been in the order of 20 to 30%.
At Somerset West this means that the majority of homes now selling are in the R1,2 to R2,9 million bracket while those at Strand are usually between R600 000 and R1 million, but, says van der Merwe, his agency operates across the board and has homes in a far wider price bracket.
An upswing, van der Merwe believes, will depend on interest rates dropping further and, more importantly, on the banks changing their attitude to loans while still complying with the National Credit Act.
“In July/August last year we had clients regularly qualifying for 110% loans. Now they are often asked for a 20 to 30% deposit – and some banks are just not interested in quoting on a bond if they have to compete against others.”
Van der Merwe believes that the prices are now close to as low as they are likely to go and that by 2010, if not before, a steady upward swing will become evident.
“There are those who say that SA will, along with the rest of the world, take three to five years to recover from the current financial crash. The evidence in my area points to recovery long before that because there is a huge pent up demand for home ownership, especially in the sub-R1 million bracket, which will bear fruit as soon as the banks decide to come to the party – and to me that seems inevitable in the near future, both for the banks’ sakes and for the sake of their customers.”
For further information contact Schalk van der Merwe on 082 880 7071 or email schalk.sr@rawson.co.za.
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27 March 2009, 08:04:40
The sale of ten Rawson franchises shows confidence in S:A residential property is still strong.
On several occasions this year Tony Clarke, MD of Rawson Properties, has warned his group’s franchisees against adopting a recessionary mindset.
"Supposing," he said, "that you never read a newspaper, watched TV or listened to talk about the economy – how would the actual facts of today's property market strike you?"
Clarke believes that in most cases agents would simply work hard and achieve successes, albeit at a lower than ideal rate.
"Out there in the market," he said, "almost everyone has confidence in property as a long-term investment. Furthermore it is still seen as a good career for those who are dedicated and prepared to follow our formula.
"If you want proof of this statement," said Clarke, take a look at the demand for Rawson franchises. This remains very strong indeed, even though we are still rejecting some 70% of all applications."
In the last quarter said Clarke, the franchise sales team had sold or resold franchises in Brackenfell (which is already becoming a star performer), George, Saldanha/Vredenburg, Bloemfontein South and Bloemfontein North, Kimberley, Germiston, Secunda, Tzaneen and Vanderbijlpark.
This, says Clarke, is an indication that the average South African is still very positive about residential property and sees it as a good career choice.
"It has to be borne in mind," he said, "that franchise sales are slower today than previously because under the new educational rulings a franchise principal has to have quite advanced qualifications and this means that most of our franchise buyers now are from the industry, not from other sectors, as before."
Those without property experience who would nevertheless still like to buy a franchise can do so, added Clarke, by appointing a qualified principal who will mentor them for a year. If they then pass certain examinations they will be eligible to own and run a franchise.
Clarke has predicted that double-digit growth figures in property values will be seen by the second quarter of 2010 provided that the interest rates are cut further in the near future. He would like, he says, to see a cut of 3% to 4% altogether.
"Even though it is so conservative, I cannot see the SA Reserve Bank holding out against the repeated calls for economic stimulation which are being made by every sector of the economy," he said.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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25 March 2009, 13:11:11
Rob Lawrence, National Manager of the bond origination company Rawson Finance, has drawn attention to the fact that, for those in the right income bracket and buying at the approved price levels, 100 percent bonds are still available — and his company, he said, is making a point of punting this throughout SA.
"Certain press reports," said Lawrence, "have implied that the banks have turned their backs on 100 percent loans, possibly in perpetuity — but here at Rawson Finance through one enlightened bank we can slot suitable clients into finance at this level."
How to qualify
To qualify for a 100 percent bond, he said, the applicant must not earn more than R11 210 per month and, if a couple purchase, although their incomes will be added together, neither can exceed that individual limit. Effectively, said Lawrence, this means their joint incomes may not exceed R22 420 and, if they buy jointly, the house they plan to buy must not cost more than about R540 000. In some cases, with this product, all or some of the acquisition costs may be included in the bond.
"The banks' offering is, therefore, ideal for couples, young or old, who may be buying for the first time or who are moving up from an RDP house."
Homeownership now possible
Unfortunately uninformed reporting had, said Lawrence, led to 'considerable despair' at the lower level of the market and the belief among many that they would never become homeowners — but the availability of these 100 percent bonds can, he said, change all that.
Lawrence advised those who will now go house hunting with renewed hope to cut right back on their personal debts as these have to be taken into account by the banks if they are to comply with the National Credit Act. Doing so is a pre-requisite to qualify for these bonds. Applicants must ensure that they have an 'absolutely clear and squeaky clean' credit record, rectifying as soon as possible any missed or short-paid accounts.
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20 March 2009, 14:09:53
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Edition 11 of 2009, Friday, 20 March 2009
Dear Reader
Can you still become a billionaire by investing in property? They do say that nothing is impossible. According to Forbes.com, the richest black African is 63 year old Mohammed Al Amoudi, net worth $9B who built his fortune in construction and real estate in Saudi Arabia before betting on energy. Patrice Motsepe, age 47, is a Johannesburg mining magnate, and South Africa's first black billionaire. Read more in Africa’s Self made Billionaires
All eyes are on the Reserve Bank;
- Reserve Bank to meet every month on interest rates
- Rates to freefall
- Drastic interest rate drops now essential, says CEO
On a regular basis we receive letter from subscribers complaining about how difficult it is to purchase property in the current market. According to one of the estate agency groups using our software, the Leapfrog Property Group, 60% of bonds are declined. “The sales are there but it’s the banks that are not granting the bonds” This according to Haydn James National Operational Manager of Leapfrog. Tony Clarke, MD of Rawson Properties agrees with him. "It looks," said Clarke, "as if the banks are now almost too aware of possible difficulties faced by bond applicants, are too stringent in applying the National Credit Act and far too concerned about shareholders’ reactions. "They have become so risk averse that even the best clients can only get a bond at 0.5 percent below prime and many are now paying 0.5 percent to three percent above prime."
Managing Director of Greeff Properties Graham Leslie have three answers for you if your grant have been rejected and would still like to pursue the possibilities of buying a home;
- Option one is to approach a friend or family member about getting a second bond or advancing a loan
- Option two is to find private equity, possible again from a family member, a friend or less restrictive private financer
- Option three is to form a syndicate of three or more buyers who become joint owners
“In all these options,” says Leslie, “you can benefit from the fact that interest rates will probably come down soon, adding an 8 to 10% capital gain to investors’ stake per annum for the next few years,” while paying off the bond month by month. If you cannot get the bond you want, investigate the other options
It’s that time of the year, Autumn. Autumn is one of the four seasons of the year. It’s also known as the transition season between summer and winter. We share 10 tips with you that you can take with you in your garden this autumn;
 Tidy up
- Dig out the debris
- Start composting
- Embrace the autumn colour
- Plant for the future
- Venture into the interior
- Love your lawn
- Cover up the garden furniture
- Give wildlife a hand
- Protect your pond
Enjoy!
The editor
CLICK HERE FOR MORE
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20 March 2009, 08:30:46
Rawson’s February Sales 11,8% Up On Those Of 2008
In the current residential housing market, there is, says Tony Clarke MD of Rawson Properties, always a danger that positive news will be seen as sales talk, an attempt to boost the market.
"It is, nevertheless, a fact that the Rawson Group's February sales were 11, 8% up on those of February 2008."
This, he said, is a truly remarkable achievement because whereas in early 2008 some 85% of all bond applications were being granted by the banks, right now the average success rate is only 50 to 55% (and even lower in the affordable housing sector).
“There has,” says Clarke, “been a marked reluctance by the banks to loan money.”
The upswing at Rawsons, he says, testifies to a huge increase in achievement.
"To increase sales by some 12% when half our bonds are being turned down indicates that our teams are working harder and are more competently than ever before."
Bill Rawson, Chairman of Rawson Properties agreed saying that this improvement, "which was not yet expected in today's market" is in large part due to the group’s ongoing mandatory training and a big improvement in agents’ commitment to client service.
It is also, he said, attributable to Rawson's strength at the lower end of the market where demand remains very strong and where the only hold-ups are due to the difficulties in getting mortgage bonds.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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20 March 2009, 08:30:16
Rawson developers and homebuilders taking on work for other companies
Responding to the downturn in new developments, Rawson Developers and Homebuilders are now offering their services to other developers and landowners who may not have the same depth of experience in this field.
Rawson Developers and Homebuilders’ MD, Paul Henry, said that his company can be of assistance to developers and landowners who have access to funds and who understand full well that (a) building costs can only go up and (b) that difficulties in obtaining bond finance have created a very active letting market.
“Consider for a moment the challenges facing a couple intent on buying, say, in the middle range R1,5 million bracket. In today’s market they would require a R300 000 deposit plus R100 000 to cover costs. Their bond repayments would be in the region of R15 000 per month, which means that their joint income would have to be about R45 000 per month.
“If, on the other hand, they temporarily go the rental route, they could live in a house of the same standard for R7 000 per month – and possibly save a few thousand on the side each month. That is why the rental market currently offers opportunities.”
Rawsons, says Henry, can give the clients a straight construction service, i.e. build their developments for them for a fixed price and within a specified time – but they can also add considerable value by helping with feasibility studies (“something in which we have extensive experience”); appointing and liaising with professionals; gaining plan approvals and marketing and selling the end-product through their nationwide network.
"Many people who have inherited or bought land several years ago have very little idea of how to go about developing it," says Henry. "This applies particularly to land holdings in less affluent areas. Today there are good opportunities for developing units in R250,000 to R700,000 bracket and, as I have indicated, in the R800 000 to R1,5 million bracket. "
One southern suburb scheme on which Rawsons is now in full swing as contractors will this year deliver 58 apartments.
For further information contact Paul Henry on 021 658 7100 or email paul@rawson-developers.co.za.
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18 March 2009, 15:38:45
The major new city campus for the University of Zululand — with phase one ready for occupation from January 2010 — is set to provide a boost for the residential property market in Richards Bay, says Phil Hammill, area principal for Pam Golding Properties.
To be located in the Richards Bay CBD, the first phase catering for the faculties of business and management will enrol from 1000 to 1400 fulltime and part-time students — a large number of which will be adult learners currently employed across various sectors of the economy and who wish to further their education.
Demand for smaller residential units
"As a result we anticipate that the demand for smaller residential units will increase, providing the impetus for further investment by developers in such housing accommodation," says Hammill. "In addition, the long-term presence of the campus in the city should have positive spin-offs, including the fact that the university will be hosting many international conferences — thereby bringing delegates and visitors to Richards Bay. Phase two, planned for completion in 2013 and comprising computer and engineering technology, will enrol between 400 and 600 students."
In anticipation of the increased demand for smaller units a new 30-unit residential development is already under way, marketed by Pam Golding Properties and priced from R359 000 for one bedroom apartments. "This development comprises six apartment buildings each with five units and a few have already sold," says Hammill. "We anticipate that as the demand for such accommodation increases as the new city campus reaches completion, this will see council release the undeveloped, municipal-owned land in the CBD."
Activity below R1-million
Hammill says, while locals comprise the bulk of home buyers, Richards Bay has always seen a fair amount of new buyers moving in from other areas and this is an ongoing trend albeit at a slower pace given the current economic conditions. Activity in the residential property market tends to be mainly in the price range below R1-million with movement regarding properties priced above R2-million somewhat slower.
"There are also preferred areas which tend to attract slightly higher prices, those such as the well established Meerensee area and the newer suburb of Birdswood where prices average between R1-million and R1.3-million. In the CBD of Richards Bay sectional title units range in price up to R880 00 for a three bedroom unit, offering good value for money. At the Mzingazi golf estate, also in the Richards Bay area, a number of land purchasers have commenced building their homes and the future for this secure, new and uniquely positioned golf estate is very positive," adds Hammill.
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17 March 2009, 15:40:14
The turn in the interest rate cycle looks set to accelerate over the year ahead. Even our conservative Reserve Bank Governor Tito Mboweni is smiling…
Reserve Bank Governor Tito Mboweni’s comment that he wanted to cut the repo rate by 200 basis points but was restrained by his more conservative colleagues can be taken with a grain of salt, but it is a positive indicator that we can expect further interest rate cuts down the line, probably as soon as the next meeting of the Bank’s monetary policy committee (MPC) meeting in April.
The 100 points reduction, with effect from 6 February, is welcome — not just from the point of hard-pressed consumers, but as a prod to help kick-start the country’s flagging economy. Some analysts expect the prime lending rate to fall to 12 percent by June.
Better times are ahead
Apart from the direct relief these reductions afford indebted consumers — whether struggling to repay housing bonds, motor vehicle leases, bank overdrafts, credit card balances, or the new fridge — the forward scenario is one of hope. Hope that better times are ahead.
Public confidence has slid badly over the past two years and this pessimism has been exacerbated not simply by economic duress, but by political strife and uncertainty. Easier borrowing helps concentrate the mind on fundamentals.
Lower interest rates, however, do not herald a return to the glory days prior to the downward cycle which started in June 2006. Then money was freely available; financial institutions fought marketing duels to lure customers into their lending maw. Mortgage rates to 'preferred' borrowers were as low as two percent below prime, or more, and banks were offering 110 percent mortgages which covered legal and transfer costs.
That’s not going to happen now, nor in the foreseeable future. This is not simply the result of the tougher credit conditions imposed by the National Credit Act (NCA), but also because the banks currently do not have the same liquidity. As a result they are charging higher premiums, effectively increasing interest rates to most new customers, even the most creditworthy.
This could add one or two percent to borrowing rates and this should effectively put a damper on the appetite for new borrowings.
Basically this means that instead of getting a bond at a rate below prime, the borrower will probably pay 100 points or so above the prime rate. This will apply to other forms of credit, although one wonders whether the crisis-ridden motor industry will still be forced to subsidise credit facilities just to move metal.
Growth in credit to the private sector has fallen sharply
One of the major concerns of the Reserve Bank in its struggle to control inflation has been the degree of household indebtedness. Although its prime motivation in increasing interest rates was to counter growing inflation, it was also aimed at curtailing consumer borrowing and spending. This, coupled with the National Credit Act, has done the trick and growth in credit to the private sector has fallen sharply.
Unfortunately the boom in the middle 2000s was a consumer-led boom. South Africans tightened their purse-strings out of necessity and stopped buying. Thus producers slowed down production; all economic sectors suffered. The problem now is whether, faced with the worldwide slump, particularly in demand for commodities — a major export — commerce and industry can pick up again.
In hindsight, one has to wonder about the efficacy or even the necessity of the downward rate cycle. Was our household indebtedness to income ratio really so frightful? Household debt in SA in the third quarter of last year in the form of banks’ loans and advances was equivalent to 79 percent of one year’s nominal GDP. The comparative figure in the US, as it entered the meltdown of 2008, was 365 percent.
The local lending clampdown is illustrated demonstrably by the sharp downward trend in mortgage advances since the beginning of 2007. In December 2008 year-on-year growth in the value of mortgage advances (the total net outstanding balance on mortgage loans at financial institutions) slowed down to 13,2 percent from 14,9 percent in November, based on Reserve Bank data. This is quite a fall from the high of almost 31 percent y/y recorded in October 2006. Data available from Absa for new residential loans approved by banks up to the end of the third quarter of 2008 showed a fall of 30 percent on a y/y basis.
This is the accumulated result of a slower residential market, the National Credit Act and tighter credit criteria by the banks.
Residential mortgages are by far the largest mortgage category (about 78 percent of total banking sector mortgage advances).
The smaller commercial component holds up better, but new lending in the commercial mortgage market has nevertheless slowed significantly.
The decline in the household debt/service ratio, as mentioned earlier, is probably a good indicator of mortgage market credit quality and this, comments FNB property strategist John Loos, augers well for a turn for the better on residential default rates this year.
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13 March 2009, 14:23:11
JOHANNESBURG was aiming for a 9 percent economic growth rate by 2014, said the mayoral committee member for finance and economic development, Parks Tau.
"We believe that if we are to take Johannesburg to greater economic heights - which we define as a 9 percent economic growth rate by 2014 - we have to develop and evolve partnerships with all relevant economic stakeholders and role players in the city," Tau said at a business breakfast on Wednesday, 11 March in Sandton.
The breakfast was aimed at the international business community, represented by various embassy and consulate diplomats.
Tau said the City's long-term vision involved seeing Joburg as continuing to be South Africa's primary business city, a "dynamic centre of production, innovation, trade, finance and services".
"This will be a city of opportunity, where the benefits of balanced economic growth will be shared in a way that enables all residents to gain access to the ladder of prosperity, and where the poor, vulnerable and excluded will be supported out of poverty to realise upward social mobility."
In this city, everyone would be able to enjoy "decent accommodation, excellent services, the highest standards of health and safety, access to participatory governance, and quality community life".
Economist Mike Schussler, the director of economists.co.za, said Joburg's growth rate, at 5 percent, was higher than that of South Africa, at 3,6 percent.
"You could call Joburg the financial capital of Africa. It's also the communications capital of Africa, and the African shopping centre."
He stressed that although Joburg was founded on mining, it was no longer a mining city. In 2007, mining was estimated to contribute just 1 percent to the city's growth, while financial and business services contributed 36 percent, with trade at 18 percent, manufacturing at 14 percent, and construction at 4 percent.
Six core principles
Tau said that the City's vision was based on six core principles, taken from its Growth and Development Strategy: pro-active absorption of the poor; balanced and shared growth; social mobility and equality; settlement restructuring; sustainability and environmental justice; and innovative governance solutions.
He spoke of offering a market to investors which had Africa's best telecommunications, excellent road and transport infrastructure, world-class banking and financial services, and a country with a top rating in terms of ease of doing business.
Over 70 percent of South African companies have their headquarters in Joburg. The city's economic output was R203-billion in 2006, and R216-billion in 2007, with a current growth rate of 4,7 percent annually. With a population of 3,5 million, it has an annual per capita output of about $5 600 (about R56 600).
Clean audit
For the 2006-07 financial year, Joburg received its first clean audit. This was obtained by overhauling the City's financial management systems, in the process quadrupling its capital budget and boosting its credit rating. It now has an A+ rating, according to Fitch Ratings and CA Ratings.
This has been boosted by the five municipal bonds that have been successfully issued by the City since April 2004.
"This adds great credibility to any entity doing business in our city, especially those with international linkages," Tau said.
He referred to the recent electricity supply challenges, saying they were likely to remain until 2013, when new capacity became available. The City has, over the past four years, spent more than R1,65-billion in capital expenditure on the power grid. This means that it has about 120MW in standby capacity. And the electricity facility, City Power, recently issued a tender for 300 000 solar water heaters.
"This initiative by the City of Johannesburg is the latest attempt to create a sustainable and more environmentally friendly solution to our electricity challenges," he said. The City was also endeavouring to abide by the 10 percent cut in electricity consumption requested by the national government.
Safe and secure environment
Tau also talked about the need to provide a safe and secure business environment. A CCTV camera system has significantly reduced the crime rate in the inner city; by 2010 the metro police force will be increased to 4 000 officers, which will complement the expanding South Africa Police Service.
Joburg has also worked hard at regenerating the inner city through the Urban Development Zone Tax Incentive, which has attracted investments into the area of R4-billion. "We are reclaiming the inner city as a future residential, business and entertainment hub of Gauteng."
The Joburg economy is based on mining, trade, information and communication technology, and high value manufacturing, but efforts are being made to create more opportunities in business process outsourcing, tourism, the hospitality sector, financial services, property development, and the public transport infrastructure.
In this regard the City is constructing the Bus Rapid Transit system, the first stage of which will open in May. This will be supplemented by the Gautrain, a rapid train link connecting Joburg with Tshwane and OR Tambo International Airport. The major highways between the two cities are receiving a multi-billion rand makeover as well.
Positive long-term outlook
Schussler said the city's long-term outlook was positive, although poor in the short term, as a result of the world recession.
Communication between the City and the business community was ongoing, through the Johannesburg Business Forum. This helped both sectors to air issues, ask questions, and to fix things, as well as promoted the City, he said.
"I am very proud of the business forum. It is one of the strengths of the City. Some of the combined ideas make a lot of sense and help us to move forward."
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13 March 2009, 08:28:19
Cape property
Current prices offer fast-moving refurb investors great opportunities
Who, if anyone, is doing well in the current downturn in the real estate market?
Tony Clarke, MD of Rawson Properties, said that those equipped to undertake fast turnaround refurbishments are cashing in right now in a big way.
“What we are seeing now,” said Clarke, “is refurbishment investors moving in, buying homes at a very good price, doing them up and then reselling at 10 to 15% profit in a month or two. It is a great way to make money if you can do it.”
The secret, said Clarke, is to work fast and avoid overspending on the finishes and features.
“You have to look at what other similar homes in the area are selling f
or and make sure your price is lower or competitive. You have, too, to ensure that your price significantly beats the replacement cost.”
This, said Clarke, probably means that such features as travertine tiles, marble countertops, cherry wood cupboards and laminated flooring and the like will have to be cut out – “but you can still create an attractive house with less expensive materials”.
Refurb investors, said Clarke, often allow the previous hard-up owner to stay on in the home paying a market-related rent while the work goes ahead. This, he said, works to everyone’s advantage – it ensures that the house is protected, it allows the owner time to find alternative accommodation and it usually means the seller is able to get a better price than he could if the home was repossessed.
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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12 March 2009, 16:30:19
Until recently the Mauritian government limited foreigners to purchasing property in golf and beach developments, namely the Integrated Resort Scheme (IRS) of property development. The IRS was introduced five years ago by the Mauritian government, but recently this was further extended with the launch of the Real Estate Scheme (RES) which now brings ownership of real estate on this idyllic tropical island closer to many more South Africans.
An RES development is situated on a maximum of 10 hectares of land, there is no minimum price set for units and no tourism component is required, says Jonathan Tagg, MD of Pam Golding Properties (PGP) Mauritius. "Foreign buyers are a prime target market for this new type of development as now they can own their own exotic getaway on an island paradise for prices ranging from the equivalent of R3-million to R6-million (at current exchange rates)."
PGP is marketing a newly launched sectional title residential development on the island — Cape Bay Beach Resort Mauritius. Conveniently located on the north coast of the island just five minutes from Grand Baie, Cape Bay Beach Resort is situated in the peaceful beach environment of Bain Boeuf. This luxury development comprises just 48 high end, furnished apartments — most with sea views and ranging in size from 125m² to 153m². Rental returns are forecast at five percent but promise to exceed 10 percent with increased occupancy.
Extremely competitive pricing
"When you take into account the premium price paid around the world for high-end coastal property — even compared with luxury homes in prestigious areas on Cape Town's Atlantic Seaboard — these prices are extremely competitive particularly when you consider the spectacular island setting which makes Mauritius so sought after," says Tagg.
"Through our permanent offices situated in Mauritius PGP is ideally placed to hand pick the best development projects," comments Dr Andrew Golding, CE of the PGP group. "Having successfully marketed both locally and internationally a number of IRS projects on the island such as Tamarina Golf Estate & Beach Club, The River Club and Banyan Tree Corniche Bay we have seen generous capital appreciation achieved in prime real estate.
"The Mauritian government has adopted a responsible approach to residential development being acutely aware of the need to conserve their country's natural environment and retain its sought after, tranquil island appeal. As a result, development is limited with permits for development granted after careful consideration. Well respected internationally for its economic and political stability, Mauritius also enjoys a constantly rising GDP and increasing tourism that further enhances investor confidence," says Dr Golding.
South African developers
The co-developers of Cape Bay are South African property development company 2Tribes (which has launched successful projects in South Africa and abroad) and My Villas (which has an established track record in hospitality, selling tourism destinations worldwide and which will manage Cape Bay's rental pool).
Tagg says 20 units have already sold mainly to South Africans and French buyers with PGP about to commence marketing the project globally particularly to the France and the UK markets. "Finance is readily available to qualified buyers at rates of between 5.5 and 6.5 percent. A five percent deposit is required on reservation of an apartment with 25 percent payable on deed of sale and the balance during the construction process," he says.
Inspired by the traditional Mauritian vernacular while favouring a more contemporary and eco-sensitive design, Cape Bay will blend harmoniously with its scenic surrounds. Situated opposite the beach, the apartments will surround professionally landscaped gardens and a generously proportioned private swimming pool. The resort will be fully served and maintained by My Villas with a 24-hour concierge service available to residents and includes an espresso café and water sport club. Leisure facilities in Mauritius range from water sports, golfing and relaxing on the beach to spa treatments, shopping and fine dining.
Buyers can select from the following:
Fully furnished two bedroom en suite ground floor apartments with kitchen, living room, two deck areas and private plunge pool
Fully furnished two bedroom en suite first floor apartments with kitchen, living room and two private balcony deck areas
Fully furnished three bedrooms en suite, split level penthouse suites with kitchen, living room, two deck areas and private pool
Each apartment is fully furnished and equipped with top quality appliances and kitchenware and all rooms are air conditioned. Expansive glass windows and sliding doors provide spectacular views while the interiors are designed to cater for relaxed island living with the emphasis on entertainment and functionality. With options ranging from relaxed beach chic to a more edgy contemporary feel, owners can choose a style that suits their design and lifestyle needs.
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12 March 2009, 16:29:37
With interest rates falling and further cuts expected during the year ahead, property investors are again actively looking at an improving market. For many, caution is still the watchword; for others, now is the time to strike. As Andre Dippenaar, head of the development division of Pam Golding Properties in Gauteng, comments: "The best time to invest in residential property development is when conditions are cyclically at their worst."
Dippenaar adds that the most effective and rewarding way of doing this is to buy off plan.
"The returns are disproportionately large in relation to the initial outlay. The investor is risk-disposed only to the extent of a relatively small deposit and is not called upon to fork out any further capital until the project is registered — 18 to 24 months down the track." By then the market may well have risen considerably.
Ronald Ennik, managing director of PGP’s Gauteng division, concurs, but adds the caveat that investors need to do serious research.
An important, and often overlooked, aspect of investing in property is the reason or reasons for doing so. Sound trite? Not so, cautions IP’s taxation advisor Grant Bayne.
"Your intention may be to acquire a property to let it. From a tax perspective the purchase of a capital asset (the unit) to generate rental income is the most effective way of shielding capital growth. Rentals would be taxed as a revenue profit. This is effectively on a sliding scale between 18 and 40 percent depending on your annual taxable income. When the unit is sold any gain would be subject to capital gains tax at a maximum of 10 percent. This 10 percent is calculated as follows: 25 percent x 40 percent (max marginal tax rate) = 10 percent.
"Contrast this with a different intention. Say you bought the residential unit off-plan so that you can sell at a nice profit after the development has been completed. Now you have entered into a transaction which is deemed 'a scheme of profit making'. The courts have decreed that 'a scheme of profit making' points to a revenue motive and any gain on the sale is taxed at the individual’s tax rate (maximum 40%)."
So what happens if you buy a unit with the intention of making a profit, but while waiting for the right time to sell you let the unit out for a few months?
"The intention is still there," says Bayne. "The rentals would be taxed as a revenue profit (40 percent max) and so will the gain when the unit is sold.
You may well ask, so how does anyone know my intention? The answer, says Bayne, is that SARS will ask you. They will then look at supporting evidence to see if this upholds your story:
Did you actively market the letting of your unit?
Did you sign any lease agreements with tenants?
For what period did you lease your property before selling?
What correspondence did you have with the developer you bought from, or the agent who sold the unit?
The answers can support or destroy what you say your intention was.
Bayne warns: "Remember that the onus is on the taxpayer to prove what he or she says is true. It is a bit like being presumed guilty until you have proved your innocence. That leads me to the next point — keep a record of correspondence and other documents to show what your intention was at the time of buying the property. Make sure there is an audit trail and store it away. This evidence will save you money and heartache down the line."
Suppose you change your mind and therefore your intention? "You’ll need those supporting documents," says Bayne.
Are there any taxable benefits involved in owning the unit?
"Yes, there are deductions," says Bayne. "Any improvements will form part of the base cost but will not be deductible from income when calculating tax. Repairs are different and costs can be deducted from income."
So what’s the difference between an improvement and a repair?
"If, for example, you buy a unit which requires a new carpet and painting, these are improvements, as they're improving the state (value) of your investment. However, let’s say you do that, let the unit, and a year later the tenant moves out leaving the carpets in a shoddy state and the property needs repainting. By replacing the carpets and repainting the unit you are effectively returning the property to its original state. In other words, a repair; you would be allowed a deduction."
Interest costs?
"They can be deducted from income, but this excludes the capital portion."
Losses?
"Where deductions exceed income the taxpayer is in a loss position. But note, if the premises are let to a relative, losses will be ring-fenced and may not be set off against other income. Furthermore, if losses are incurred for three years out of a preceding five-year period, the losses will also be ring-fenced. These can be carried forward until the years when a profit is made."
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11 March 2009, 12:11:19
Figures recently released by FNB economist John Loos show that Cape Town’s long established 'traditional' residential property areas, particularly the Southern Suburbs and the Atlantic Seaboard, continue to outperform property in almost all other parts of South Africa, said Lanice Steward, MD of Anne Porter Knight Frank — and they also reveal an encouragingly strong demand for property at the lower end of the price range.
"The latest figures for the 'traditional suburbs' are, surprisingly, very good considering that that economy is still in a downturn from which most do not expect it to emerge before the year end," said Steward.
The FNB figures, she said, show that Cape Town property rose in value by 10.8 percent in 2007 and by 8.1 percent in 2008.
"It has to be accepted that the last quarter’s figures for 2008 were not as bullish as the year-on-year statistics, but they are still far better than those of other areas. Somerset West, for example, experienced a 4.8 percent drop in values in 2008 after its 14.1 percent rise in 2007."
The surprisingly good performance of the Cape Town residential sector, added Steward, is revealed in its average prices. In the City-Fish Hoek-Simons Town territory the average price was R1.144-million while the average for the Cape Metro was R890 287.
Khayelitsha and Gugulethu still booming
Perhaps the most encouraging aspect of the whole report, said Steward, is the figures for Khayelitsha and Gugulethu. These showed an amazing 29.6 percent increase in values in 2007 followed by a further 32.7 percent rise in 2008 (to achieve an average price of R185 545).
"All that we have read and heard about the growing economic strength of the emerging middle class is shown up in these prices," said Steward, "and demand here continues."
A similar, but not quite so spectacular rise was achieved in the Mitchell’s Plain-Ottery-Belhar areas where prices rose 7.4 percent in 2008 to give an average price of R290 806. (This came on top of a 29.5 percent rise the year before.) Asked what conclusions she draws from these figures Steward said, "The messages are clear: firstly, with interest rates about to drop, now is the time to buy. We are very definitely close to — or at the bottom of — the downturn. Buyers need to be aware now of what a further three percent drop in interest rates will do for them. For example, buyers on a R1-million bond will save approximately R700 per month. If these drops become a reality they will greatly improve people’s buying ability."
"Secondly, the main hold-up at present is not the interest rates but the banks’ reluctance to loosen their purse strings. Government, in my view, should now put pressure on the banks to do so, possibly providing some form of safety net or guarantee if the due processes have been carried out. Right now, far too many wholly valid bond applications are being turned down even though the originators, the buyers and the agents have worked hard to be NCA (National Credit Act) compliant."
More than 50 percent increase in turnover compared to February 2008
Rounding off her comments on a positive note Steward said that at APKF the sales team had an exceptionally good February with a more than 50 percent increase in turnover as compared to February 2008.
"While this was encouraging," said Steward, "we have to caution people about undue optimism and overpricing. Until we have at least four consecutive months of good sales there can be no justification for saying we are back into a bull market."
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10 March 2009, 12:13:34
Interest rates must be cut by two percent, Consumer Assist, South Africa's biggest umbrella organisation of debt counsellors, said on Tuesday.
Debt was growing rapidly and putting an increasing strain on consumers, banks, retailers and other financial institutions experiencing the highest levels of consumer debt ever, said Andre Snyman, CEO of Consumer Assist, in a statement.
Snyman joined economists and debt counsellors in calling for an urgent cut in interest rates of up to two percent – or 200 basis points.
Snyman said an interest rate cut would help those at risk of losing homes or cars to hold onto them.
"Many consumers need just a little leeway and they can manage... the economy can't afford the sort of terrible debt many consumers and companies now find themselves in," Snyman said.
Snyman said that debt counsellors were concerned by the increasing levels of very heavily indebted people of all income levels.
"We have people who used to be millionaires to those working as teachers, nurses and police officers who simply can't cope anymore.
"They're not paying school fees which is causing difficulties with the financing of schools," he said.
He added that severely indebted consumers suffered health problems.
"Those who are severely indebted are depressed, so their productivity is low and health problems high.
"Those people in sensitive jobs also become more prone to fraud or corruption...
"If interest rates are not cut soon, (there will be) the knock-on problems of seriously indebted people – namely fraud, corruption, low productivity, poor health, marital problems and general depressive conduct."
Snyman said it was interesting to note that alcohol and cigarette sales were high "and that is typical of bad economic times, people often become increasingly self destructive".
A rate cut would not lead to overspending, he added, "simply because prices are high at the moment, people are fearful of losing their jobs and are more likely to save if they have a little spare cash".
He said the National Credit Act had proved to be a blessing.
"Most of those experiencing financial stress now were overspending before the Act came into effect in June 2007."
According to Snyman, it took an indebted consumer three years to clear debt.
"The first consumers who applied for debt counselling in 2007 when the NCA came into effect, will only be clear of debt in June 2010 at the earliest. "
Snyman said economists had warned that the second and third quarters of 2009 were likely to be "tough".
"We are starting to develop a pressure-cooker economy with the rate of bad debt and the Reserve Bank needs to release some of the pressure by urgently cutting interest rates."
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10 March 2009, 08:25:00
Flax forges ahead with phoenix investment project
It is now official: Madison Property Fund Managers’ international investment company, the recently established Global Phoenix Property Investments Ltd, will list on the Bermuda stock exchange towards the end of May.
Phoenix’s declared aim is to buy strategic stakes in listed property funds in the UK, continental Europe and Australia while these are still valued at bargain-basement levels.
Discussing the new venture with prospective investors, Mike Flax, Executive Director of Madison, said that the timing of the launch is near-perfect.
“Listed real estate companies in the established western markets,” he said, “have across the board been dealt devastating blows by the global credit and economic crunch. As a result they are now trading on average at around 20% of the highs they reached in 2007 and early 2008 – but many of these companies, although heavily indebted, still have valuable portfolios and satisfactory occupancy levels and are continuing to give reasonable returns.”
International property cap rates, said Flax, are now moving well into double figures while ten year government bonds, which traditionally have always been closely tracked by listed property, are now trading at ± 4%.
“In the property sectors we have, therefore, a once-in-a-lifetime opportunity and we are determined not to miss it.”
Property, he added, had always “come back stronger” from its low points in the graph and he is confident that internationally it will do so again from late 2010/early 2011. Phoenix, he said, will probably stay in existence for ± five years after which it will be wound up, its capital and profits being paid back to investors to enable them to make the most of the next boom.
Flax revealed that originally he had planned simply to invest some of his own funds and that of associates in a portfolio of foreign property companies. Then, he said, it had become clear that small investments, minority shareholdings, could be at the mercy of the vulture buyers now hovering around and looking for companies to “steal” at low-low prices.
“We realised that the only sound plan would be to acquire larger strategic stakes in a smaller group of counters. The stake has to be big enough to allow us to play a white knight role and to be able to block moves with which we do not agree – something that Madison has many years of experience in. It was this realisation that led to the setting up of Phoenix.”
Madison management, said Flax, will personally be big investors in Phoenix and they have identified other cornerstone investors alive to the opportunity here. Phoenix, he said, has been established so as to allow South African investors to take part in the IPO by using their rands via an asset swap facility.
“Our goal is to invest anything from US $100 to US $200 million after identifying the companies we favour. We will help to recapitalise their balance sheets through rights issues or shares for cash deals.”
Flax said that the Phoenix opportunity resembles closely that of Spearhead Property Investments, which he listed on the JSE in 1999 – at the bottom of the SA economic cycle. Spearhead shares then touched R4,50 but by 2006, when they sold out to Redefine, had gone above R45, i.e. had grown ten-fold in six years.
“I think that a similar performance is more than possible at Phoenix,” said Flax.
Jim Shankland, a top UK property practitioner and former Chairman of the Royal Institute of Chartered Surveyors will be Chairman of Phoenix.
UK-based, he is, said Flax, “one of the foremost practitioners in European real estate and well networked in banking and REITS circles. Add Marc Wainer and Gerald Leissner to that management mix and Phoenix has a very strong team to take it forward.”
Phoenix, although listed in Bermuda , will be registered in Guernsey, to take advantage of its favourable tax regime.
For further information contact Mike Flax on 01 425 1000 or email mflax@madisonproperty.co.za.
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09 March 2009, 09:02:28
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Edition 9 of 2009, Friday, 06 March 2009
Dear Reader
But where you’re making your money is not as a property holder. You’re making your money as a debtor, having your debts wiped out. This according to an interview by Jason Hartman that I found on the Internet. Although this interview is based on the USA I found it applicable to real estate in general and not too be missed. The value of U.S. property is going to go down in real terms, so I certainly wouldn’t buy any property for cash right now Crash Proof - An Interview with Famous Doom-and-Gloomer Peter Schiff
So now we’re a few months into the “worldwide economic crisis”, and it seems as if we are settling down again. Isn’t it interesting how we as human beings adapt to changing situations so rapidly and easily? We even adapt to the fear of the situation getting worse! And we learn to live with fear as a daily part of life. The rules to the “new economy”? Add value! Has the Fat Lady Sung Yet?
Have you ever thought about what happens to the deposit you’ve paid to the transfer attorney when purchasing that new property? "Clients should remember that they have the option of requesting that the money be invested in an interest bearing account at a bank and may sign an investment instruction authorising the Attorney to do so. The interest accrued during this investment will then be paid back to the client once the investment account has been closed, or when it gets closed on transfer of the property." News from Rodney Hayter
The pressure is on the South African Reserve Bank to cut interest rates and it’s not going to ease as investors are not going to back off. Investors beg for rate cut
Win with Design> Magazine! Design>Magazine gave away R1000 to four lucky subscribers over the last four weeks. Congratulations to the winners of week 3 and 4.
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Winner - Week 3
Jennie Olls from Langebaan
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Winner - Week 4
Zingi Gcwabe
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Property buyers in South Africa are at the mercy of estate agents who are obliged to represent the seller’s best interests. But by appointing exclusive representation for the buyer, he or she can save money and time as well as ensure that his or her best interests have also been taken in account. I found two articles related to this statement;
- Distressed sales: Choose the right agent
- Agents for buyers only
Ficksburg is a small town situated at the foot of the Imperani Mountain. It is located in an important agricultural region of the Free State also known as the Cherry Town of South Africa, Focus on Ficksburg, Free State, South Africa
Enjoy!
The editor
CLICK HERE FOR MORE!
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06 March 2009, 09:03:15
The burgeoning new suburbs on Pretoria’s eastern flank have become a treasure trove for property bargain hunters, including investors, first-time buyers and homeowners looking to upgrade.
So says Irene Prinsloo, manager of leading city agency Homenet Pretor, who notes that many sellers in the area have reduced their asking prices by 20% and as much as 30% in some instances.
In addition, the “New East” has for the past few years been characterised by prolific sectional title development and there is now an oversupply of such units, Prinsloo says. “Buyers are aware of this and are taking advantage by opting to buy homes at recently-built developments that offer better packages at cheaper prices than their older sectional title counterparts.”
Sectional title homes in the area typically range in price from R550 000 to R850 000 now, while generously proportioned three-bedroom homes are selling for around R1,1m and attracting existing homeowners upgrading from townhouses or small homes.
Also on the move are the owners of large properties, who are selling at much-reduced values in order to downsize to smaller homes that are easier to maintain and secure.
From the point of view of investors, rentals are “ticking over nicely”, says Prinsloo, with realistically priced lets enjoying swift trade. “And landlords have realised that they can’t foist high rents on the public in an effort to cover their own bond costs, as overpriced properties simply remain unoccupied.” Rentals currently range from around R3800 to R4500pm.
Other current market characteristics in the area include a higher incidence of foreclosures and auctions as well as cash purchases. “Many families and friends are also pooling their resources in order to qualify for bonds and get a start in the market while prices are low.”
ISSUED BY HOMENET
FOR MORE INFORMATION CALL
IRENE PRINSLOO ON
012 346 8829 OR VISIT
www.homenet.co.za
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06 March 2009, 09:01:26
Advice on the transfer of deceased estate property and assets: Tony Clarke says that establishing a trust is still the best way to go
If you own property, particularly two or three different properties, what is the best way to minimise tax and avoid difficulties in passing these on to your heirs, along with other assets, after your death?
Discussing this question at a Rawson Properties training session recently, Tony Clarke, MD of the Rawson group, pointed out that the major hurdle facing the surviving spouse or other heirs to an estate is that, as soon as the person dies, his or her accounts are frozen.
“Access to money then becomes impossible. In our group we have seen many cases of real hardship which could only be solved by borrowing money to pay for such basics as funeral costs, food, rates, electricity, petrol and school fees,” said Clarke.
The problem, he said, is exacerbated by insurance policies being paid into the estate. This is usually the case when the beneficiary shares a bank account with the deceased.
When executors have finally been appointed, the law requires that all outstanding debts owed by the deceased have to be settled first - and this can lead to one or more of the properties having to be sold in a hurry. After these sales capital gains tax will then have to be paid on the profit.
“The cost of winding up an estate,” added Clarke, “can frequently amount to 30% of the total, excluding the debt repayments. Equally serious, it can take two or more years to reach full settlement and that is a long time to go without access to ready money.”
Clarke said that in his experience the best way to circumvent these difficulties is for the bequeather to establish a trust before his death and to transfer the majority of his assets into this trust.
“The big advantages of a trust,” said Clarke, “are that it is not frozen on the death of a spouse and, as it is entirely independent of the estate, is not subject to any estate duties. The surviving spouse, who is usually a trustee, can draw money as and when needed.
“Furthermore, insurance life policies paid into the trust can help to cover the trust’s costs and, as the trust is not responsible for the deceased debts, there will usually be no need to sell off property and to pay Capital Gains Taxes incurred this way.”
Are there, therefore, no disadvantages to the trust system?
Clarke said that by far the most common objections are that it will cost money, payable immediately, to establish a trust and the taxes incurred in transferring property into a trust are higher than those involved in passing it onto an individual.
“All my experience shows that establishing a trust is the best way to achieve a smooth handover of property and assets, especially if you expect some of them to be passed on to subsequent generations, e.g. children or grandchildren.”
Clarke had a word of warning for those who are approached by so-called expert estate planners. Often, he said, these people are not as knowledgeable about estate law as they should be and their main goal is to sell expensive insurance policies.
“It is in my view far better to deal with an accountant or a lawyer who has specialised in these matters and who has kept up-to-date with all the legislation.”
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
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06 March 2009, 08:59:55
Latest Llandudno luxury home will have a low profile
The Atlantic Seaboard residential suburb of Llandudno, occupying a spectacular position overlooking its own small bay and beach has always attracted architects and homeowners with a yearning to create out-of-the-ordinary innovative and avant garde homes that make the most of the splendid views and the steep mountain backdrop.
Those residents who have lived there since the early days when it was at “the end of the line” and when most of the homes were bungalows or shacks, have often regretted the proliferation of large, over-scaled, mansions, some of which, they say, are inappropriate, too visible and blots on the landscape.
It is, however, likely that the latest three level 750m2 Llandudno home, due to be handed over in April this year, will be well received even by those purists who far preferred the old Llandudno to the new.
This double storey, contemporary villa was designed by Peerutin Architects for a British client. It is set high on the north-facing slopes of Leeukoppie and enjoys panoramic views of both the beach and the Grootkop/Twelve Apostles range.
As is the norm for such steeply sloping sites, the front boundary wall frames the entrances both to the house itself and the double garage. Although this wall is high, these entrances have been designed on a lower, more intimate and sensitive scale and incorporate landscaping, including some mature trees.
"In this way," says David Peerutin, "it gives something back to the street."
It also creates a large, flat platform on which to build the upper two levels of the house itself and enables them to be set back from the street boundary far enough to be hidden from the road. Llandudno residents will, it is hoped, find this low profile praiseworthy.
The Peerutin team, which included Associates Francois Hugo and Juli Grey, and which was run by Project Architect, David Snyders, was briefed to create a relaxed home that captures the feel of the beautiful setting and enables the owner and his guests to feel at one with the site whether they are indoors or outdoors.
“Coming from Britain, the owner really appreciates the site,” said David Peerutin. “From the outset, therefore, he stressed that he wanted the house to celebrate and be open to its setting. This led to the decision to place the main living areas at the very top level, termed the "Piano Nobile" by the client. The building here took the form of a glass box that spans the entire width of the property from setback line to setback line. The living, dining and family room areas open completely to both sides. To the north, a vast, full width terrace overlooks the magnificent beach and mountain. Adjacent this is a structured "Sunset Terrace" with built-in seating and open fireplace and to the south this level opens across its full length onto a private walled garden known as the "Sky Court", which has a buried fountain, trees and concealed lighting.
The level below houses four bedrooms, two bathrooms, a media room and two studies, one for each of the adults. All spaces open to the expansive grassed garden level with a 25m lap pool across the full width of the property. At either end of the garden there is a pavilion, one open outside the main bedroom and the other fully glazed under the fire pit above. The latter houses the pool room, an entertainment space with bar and lounge seating.
The massive boundary wall at the street level gives the house solidity and security but it achieves increasing lightness as it moves up the site and through the levels. The bedroom level is still of masonry construction but has large punctured openings whereas the uppermost level is a "floating”, wafer-thin concrete plane, lightly supported by elegant stainless steel cruciform shaped columns with the space simply and completely enclosed in glass, giving the impression that it is just a covered outdoor area.
The interiors, says David Peerutin, will be filled with light and for this reason the architects kept the materials to a muted, natural palette of vein-cut marble features and a pale oak floor boards and ash ceilings which are complemented by white walls, curtains and shelving.
Summing up the new home, David Snyders said that it is primarily a holiday getaway with ample room for entertaining but its design also recognises the need for private spaces. It will, therefore, he says, serve as a comfortable base for a large family, no matter how diverse their interests.
For further information contact David Peerutin on 021 464 4360 or email david@peerutin.co.za.
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06 March 2009, 08:58:28
Advice from Lanice steward on how to return to residential property investment
In December 2008, Lanice Steward, MD of Anne Porter Knight Frank, said that she was beginning to detect the first signs of a revival of confidence in the Cape residential property market.
This month, she said this week, the signs are now clearer and far more evident.
"February could be a record month for our group. We definitely are seeing an upswing. Whether it will last I cannot say – but right now all graphs are pointing upwards and with further interest rate drops, I can see no reason why this should not continue."
Some of the stimulus to the market, she said, has come from the return of investors who now want to get in before prices rise. This, in turn, has led to a number of enquiries about how and where to invest.
"There are," said Steward, "two golden rules: the first is to invest with your head and not your heart and the second is to visualise the type of tenant that the property will attract. You have to decide whether that is the sort of person you will able to rely on.
“The preparation of the home is, said Steward, all-important. Obviously if a house or an apartment or its grounds are run down they will not attract a quality tenant. Similarly, if the unit is in an area that has gone downhill, good tenants will avoid it."
Sectional title apartments in blocks which lack the funds for proper maintenance are a particularly bad risk, said Steward, and it is worrying how often people buy into these without checking the levy and accounts position.
This statement, said Steward, should not be taken to mean that less affluent areas are automatically a higher risk than the upper bracket areas – there are expensive, flashy homes in expensive suburbs which also attract "dicey" tenants.
Asked for tips on up-and-coming areas, Steward added that well maintained three and four bedroom homes can be bought in Bergvliet and Meadowridge for under R1,5 million – these represent a good appreciating investment.
"Bergvliet and Meadowridge will join Lower Constantia as areas offering excellent growth potential."
Similarly, Sybrand Park, where prices are now around R1,2 million, offers buyers an excellent opportunity with good prospects.
Those keen to invest in the established areas, said Steward, can do no better than to take another look at Kenilworth, Wynberg, Rondebosch and Claremont.
“People will always want houses here because they are well-placed for schools and shopping centres. The plain truth is that any Southern Suburbs home at current prices is a good buy.”
For further information contact Lanice Steward on 021 671 9120 or email lanice@anneporter.co.za.
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06 March 2009, 08:56:36
While most real estate companies are currently losing good talent, RealNet is not only retaining all employees, but also adding to its existing management team in order to prepare for the future upswing in the economy.
So says CEO Tjaart van der Walt, who announced this week that Jan Davel, a well-known and experienced specialist in the property, financial and legal industries had joined the group as director of business development.
The RealNet group, which has rapidly outgrown the “new kid on the block” tag to become one of the most respected real estate franchise businesses with offices in all major cities in SA, is setting itself up for healthy growth during the next five years, he says.
After starting up its franchise business in 2002 under the leadership of the energetic Rothea Olivier, the group boomed in the next five years and grew to more than 100 franchise territories and just over 80 offices countrywide. Then during the challenging economic conditions for residential real estate businesses during the latter part of 2007 and 2008, RealNet consolidated by terminating unproductive franchises and replacing them with experienced real estate professionals.
“We currently have a footprint of 84 franchises with 68 offices and are budgeting to cut back another 10 franchises and replace them with 25 productive ones during the 2009 / 10 financial year,” says Van der Walt.
“The launch of very exciting new electronic systems to dramatically increase buyer and seller leads; new income-generating business models for new franchises; processes and systems which will substantially reduce infrastructure and operational costs in our franchise offices together with the appointment of our very senior and experienced new business development director Jan Davel, will ensure that RealNet weathers the economic down cycle and is ready to reap all the benefits of a future up cycle with the very loyal franchise footprint.”
Having worked closely with RealNet over the past nine months as legal and business consultant, Davel has also purchased shares in RealNet Holdings, and together with Van van der Walt and the rest of the management team has made a long-term commitment to the growth of the group by signing a five-year employment contract.
“What makes the real estate profession and the residential property market so exciting is that it is a basic business industry which mankind will need for the next 1000 years, and the only important denominator in our business is to embrace change in transformation, technology, consumer behaviour and economic conditions,” says Davel.
Issued by RealNet
For further information call
Tjaart van der Walt on
012 4604605 or visit
www.realnet.co.za
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06 March 2009, 08:55:18
The ERA property group plans to increase its market presence as 2009 unfolds, positioning it strongly for the next property market upturn.
That’s the word from Gerhard Kotzé, CEO of the ERA South Africa property group, who announced this week that the group has acquired the long-standing Carit Estates group of agencies, which has a strong presence in the Western Cape rural and coastal markets.
Carit Estates was established 40 years ago. Today it addresses the needs of the complete spectrum of property clients including the sale, letting and auction of residential, retirement and agricultural properties.
“With 15 offices and an enviable track record, the Carit Estates group, which will be re-branded under the ERA banner, is a very important strategic acquisition that immediately strengthens our presence in the Western Cape,” says Kotzé.
Maria de Villiers, ERA’s Western Cape regional manager, adds that while the group already has several successful Western Cape offices, it has not been strong in the rural areas, which is why the Carit Estates group dovetails so well.
Kotzé says the group has not escaped unscathed from the property slowdown but that the tide will inevitably turn and that the months ahead will see the group selectively seeking out strong franchisees.
“The idea is to establish a bigger, better footprint countrywide, reinforcing our presence in markets where we already participate and entering new markets where we believe there is potential.
“It’s not so much a question of growth for the sake of growth, but rather one of improved strategic presence which will ensure we are able to maximise economies of scale and offer improved national coverage for consumers in all nine provinces.”
He says the basic ERA formula will not change. The group will continue to service the needs of the market from entry level to top-end luxury homes, as well as property rentals, holiday rentals, commercial and industrial properties, agricultural and game farms and new property developments.
Kotzé’s comments come in the wake of news that ERA Real Estate as an international brand continued to show strong growth last year and notwithstanding global problems, added many new offices to the group and expanded others.
Brenda Casserly, US-based president and CEO of the company, says confidence and growth in the ERA franchise systems continued at a consistent rate and that the new additions are taking advantage of “timely marketing tools that are designed to succeed in any market”.
Issued by ERA South Africa
For further comment call
Gerhard Kotzé ON
012 682 9610 or visit
www.era.co.za
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06 March 2009, 08:44:20
CENTURY 21 South Africa, the local arm of the world’s largest real estate group, has announced the appointment of Colleen Gray and Leonard Dann as the new directors of the company.
This follows the untimely death last year of the company’s founder and CEO, Dr Duncan Gray.
Continuity of management was crucial in deciding on the new appointments, says Dann, who brings to the table an impressive background in banking and IT, including senior positions with illustrious international names such as the UBS group and BBC Television and pre-eminent local groups such as ABSA and Barnard Jacobs Mellett.
Property remains an abiding fascination for Dann, however, and he is to remain as broker/ owner of the successful CENTURY 21 ModHomes outlet in Fourways.
Ideally complementing his technical and managerial skills is Colleen Gray’s background in franchise industry HR, labour strategy and business consulting, and she says the whole management team is committed to the original vision of making CENTURY 21 the leading real estate brand in South Africa.
Dann believes the group is well positioned to achieve that goal, notwithstanding current extremely demanding economic conditions.
“Realistically 2009 will be exceptionally difficult for the property market with tight credit restrictions and the slowdown in economic growth impacting on consumers’ ability to acquire property,” he says. “However, we believe we have the brand, the people and the proven referral, management, training and marketing systems to remain firmly in business - and in a position to capitalise on the market upturn which will inevitably occur.
“We currently have 30 franchises, with 21 offices open and another two opening shortly. Our aim is to double the number of CENTURY 21 franchises by year-end and add a further 20 next year. And recognising that the market is not ideal for ‘start-ups’ we are focusing on existing independents and conversions.
“On that basis our new, more affordable franchise offering is totally relevant and we remain optimistic about a market where aspirations towards home ownership are as powerful as ever.”
ISSUED BY
CENTURY 21 SOUTH AFRICA
FOR MORE INFORMATION
CONTACT LINDIE BOW ON
011-884-2202 OR VISIT
www.century21.co.za
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06 March 2009, 08:22:39
Harcourts International, which recently bought a major stake in SA’s Homenet estate agency group, has been identified by a leading world authority on real estate, Stefan Swanepoel, as one of the top five international real estate brands.
According to Mike Green, MD of Harcourts International, the 2009 Swanepoel Trends Report showcases Harcourts International as an organisation that is leading the change in expanding successfully into other countries and continents. These include South Africa, where Homenet is in the process of being rebranded as Harcourts Africa.
The report describes Harcourts’ success as, among other things, being based on a “people orientated culture” that has resulted in a staff turnover rate that is significantly lower than the industry average.
“A youthful Gen X culture has energized the company’s drive, creativity and passion. That cultural mindset is further defined by a clear purpose and a business philosophy that flows down through the organization in the form of four very simple but specific values that are constantly communicated: People first; Doing the right thing; Being courageous; and Fun and laughter,” it says.
Green says that to be recognised in the 2009 Swanepoel Trends Report as an organisation that is influential on a global scale speaks enormously of how far the group has come since he took Harcourts to Australia in 1997.
“This is truly exciting for the Harcourts team and demonstrates that we are now becoming recognised internationally for the quality of our organisation in all aspects. Continuing our strong international growth and constantly striving for our goal of being one of the world’s leading real estate franchise groups will provide even greater marketing opportunities for our clients and our people through greater brand awareness and profile on a global stage.”
Martin Schultheiss, CEO of Harcourts Africa, says: “The report reflects the fact that there is a new DNA in real estate that is so much more than just brand. While most real estate companies are recording their worst results in history, Harcourts International is breaking new ground and gaining bigger market share.
“And it is doing that by putting its people in front of the brand and equipping them with the best training, systems and technology to thrive in a tough market. In the past couple of months, we have also gone about securing some top talent in Harcourts Africa, which is a real testament to the company and its understanding about the importance of people and equipping them for success.”
Currently the Harcourts group has more than 600 offices, 4000 full-time sales consultants, 1500 support staff and a sales volume in excess of $19,5bn a year (fiscal 2008). Already the fastest growing real estate group in Australia and the largest in New Zealand, Harcourts is now also operating in seven other countries: China, Fiji, Indonesia, Singapore, South Africa, Zambia and Botswana.
ISSUED BY HOMENET
FOR MORE INFORMATION
CONTACT MARTIN SCHULTHEISS
ON 031-201-1060
www.homenet.co.za
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073-946-9649 or
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06 March 2009, 08:19:46
The ERA property group plans to increase its market presence as 2009 unfolds, positioning it strongly for the next property market upturn.
That’s the word from Gerhard Kotzé, CEO of the ERA South Africa property group, who announced this week that the group has acquired the long-standing Carit Estates group of agencies, which has a strong presence in the Western Cape rural and coastal markets.
Carit Estates was established 40 years ago. Today it addresses the needs of the complete spectrum of property clients including the sale, letting and auction of residential, retirement and agricultural properties.
“With 15 offices and an enviable track record, the Carit Estates group, which will be re-branded under the ERA banner, is a very important strategic acquisition that immediately strengthens our presence in the Western Cape,” says Kotzé.
Maria de Villiers, ERA’s Western Cape regional manager, adds that while the group already has several successful Western Cape offices, it has not been strong in the rural areas, which is why the Carit Estates group dovetails so well.
Kotzé says the group has not escaped unscathed from the property slowdown but that the tide will inevitably turn and that the months ahead will see the group selectively seeking out strong franchisees.
“The idea is to establish a bigger, better footprint countrywide, reinforcing our presence in markets where we already participate and entering new markets where we believe there is potential.
“It’s not so much a question of growth for the sake of growth, but rather one of improved strategic presence which will ensure we are able to maximise economies of scale and offer improved national coverage for consumers in all nine provinces.”
He says the basic ERA formula will not change. The group will continue to service the needs of the market from entry level to top-end luxury homes, as well as property rentals, holiday rentals, commercial and industrial properties, agricultural and game farms and new property developments.
Kotzé’s comments come in the wake of news that ERA Real Estate as an international brand continued to show strong growth last year and notwithstanding global problems, added many new offices to the group and expanded others.
Brenda Casserly, US-based president and CEO of the company, says confidence and growth in the ERA franchise systems continued at a consistent rate and that the new additions are taking advantage of “timely marketing tools that are designed to succeed in any market”.
Issued by ERA South Africa
For further comment call
Gerhard Kotzé ON
012 682 9610 or visit
www.era.co.za
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05 March 2009, 16:44:44
An online survey by ooba to assess South African property owners’ attitude towards the property market reveals that 50% feel that the property market will continue its downward trend until the end of this year.
“The survey reveals that South Africans are divided about the timing of the property market recovery, but they generally agree that recovery will be sometime this year,” says Saul Geffen, chief executive of ooba.
ooba forecasts that the current low level of activity in the property market and negative property price growth with continue until mid 2009.
“Thereafter we expect that the improvement in affordability and sentiment will have a positive impact on house price growth and that activity in the property market will significantly pick up going into 2010,” states Geffen.
Twenty-nine percent believe that the market will begin to stabilise by the end of this year and 19% think it will begin to improve.
The survey also revealed that people still believe that there is value in property.
Thirty-nine percent said that they were hanging onto their properties, 31% said that they were making the most of the buyer’s market and buying a bigger property and 20% revealed that they were buying additional investment properties. Only 6% said that they were getting out of property altogether and 5% said that they were downgrading their home because bond payments were too much.
However, people have been hit by slow-down in the economy with 43% cutting back on luxuries and dinners to keep up with bond payments.
“The property market has been hit hard by the high interest rates and tightening of lending criteria,” says Geffen. “South Africans have had to make changes to their lifestyles in order to keep up with bond payments.”
But, there is hope on the horizon.
“The 1.5% cut in interest rates has already provided relief to consumers and we expect further cuts which will improve affordability for prospective home-buyers,” notes Geffen.
The inflation rate is also expected to show a meaningful decline in the early part of 2009 which will help the South African economy.
“However, bank lending policies are set to continue to be stringent during the course of 2009,” warns Geffen. “We advise that anyone looking to buy property apply for an ooba home loan prequalification certificate to determine their ability to qualify and for how much.”
Banks’ are currently requiring deposits of between 10% and 30% which in not expected to be relaxed for most of 2009.
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04 March 2009, 08:35:37
One of the most pertinent reasons for buying into the housing market right now, says Mike Greeff, CEO of Greeff properties, is that 'second-hand' homes (i.e. those that have already been occupied for a few years) are still some 25 percent less expensive than recently built homes of roughly the same proportions.
"Figures relating to house price increases,” said Greeff, "vary depending on which authority you consult but most would agree that the price rises were in the order of 25 percent in 2006 and 20 percent in 2007 with a levelling off taking place from the second-quarter of 2008."
By contrast, the FNB figures for newly completed homes show that building costs rose just under 40 percent in 2006, 24 percent in 2007 and by 14 percent in 2008.
Much cheaper to buy 'second-hand '
"The nett result is that right now it is almost always considerably less expensive to buy a second-hand home than a new one."
Asked to explain the spectacular rise in building costs, Greeff said that the surveys show clearly that it was materials — steel, cement, bricks, timber, tiles, paint, hardware and the like that caused the exponential increase. By comparison, he said, labour costs, which rose 12 percent per annum in 2006 and 2007, were quite moderate.
It's unlikely that building costs will come down this year as mega structures such as the football stadia and the Gautrain are still supporting high building prices of major companies.
However, Greeff said, among the smaller builders (including many in residential work) prices are now declining — and for first time in five years some new development entrepreneurs are now ready to offer deferred payments, discounts, initial subsidies and equipment installation allowances.
"By early 2010 it seems possible that the new building price increases will once again be on a par with those of second-hand homes.
How much cheaper?
"Right now, however, buyers are able to get an Upper Constantia home in the R6-million to R15-million bracket at R10 000 to R12 000 per m². These same homes built under current conditions could not be built at less than R16 000 to R18 000 per m².
"The message is, therefore, clear: if you can get a bond or have resources, now is the time to get in."
Greeff has already said that, although the Cape housing market could see a few further minor price declines, a bottoming out of the price graph is now becoming evident.
"The market," he said, "is already responding to the anticipated interest rate drops. Those who doubt this just do not understand how strong the desire for home ownership is among the newly empowered lower middle class and how this has a push-up effect across the board."
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04 March 2009, 08:08:31
Property buyers in South Africa are at the mercy of estate agents who are obliged to represent the seller’s best interests. But by appointing exclusive representation for the buyer, he or she can save money and time as well as ensure that his or her best interests have also been taken in account.
Even the most learned buyers enter into sale agreements without reading or fully understanding the contents of their contracts. Some buyers believe they are signing a 'standard' offer to purchase and simply fail to amend the contract to protect their interests. Others are unaware of their rights as a pertinent party to the transaction or simply neglect to exercise their freedom of choice and right to representation.
The seller is the agent’s client
In South Africa sellers mandate an estate agent to market their property. As per the estate agents' code of conduct, the seller is the agent’s client and therefore the agent is obliged to:
act in utmost good faith towards the seller
act in the best interests of the seller
sell the property at the highest possible price
avoid situations where a conflict of interest may arise
not retain any money or obtain a benefit as a result of the transaction, unless agreed to by the seller
avoid disclosing any confidential information divulged by the mandated client (the seller)
Provision for the buyer is also made in the code of conduct by stating that an estate agent must act professionally, legally and ethically towards the buyer or possibly face disciplinary action. To what extend are agents expected to play this dual role without compromising their integrity to the seller?
In countries such as Australia and the USA, a transaction seldom occurs without both parties having their respective representatives. Bill Carey, a former director of the California Association of Realtors and the author of various books on the industry, estimates that in approximately five years it will be illegal in the USA, due to a clear conflict of interest, for an estate agent to represent both the buyer and the seller.
If this is such a sensible approach and an accepted way of doing business in other parts of the world, why is it not widely advocated in South Africa?
The average estate agent will often, without a mandate, offer to find a property for a buyer. In order to minimise a commission split they will first try to sell their own listed stock. If they belong to
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