Real Estate Investor Magazine
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APRIL 2024
EFFORTLESS PROPERTY RETURNS
Your Guide to maximizing property profitability
MASTERING SA EVICTION LAWS
Navigate the process of removing nightmare tenants
EXPLORING LUXURY REAL ESTATE
Delving into the Art of Transactions
SABLE INTERNATIONAL
Diversify your Wealth: Richard Haller shares strategies for offshore real estate & investment migration
REI TEAM
PUBLISHERS
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NEALE PETERSEN neale@rei.co.za
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CONTRIBUTORS
Peter Droussiotis Richard Haller Nick Morgan Jaco Grobbelaar Schalk van der Merwe Simon Dippenaar Ryan van Heerden Lorne Hallendorff Wesley Roos Karen King Retha van Rooyen
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Real Estate Investor Magazine APRIL 2024
5
EDITOR'S VIEWPOINT
Unlocking Dreams: Embracing the Future with Property Rights beyond historical constraints
N
apoleon Bonaparte's words, "History is a set of lies agreed upon," cast a stark shadow over South Africa's upcoming election. The nation's political terrain, economy, and property ownership bear the scars of a tumultuous past, defined by apartheid's legacy and persistent social and economic disparities. Despite the promises of post-apartheid democracy, widespread prosperity remains elusive, hindered by regulatory burdens, corruption, and economic mismanagement. The real estate sector mirrors these entrenched inequalities, with access to land, housing, and economic opportunities still sharply divided.
In the face of these challenges, billionaire businessman Christo Wiese offers a beacon of optimism, urging South Africans to seize business opportunities amidst political uncertainty at a recent BizNews Conference. Wiese a big donor of the Free Market Foundation’s (FMF) Khaya Lam project says initiatives like this aim to empower millions through property ownership, advocating for government action to grant land titles to millions living in informal settlements.
Wiese asserts that the solution to the property ownership rights conundrum in South Africa lies within reach, as simple as a pen stroke wielded by government. Overnight, he suggests, the authorities could extend land titles to the over 8 to 10 million individuals residing in informal settlements
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across the nation.
However, while the solution may seem straightforward, its implementation demands political will, administrative capacity, and sustained commitment. Yet, Wiese's words serve as a powerful reminder of the transformative potential in addressing property rights insecurity, paving the way for a more inclusive and prosperous future for all South Africans.
Marshall McLuhan's famous quote, "Only the vanquished remember history," encapsulates a sobering truth: despite the wealth of lessons embedded in history's tapestry, humanity often fails to heed its warnings. The transformative potential of this can pave the way for prosperous future for all its citizens.
Successful investing!
Founder & Editor-In-Chief
Neale Petersen
Real Estate Investor Magazine APRIL 2024
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CONTENTS
TRENDING
03 REI TEAM & CONTRIBUTORS 05 EDITOR’S VIEWPOINT Neale Petersen 09 ASK THE EXPERTS Peter Droussiotis 11 NEWSSTAND ARCHIVES
COVER STORY
MASTER INVESTOR Richard Haller: Securing a hard currency asset base for clients while internationalising their wealth 23 COMPANY PROFILE Simplify International Property Investment with Sable International's Expert Services
INVESTING
36
48
56
13
A COMPREHENSIVE GUIDE TO LEVERAGING PROPERTY INVESTMENT - Achieve more with less Effort CAPE TOWN RANKS AMONG TOP 5 GLOBAL SECOND HOME HOTSPOTS - Here’s Why? EXPLORING THE EVOLVING LANDSCAPE - A Property Investor's Journey in SA's Dynamic Real Estate Economy
FINANCE
66
72
SECURING BUSINESS SUCCESS Four Key Advantages of offering Employee Insurance in Real Estate Organisations UNDERSTANDING EVICTION LAWS IN SOUTH AFRICA Navigating the process of removing nightmare tenants
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#166
TECHNOLOGY
82
PROPTECH’S REALITY CHECK Navigating the Challenges of Automation in Real Estate 88 UNLOCKING INVESTMENT SUCCESS - A Real Estate Agent’s Guide to selling Short- Term rental properties in CT
COMMERCIAL
98
EMBRACING CHANGE - Exploring the shift to Hybrid Work and Client Innovation in a Remote Environment
OFFSHORE
106 UNLOCKING INTERNATIONAL OPPORTUNITY - Your Guide to Offshore Property Investment and Relocation Abroad
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RETIREMENT
116
MODERN RETIREMENT LANDSCAPE - Continued Work or Plan? – 10 Key Aspects for a comfortable future
WEALTH
122
UNDERSTANDING CLIMATE CHANGE - Droughts & Flooding - Two Sides of the Same Coin
NEWS
130
UNLOCKING DATA - SAMRRA paves the way for Investment in Multifamily Residential Properties
EDUCATION
132 DISCOVERING LUXURY REAL ESTATE - Delving into the Art of Transactions & Exploring Millionaire's Mile in 'Listing Cape Town Season 2’ 140 BOOK REVIEW - Creating Wealth with Student Accommodation in South Africa" by Retha van Rooyen
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ASK THE EXPERTS
Unlocking Global Opportunities: Leveraging AIA and AIT for International Investments
MEET OUR GUEST EXPERT
W
hy is it important to utilize your Annual Investment Allowance (AIA) and Approval of International Transfers (AIT) clearance to invest in structures, shares, and property investment outside of South Africa?
I
nvesting in a stable, hard currency or assets with underlying hard currency value such as the Euro, Dollar, Pound, or Swiss Franc offers several advantages compared to keeping all wealth local in a volatile currency like the Rand. Below we will unpack 5 reasons why:
1. Diversification By investing in assets denominated in stable, hard currencies, you diversify your investment portfolio geographically. This diversification reduces the risk associated with having all your wealth tied to a single currency or economy. If the
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APRIL 2024 Real Estate Investor Magazine
PETER DROUSSIOTIS Treasury Specialist Legacy Family Wealth
Rand experiences significant depreciation or instability, your investments in hard currencies can act as a hedge against these adverse movements.
2. Preservation of Wealth Hard currencies are generally more stable and resilient compared to volatile currencies like the Rand. Investing in assets valued in these currencies helps preserve the purchasing power of your wealth over time. Even if the Rand depreciates significantly, the value of your investments in hard currencies remains relatively unaffected, providing a safeguard against inflation and currency devaluation.
3. Capital Appreciation Investing in well-considered structures or properties abroad denominated in hard currencies can offer opportunities for capital appreciation. Stable currencies often experience gradual appreciation over time
Got Questions? We've got Answers! Send your queries to info@rei.co.za or drop them on our vibrant community on Facebook or LinkedIn. Our team of experts is ready to assist you.
due to factors such as economic growth, political stability, and monetary policies. This appreciation can enhance the overall returns on your investments, providing additional wealth generation opportunities.
4. Risk Mitigation Holding assets in stable, hard currencies helps mitigate the risks associated with currency volatility and fluctuations on the South African economy. Sudden fluctuations in the Rand can negatively impact the value of local assets and investments. By diversifying into hard currency investments, you reduce your exposure to these risks and create a more resilient investment portfolio.
5. Global Mobility Investing in hard currency assets provides you with more global mobility and flexibility. It allows you
to access opportunities and diversify your holdings across different regions and markets without being overly dependent on the stability of the South African economy. This global mobility can open new avenues for investment and wealth preservation, enhancing your overall financial security.
In summary, investing in stable, hard currencies offers numerous benefits including diversification, wealth preservation, capital appreciation, risk mitigation, and global mobility. These advantages make hard currency investments an important consideration for individuals looking to protect and grow their wealth in the face of currency volatility and economic and political uncertainties in South Africa.
LEARN MORE
Real Estate Investor Magazine APRIL 2024
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NEWSSTAND ARCHIVES
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MARCH 2024
FEBRUARY 2024
DECEMBER 2023/JANUARY 2024
GENERATION RENT
HOSPITALITY INVESTMENTS
Young Adults embrace extended Rental Trend
The rise of Sectional Title ownership
SOLAR PANEL BUYERS GUIDE
PROFITABLE ENHANCEMENTS
5 Ways for Affordable Solar Solutions
Optimising property value before sale
AIRBNB STRATEGIES REVEALED
MASTERING LEGAL EVICTIONS
Data driven insights for short-term rentals
TUHF EMPOWERS URBAN ENTREPRENEURS
Finance Support for Affordable Housing
Step-by-Step Guide to serve notices effectively
GAUTENG PARTNERSHIP FUND
CEO Lindiwe Kwele: Advancing Equality in Gauteng's Human Settlements
MARCH 24
INVESTING OFFSHORE
How Shared Accommodation is a housing solution
RESIDENTIAL & INVESTMENT CONFERENCE
Uniting & Empowering our residential property future
FEB 24
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rei.co.za
JULY/AUGUST 2023
JUNE/JULY 2023
GUIDE TO EVICTION LAWS IN SA
Understanding tenant’s rights & Landlord responsibilities
ACCELERATE YOUR PROPERTY BUSINESS
7 Time Saving tips to propel you to the next level
WOMEN IN PROPERTY Celebrating success in Women’s Month
JULY/AUG 23
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APRIL 2024 Real Estate Investor Magazine
RESIDENTIAL RETURNS
Prime Investment Opportunities in a stable interest rate landscape
CAPITALISE ON THE HYBRID WORKING BOOM
Property Owners Leverage Rapid Growth
RIVERLANDS
Unveiling Cape Town's New Urban Oasis: David Cohen unpacks the upside of this visionary new growth node
STRATEGIC PROPERTY MASTERY
Navigating risks & reaping rewards
DEC 23/JAN 24
MAY/JUNE 23
FUTURE PROOF YOUR WEALTH
Crafting a Will for every stage and age of life
Unravelling truth from fiction
INTEREST RATE HIKE
UNLOCKING PROPERTY HOT SPOTS
An essential 3-Step Guide to navigate risk
MASTERING TECHNOLOGY
Which hybrid lifestyle is best for you?
RAEL LEVITT The journey of a tenacious climb,
humbling fall, & triumphant return of Inospace’s founder
JUNE/JULY 23
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rei.co.za
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OCTOBER/NOVEMBER 2023
SEPTEMBER/OCTOBER 2023
AUGUST/SEPTEMBER 2023
5 Proven Strategies for savvy investors
Former Bok star shares secrets to UK success
GET IMMEDIATE RETURNS
TENANTS, LANDLORDS & PROPERTY MANAGERS
PROPTECH’S POTENTIAL
SENIOR LIVING INVESTMENT GUIDE
Your 6-Step Guide to profitable investing
BRYAN HABANA INTERVIEW
OFF-PLAN INVESTMENT
4 Trends to keep your eye on
BLUE TITAN INVESTMENTS
Marco Gerazounis’ strategy for maximising investor returns
Who is responsible for what in a rental relationship?
9 Essential Considerations for Retirement Home Investment
UNLOCKING UK PROPERTY INVESTMENT
A novice guide for South African investors Renovation Project
INVESTMENT CASE STUDY
Profitable Guesthouse Renovation Project
REDWOOD ESTATE
The visionaries behind the new boutique connected living estate.
OFFICE OWNERSHIP
RETIREMENT PROPERTY
INVESTING IN SOLAR
THE BIGGEST LIE IN PROPERTY
Unveiling the long-term advantages of owning your workspace
Illuminating the decision: Is solar still a wise investment?
5 Convincing reasons to jumpstart your investment now
Debunked: The truth behind property ownership myths
WEALTH MASTERS CLUB
Unveiling Coert Coetzee's distinctive property investment strategies
OCT/NOV 23
SEPT/OCT 23
AUG/SEPT 23
APR/MAY 23
MARCH/APR 23
FEB/MARCH 23
Real Estate Investor Magazine APRIL 2024
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MASTER INVESTOR
CHARTING OFFSHORE INVESTMENT: Securing currency asset base internationalising their
By Editorial
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APRIL 2024 Real Estate Investor Magazine
RICHARD HALLER
PROPERTY a hard for clients while wealth
Richard Haller steps into his role as Managing Director of Sable International's esteemed Offshore Real Estate and Investment Migration division with a clear vision: to empower clients to expand their horizons through strategic global investments.
Specializing in a unique niche, this division offers tailored solutions for those seeking to secure strong real estate assets abroad and pursue opportunities for second citizenship or permanent residency.
Real Estate Investor Magazine APRIL 2024
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MASTER INVESTOR
W
ith an array of reputable Citizenship & Residencyby-Investment programs at their fingertips, including the esteemed Greek and Portuguese Golden Visa programs, Grenada and Maltese citizenship, the EB5 pathway to the US, and destinations like Dubai, Mauritius, and Switzerland, Haller's team ensures clients access to a wealth of options. They also specialize in high-yielding GBP real estate opportunities in the UK, presenting a diverse portfolio to suit varying needs and preferences.
At the core of their mission lies the objective of helping clients establish a robust hard-currency revenue stream and asset base. This not only fosters financial stability but also opens doors for greater mobility and freedom for clients and their families. With a focus on long-term prosperity, Haller and his team pave the way for clients to navigate global opportunities with confidence and security.
Richard’s career Richard's journey in the realm of entrepreneurship and international real estate spans over two decades, marked by
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a commitment to continuous growth and learning. Hailing from Cape Town, Richard embarked on his academic journey at Boston House College, before pursuing a BCom degree at the University of Stellenbosch. His thirst for knowledge led him to further his education with an MBA at the UCT Graduate School of Business in 2008 and 2009, equipping him with a solid foundation in finance and business management.
While his career kicked off in London as an accounts clerk at Ova ARUP, he moved swiftly to a role at Goldman Sachs Investment bank as an analyst. Richard quickly realised that he thrived in roles that offered variety and constant challenges. It was here that he learned the fundamentals
RICHARD HALLER
Position: Managing Director - Offshore Migration division Qualifications: BCom (Stellenbosch), Company description: Assists clients to Uniqueness of company: Unique cross-border Family: Married to Michelle, and 2 children Hobbies: Experiencing the world, Mountain Best Book you read lately: Dairy of a Personal Motto: ‘It’s all about the
RICHARD HALLER
of finance, an invaluable asset in his entrepreneurial endeavours.
Reflecting on his journey, Richard acknowledges that understanding financial basics is crucial for navigating the intricacies of business.
As a seasoned property entrepreneur, Richard finds fulfilment in the dynamic nature of the international real estate landscape. With a keen eye for emerging opportunities, he revels in the excitement of uncovering new ventures on a global scale. Setting Sable apart from competitors, Richard emphasizes the value of their full in-house team specialising in Residency & Citizenship-by- Investment applications.
Unlike outsourcing to third parties, Sable accompanies clients every step of the way, providing personalised guidance throughout their property investment journey and the attainment of second citizenship or residency. Through dedication to client service and a commitment to excellence, Richard continues to carve a path of success in the ever-evolving world of international real estate.
PROFILE
real-estate and Investment M.B.A (UCT GSB) internationalise themselves & their wealth eco-system to assist clients with all things aged 9 and 10 time and paddling CEO – Stephan Bartlett Momentum’
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MASTER INVESTOR
His leadership philosophy, and how he fosters a positive and productive work environment within his organisation comes from a real-estate environment experience where working as a team is important criteria. This comes down to the alignment of directors, managers, sales team and administrators, who are all critical to the process, working together to ensure that we service clients in the most professional manner, from the start of the conversation, until the conclusion of the transaction and beyond.
This not only includes incentivising the team to work as one but hiring the right people and then allowing them the freedom to bloom. This in itself if critical to fostering a naturally positive and productive work environment.
Richard’s experience in investing in real estate, and most lessons he has learnt from the experience in your capacity as an investor and advisor from a global real estate perspective is that there are three key fundamentals that he sticks to: 1. Go smaller into prime locations to suit your budget.
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2. Ensure that there is good stock turnover in the area which is important for liquidity. 3. Ensure that the rental demand and supply fundamentals stack up.
He has used this successfully to investment in both South Africa and abroad with success. He also says important factors for you when evaluating a deal are Outside of normal real-estate fundamentals location and supply and demand. The partner involved in the projects is also one the most important aspects that needs to stack up. This requires a number of engagements and very careful consideration before pressing the go-button.
He stays updated on industry trends and ensure your business remains innovative and adaptable as the industry and trends are continually evolving. It’s critical that we, as a team, ensure we always have the latest information and correct laws and regulations at hand. This sometime involves sifting through sensationalism and focusing on the hard facts as promulgated in law.
RICHARD HALLER
Q & A WITH RICHARD
1. What was your first pay cheque what did you spend it on? I earned £350 a week which I spent mainly on rent and for enjoying and traveling around London.
2. Can you share a specific project or initiative you consider a turning point in your career? What lessons did you learn from it? In 2015 I was involved in the launch and continued marketing of the largest luxury golf estate in the North of Mauritius. This gave me tremendous exposure to the real-estate projects environment and where I built the knowledge of how to successfully launch large scale projects to an offshore audience. We sold over USD300 million in the first four years and to date this is still the most successful new project launch in Mauritius.
3. Have you faced any significant setbacks, failures and/or challenges in your career? How did you overcome them, and what lessons did you take away? Luckily I had the ‘opportunity’ to while I was very young after university, to go flat broke, in London, with no job and no place to stay. Call it rock bottom. Luckily I had family where I could sleep on the couch.
I had to work exceptionally hard to build myself up again. It’s something that sticks with me to this day, and reminds me to make rational and sound decisions, and to always consider to long term consequences of those decisions for myself and clients.
Real Estate Investor Magazine APRIL 2024
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MASTER INVESTOR
4. Can you identify some career highlights or achievements, upcoming projects or ventures you are particularly excited about? I have really enjoyed the 20 years that I have been in the real-estate sector, part of which was helping build the top real-estate business in Mauritius.
I am really excited to help build a strong real-estate focused business with Sable that will allow clients to opportunity to investment in the best global real-estate assets. Or to allow them to have a greater global freedom of movement. I am a big believer in having the freedom and ability to move around the world, whether this is due to a 2nd passport or residency, but also having the hard currency revenue stream to do so.
5. What role do you see technology playing in the future of your industry, and how are you preparing for it? Sable takes a very pragmatic approach to using to technology to assist in servicing clients in an organised and transparent manner. This is a continual work in progress.
6. How do you maintain a work-life balance while managing your professional responsibilities? What do you like most about what you do and the least? I have found over the years that with a career and young children, that the normal day is not long enough. I get up at 5am to start my day with a coffee and some quiet time, and then some exercise. Therefore I have the rest of the day to focus on work. Then when I get home at around 6pm I have some time to spend with my family around the dinner table.
Important for me is to ensure that as a family we have regular holidays together. We all love travelling and this allows us to spend focused time together.
From a work perspective, I enjoy building strong teams and its give me great satisfaction once the team is running well and most importantly, everyone is happy. I firmly believe that work needs to be enjoyable. It’s not always going to be fun, but it needs to be overweighted to being
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RICHARD HALLER
enjoyable. Then I enjoy kickstarting activity in a business and seeing the metrics move. It’s a challenge, sometime of trial and error, but requires sound business logic and persistence, which will pay off.
7. What is the best investment you ever made whether in an asset, yourself or anything else? What were the key results? The two best investments for me personally are education and real estate investments. I believe in continuous education, such as pursuing a university degree. I proceeded with my post graduate Master of Business Administration, which I did part time while working. This was a real test of hard work and dedication, and where I had to get up at 4am each morning to balance all the demands of studies, work, family and friends.
It’s important for me that I continue with my education through reading of books, podcasts, and following interesting channels on YouTube. It allows me to get different perspectives which I can then incorporate into my thinking real-estate investments.
8. If you would do anything else, what would it be? I would be a property developer. I just love working on new concepts for real-estate projects, as well as the marketing angle, and then taking them to the market.
9. Is there someone whose life or work you value and admire, find inspiration from and whom you think might be a good guide? I find inspiration from various sources, this includes interesting business leaders who enjoy sharing their knowledge. At the moment I really enjoy British entrepreneur Steven Bartlett story and his approach to building great businesses.
10. If you were the President of South Africa what would you change or do tomorrow? I would implement an interesting tax incentive scheme to encourage the South African diaspora with suitable skills to return to SA and help rebuild the critical SOE’s that have been so badly impacted by mis management.
Real Estate Investor Magazine APRIL 2024
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SABLE INTERNATIONAL
Simplify International Investment with Sable Expert Services
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APRIL 2024 Real Estate Investor Magazine
COMPANY PROFILE
Property International's
Sable International Offshore Real Estate and Investment Migration division provide a range of professional services for clients looking to internationalise themselves, their family and diversify their wealth globally. With offices in Africa, the UK, Europe and Australia, they are uniquely positioned to assist their clients with going Global.
Real Estate Investor Magazine APRIL 2024
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SABLE INTERNATIONAL
T
hey offer a bespoke advisory service to assist you with investing abroad. They have extensive understanding of the international real estate markets and offer a select portfolio of international real estate opportunities. They source the best possible properties from cities with secure markets through extensive research.
They meet their clients objectives of building up a hard-currency revenue stream and asset base, which allows them and their children the long term
opportunity to move freely around the world, funded by a hard currency revenue stream. They take care of all facets including ownership structure, tax, foreign exchange, and property purchase advice.
With strong and well-considered property investments abroad, you can grow your wealth through capital appreciation as well as hedge currency in Euros, Pounds or Dollars – and, also in many cases, take a mortgage out at a very low-interest rate or have a passive income via a rental investment.
What Sable International offers
1. Offshore Real Estate Investment Many investors want to invest offshore but have no idea where or how to start. They also often fail to understand the real risks that exist when there's an international border between the investor and their investment.
We only partner with the best developers and, through our own experience, we know how to manage the financial and delivery risks that are very real in many off-plan developments.
Furthermore, we analyse markets, legislation, tax implications and currency volatility with the aim of stabilizing an investment that yields solid returns, capital growth and equity protection.
Our approach aims to compliment your wealth strategy. Let us work for you to simplify the complex process of investing offshore.
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COMPANY PROFILE
2. Second home or Relocation If you are looking to diversify with a second home abroad or make the move entirely, we have a retained search team who can assist you with the process of buying another home to enjoy with your loved ones.
3. Portfolio Searches Do you have a specific property or location you are focusing on for investment? From vineyards in the Douro Valley, to a chateau in France, we can assist with any off-market searches.
4. Citizenship or Residency Clients looking for a road to second citizenship or to obtain residency in another country through real estate investment?
Working hand in hand with their investment migration team, they offer practical solutions that primarily meet your mobility and Plan B needs and stack up as an investment balanced with your wealth strategy. Their team can advise on the options available to you.
Real Estate Investor Magazine APRIL 2024
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SABLE INTERNATIONAL
Popular Sable Offshore Property the transaction within Investment destinations Sable International • United Kingdom (Investment/Relocation) Reasons for investing in • Mauritius (Lifestyle/Relocation) Offshore Property • Portugal (Investment/ • Low interest rates Lifestyle/Relocation) • Access to developed market assets • Germany (Investment) • Greece (Investment/ • Currency hedging strategy Lifestyle/Relocation) • Solid returns in a foreign currency Sable International’s approach is • Portfolio diversification to get to know and understand the • Wealth migration associated risks which they seek to • Global mobility and mitigate for the offshore investor. dual residency 1. They collaborate with you • Potential second citizenship to determine your offshore for you and your family investment strategy • Speak to an international real estate investment specialist 2. They conduct extensive research and due diligence on all properties LEARN MORE 3. They manage all facets of
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COMPANY PROFILE
Real Estate Investor Magazine APRIL 2024
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INVESTING
36
PAGE
Achieve more with less Effort
48
PAGE
Cape Town Ranks Among top 5 Global Second Home Hotspots: Here’s Why?
TRENDING ONLINE
Cape Town CBD Property Scene: 2024's Positive Momentum Unveils Top 9 Trends
Real Estate Investor Magazine APRIL 2024
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INVESTING
A COMPREHENSIVE PROPERTY INVESTMENT: Achieve more with less
BY JACO GROBBELAAR CEO & Founder Prosperity Enterprises
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APRIL 2024 Real Estate Investor Magazine
LEVERAGE
GUIDE TO LEVERAGING Effort
Leverage is like the secret sauce of success in your property investment endeavours. Whether it’s time, money, or skills (or all of them), leverage allows you to do more with less, magnifying your efforts and amplifying your results. Imagine having the ability to move mountains with a small push or turn a small ripple into a tidal wave — that’s the power of leverage.
Real Estate Investor Magazine APRIL 2024
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INVESTING
A
t its core, leverage is about using available resources smartly to maximise the output. It’s a force multiplier and allows you to achieve feats that might seem daunting at first glance. By using leverage, you can optimise time, money, and skills,
turning them into catalysts for unprecedented growth and success.
Below are six things you need to keep in mind if you want to succeed in property investment using leverage:
Three Key Leverage Acronyms for Property Investors
1. OPM – Other People’s Money
Very few people become rich without understanding this principle. When you have limited cash or capital and you want to build anything sizeable, it will require external funds. These funds can be obtained through different avenues, including investments from external parties i.e.: - Getting investors or business partners to invest with you in a property or - Securing financing or loans from the bank or other financing institutions.
You could even venture outside the box and obtain OPM through crowdfunding or credit card financing. Using borrowed capital can magnify your potential returns and expand investment opportunities without having to solely rely on your personal funds.
Remember, the bank wants to lend you money to invest in property, and if your structures are right, they will lend you more money than you think!
2. OPS – Other People’s Skills
It takes a lot of skills to build a successful property portfolio.
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LEVERAGE
Surrounding yourself with an entire investment team is one of the best things you can do as a property investor. This team will include property mentors, attorneys, accountants, bankers, bond originators, estate agents, letting agents, and maintenance specialists.
No matter how hard you try to succeed in property investment all by yourself, at some point, you will need others to help you! You are going to be hard-pressed to do everything by yourself and even if you could, it is impossible to be good at everything.
Leveraging OPS in building your property portfolio enables you to tap into a wealth of expertise, diversify your capabilities, and optimise the success and growth of your real estate investments!
3. OPT – Other People’s Time
Every single time any task or activity comes across my desk, I ask myself: “Is it possible for me to delegate this task to someone in my team?” Time is the most precious commodity that you will ever have and the sooner you realise this, the better.
Warren Buffett once said, “The rich invest in time, the poor invest in money.” As a property investor, time is one of your most finite resources. There is only so much that you can do in the 24 hours you have today. And if you don’t learn to leverage other people’s time, you will never build anything of significance. The more time you free up, the more you can focus on strategic decisions and expanding your portfolio!
Start leveraging OPT today with some of these ideas: - Outsource or delegate tasks like property management or repairs. - Use professional services (legal, financial, construction, etc.), and - Automate or use software.
Real Estate Investor Magazine APRIL 2024
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INVESTING
Three Essential Facts Every Property Investor Should Remember
Fact #1 - If you do what everyone else does, you will live the life that everyone else lives.
For many people, this means a life of never enough or just enough. To illustrate this, let’s consider the
concept of saving.
Most of the middle class believes saving is what you ought to do, but Robert Kiyosaki used to say, “Savers are losers!” His statement offended many people. But he’s not wrong… One of my mentors used to tell me, “You don’t save yourself rich, you buy yourself rich”. So, how can you get a different life than everyone else?
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LEVERAGE
Fact #2 - You BUY yourself rich by buying ASSETS.
The trick here is to buy as many appreciating and incomeproducing ASSETS as you possibly can. And how do you do that? Leverage, my friends!
Leverage simply means to do more with less. You only have so much money, capacity, and skills. And sadly, you won’t achieve much if you only make use of
what you have. I learnt this the hard way by trying to create wealth using only my money, time, capacity, and abilities. And I went nowhere slowly.
Fact #3 - Property is the perfect investment to leverage.
Property’s unique attributes make it the ideal investment to leverage. It’s a tangible asset with intrinsic value and provides a solid base for securing loans, making it favourable to lenders.
Its potential to appreciate over time, generate a stable income through rent, tax advantages, and its ability to hedge against inflation also make property a prime choice for leveraging. By understanding the unique benefits of property, you can harness the power of leveraging and maximise the opportunities for greater success, growth, and profitability.
Therefore, if you want to succeed in property investment, always remember these acronyms and facts. Then you can go forth, and leverage, leverage, leverage!
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RESIDENTIAL
CAPE TOWN RANKS SECOND HOME HOTSPOTS:
By Editorial
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HOT SPOTS
AMONG TOP 5 GLOBAL Here’s Why?
A new study conducted by estate agent comparison site GetAgent has revealed the most in-demand locations to buy a second property in, and Ireland tops the list as the world’s ‘second home hotspot’.
Global searches for second home purchases hit an all-time high in the summer of 2020, however since the pandemic, there’s been a significant uplift in the number of people purchasing a second property - either in the country they’re already living in, or further afield.
Reasons for buying a second home can range from wanting to make a savvy real estate investment, owning a place in which families and loved ones can spend time together, or simply having a base to escape everyday life.
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RESIDENTIAL
T
o find out where in the world homeowners want a second home the most, the property experts analysed global search data for terms such as ‘second home in [location]’ and ‘holiday home in [location]’, revealing that countries including Ireland, New Zealand and UK are some of the trending second home hotspots for 2024.
From coastal destinations offering sun, sea and sand to quaint cities filled with culture and history, there are picturesque destinations all over the world that attract millions of tourists and second home owners each year.
For people who fall in love with a destination and want to revisit it time and time again, owning a second home and renting it out while you're not there could be a fantastic way to make passive income and have somewhere to stay whenever you want to visit.
So if you're looking for inspiration on where to purchase a second property, then one of these popular in-demand destinations could be the one for you…
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Most Popular Cities Around The World For Second Homes. #1 Gold Coast, Australia Australian cities reign supreme in the world of second homes, with the Gold Coast leading the charge. Known for its stunning beaches, world-class waves, and thrilling theme parks like Dreamworld and SeaWorld, this coastal gem is a magnet for families and surf enthusiasts alike.
In December 2023, average house prices soared to a record $1.03 million, reflecting the high demand for property in this coveted location. Despite the price tag, the Gold Coast offers unparalleled lifestyle benefits, making it an ideal destination for holiday home buyers, where every day feels like a vacation.
#2 Melbourne, Australia This coastal hotspot which is often hailed as one of the world’s most liveable cities - ranking in second with almost 45,000 searches over the past year for both second and holiday homes in the city. Adelaide (24,800 searches) and Perth (22,800 searches) also feature in the top ten. The nation’s capital Sydney ranks in 13th spot, while sunny Brisbane ranks in 15th.
HOT SPOTS
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#3 York, United Kingdom Home to slightly cooler climates, and ranking in third spot, is the UK city of York. This historic Northern city is home to some eye-catching architecture, with its Gothic cathedral being one of the city’s main stand-out tourist attractions and drawing in hundreds of thousands of tourists each year. The famous shopping street known as The Shambles in the city also offers a quaint escape for those using properties in the city as a holiday home.
Our property data for York suggests that the average asking price for properties in the walled city is around £408,000. With the average rental price in York exceeding £1,000 a month (placing it in the top 20 most expensive cities in the UK), buying a property in the area could certainly make for a savvy investment.
#4 Cape Town, South Africa. Nestled at the meeting point of the Atlantic and Indian Oceans, Cape Town stands as a beacon of natural beauty and diverse landscapes. From the iconic Table Mountain dominating the skyline to the picturesque beaches perfect for surfing, swimming, and
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HOT SPOTS
sunbathing, this port city offers an unparalleled array of experiences.
Venture beyond the city limits, and you'll find yourself immersed in lush forests, rolling winelands, and breath-taking mountain ranges. The Garden Route, just a stone's throw away, beckons with its coastal vistas, serene lakes, and encounters with Africa's famous Big Five.
Investing in property here isn't just about owning a piece of paradise; it's a smart financial move. With an average national price of R1,411,434 ($75,156), Cape Town presents an affordable entry point into the global real estate market. And with a favourable property
RANK
CITY
1 2
Gold Coast Melbourne
3
4 5 6 7 8
9
10
COUNTRY
Australia Australia United York Kingdom Cape Town South Africa Malaga Spain Adelaide Australia Perth Australia Auckland New Zealand United Edinburgh Kingdom United Inverness Kingdom
price-to-rent ratio, the potential for long-term wealth accumulation through rental income is promising.
As South Africa's economy continues to grow, so does the demand for property in this vibrant city. Whether you're seeking adventure, relaxation, or a savvy investment opportunity, Cape Town has it all – and more."
#5 Malaga, Spain Rounding out the top five is the southern Spanish city, Malaga; a city that is well-known for its museums and galleries, is perfect for art lovers and home to some beautiful beaches - making it a great escape for homeowners and travellers alike.
ANNUAL GLOBAL SEARCHES for 2nd Homes 49,200 44,900
33,800
32,900 26,200 24,800 22,800 21,500
19,800
19,200
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Colby Short, CEO and cofounder of GetAgent added: “Our study has revealed some of the most desirable locations for a second home, with lots of them not only being great investments as part of a portfolio, but also making great holiday homes for homeowners themselves. Many of the indemand destinations revealed in our research are located in areas of natural beauty, and provide easy access to other desirable travel locations.
“However, whether you're making your first foray into rentals, or eying up a holiday home on the coast, second house purchases aren't known for being cheap. The additional three per cent Stamp Duty fee (on top of the Stamp Duty Land Tax you already pay) can make the punch to your purse all the more noticeable.
house to someone else, you'll need a buy to let mortgage. And if you’re specifically purchasing a property with the intention of renting it out as a holiday home - and intend on renting out your let for more than 210 days a year - you’ll need a holiday let mortgage.
“The deposits required to successfully obtain these mortgages can range from 15% up to a whopping 40% - meaning you should definitely carefully consider your financial status before investing in a second home.
“For this reason, many people will need to take out a new mortgage package to finance the second property. If you’re planning to live in both your residences (either as a summer home, or splitting time between the two properties), you'll need a residential home mortgage; but if you want to boost your income by renting your new
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HOT SPOTS
“While the process of purchasing a second property often presents more hoops to jump through (and quite often significantly higher costs too) it’s clear that in desirable locations there is also money to be made - either by putting the house onto the rental market, or by transforming the property into a holiday home that can be rented out.
“However, it’s completely understandable that second
homeownership is a contentious subject in areas such as Edinburgh or Cornwall, where local residents are getting priced out of the market by holiday homes which are rarely inhabited. Measures will likely need to be taken in the future if the second property market continues to grow, in order to keep house prices as affordable as possible.”
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INVESTING
EXPLORING THE EVOLVING A Property Investor's Dynamic Real Estate
BY RYAN VAN HEERDEN Founder & Director Ryan's Realty
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CASE STUDY
LANDSCAPE: Journey in SA's Economy
Twenty-two years ago, I embarked on my real estate investment journey with a simple goal: to build residual income for retirement, inspired by Robert Kiyosaki's 'Rich Dad, Poor Dad.' The strategy was straightforward: identify undervalued apartments in high-rental-demand areas, rent them out, and repeat.
As I gained momentum, I expanded into purchasing small apartment blocks while staying true to the fundamentals. Initially, everything seemed smooth sailing. Capital growth consistently exceeded 9% per annum, and rental income followed suit with steady escalations. Life felt predictable and straightforward... or so I believed…
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INVESTING
“L
ittle did I know, the journey ahead would be filled with unexpected twists and turns, teaching me invaluable lessons about resilience, adaptability, and the true essence of real estate investment. Join me as I unveil the untold chapters of my journey, navigating through challenges and seizing opportunities, ultimately shaping the investor I am today."
In the wake of the seismic shifts that began in 2020, predictability seems to have become a luxury of the past. The world's landscape has undergone a radical transformation, rendering age-old strategies obsolete. Jim Rohn's timeless wisdom echoes loudly in these tumultuous times – the future economy, like the past, will always be a blend of challenges and opportunities.
In an environment where interest rates are at a high, the pursuit of positive cash flow from day one becomes paramount. For me, the essence of a sound real estate deal lies in its ability to generate immediate returns, facilitating portfolio expansion without undue financial strain.
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Opportunities abound, but they often lurk in the shadows of familiarity. By peering through the lens of innovation, we uncover hidden gems that promise enduring value. As we navigate the post-Covid economic landscape, a spirit of ingenuity becomes my compass.
Three transformative concepts in real estate:
1. Short Term Rentals 2. Long Term Rentals 3. Rent to Buy – tapping into the African Market
The Investment Opportunity The Base apartments is a beacon of modern living nestled in the heart of Ferndale, Randburg. The Base presents a fusion of longterm and short-term residential investment opportunities, alongside Rent 2 Buy options, with the added flexibility of short-term rentals seamlessly integrated into the Body Corporate rules.
At The Base, envision a secure haven adorned with amenities including a swimming pool, Smart Home technology, utility management apps, gas hobs, backup power supply, and high-
CASE STUDY
speed fiber connectivity – all catering to the evolving needs of modern living.
Unveiling Strategy 1 - Short Term Rentals in New Builds In the wake of the 'Zoom Boom,' our lives have been reshaped, emphasizing the demand for flexible living spaces and topnotch connectivity.
Short-term furnished suites offer a cost-effective alternative to traditional hotels, fostering a relaxed and homely atmosphere for discerning guests. Innovation breeds success.
Ultimately, the success of these
suites stems from their ability to deliver exceptional value, comfort, and convenience, all while fostering a sense of home away from home. Whether for business or leisure, guests can expect nothing less than a memorable and rewarding stay in these innovative accommodations.
Introducing Strategy 2 - Long Term Rentals in New Builds Long-term rentals in new builds uniquely empowers investors to amplify their investments using other people's money, while enjoying consistent capital growth and safeguarding against inflation by strategically adjusting rental rates.
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INVESTING
Short-term rentals offer three key advantages:
1. Flexibility: Hosts adjust availability and pricing to suit demand; guests book tailored stays for weekends or extended vacations, enhancing the travel experience. 2. Affordability: Costing less than hotels, short-term rentals suit longer stays or larger groups, providing budget-friendly options without sacrificing comfort. 3. Personalization and Local Experience: Reflecting local charm, rentals offer authentic stays. Hosts provide personalized recommendations, enriching experiences and fostering connections.
THE BASE INVESTMENT OPTION 1 – Short-term rentals
SHORT-TERM RENTALS JAN 2024 Property Value Furniture Pack Less Developer Rebate Total Investment Total Cash Layout Expected Rental (19 days @R500 per night) 62% Occupancy Utilities Levies Rates & Taxes
Year 1 (Cash Deal) R650,000,00 R70,000 -R30,000 R690,000,00 R690,000,00
Year 1 (80% Bond Deal) R650,000,00 R70,000 -R30,000 R690,000,00 R138,000,00
R9 500,00
R9 500,00
-R1200,00 -R650,00 -R180,00
-R1200,00 -R650,00 -R180,00
Management fee @12%
-R1080,00
-R1080,00
Bond 80% 30 yr @10.75%
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Net Rental Yield (Annual nett rental as % of total cash outlay) Net Positive Cashflow Yr 1
Capital Growth 6% end Yr 1
APRIL 2024 Real Estate Investor Magazine
-R4704,00
R6190,00
R1686,00
10,76%
14,66%
R74,280,00
R20,232,00
R39,000
R39,000
CASE STUDY
Yet, the current challenge in South Africa lies in higher than average interest rates, currently at 11.75% - the highest in 15 years. However, projections
indicate a decline in rates over the coming years. Patience is key in the property game, as the goal is to build a portfolio of properties gradually paid off by tenants
3 Reasons long-term rental property stands out as an unparalleled asset class?
1. Leverage OPM (other people's money) to maximize investment potential. 2. Experience steady capital growth, often surpassing returns from the stock market annually. 3. Safeguard against inflation by tactically adjusting rental rates to outpace inflation figures.
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INVESTING
THE BASE INVESTMENT OPTION 2 – Long-term rentals
LONG-TERM Year 1 UNFURNISHED (Cash Deal) RENTALS JAN 2024 Property Value (6% R650,000,00 Annual Escalation) Less Developer Rebate -R30,000 Total Investment R620,000,00 Total Cash Layout R620,000,00 Expected Rental R5600-R6000 (7.5% R5850,00 escalation) Utilities payable by 0 tenant Levies -R650,00 Rates & Taxes -R180,00 Management fee 7.3% -R490,00 + vat Bond 80% 30 yr @11% y1 & 10% y3 (expected 0 rate cut Y2 & Y3… y5 9.75%) Net Rental R4530,00 Yield (Annual nett rental as % of total cash inv. 8,77% value) Net Positive Cashflow R54,360,00
Capital Growth 6%
R39,000
over 15, 20, or even 30 years. This strategic approach ensures multiple properties generating monthly income and enjoying inflation-beating capital growth in the long run.
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Year 1 (80% Mortgage Deal)
Year 5 (80% Mortgage Deal)
R650,000,00
R869,000,00
-R20,000 R630,000,00 R126,000,00
R630,000,00 R126,000,00
R5850,00
R7812,00
0
0
-R650,00 -R180,00
-R820,00 -R290,00
-R490,00
-R655,00
-R4799,00
-R4155,00
-R269,00
R1892,00
N/A
18.01%
-R3228,00
R22,704,00
R39,000
R219,846,00
Let's not underestimate the power of compounding capital growth and rental escalations over time. Below, I've outlined conservative estimates for 1-year and 5-year returns, showcasing the transformative potential of real
CASE STUDY
estate investment when guided by patience and strategic vision.
Introducing Strategy 3: Rent to Buy & the African Market In the closing months of last year, a Zimbabwean acquaintance of mine sparked an unexpected journey into the heart of African real estate. Intrigued by The Base apartments, he invited me to Harare, where I found myself immersed in meetings with a cohort of eager investors. What struck me most was the contrasting mindset between the average South African and their Zimbabwean counterparts.
In Zimbabwe, where the US dollar reigns supreme, property prices soar to heights far surpassing those in South Africa. With limited mortgage options, cash transactions dominate the market, reflecting a culture of disciplined saving and prudent financial management.
Meanwhile, in South Africa, where financing is more readily available, opportunities beckon with the allure of weak Rand and strong USD. Recognizing this potential, we conceived the Rent to Buy option, bridging the gap between
aspiration and affordability.
How Rent-to Buy works The purchaser enters a Rent to Buy agreement with the Developer/Seller • Secure your unit with a nonrefundable deposit or option fee. • Over a 24-month lease period, 50% of the rental payments are credited towards the purchase price, interest-free. • At any point during the lease, the buyer can choose to finalize the purchase or secure financing for the outstanding balance. • For more information on this rent-to-buy innovative opportunity, visit https:// thebaseapartments.co.za/ campaign-rent-to-buynonsa-202402/.
As I reflect on the sage advice of a wealthy friend – "the optimal time to invest in property was yesterday" – I urge you to seize the moment. Amidst the chaos of the present, the path to prosperity lies in bold, decisive action.
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BENEFITS OF USING A BOND ORIGINATOR
Buying a home is one of the most significant – and life-changing – investments you’ll ever make, which is why you need a home loan expert to guide you through the homebuying journey.
It is EASY as the client will have someone to guide them through the process and explain the complicated legal and financial aspects of their application.
It is TIME SAVING as the application is submitted electronically and simultaneously to all banks. This not only saves the client time from visiting each bank but also client will complete ONE APPLICATION FORM, as opposed to completing each bank form
An originator will assist the client with an overall assessment of their FINANCIAL SITUATION, CREDITWORTHINESS and AFFORDABILITY
It INCREASES THE LIKELIHOOD OF OBTAINING A HOMELOAN due to the originator’s knowledge of the different banks’ lending criteria
The multiple-quote model enables originators to NEGOTIATE INTEREST RATES with banks depending on what other banks have offered.
There is CONTROL and COORDINATION around the application process which also benefits theseller as this creates certainty that everything possible is done to assist on the transaction.
FINANCE
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Four Key Advantages of offering Employee Insurance in Real Estate Organisations
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Kabarona emerges as premier provider of Student Accommodation
TRENDING ONLINE
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FINANCE
SECURING BUSINESS Key Advantages of Insurance in Real Estate Organisations
By Editorial
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INSURANCE
SUCCESS: Four offering Employee
For real estate investors, estate agencies, and similar businesses, ensuring your staff’s well-being goes beyond mere obligation – it is an investment in your business’ success and shows your commitment to employee welfare. Providing affordable basic employee benefits such as life, disability, and funeral cover not only safeguards the financial security of staff members and their families but also yields numerous advantages for the business.
In South Africa, navigating the complexities of insurance can often be challenging. Many individuals find themselves without access to adequate or affordable cover, particularly in critical areas such as life insurance. This disparity leaves countless families vulnerable in times of need, grappling with financial burdens amid already difficult circumstances. Moreover, the prevalence of multiple funeral policies among some individuals only exacerbates the issue, leading to confusion and potential financial strain.
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FINANCE
O
ffering employee benefits like Simply Staff cover is a proactive step towards reducing this gap. By providing affordable and accessible cover, businesses can empower their employees with the financial protection they need, fostering a
more resilient workforce.
Investing in employee benefits is not just a gesture of goodwill; it is a strategic decision that can significantly impact your business's bottom line and overall success.
Prioritizing Staff Protection
Four Compelling Reasons for Real Estate Investors and Agencies.
1. Employee Satisfaction and Retention Offering a benefits package demonstrates a commitment to employees' wellbeing, enhancing job satisfaction and fostering loyalty. Satisfied employees are more likely to stay with the company long-term, reducing turnover costs and maintaining continuity within the workforce.
2. Enhanced Recruitment In a competitive job market, benefits packages can serve as a powerful recruitment tool, helping businesses attract top talent. Prospective employees are more likely to choose employers who prioritise their financial security and overall welfare.
3. Productivity and Morale Financial worries can significantly impact an employee's productivity and morale. Businesses can cultivate a more focused, engaged, and motivated workforce alleviating concerns about unexpected expenses or inadequate cover.
4. Mitigating Financial Risks Unexpected events such as illness, disability, or death can pose significant financial risks to employees and employers. By providing cover, businesses reduce these risks, ensuring their operations remain stable and resilient in the face of adversity.
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INSURANCE
by
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Why Simply Financial Services is perfect for your business? In the realm of employee benefits, simplicity, accessibility, and reliability are paramount. Simply Financial Services offers a streamlined solution tailored to the needs of businesses, making it the ideal choice for real estate investors and estate agencies looking to provide cover for their staff.
By prioritising employee welfare and partnering with Simply Financial Services, businesses can enhance their competitiveness, foster a more resilient workforce, and safeguard their long-term success. Moreover, in a country where access to quality insurance cover remains a challenge for many, such initiatives play a crucial role in building a more inclusive and prosperous society.
Simply Financial Services simplifies the process of buying cover, eliminating unnecessary complexities and paperwork. Businesses can get cover quickly and efficiently with an intuitive online platform and dedicated support. Simply also offers Integration with various payroll providers, ensuring seamless management of staff cover policies. Employers can easily update and maintain cover details, ensuring that employees remain protected at all times. With three benefits to choose from—life, disability, and funeral cover—businesses can tailor their benefits package to meet the diverse needs of their workforce.
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RESIDENTIAL
UNDERSTANDING SOUTH AFRICA: Navigating removing nightmare
BY SIMON DIPPENAAR Founder & Eviction Specialist Simon Dippenaar & Associates
PART
04
OF PART 4
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LEGAL
EVICTION LAWS IN the process of tenants
The relationship between property owner and occupier should be a happy one. After all, it offers a reciprocal and mutual benefit. One earns a passive income from an owned asset, and the other enjoys a home to live in, without the weight of responsibility that come with property ownership. Unfortunately, the relationship is not always friendly.
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F
74
riction can emerge as a result of unpleasant behaviour by either party. Landlords can be unresponsive or unreasonable. Tenants can be disrespectful or negligent. South African law contains multiple pieces of legislation governing rental housing, and both landlords and tenants are accorded rights that protect them. They are also assigned responsibilities they must uphold. But the balance tends to lean towards tenants’ rights and landlords’ responsibilities. In this article we examine them both.
of legislation in South Africa that regulates the process of eviction. It was enacted to protect both property owners and tenants, ensuring that evictions are carried out in a fair and lawful manner.
The courts take eviction law very seriously. Failure to follow the correct process could result in a heavy fine for the landlord, as well as damages payable to the tenant. In the worst case scenario, the landlord could end up in jail, facing serious criminal charges.
Understanding tenant’s rights The South African Constitution gives people certain inalienable rights. How do they apply to tenants? 1. Right to fair treatment in law A landlord cannot evict a tenant without going through the correct legal procedures. Unfortunately, some landlords take it upon themselves to involve municipal law enforcement to evict tenants. The Prevention of Illegal Eviction from and Unlawful Occupation of Land Act No 19 of 1998 (PIE) is a key piece
2. Right to adequate housing The Constitution recognises the right to adequate housing as a basic human right. No one’s property may be taken away from them and no one may be evicted from their home without a court order. This means a landlord must apply to court before evicting a tenant from their property.
APRIL 2024 Real Estate Investor Magazine
The court must be satisfied that there is alternative accommodation available to the tenant before ordering the eviction. This can be state housing, as the state has a
LEGAL
duty to provide housing to all its citizens. If the tenant has occupied the property for over six months, PIE does not allow the tenant to be evicted without having first secured alternative accommodation.
3. Right to legal representation The law gives a tenant the right to defend against an illegal eviction if a landlord forces them to leave the premises without appropriate notice. Ownership does not give a landlord the right to evict a tenant without following the correct procedure.
representation during the eviction process. If a tenant cannot afford a lawyer, they can seek assistance from Legal Aid South Africa or a pro bono attorney. Further information regarding Legal Aid is available online or from the Registrar of the High Court.
4. Understanding landlord responsibilities Landlords have a set of responsibilities towards their tenants. Legislation is motivated in part by past abuses and rental housing law ensures tenants cannot be exploited or unfairly treated.
Tenants have the right to legal
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Landlord General Obligations
The landlord has the responsibility to: • Deliver the property to the tenant for their use and enjoyment. The landlord must provide everything necessary for the tenant to use and enjoy the property, for example, keys, remotes, etc. • Maintain the property in good order and condition for the duration of the lease agreement. Correspondingly, the tenant should report any defects in the property to the landlord. • Ensure the tenant’s undisturbed use and enjoyment of the property, i.e., the tenant’s privacy.
Following legal procedures The PIE Act clearly defines the procedure the landlord must follow to evict a tenant. A property owner must not take the law into their own hands, for example by cutting the electricity or water supply to the property or intimidating the unlawful occupier into vacating the property.
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A landlord can only consider eviction in the event of a breach of the lease agreement which the tenant has failed to rectify. If the lease is coming to its natural end and the landlord does not wish to renew it, they simply give the tenant notice to quit per the terms of the lease agreement. This is not eviction.
LEGAL
If the tenant breaches the agreement steps in the eviction procedure are:
1. Notify the tenant of the breach.
•
•
•
•
The landlord must issue a warning to the tenant in writing, giving them a specified amount of time to remedy the breach. This time frame is determined by the terms of the lease. Unless otherwise specified, it is 20 working days, in accordance with the Consumer Protection Act (CPA). The CPA is designed to protect consumers in various transactions, including rental agreements. It sets out specific requirements for notice periods and other aspects of the landlord–tenant relationship. If there is no written lease, the landlord must give a full calendar months’ notice. If the tenant rectifies the breach, the matter is finished. If the breach is not remedied within the designated time, the landlord notifies the occupier in writing that the lease is to be cancelled and gives the occupier reasonable time to vacate the property. The notice period required to cancel the lease, like the time allowed to remedy the breach, is dictated by the lease. If no time frame is stipulated, or in the case of a verbal lease, a minimum of one calendar months’ notice is required (end of the current month to the end of the following month).
2. Apply for a court order.
•
•
If the occupier fails or refuses to vacate the property, despite being given adequate notice, the landlord may approach the court to start the eviction procedure. The court provides the landlord with a date and time for the eviction hearing.
3. Serve notice on the tenant
•
•
Written notice of the eviction hearing must be personally served on the unlawful occupier of the property, as well as on the local municipality. This notice must be served by the sheriff at least 14 business days
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•
before the eviction hearing in court. The notice must indicate the date and time of the eviction hearing, the circumstances surrounding the eviction, and the unlawful occupier’s right defend themselves.
4. The hearing.
•
•
•
At the eviction hearing the court will hear the matter and make a decision whether or not to grant the eviction order. The occupier may defend the eviction. The court will consider factors such as children, elderly or disabled tenants, and woman-headed households, and the availability of suitable alternative accommodation when granting the eviction order. In certain circumstances an order may be granted but “stayed” – delayed – to give the occupier more time to find another home.
Respecting tenant’s rights Landlords must respect the rights of tenants during the eviction process. Harassment or intimidation of tenants is not permitted.
The landlord is not allowed to enter the tenant’s premises or remove doors to speed up the eviction process. The provisions of the Rental Housing Act are clear on the rights of tenants.
The tenant’s rights include the right not to have: • Their person or home searched • Their property searched • Their possessions seized, except by court order
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Balancing rights and responsibilities Evictions are complex processes that require a careful balance between the rights of tenants and the responsibilities of landlords. It is also important to be mindful of ethical considerations, as South Africa has an acute housing shortage at present and a fragile economy.
It is always better to try to resolve disputes through negotiation and, if necessary, mediation. Seeking an eviction order through the courts should be the last resort.
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LEGAL
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TECHNOLOGY
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Navigating the Challenges of Automation in Real Estate
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A Real Estate Agent’s Guide to selling Short- Term rental properties in Cape Town
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TECHNOLOGY
PROPTECH’S REALITY Navigating the Challenges of Automation in Real Estate
BY LORNE HALLENDORFF Former COO HouseMe
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PROPTECH
CHECK:
Using technology to automate processes in the real estate industry is very easy to talk about, but not as easy to do. Effective automation usually requires a certain degree of standardisation, and exception cases are the enemy. While working at a property technology start-up, called HouseME, it became clear that exception cases in the real estate industry are not that exceptional - they are the norm.
In the last edition, Ben Shaw (HouseME CEO), mused on the importance of focus in building a property technology business. However, once you have narrowed your focus, the next step is building the right technology product. As you build, tackling the right exception cases is key, and ignoring the irrelevant edge cases is often just as important.
In this edition, Lorne Hallendorff, co-author of 'The First Kudu,' shares his journey as the COO of HouseME. Currently a key member of the leadership team at Karri, a financial technology business, Lorne offers invaluable insights from his time with HouseME.
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n our book, 'The First Kudu: Building a Tech Start-Up in Africa,' Ben and I delve into a wealth of lessons learned from our journey with HouseME. Below, we extract pivotal insights into the intricate process of developing a technology product: “One evening at HouseME I ordered a dinner delivery to the wrong address. With three saved addresses, I picked the wrong one for the order. I realised immediately after the order was confirmed.
My actual location was about one kilometre away. Surely, I would be able to change the delivery address on the app? Nope, not possible. I phoned the call centre about it. I had to either cancel the order or meet the driver at the location I specified.
I was seconds away from hauling out my ‘I want to speak to the manager’ speech, but thinking about it a little more, I ran through some of the complexities that my imaginary feature would require: a distance limit on delivery address amendments, an allocated time
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for updates, a verification of request, a new price perhaps. Hardly insurmountable, but complexity, for sure.
I also considered how often this likely happened. Probably a fair number of times, but not regularly. Furthermore, for every mistake of a small distance like mine, there were probably mistaken distances of a hundred times as far! Even within the small subset of customers who got it wrong – like me – there would be only a subset of deliveries that could realistically be re-routed without fuss. I picked up my keys and went to find the delivery driver.” Just like in a delivery app, prioritising technology for the majority use-case is critical for consumer-facing tech companies. Even the right customers don’t always behave in ways your engine can accommodate. The reality is that for these problems, technology-led solutions are not always needed.
Tech products constantly evolve. New features are always being added. If you
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clearly communicate your limitations, customers (even the hungry ones) will understand. Refusing certain product feature requests translates into time spent improving the core engine for the tracks you’ve already identified as adding the most value.
At times, HouseME was laser-focused on building for the majority use-case and landlords who privately listed their properties online were delighted by our services. However, the nature of property rentals is each property, and each landlord has different demands. Seldom are two the same and even when they are, they come at different times and for different reasons.
Finding the balance between which exceptional demands to address with technology, and which we needed to ignore, was a constant challenge as we tried to build optimal customer processes for our optimal customers.”
Of course, a key component of
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building a technology product that achieves product-market fit is customer feedback, but it’s not always as straightforward as sending out a survey. In The First Kudu we explain: “‘Yes, I would use your services at that price,’ fibbed the prospective customer on the survey.
All the surveys and market research in the world will never be as good as getting a product into the hands of a customer and seeing what happens. Respondents say one thing in a survey and behave completely differently when engaging with the real thing.
Once you’ve identified your majority use-case, you need to give your solution to customers quickly to get real-life feedback – and a better understanding of whether you have truly provided a solution, or only delivered a shiny feature.
It’s also important to take a holistic view of feedback over time to weed out misguided consumer comments, which do come every so often. There are occasions when the loudest
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feedback turns out to be from a customer or about a very particular detail that is neither urgent nor wide-reaching enough to address.
Sometimes that means that there are customers who are unhappy with what you build. On receipt of negative feedback, it is critical to analyse whether it is a problem that you need to solve, or whether the customer is an outlier, belonging to a minority segment that does
not need to be addressed, or cannot be solved.”
Put another way, elsewhere in the book: “Customers are always right; but not everyone is the right customer.”
Read more of our wins, laughs, losses, and lessons in The First Kudu: Building a Tech Start-up in Africa.
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UNLOCKING INVESTMENT A Real Estate Agent’s Short-Term rental
BY WESLEY ROOS Founder Proply
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SOFTWARE
SUCCESS: Guide to selling properties in Cape Town
Welcome to our Real Estate Agent’s Guide to Selling Short-Term Rental Properties in Cape Town. With the rise of the sharing economy, short-term rentals have become a lucrative investment opportunity for many property owners. Cape Town, with its beautiful landscapes and vibrant culture, is a prime location for travelers seeking unique and memorable experiences.
According to Property 24, in 2023 Cape Town was still trending upwards in all sectors, unlike most other parts of the country which were described as ‘sluggish’. This has much to do with the fact that Cape Town is one of the top travel destinations worldwide, with masses of foreigners flocking into the Mother City each summer season and requiring short-stay accommodation.
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s a real estate agent, tapping into this market can not only increase your ability to make more sales but also help you establish a reputation as an expert in the field. In this guide, we will explore effective strategies and essential tips to help you sell more shortterm rental properties in Cape Town. So, whether you’re a seasoned agent or just starting out, this investment guide is your key to success in the ever-growing short-term rental market.
Understanding Benefits of Short-Term Rentals for Real Estate Agents Real estate agents are always searching for innovative ways to sell more properties and stay ahead in a competitive market. In recent years, short-term rentals have emerged as a game-changer in the industry. By embracing the rising trend and leveraging the right Airbnb insights, real estate agents can open a whole new avenue for more sales and increased profitability.
One of the key benefits of specializing in short-term rentals for real estate agents is the ability to make more sales by providing
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clients with the right insights. With the booming Airbnb market in Cape Town, more and more prospective buyers are looking towards short-term rentals to maximize their yield. As a real estate agent who specializes in short-term rental sales, you are positioning yourself as a key player in the market. However, to do this, you will need all the right data.
We know it’s not always easy getting the right data, and once you have all the right data, how do you analyze it? Well luckily for you there are tools available, like Proply Insights, that allow anyone to analyze any short-term rental investment property quickly and easily. With these insights you will be able to provide comprehensive insights to both the seller and the buyer, accurately advising your clients on both the asking and offer price. You will be able to provide them with accurate investment metrics like yield, annualized cash flow, return on investment, and the forecasted performance of any potential Airbnb property.
Learning how to market any short-term rental property effectively could be a game-
SOFTWARE
changer for real estate agents. By understanding the benefits, leveraging the right Airbnb insights, and adopting a datadriven approach, agents can not only increase their sales but also provide an enhanced customer experience. So, if you’re a real estate agent looking to expand your business and reach new heights, it’s time to consider the power of short-term rental property analysis.
Key Factors to Consider when Listing & Selling Short-Term Rental Properties in Cape Town Focusing on short-term rental properties has become increasingly popular in recent years with real estate agents, as more and more investors recognize the potential for higher profits compared to traditional long-term rentals. However, to stand out in a competitive market and attract the right guests,
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several key factors need to be considered, and understanding this as an agent will be crucial to your success.
Firstly, selling more properties relies on effective marketing strategies. It’s essential to present your client’s property in the best possible light through highquality photographs, detailed descriptions, and a strong online presence. Be sure to list all the relevant details like the rates & taxes, levies, and square meterage. You might want to also include the potential performance
of any potential Airbnb property, like the nightly rate and occupancy. Further to this, don’t forget to list the potential gross and net yield. Yield is a great way to quickly measure any property’s ability to generate income in proportion to the purchase price. Don’t worry if you don’t know how to do these calculations, Proply Insights will do this for you.
This type of empowering data can greatly contribute to the success of your short-term rental listings. By utilizing data analytics tools, real estate agents and property
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SOFTWARE
owners can gain valuable insights into guest preferences, booking patterns, and market trends. This information can guide decisions regarding pricing, property amenities, and marketing strategies, ultimately leading to maximising your client’s investment. As a real estate agent, having this data is a game-changer and your clients will treat you like a true property investment expert. Also check out an Introduction to Investing in Short-Term Rental Properties in Cape Town.
In conclusion, selling short-term rental properties in Cape Town requires careful consideration of various key factors. From implementing effective marketing strategies to communicating the right investment metrics and by leveraging data insights, real estate agents can increase their chances of success in a competitive market. By continuously evaluating and adapting their approach, they can sell more properties, maximize their client’s investment, and ultimately achieve greater success in the short-term rental sales market in Cape Town.
Marketing Strategies to attract Short-Term Rental Investors When it comes to attracting shortterm rental investors, marketing strategies play a crucial role in showcasing the potential of your client’s property. Maximizing your client’s investment is the goal, and with the right insights you can empower your clients with the right data allowing them to invest with confidence. While Proply Insight will give you the edge to further stand out from the competition make sure you have a well-thought-out marketing plan that emphasizes key selling points.
One of the most important aspects of marketing a short-term rental property is transparency. Investors want to know exactly what they’re getting into, so providing detailed and accurate information about the property is essential. This includes clear descriptions of amenities, accurate photographs, and thorough information about the location. By being transparent, investors can make informed decisions and feel confident about their investment.
In addition to transparency, another effective marketing
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strategy is to highlight the unique features and selling points of the property. Whether it’s a stunning view, a prime location, or luxurious amenities, showcasing what sets your property apart from others can greatly attract investors. This can be done through professional photography, virtual tours, and descriptive language that captures the essence of the property.
Lastly, leveraging online marketing channels is crucial in today’s digital age. Utilizing social media platforms, creating, or making sure your agency has a visually appealing website, and engaging with potential investors through email drip-marketing are all effective strategies to attract shortterm rental investors. By reaching the right target audience through targeted advertisements and actively promoting the property online, you can significantly increase your chances of attracting investors who are interested in maximizing their investment. Furthermore, add all the right investment metrics onto this like potential yield, annualized return, cash flow, return on investment, and more, and you’re well ahead of the rest.
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In conclusion, marketing strategies that focus on transparency, highlighting unique features, leveraging online channels, and providing all the relevant investment metrics are essential in attracting short-term rental investors. By providing accurate information, showcasing key selling points, and utilizing digital marketing techniques, real estate agents can maximize their sales potential and stand out in the competitive short-term rental sales market.
Leveraging Technology to streamline selling Short-Term Rental Properties in Cape Town Real estate agents should be leveraging every tool at their disposal to give themselves the competitive edge. Proply Insights, for example, can help a real estate agent make more sales by having all the data to provide to their clients. By leveraging the technology of Proply Insights and Proply Reporting, agents can increase the level of transparency between buyers and sellers, ultimately leading to a fair deal, and in the long run, helping the real estate agent to close more deals. Additionally, technology has made it easier for agents
SOFTWARE
to communicate and negotiate with clients. With the availability of platforms like Proply Insights that provide all the necessary investment metrics to make an informed decision, agents can negotiate with and on behalf of their clients with increased levels of confidence.
Mastering the market: Strategies to Boost Sales of Short-Term Rental Properties in Cape Town In conclusion, technology has revolutionized the real estate industry, providing agents with the tools they need to excel in their profession. Platforms like Proply have proven to be game changers, enabling real estate agents selling short-term rental properties in Cape Town and better serve their clients. By leveraging these platforms, agents gain access to a vast array of data, allowing them to provide valuable insights to both sellers and buyers.
agents can access real-time data, analyze market trends, and make informed recommendations to their clients. This not only enhances your credibility but also empowers your clients to make confident and strategic investment decisions.
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Hopefully this real estate agent’s guide to selling short-term rental properties in Cape Town has given you a data-driven approach that caters to the demands of today’s digital age. Through platforms like Proply,
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Exploring the shift to Hybrid Work and Client Innovation in a Remote Environment
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Commercial Property Crunch: How mismanaged Municipalities impact demand and investment
The future is experienced: how to adapt to the ageing workforce
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EMBRACING CHANGE: to Hybrid Work and Remote Environment
By Editorial
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COMMERCIAL
Exploring the shift Client Innovation in a
As companies realise they no longer need oldfashioned, sprawling office spaces, a network of flexible workspaces that complement a central HQ can give the best of both worlds
One of the silver linings of the pandemic is that companies are discovering new ways of working that reduce inefficiencies such as long daily commutes, expensive offices at prestigious addresses, and large amounts of space with unoccupied desks.
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he Covid-19 pandemic in 2020 triggered an unprecedented shift in traditional work dynamics, compelling many sectors to swiftly adopt remote work as a necessity. While some employers initially embraced remote work arrangements, a notable trend towards returning to the office has emerged, albeit not universally embraced, particularly in smaller businesses.
Despite a push for full office returns by some employers, others advocate for maintaining remote or work-from-home policies. For those seeking a middle ground, the hybrid working model offers a promising compromise.
According to KPMG’s Southern African 2023 CEO Outlook, 72% of Southern African CEOs express support for a return to in-person/ onsite work within the next three years, citing benefits such as increased productivity, enhanced connection, and talent retention. However, 28% of CEOs remain proponents of hybrid or remote working approaches.
Yet, employees still appear reluctant to fully embrace the
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return to office culture. Nedbank highlights the benefits of remote work, including flexible schedules, reduced commute stress, and improved productivity due to fewer distractions.
Furthermore, the rise of remote or hybrid work is reshaping the real estate sector, with an increased demand for homes accommodating home offices and promoting work-life balance. However, the shift to remote work is not without challenges. Employees report diminished collaboration, increased loneliness, and struggles to disconnect from work. Studies indicate that
while remote work may enhance efficiency, it can compromise creativity, innovation, and interpersonal relationships.
The hybrid model, allowing for a blend of remote and office work, emerges as a potential solution, offering the advantages of both worlds. McKinsey & Company's research suggests that companies adopting this model experience improved productivity, employee satisfaction, and diversity.
Nedbank South Africa, an early adopter of the hybrid model, remains committed to its implementation. Recognising the value of both remote and in-person engagement, the bank continues to refine its hybrid practices to cater to the evolving needs of its clients, employees, and business objectives. While the return to office may be favoured by some, the hybrid approach represents a balanced strategy, ensuring flexibility, productivity, and employee well-being in a rapidly changing work landscape.
That isn’t to say that a physical HQ is no longer needed but rather, as the hybrid working model continues gaining traction across
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the globe, businesses are seeing the benefits of re-evaluating their workspace strategies to better suit the way their teams are actually functioning.
entire team and instead pursuing solutions that allow a business to increase or decrease the amount of space it is using in line with its changing needs.
The rise of hybrid working A hybrid working model means employees can divide their working hours between a local flexible office space, the company’s headquarters, and working from home.
Unlike traditional office leases – where fixed, lengthy terms are common – flexible workspace gives companies the freedom to increase or decrease their workspace portfolio as required, which makes sense at a time when companies are responding to their employees’ requests to work from anywhere.
Hybrid working answers the call of employees – 85% of whom want to work in a hybrid manner from now on rather than returning to the office full time. It also creates an opportunity for a more streamlined, sustainable and bespoke approach to corporate real estate – one that makes much better business sense than simply doing what’s been done before.
Essentially, it’s about redistributing company office space away from a single, centralised headquarters and making use of flexible workspace closer to where their employees actually live.
This may mean downsizing the former HQ with a capacity for the
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A sustainable solution As companies are identifying strategies for operating more sustainably, there are several ways a hybrid office model supports this – starting with its impact on commuting culture. According to Numbeo, one of the world’s largest databases of user-contributed data, the average South African travels 22km one-way.
Using the time it takes to travel 10km, according to TomTom, motorists in each city spend between 22 and 35 minutes on the road. A survey conducted by Statistica corroborates these times. The survey involved 2,032
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respondents, who answered the question, “On average, how long is your daily commute to work/ school/university (one way)?”
The responses showed that most South Africans listed their daily commute from 15 to 29 minutes (36%) and 30 to 59 minutes (25%) excluding traffic jams. By removing the need for the entire team to commute every single day through hybrid working, a business drastically cuts down the collective carbon footprint of its employees.
Also, by only using the amount of workspace it actually needs, a company avoids wasting light, heating, water and other resources, which translates into significant cost savings, too.
The Solution - Rethinking Workspaces: Embracing the Hybrid Model for a Sustainable Future In the wake of the Covid-19 pandemic, businesses are reimagining traditional office setups, recognizing the inefficiencies of sprawling headquarters and lengthy commutes. This shift has paved the way for a hybrid approach to work, offering the best of both worlds: flexibility and collaboration.
As companies are fervently seeking ways to reduce burnout among their teams and improve people’s mental health, hybrid working is a compelling option.
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Surge in Luxury Property drives Mauritius foreign direct investment inflows to $503 Million
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DUBAI's RED-HOT RENTAL MARKET: Prime Investment Opportunities Unveiled
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UNLOCKING INTERNATIONAL Your Guide to Offshore Investment and
By Editorial
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OPPORTUNITY: Property Relocation Abroad
As more South Africans explore international opportunities, the narrative of mass emigration might be overstated. Many are seeking to diversify their investments abroad and enhance their global mobility without necessarily severing ties with South Africa. This trend, known as investment migration, allows individuals to build offshore assets, hedge against currency fluctuations, and potentially acquire second citizenship or residency.
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ichard Haller, MD of Sable International's Offshore Real-Estate and Investment Migration division, emphasises that investing abroad isn't just about financial diversification; it's also about gaining the flexibility to navigate global opportunities while maintaining connections to home.
For those considering future moves or investments abroad, early planning is crucial. Whether it's securing a top-notch education for your children in the UK or exploring lucrative Golden Visa programs in Portugal or Greece, strategic planning over an extended timeframe is essential. Here are some popular options for Saffers to look at.
Portugal Golden Visa Renowned for its pathway to EU citizenship without requiring physical relocation, the Portugal Golden Visa program continues to attract global interest. Although real estate is no longer a qualifying option, the program remains the premier avenue to citizenship in an EU country.
At Sable International's Offshore Real-Estate and Investment Migration division,
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we've witnessed remarkable
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investment fund option. Led by Richard Haller, Managing Director, our division has seen a surge in interest due to the fund's liquidity and robust returns.
Our partners offer a Golden Visa Program-qualifying investment option comprising a balanced fund featuring strong Portuguese-listed equities and bonds, delivering a Eurobased return. While the fund targets a 5% annual return, it has consistently outperformed expectations, achieving an impressive 10.6% annual return over the past 30 months.
One of the key advantages of this investment is its full liquidity. In the event of unforeseen circumstances or a change in plans, investors can liquidate their investment within five days without penalty, freeing them from exit costs.
With this fund option, clients not only qualify for the Portuguese Golden Visa but also gain access to EU citizenship, diversify their investment portfolio into a robust Euro-based asset, and earn competitive returns. It truly offers the best of both worlds.
enthusiasm for the program's
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Greece Golden Visa Greece, acclaimed as the bestperforming economy for the second consecutive year, is experiencing a remarkable resurgence under the strategic leadership of Prime Minister Kyriakos Mitsotakis. As highlighted in The Economist, Greece has transcended its status as an underdog to emerge as a leader, outshining economic giants like the United States, Japan, China, and Germany.
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Amidst this economic renaissance, Greece's Golden Visa program presents lucrative investment opportunities. Offering high rental yields and visa-free travel within the Schengen area, the Greek Golden Visa is a gateway to European residency and, ultimately, citizenship.
Prime Minister Mitsotakis has recently announced potential revisions to the Golden Visa program, with the investment
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requirement potentially increasing to as high as €800,000. Despite this, investing in Greece remains an astute decision, offering investors the chance to be part of one of the world's top economies. Now is the time to capitalize on this golden opportunity and become part of Greece's exciting journey towards prosperity. With Mitsotakis leading the charge, Greece's star is on the rise, making it the perfect moment for investors to make their move.
Mauritius For South Africans seeking a convenient option closer to home, Mauritius offers an enticing opportunity. With permanent residency available through a modest investment and a plethora of lifestyle benefits, Mauritius stands as a beacon of economic prosperity, sustainability, and political stability.
The island nation is experiencing a surge in investment, business
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setups, and the employment of professional skills, driving demand across various sectors including residential property, shopping malls, medical facilities, education, and industrial and commercial property. It's an exciting time indeed to become part of the investor-friendly Mauritius.
Mauritius is actively fostering innovation to attract investment and professional skills to realize its ambitious growth strategy for the next 15-20 years. Notably, the financial and technology sectors
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are witnessing remarkable upward movement, while steady growth is observed in the construction and property sectors. Permanent residency investors, with investments starting from EUR 375,000, contribute to this growth alongside those investing in properties offering excellent rental income.
Moreover, Mauritius offers an attractive retirement residency scheme for non-citizens, coupled with appealing business tax
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benefits and personal tax incentives, further driving property rentals. Investors stand to benefit from this conducive environment for investment property.
Other popular destinations Beyond these, destinations like the UK and Germany offer great offshore property investment opportunities while other countries such as Malta, the US, and Grenada offer diverse opportunities for residency and citizenship by investment, each with its own set of requirements and benefits.
As interest in offshore wealth and relocation grows, it's imperative to start planning early. Rushing into decisions can lead to complications in managing investments and visa applications.
At Sable International, we understand that each individual's circumstances and goals are unique, and we're here to guide you through every step of your international journey.
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Continued Work or Plan? - 10 Aspects for a comfortable future
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Is your Complex suffering from a leaky maintenance, repair and replacement plan?
Property development gets a welcome boost on the KZN South Coast
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MODERN RETIREMENT Continued Work or for a comfortable future
By Editorial
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LANDSCAPE: Plan? – 10 Key Aspects
In today's rapidly changing world, the traditional concept of retirement is evolving. Many individuals are choosing to continue working beyond the traditional retirement age for various reasons. This trend reflects shifts in societal attitudes, economic realities, and personal preferences.
One significant factor driving the desire to continue working is the increasing lifespan and improved health among older adults. With longer life expectancies, people are realising that retirement doesn't necessarily mean withdrawing from the workforce entirely. Instead, they see it as an opportunity to pursue new interests, remain mentally and physically active, and continue contributing to society in meaningful ways.
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inancial considerations also play a significant role in the decision to work past the traditional retirement age. In an era of economic uncertainty and rising costs of living, many individuals find it necessary to supplement their retirement savings with additional income from work. This is especially true for those who may not have saved enough for retirement or who experienced setbacks such as job loss, health issues, or unexpected expenses.
to this question.
However, it's essential to recognise that the decision to continue working in retirement is a personal one and may not be feasible or desirable for everyone. Some individuals may face health challenges or caregiving responsibilities that make continued work difficult. Others may have the financial means to retire comfortably and choose to do so to focus on leisure activities, travel, or spending time with family and friends.
This concerning trend is primarily attributed to the absence of a savings culture, along with other contributing factors such as a lack of retirement planning or insufficient funds for retirement. Brad Winstanley, Commercial Director at Devmco Group charged with developing the popular retirement village within Salta Sibaya estate, explains, “Although the prospect of saving may seem daunting, planning ahead of time for retirement ensures that the lifestyle you desire at the end of a hard-earned career can be truly fulfilled.”
The amount of money needed to retire varies greatly depending on individual circumstances such as desired lifestyle, retirement age, expected lifespan, healthcare costs, inflation, and investment returns. There's no one-size-fits-all answer
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Retirement planning is more crucial than ever for South Africans. According to an article by Daily Investor, 89% of South Africans plan to work part-time post-retirement due to insufficient savings, with 40% relying on asset sales, family support, and social grants to maintain their lifestyle.
This raises a critical question: How much do we really need to retire?
According to Fidelity Investments indicating that in 2023, the general guideline for retirement planning suggests saving ten times your
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income to comfortably retire by age 65 while sustaining your present lifestyle. This benchmark is flexible and can be tailored depending on whether you aim to retire earlier or later.
As the question of how much one needs to retire remains subjective, it is crucial to consider these important aspects to be comfortable.
Decoding Retirement: Ten Key Aspects for a comfortable future
1. Retirement Goals: Define your retirement goals, outlining the desired lifestyle and financial objectives. 2. Anticipated Expenses: Calculate anticipated expenses, considering factors like housing, healthcare, and inflation 3. Current Financials: Assess your current financial situation by evaluating savings, investments, and debts. 4. Realistic Budget: Develop a realistic budget that aligns with your retirement goals. 5. Emergency Fund: Create an emergency fund for unexpected expenses. 6. Healthcare Budget: Research and plan for healthcare costs, including health insurance premiums. 7. Income Sources: Understand potential income sources, such as pension benefits or property investments. 8. Investments & Tax: Strategically invest your portfolio and consider the impact of taxes on your retirement income. 9. Inflation effect: Be mindful of inflation’s effect on purchasing power. 10. Finance Reviews: Regularly review and adjust your retirement plan to adapt to changing circumstances.
However, the journey to retirement in South Africa is far from standardised. Winstanley points out, “The path to retirement is unique for each individual, with the required retirement fund based upon personal circumstances,
aspirational goals, and an array of external factors, including lifestyle choices, health considerations, inflation rates, and anticipated investment returns.
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BROKERING
DOING MORE TO MAXIMISE YOUR RETURN
SHARED VALUE
BROKERING
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Droughts & Flooding - Two Sides of the Same Coin
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UNDERSTANDING CLIMATE Droughts & Flooding - Same Coin
BY KAREN KING Climate Resilience Director Royal HaskoningDHV
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CHANGE: Two Sides of the
Climate change policymakers should be addressing droughts and floods as two sides of the same coin, rather than separate phenomena. As changes to weather patterns become increasingly visible, the interplay between the two – and how their impacts feed off and intensify each other – must be critical in how we develop climate resilience.
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isible impact Cape Town’s narrow avoidance of day zero in 2017 should have been a once-ina-century event. Instead, climate change has made it three times more likely. Similar patterns apply to the 2022 floods in Durban, the most catastrophic natural disaster ever recorded in KwaZulu-Natal. Studies have found that climate change has doubled the likelihood of extreme rainfall occurring — from once every 40 years to once every 20 years.
Risk and mitigation The risks this poses for water management are significant.
Too little water for human consumption and sanitation leads to disease, and insufficient
As the cycle repeats itself, the impacts get worse, decimating large areas and severely affecting the communities living in them.
Climate change is leading to prolonged periods of drought and more frequent highintensity rainfall. The periods of drought are affecting agricultural yield, interrupting business operations, and impacting natural environments. They’re also leading to a deficit in soil moisture and to extensive vegetation loss, which leaves soil vulnerable to erosion when the rains return. When this happens, the soil ends up in dams and rivers as sedimentation. This, in turn, decreases the storage capacity of the dams, so that when the next drought hits, we have less stored water available to mitigate against its effects.
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water to support agriculture threatens food security. Changes in flooding events also decreases the flood immunity of infrastructure, increases the budget required for repair costs, and exacerbates erosion, which diminishes arable land.
Rural areas are particularly vulnerable, as subsistence crops fail, and inadequate infrastructure
sustains damage. This destabilises communities, triggering social unrest and intensifying migration to urban and peri-urban areas, which then adds further pressure on urban infrastructure. Maintaining and re-evaluating existing water infrastructure – such as desilting dams and clearing storm water drainage systems – is critical to ensuring our resilience to these drought
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and flood cycles. Infrastructure that is designed for a once-ina-century or a once-in-50-year event will fail as these events occur more frequently.
Drought and flood policies must consider factors beyond mitigating against damage, and human consumption and production needs. They must investigate how we can create enabling environments and encourage water stewardship, too.
What policymakers should be considering? In late 2023, South Africa’s National Assembly passed the long-awaited Climate Change Bill, which seeks to enable an effective response to climate change and ensure a just transition to a low-carbon, climateresilient society. As government continues to enact policies, more detailed attention to drought and flood policies is required.
There are some unique challenges that policymakers must consider. First, South Africa is a semi-arid country, one that has already lost a third of its farms to water scarcity since the 1990s. Second, South Africa is the most unequal society in the
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world, and new policies must account for the most vulnerable members of society, who are typically affected by disasters the most. Lastly, in addition to developing world-class policies, we need to implement them effectively, too.
Updating some of our policies and frameworks to enable climate resilience should incorporate two key concepts: creating enabling environments and encouraging water stewardship.
Creating an enabling environment through policies is one keyway to facilitate effective implementation. We’ve seen how lifting the private energy generation cap and offering tax incentives for private solar installations has increased the uptake of solar installations in South Africa. Effective drought and flood management policies would do well to enable private businesses and individuals to be part of the solution.
Encouraging water stewardship through policies is key because it acknowledges that human behaviour lies at the heart of effectively implementing climate
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policies. If we don’t change the way we use, manage and care for water resources, we’re unlikely to see an impact. Insights from behavioural science should inform new and updated policies as a means of helping South Africans play a role in facilitating the country’s climate change transition.
As we examine, amend, and execute our policies, it’s critical that we view droughts and floods as interrelated issues. This holistic perspective can help to ensure that the changes we make are sustainable, inclusive, and impactful despite the unpredictable future we face.
LEARN MORE
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Unlocking Data: SAMRRA paves the way for Investment in new asset class - Multifamily Residential Properties
SAMRRA, the South African Multifamily Residential Rental Association, is heralding a new era of institutional investment in multifamily residential properties in South Africa. Backed by comprehensive research conducted by MSCI, this initiative aims to unlock the potential of this burgeoning sector by providing essential data and insights to investors.
Multifamily residential properties, characterized by built-to-rent housing units such as apartment buildings and housing complexes, have emerged as an attractive asset class due to their stable performance, low volatility, and promising returns. SAMRRA's ground breaking research, sponsored by ABSA and Divercity Urban Property Group, sheds light on the potential of this sector in South Africa, which is still in its nascent stage but holds significant growth prospects.
The research findings, unveiled at SAMRRA's national roadshow in Cape Town
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RESEARCH REPORT
Myles Kritzinger, CEO of SAMRRA, emphasizes the importance of building a robust knowledge base to support local institutional investors in understanding this asset class.
Globally, residential real estate constitutes a significant portion of fixed capital, indicating its prominence as an investment avenue. Over the years, institutional investors have increasingly allocated funds to multifamily residential assets, drawn by their consistent performance and relatively stable income streams. In South Africa, although the multifamily residential sector is still in its infancy, the research indicates its potential for growth, especially in the context of the country's strong residential property market.
Key stakeholders, including Carel Kleynhans of Divercity and Amelia Dieperink of Absa, acknowledge the value of well-developed and managed residential portfolios, particularly in addressing the pressing need for housing delivery in South Africa. SAMRRA's launch marks a significant milestone in representing and promoting the multifamily residential rental real estate asset class, with its founding members collectively representing substantial property assets across the country.
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DISCOVERING LUXURY REAL ESTATE: Delving into the Art of Transactions & Mile in 'Listing Cape Town Season 2’
To showcase the region’s most luxurious lifestyles, BBC Lifestyle has announced the season two premiere of its hit property-themed reality TV show – Listing Cape Town.
The latest season will air from Wednesday 3rd April at 20:00 only on DStv channel 174 and promises to captivate audiences with a view of opulent homes across the region including the Cape Winelands and Bishopscourt area, as well as a much-anticipated glimpse into Cape Town’s exquisite Millionaire’s Mile properties.
Cape Town’s luxury residential market has distinguished itself in the global real estate industry with an annual growth of 12.3%*, outpacing global trends and drawing a wave of local and international interest.
Listing Cape Town producers Nico Nel and Trevor Kaplan say this eagerly anticipated season ups the stakes significantly with ten new episodes showcasing jaw dropping properties valued up to an astonishing R280 million.
“This season shines spotlight on the Mother City’s Millionaire’s Mile, a stretch of road between Clifton Second Beach and Camps Bay renowned for its soughtafter mega-flats representing the pinnacle of luxury and exclusivity,” they add.
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In addition to featuring manicured stud farms in and around the Cape Winelands and breath taking beach bungalows, season two also introduces some fresh faces to the team of dynamic and professional property agents featured through the series.
"We’ll also take viewers on the exhilarating rollercoaster ride the property agents must endure as they navigate the competitive Western Cape property market to close deals running into the hundreds of millions," adds Nel and Kaplan. “
A guided tour of Cape Town’s iconic heritage, Nettleton Road, and the Millionaire’s Mile The second season of Listing Cape Town will pay homage to the architectural legacy of Herbert Baker, featuring several of his iconic homes. These historical gems are nestled among an array of properties, including a R150 million Franschhoek wine farm currently on the market. The season also highlights Bishopscourt, a wealthy location attracting numerous foreign and local buyers, especially those looking to relocate from Johannesburg and Durban.
Viewers can expect a rich variety of ocean-view apartments, city-style living, suburban homes, and Cape
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Wineland's properties. Among the eye-catching properties is a listing on one of Africa’s most valuable streets, Nettleton Road, known for its ultraluxurious properties and breath-taking views.
Unveiling the secrets behind Cape Town’s most coveted properties Nel and Kaplan expressed their excitement about highlighting Cape Town's beauty and the intricate process of brokering deals in such a high-stakes market.
Meet the Estate Agents
Byron Louw (RE/MAX) Byron’s real estate journey began at Durr Estates selling property on the Atlantic Seaboard for five years. In 2020 he started at RE/MAX, and has achieved many significant milestones with the company (including being awarded the #1 selling agent from a total of 185 agents at RE/MAX Property Associates franchise).
Outside of his career, Byron enjoys spending time with family, playing Padel, commercial and fashion modelling, exploring unique culinary spots or wine tasting at the stunning vineyards Cape Town has to offer.
BYRON’S TRACK RECORD OF SUCCESS Byron’s most expensive sale: In 2019, a development for R62 million Byron’s smartest listing: A modern home in Clifton that had a smart shower with voice activation through Amazon Alexa and an electronic coffee machine that you can start remotely from your phone. Byron’s most unique feature seen this season: Hidden bar in the Green Point house Byron’s average client: University professors, medical professionals, young professionals 30 - 35yrs Byron’s biggest challenge: As a solo agent, splitting myself in 2 at times proves to be a juggling act Byron’s 3 tips to an aspiring agent: 1. Be able to financially sustain yourself for +-6 months when starting out 2. Try not to limit yourself to a specific selling area (you never know where you could excel 3. Treat every client with the same respect.
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Open page 135 in the magazine →Jonathan Tannous & Kim Tresfon (Pam Golding Property Group) Born in Johannesburg and now living in Cape Town, Jonathan Tannous has been in real estate for eight years and Kim, born and raised in Cape Town are part of the Pam Golding Property Group and specialise in the Bishopscourt, Kenilworth Upper and Claremont Upper areas of Cape Town.
“We work as an equal team and have different strengths which complement each other and makes a successful partnership. Kim is born and bred in Cape Town and lives in the area and is well connected locally. Jonathan is from Joburg and has a network of buyers emigrating down to the Cape, so works well. We are both from Psychology backgrounds which has equipped us well in this Industry as it is all about people.”
JONATHAN & KIM’S TRACK RECORD OF SUCCESS Jonathan and Kim’s most expensive sale: R93 million Jonathan and Kim’s smartest listing: European underfloor heating water system, all lighting sound controlled by phone, rotating solar panel dish which follows the sun, off the grid water purification system, double glazing energy efficient Jonathan and Kim’s most unique feature seen this season: The home Spa, Games room and cinema, Wine sellers and Gyms at some of our listings Jonathan and Kim’s average client: International, corporate, entrepreneurs Jonathan and Kim’s biggest challenge: Never switch off Jonathan & Kim’s top 3 property industry trends to watch in Cape Town? 1. Prices going up because of demand 2. Increase in developments and security estate and sectionalization of larger properties, higher density 3. Increase in semigration from Durban, PE, Jo’burg and international investment Jonathan and Kim’s 3 tips to an aspiring agent: 1. Become a good listener really hear your clients 2. Maintain honesty and integrity at all times 3. Learn from the deals that don't work and channel your energy on evolving and growing from each experience
DISCOVERING LUXURY REAL ESTATE
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Returning agents from Season 1
Jodi Smith (Hot Property contracted to Hardie Property CPT) Jodi Smith was born in Johannesburg and grew up in Cape Town, having lived in Sea Point, Camps Bay and Bantry Bay on the Atlantic Seaboard. She completed a BA degree in Creative Brand Communications and went on to work in the film industry as a chaperone to the stars and A-List celebrities on Hollywood productions being filmed in South Africa. In 2018, Jodi joined forces with her business partner and mother, Monica Kruger. Together their focus has been on the luxury property market along Cape Town’s prestigious Atlantic Seaboard.
JODI’S TRACK RECORD OF SUCCESS Jodi’s most expensive sale: A R140m Clifton property. Cash sale. Jodi’s smartest listing: A basement nightclub designed for 250 people with top-notch soundproofing. Jodi’s most unique feature seen this season: A 14 car basement garage! Jodi’s average client: As a specialist in rentals and sales, my clientele is diverse. While I engage with a variety of clients, a significant portion of my sales involve international cash buyers. On the rental front, a majority of recent transactions have been with South African semigrators, along with international tenants. Jodi’s biggest challenge: Patience is key—avoid pressuring clients. Additionally, there's a misconception that being a realtor is easy, but in reality, it's quite the opposite. Jodi’s joint listings: I share on all my listings. The priority is to sell each property at the highest price, in the shortest amount of time, whether on my own or with other agencies. I expect the same from those who have the listings and I bring a buyer, which is normally the case. Jodi’s top 3 property industry trends to watch out for in Cape Town? 1. Investing in off-plan properties for profitable resale upon completion. 2. Purchasing off-the-grid properties with independent electricity and water supply. 3. A rising demand for eco-friendly homes, waterfront properties, and smart home technologies.
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Renée Lister-James (Chas Everitt International Property Group) Renée Lister-James, born in Port Elizabeth and raised in Durban, began her career in Public Relations, Communication and Experiential Marketing where she ran her own incredibly successful PR agency for 15 years, handling the publicity and production for some of the biggest concerts (from Michael Jackson to Def Leppard and more).
Renée wanted to offer her husband and two sons a more holistic life and so moved from Durban to Cape Town, where they settled in to Franschhoek. Her venture in the property industry was so successful that the bug soon bit and she joined Chas Everitt International Property Group full-time, boasting a record-breaking 3 year journey with the estate agency. She bought her first property at 21 years old and has owned over 27 properties in her lifetime.
RENEE’S TRACK RECORD OF SUCCESS Renée’s most expensive sale: I’ve just sold a farm marketed at 95m in Franschhoek. It was an incredible journey and the new owner is delighted with his purchase. Renée’s most unique feature seen this season: Certainly Selwin Chatz’s property. Unique, stylish and out of this world. His collection of cars is truly special and the car garage as a feature on his property was incredible. The home was just as impressive with attention to detail, beautiful interiors and stunning architecture. Also the “war room” on the beautiful 1 hectare farm in Franschhoek. The wine cellar in the war room was amazing. Renée’s average client: My average client is a local looking to upgrade and make a lifestyle change, closer to schools and more convenient but also an ever growing demand from international buyers for lock up and goes. These international buyers will then come down a couple of times during the year to enjoy the Country. Renée’s biggest challenge: I think dealing with people generally. Always having to be on top of your game and “match” a client with that perfect property. It’s the most rewarding aspect of my job when a client falls in love with a home! Renée’s 3 tips to an aspiring agent: 1. Listen to the needs of your clients
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2. Always ask questions 3. Offer suggestions on alternative property solutions so you can find them that perfect home
Armel Ciamala (Law Real Estate) Congolese born, and raised in Johannesburg, Armel Ciamala spent over eight years in banking and decided to throw his hat into the real estate arena servicing the Northern Suburbs of Johannesburg as an agent at Law Real Estate.
Through a previously serviced client, he got the opportunity to help this client find his dream home on the Atlantic Seaboard (Cape Town) and considered making the decision that would change his life. With ambitions to challenge the real estate status quo on the Atlantic Seaboard, he attributes his success to discipline, consistency and of course being surrounded by an excellent team.
Saadiq Effendi (LIONLEAD Realty) Saadiq Effendi is the Founder and CEO of LIONLEAD, a black owned Real Estate agency situated in De Waterkant, Cape Town. Saadiq has been very successful with dominating his markets and which led him to becoming a Platinum Achiever for 2017/2018 and then a Diamond Achiever 2018/2019 financial year. These accolades go hand-in-hand with record breaking sales, for the “Most Expensive Home” Sold in Green Point and “R90 Million SOLD” in the 2018/2019 financial year.
His dream was always to own and operate his own real estate agency. This is how LIONLEAD Real Estate was born. In his spare time he enjoys training at the local gym, playing squash and reading non-fiction books that relate to biography’s, business and psychology. Saadiq is a refined and detailed orientated person - this can be seen in his fashion and interior design style.
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Don't miss the premiere of ‘Listing Cape Town Season 2’ on Wednesday, 3rd April at 20:00, exclusively on BBC Lifestyle, DStv Channel 174.
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Creating Wealth with Student Accommodation in South Africa" by Retha van Rooyen
Entrepreneur and real estate investor Retha van Rooyen's latest book, "Creating Wealth with Student Accommodation in South Africa," is a game-changer for anyone interested in the lucrative yet often misunderstood world of student property investment. Through her own journey with My Student House, van Rooyen showcases not only her entrepreneurial spirit but also her keen insights into the potential of student accommodation as an investment avenue.
Despite the perceived risks associated with student accommodation, van Rooyen argues convincingly that with the right approach, it can offer substantial returns and be easier to execute than other property strategies. Drawing from her own experiences, she provides a comprehensive step-by-step guide on owning and managing student accommodation properties. From property identification to room furnishing, budgeting, marketing, and handling contracts and evictions, van Rooyen leaves no stone unturned.
What sets this book apart is its no-holds-barred approach. Van Rooyen shares invaluable insights and practical advice, making it a must-read for anyone considering entering the student accommodation market or looking to scale their existing portfolio. Whether you're a novice investor or a seasoned property mogul, this book equips you with the knowledge, strategies, and shortcuts to navigate and succeed in this often overlooked but highly profitable sector.
In summary, "Creating Wealth with Student Accommodation in South Africa" is a pioneering resource that fills a crucial gap in the market. Whether you're curious about student accommodation or ready to take your investment game to the next level, this book is your roadmap to exponential wealth growth in this BUY NOW dynamic industry.
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Open page 141 in the magazine →A coast al oasis cr aft ed b y nature HOMES FR OM R 2 00 0 00 | LAN D F R OM R 460 000
THE MOST SECURE LUXURY LIFESTYLE ESTATE
Sunrise ocean views, roaming wildlife, unrivalled nature, a touch of luxury, and a space centered around family-living – This is Bahari Bay life. Discover this hidden residential lifestyle gem, where homes are designed around modern-day conveniences and coastal bliss within Shelly Beach, KZN’s South Coast. Pioneering eco-friendly living, Bahari Bay presents land opportunities from R460 000 and a range of 3 and 4-bedroom pet-friendly freestanding homes from R2.6 million.
U N R I VA L L ED ACC ESS TO O UT D O O R FACI L I T I ES W I T H I N T HE ESTAT E
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For more Information
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