October 2024 edition: full text

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REI MAGAZINE OCTOBER 2024

Follow Us: @gbbventure

SCAN TO VISIT OUR WEBSITE

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Meet the Team

NEALE PETERSEN

MARISA GEORGE

FOUNDER & EDITOR-AT-LARGE neale@rei.co.za

ACCOUNTS MANAGER marisa@rei.co.za

GRAHAM MILLER

WEBSITE SPECIALIST graham@rei.co.za

ASHEEQ CADER

DIGITAL STRATEGIST asheeq@rei.co.za

PAUL VAN RIJSEWIJK

SENIOR DESIGNER paul@rei.co.za

CONTRIBUTORS

Robin Booth Siyabonga Mbanjwa Neale Petersen Jaco Grobbelaar Jason Lee JP Pretorius

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Jean Joubert Schalk van der Merwe Johann van der Merwe Vaughan David Thato Ramaili Eric Nienaber

REI MAGAZINE OCTOBER 2024

Gidgette Osborne John Jack Gus van de Spek Andrew Walker Khali Masooane

Siyabonga Mbanjwa - CEO Pace Property Group

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DISCLAIMER: All rights are reserved. No portion of this publication may be reproduced without prior written approval. The opinions in this publication are those of the contributors and authors. The publisher makes no guarantees or assurances regarding any goods or services advertised or published. Prospective investors should always consult their own advisors, accountants, or attorneys before investing.

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Editor’s Viewpoint

Reimagining Real Estate:

Sparking a Construction Revolution in South Africa!

A Triple Win for South Africa’s Economy

We may finally be witnessing a turning point for South Africa’s economy—a triple win of sorts. The establishment of a business-friendly coalition government, the first interest rate drop in years, and a surge in investment sentiment are creating a wave of optimism for both the nation and its investors. With responsible financial management, this could be a golden opportunity for growth.

The coalition’s commitment to economic reform, combined with the beginning of interest rate reductions, has sparked unprecedented investment announcements. This shift brings hope that Africa’s largest economy is emerging from a prolonged period of stagnation.

However, to truly capitalise on this momentum, we must address ongoing economic challenges, such as simplifying regulations surrounding public-private partnerships (PPPs). As Infrastructure Minister Dean Macpherson noted, the ambition to turn South Africa into a “construction site” is echoed by President Cyril Ramaphosa. This vision could lead to job creation, economic revitalisation, and the much-needed upgrade of our infrastructure.

Addressing concerns about the entrenched construction mafia is vital. Collaboration with law enforcement and the judiciary will be necessary to tackle this issue effectively. Macpherson’s initiative to form an infrastructure advisory committee and promote PPPs is a promising step forward.

The construction sector is essential for socio-economic development, employing approximately 1.22 million people and contributing significantly to GDP growth. As highlighted in Stats SA’s Quarterly Labour Force Survey, this sector represents about 7.25% of national employment—a critical indicator for investors.

As we delve into this issue, let’s explore how these developments can shape the future of real estate investment in South Africa.

Founder & Editor-In-Chief

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MASTER QUOTE

You can dream, create, design and build the most wonderful place in the world. But it requires people to make the dream a reality.

WALT DISNEY – Entrepreneur & Pioneer of American animation industry

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Contents

MEET THE TEAM

INVESTING

4

34 - 45

34 - The 6 unfair advantages of Airbnb

EDITOR’S VIEWPOINT

6 - 7

40 - Patricia Tshitema

ASK THE EXPERT

10 - 11

RESIDENTIAL

MAGAZINE ARCHIVES

46 - 58

12 - 13

MASTER INVESTOR

14 - 22

COVER STORY

24 - 33

46 - Mastering the Property Deal

52 - Christelle Jansen van Rensburg

FINANCE

60 - 76

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52

72 - Boost Your Chances

60 - Unlocking Financing Success:

8

PROPERTY MANAGEMENT

78 - AI: Hype or Reality?

78 - 87

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104 - Invest in UK Property

108 - Investing in Mauritius & Namibia

84 - Hidden costs of renting

TECHNOLOGY

88 - The Rise of Women

92 - AI Case Study

COMMERCIAL

88 - 95

96 - 103

EDUCATION

REAL ESTATE INVESTOR

114 - 118

120 - 123

120 - 2024 Investor 2024 Awards

100 - South Africa’s REITs

WEALTH

114 - Revitalising Retirement Living

96 - Designing for the Future

104 - 111

OFFSHORE

88

124 - 125

104

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Ask the Experts

Unlock Profits & master shortterm rentals in Cape Town with proven Airbnb Strategies!

MEET OUR GUEST EXPERT

ROBIN BOOTH

Entrepreneur, Real Estate Investor & Educator

Airbnb Profits

Question

I’m looking to break into the South African Airbnb market and could use some guidance. I am based in Cape Town and I’ve noticed a significant increase in demand for short-term rentals, making it an exciting but competitive landscape, especially with the rise in tourism and digital nomads.

I’m considering two options:

1. Rental Arbitrage: Taking over an existing property along the Cape Town coast on rent to rent basis.

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REI MAGAZINE OCTOBER 2024

Got Questions? We’ve got Answers! Send your queries to info@rei.co.za

Enquire here

2. Property Conversion Project: Transforming my 4-bedroom house into a potential 6-bedroom short-term rental in the southern suburbs.

I’d appreciate any insights on how to get started, as well as recommendations for where to find reliable advice, courses and resources in this growing market. Thank you!

A nswer

from Robin Booth

There is strong demand for Airbnb in Cape Town, both from guests seeking places to stay and from investors aiming to increase their yields. Fortunately, there are numerous strategies that allow for diverse investment opportunities to thrive.

The first option through rental arbitrage that you are looking at is one of the easiest ways to get started, which requires a lower capital outlay. With this approach, it’s crucial to ensure you have landlord permission to sublet on Airbnb. Nowadays, you can even rent linen, furnishings and appliances, further reducing your initial costs.

The second option is another profitable strategy which is converting a house into individual rooms for short-term rentals. This market differs significantly from renting entire apartments, houses, or luxury villas. In fact, Airbnb actively promotes room rentals, as it’s a niche offering that hotels and other platforms don’t typically provide. If you’re considering this route, my online courses cover a range of essential security features, from digital locks and Wi-Fi cameras to noise monitoring devices, all of which ensure guest safety.

In South Africa, even an average host can earn a decent income. However, with some training and the right skills, you can break into the top 5% of hosts, which can significantly boost your revenue. The key is mastering the fundamentals of how to leverage the Airbnb algorithm to increase occupancy rates and properly price your units.

Over the past five years, I’ve watched countless students who have taken my courses successfully scale their Airbnb portfolios to 30+ properties across the country. Their only regret? Not starting sooner!

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Newsstand Archives

OCT 24

SEPT 24

AUG 24

rei.co.za

rei.co.za

JUNE 2024

MAY 2024

GUIDE TO MAKE MILLIONS IN PROPERTY

DECODING THE METAVERSE

SA’S AFFORDABLE PROPERTY MARKET

REVEALING REAL ESTATE WEALTH

Investor of the Year Darren Francis tells us how

Addressing the potential & complexities

COMMERCIAL RENTAL PROPERTIES

Boubker Benjelloun Boubker Benjelloun

What modern tenants seek?

BOUBKER BENJELLOUN

The rising star of global architecture at the service of humanity

JULY 24

MASTERING SA EVICTION LAWS

SOLAR PANEL BUYERS GUIDE

5 Ways for Affordable Solar Solutions

EXPLORING LUXURY REAL ESTATE

AIRBNB STRATEGIES REVEALED

TUHF EMPOWERS URBAN ENTREPRENEURS

Diversify your Wealth: Richard Haller shares strategies for offshore real estate & investment migration

APRIL 24

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GENERATION RENT

Young Adults embrace extended Rental Trend

SABLE INTERNATIONAL

Delving into the Art of Transactions

REI MAGAZINE OCTOBER 2024

CYPRIOT REALTY

Exploring Cyprus offshore: Property Investment, Residency Opportunities & Living options with Jenny Ellinas

MARCH 2024

APRIL 2024

Your Guide to maximizing property profitability

RENT OR BUY

Unveiling the Options & Pros & Cons

rei.co.za

rei.co.za

EFFORTLESS PROPERTY RETURNS

Play or pass?

Robert Kiyosaki's Top 5 Strategies Exposed

MAY 24

JUNE 24

Navigate the process of removing nightmare tenants

Data driven insights for short-term rentals

Finance Support for Affordable Housing

MARCH 24

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13

Master Investor

Siyabonga Mbanjwa:

A Journey of resilience and vision in Property & Infrastructure Development

By Neale Petersen

The Making of a Visionary: In the bustling heart of South Africa’s property sector, Siyabonga Mbanjwa stands as a beacon of resilience and inspiration. As the CEO of Pace Property Group, he has transformed not only his own life but also the landscape of property development and investment in the nation.

His story, rooted in the challenges of apartheid-era South Africa, reflects the profound belief that through education, hard work, and dedication, anything is possible.

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SIYABONGA MBANJWA

From humble beginnings to a visionary leader Siyabonga was born in Durban and raised in Umlazi township, an environment that shaped his character and ambitions. He fondly recalls walking several kilometres to school as a child, a journey that instilled in him a strong work ethic and determination.

His father, a building contractor for Murray and Roberts in the early 1960’s, often took him along to various jobs, sowing the seeds of his future in the construction and property sectors. His mother, an educator and school principal, that eventually ended taking charge of infrastructure development for the KZN provincial department of Education. She emphasised the value of education, providing a nurturing environment that encouraged exploration and ambition.

His education journey began at Ngilosi Primary School and continued at Uthongathi NEST School, the first multiracial institution sanctioned by the apartheid government. Here, Siyabonga witnessed firsthand the power of diversity and collaboration. The pivotal moment in his youth came on 11 February 1990, when Nelson Mandela was released from prison—a day that marked not only a political shift but also inspired Siyabonga to pursue his dreams with renewed vigour.

After completing his matric, he enrolled at the University of Cape Town, where he pursued a BSc (honours) in Construction Management. This choice was not merely academic; it was a strategic decision influenced by his early experiences and the realization that he wanted to play a significant role in the built environment. He thrived as a student leader, balancing academics with sports and honing the leadership skills that would serve him well in his future endeavours.

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SIYABONGA MBANJWA’s PROFILE

Company: Pace Property Group

Position: CEO

Qualifications: PrCPM; BSc (honours) Construction Management (UCT); MSc Project Management (Univ of Pretoria); MBA (Univ of Pretoria); Property Development Programme (UCT); International Executive Development Programme, (Wits & London Business School); Global Leadership Development Programme (GIBS); Power Sector Reform & Regulation Programme (UCT)

FAMILY: Married to Jazz Mbanjwa. He has three children, Ziyanda, Ande and Mabande.

HOBBIES: Golf, cycling & running (when time permits).

BEST BOOK READ LATELY: One Man’s View of the World’ by former Prime Minister of Singapore, Lee Kuan Yew.

PERSONAL MOTTO: ‘Through education, hard work and dedication, anything is possible.’

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SIYABONGA MBANJWA

Forging a path in Property and Infrastructure Development Siyabonga’s career commenced during his university years, when he volunteered as an assistant project manager for the Natal Schools Project (part of the Urban Foundation). This early experience in project management was invaluable; he gained insights into the planning and construction processes while earning a stipend and a reference that would bolster his future job applications.

Upon graduating, he joined Murray & Roberts Construction as a Site Engineer, where he worked on the Durban Academic Hospital project. This role deepened his understanding of construction complexities and solidified his foundation in the industry. Over the next few years, he advanced through various roles at significant institutions like the South African Reserve Bank and Old Mutual Properties, where he served as a Project Manager and later as Regional Development Manager.

Pace Property Group: A Vision realised Whilst he has been associated with the company for over 10 years, Siyabonga recently took the helm at Pace Property Group, a 100% black-owned company with a remarkable 40-year legacy. Whilst the firm has been well known as an industry leader in investment property brokering and property management, it has changed focus by specialising in property asset management, construction project management, development management, and facilities management , essential services to investors and developers. Construction project management services are provided through its division, Pace Project Management.

His vision for Pace is clear: to create sustainable returns through superior professional services, positioning the company as South Africa’s premier solutions provider in property and infrastructure development

Pace Property Group fills a crucial niche in the market. Many investors recognise property as a valuable asset class but often lack the expertise and time needed to manage these investments effectively. Siyabonga and his team act as trusted advisors, ensuring clients make informed decisions that yield optimal returns.

Navigating Challenges: Lessons from the Journey Siyabonga’s path has not been without its challenges. Transitioning into project management at a young age meant leading teams of older professionals, a daunting task that taught him early lessons in assertiveness and respect. His entrepreneurial spirit was further tested during his time at Crowie Projects, where he learned that success in business requires resilience, strategic partnerships, and an innovative mindset.

One of the significant setbacks he faced was the realization that technical knowledge alone was insufficient for development success. The need for a robust track record and access to capital became evident, pushing him to adopt a solutions-oriented approach to business challenges.

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SIYABONGA MBANJWA

Proud achievements and future aspirations Among his proudest accomplishments is the conceptualisation and eventual development of Wits Junction, a 1,200-bed student accommodation project for Wits University. This project was a testament to his ability to not only be innovative in responding to client needs but also to secure long term financing that met the needs of both the university and developers of the project.

He is particularly proud.

Another milestone was as founding managing director of an infrastructure and public private partnership (PPP) focused company that eventually went on to develop the R1,6 billion Statistics South Africa Head Office in Salvakop, Pretoria and provided engineering, procurement and construction (EPC) services on the 50MW Bokpoort Concentrated Solar Power plant, a pioneering and award winning renewable energy project in South Africa. This experience not only expanded his expertise in the delivery of large infrastructure projects but also reinforced his commitmentto sustainable development.

Another significant milestone in his career was when he was at the helm as the first CEO for SENER Engenieria Y Sistemas Southern Africa, a global engineering and technology group specialising in power oil and gas, infrastructure, marine and aerospace that originated in Bilbao, Spain in 1956. Looking ahead, Siyabonga is excited about the potential of Pace Property Group to deliver quality assets that provide sustainable returns. His vision includes partnering with investors to create property and infrastructure that address the economic and housing challenges faced by many South Africans.

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Investing in Property: A Passion and a Purpose

Siyabonga firmly believes in property as a key investment avenue. He outlines three crucial factors that make property a compelling choice:

1. Annuity Income: Property provides a reliable income stream through rental yields.

2. Capital Appreciation: Over time, property values tend to increase, enhancing overall returns.

3. Essential Needs: Property fulfills fundamental human needs—shelter, workspace, and retail environments—ensuring ongoing demand.

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SIYABONGA MBANJWA

Through his journey, he has learned the importance of active involvement in property investments. He emphasizes the need for investors to remain engaged and informed about their assets, adapting to market conditions to optimize returns.

Leaving a legacy of Opportunity and Transformation Siyabonga’s vision extends beyond business success; he is committed to creating a legacy that contributes to the upliftment of communities. Growing up during apartheid, he experienced firsthand the limitations imposed on many South Africans. Now, he aims to leverage his skills to improve the built environment and address housing disparities in the country.

His roles as a non-executive director at the Tshwane Economic Development Agency and member of the Urban Kraal Housing Fund’s Investment Committee reflect his dedication to driving social impact through his professional endeavours. He is a strong believer in purpose driven leadership.

A Testament to Hard Work and Dedication

Siyabonga Mbanjwa’s journey from the streets of Umlazi to the helm of a thriving property company is a powerful reminder of the impact of perseverance, education, and strategic thinking.

His story encourages aspiring entrepreneurs and investors to recognize that challenges can be transformed into opportunities. As he continues to navigate the complexities of the property industry, Siyabonga remains committed to creating a better South Africa—one where access to quality economic, housing and development opportunities is within reach for all.

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Cover Story

Pace Property Group:

Your preferred Infrastructure Property Service Solutions Provider

Since 1976, Pace Property Group has been delivering comprehensive property services across industrial, commercial, retail, and residential sectors.

As a trusted partner in the property industry, Pace has grown to be a leading provider of infrastructure and property solutions in South Africa.

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and

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Pretoria Townlands Project currently at planning stage

Vision

Pace Property Group’s vision is to become South Africa’s premier solutions provider in property and infrastructure management, delivering innovation, excellence, and sustainability.

Mission

Pace aims to create sustainable investment returns by offering superior professional services that exceed client expectations.

Leadership Under the dynamic leadership of CEO Siyabonga Mbanjwa, who has been recognized as one of the top 100 corporate leaders in South Africa by the South African Institute of Black Property Practitioners (SAIBPP), Pace continues to shape the future of the property industry. His visionary approach ensures the company consistently delivers value to its clients

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Ethekwini facilities workshop

PACE PROPERTY GROUP

Image: Ethekwini Municipality Offices

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COMPANY PROFILE

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Image: Pace Project Management team on site

PACE PROPERTY GROUP

Core Values Pace Property Group is guided by the following core values:

• Accountability • Purpose-driven approach • Solution-oriented mindset • Commitment to sustainability

Service Offering Pace Property Group delivers a diversified range of property services throughout the entire life cycle of an asset. From acquisition and development to management and disposal, Pace ensures the success of each phase through its integrated solutions.

Clients Pace serves a diverse client base, including listed property funds, unlisted property investors, pension funds, multinational corporations, government agencies, and state-owned enterprises (SOEs). With its wide-reaching expertise, Pace is equipped to meet the needs of any organization requiring property or infrastructure services.

Global Reach Through strategic partnerships with international firms, Pace is able to deliver its services not only across South Africa but also on the broader African continent, positioning itself as a regional leader in property and infrastructure management.

Ethekwini facilities workshop

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PACE PROPERTY GROUP

Scope of Services

Pace offers an extensive range of services across commercial, industrial, retail, hospitality, and residential subsectors, including:

• Property Asset Management Efficiently managing property portfolios from acquisition through disposal, Pace maximizes returns and optimizes asset performance.

• Facilities Management Ensuring that properties are functional, comfortable, safe, and sustainable. This service includes the comprehensive management of client facilities, covering everything from building maintenance to business services.

• Construction Project Management Overseeing construction projects from inception to completion as the principal agent, ensuring timelines, budgets, and quality standards are met.

• Development Management Managing property developments from concept to completion, including financial and market feasibility analysis, finance raising, team coordination, and project handover.

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Image: Pace Project Management – Site visit as part of infrastructure advisory services

Image: Bertrams Multi-Purpose Centre under construction

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PACE PROPERTY GROUP

Key Appointments and Projects

Pace Property Group has played a critical role in several significant projects across South Africa, including:

• Symantec Offices Facilities managers for Symantec’s offices in Woodmead (Johannesburg) and Century City (Cape Town).

• eThekwini Municipality Offices Facilities management for the Old Fort Complex in the Durban CBD.

• Pretoria Townlands Project Project Managers and Principal Agents for this important urban development project.

• Bertrams Multi-Purpose Centre Serving as Project Managers and Principal Agents for this community-focused development currently under construction.

• Urban Apartments Sales Agents for a number of office-to-apartment conversions in Braamfontein and Century City thereby driving innovative urban regeneration projects.

• Rivonia Commercial Development Sales agents for all commercial sectional title development and managing agent for the body corporate.

• Property Advisory for Multinationals Represented a number of multinationals, such as Proctor & Gamble, Fluor, General Electric and Ericsson, in various lease negotiations.

Future Outlook Pace Property Group is focused on an exciting future, working with investors and partners to develop a robust pipeline of projects and properties. With a growing footprint in the property and construction sectors, Pace is poised to continue its upward trajectory.

PACE PROPERTY GROUP

Contact details:

Johannesburg Office Physical Address: 377 Rivonia Boulevard, Sandton, Johannesburg Telephone: +27 (010)020 2217 Email: info@pace.co.za Website: www.pace.co.za LinkedIn: Pace Property Group LinkedIn

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Image: Pace team in a more relaxed mood

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Investing

The 6 unfair advantages Investments: Maximizing

By Robin Booth

With the right strategies, Airbnb properties can generate double the income of longterm rentals on an annual average.

During Cape Town’s peak season, from December 15th to January 15th, it’s possible to earn four to five times the usual monthly rental rate. These figures highlight the superior yields that Airbnb investments can offer compared to traditional long-term leasing.

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of Airbnb returns with Short-Term Rentals

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INVESTING

Investing in Airbnb properties presents an undeniable advantage, one that savvy investors quickly appreciate. Here’s why:

6

Unfair Advantages investors can use:

1. Insurance Airbnb offers an automatic $3 million insurance cover per booking, protecting against property damage, theft, and more. Claims are processed quickly, adding a layer of security and convenience that traditional rentals don’t offer.

2. Flexible Pricing Unlike long-term rentals, where prices are dictated by market conditions, Airbnb allows for significant pricing flexibility. Strategic amenities, value-added services, and smart positioning enable you to command higher rates, even within the same market segment.

3. Social Proof through Reviews Airbnb’s review system acts as social proof, enhancing your listing’s appeal. Positive reviews can justify higher rates and lead to increased bookings, a feature not available with long-term rentals. In my personal listings, I have over 90% of my guests leaving reviews. This has significantly increased my occupancy levels as well as my daily rate charge.

4. Automation Much of the Airbnb process can be automated, from pricing adjustments to guest communications and self-check-ins. This allows for remote management and the ability to scale your investment portfolio more efficiently than traditional long-term leases.

5. Algorithm Mastery Airbnb is a marketing platform at its core. By understanding and leveraging its algorithm, you can position your listing at the top, increasing visibility, bookings, and conversion rates.

6. Rental Arbitrage Perhaps the most significant advantage is rental arbitrage. By renting a property from a landlord, and then subletting it on Airbnb, you can generate substantial cash flow without significant capital investment. This strategy provides an accessible entry point for everyday investors to profit from property.

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These advantages make Airbnb a powerful investment tool, offering flexibility, higher returns, and the ability to scale. As I continue to invest in beautiful Airbnb properties, I am confident that this approach, with its unique benefits, outperforms other property investment strategies.

Given these compelling advantages, it’s clear why Airbnb remains an attractive option for investors. While the market evolves and new regulations emerge, staying informed and adaptable will ensure continued success in leveraging this dynamic investment strategy. Whether you’re a seasoned investor or just starting out, Airbnb offers an unparalleled opportunity to maximize returns and build a thriving portfolio. _________________________________________________________________________________________

About the Author Robin Booth is an experienced property investor and educator specialising in Airbnb mastery. With a proven track record of success in short-term rentals, Robin offers online trainings and courses designed to help both new and seasoned investors maximize their returns through Airbnb. His courses cover everything from optimizing listings and mastering pricing strategies to leveraging Airbnb’s algorithms and rental arbitrage techniques. Robin’s practical approach and deep industry knowledge provide invaluable insights, empowering investors to build profitable and scalable Airbnb portfolios.

Robin’s Money making courses in Airbnb

Learn More

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Simple. Simple. Secure. Secure. Significant. Significant.

Capital Capital Guaranteed Guaranteed Investment Investment Returns Returns at at 14% 14% p/a p/a

Opportunity Opportunity Private Private Capital Capital is is pleased pleased to to announce announce an an investment investment opportunity opportunity with with Guaranteed Guaranteed Capital Capital Protection. Protection. This This exclusive exclusive offering, offering, with with limited limited capacity, capacity, involves involves investing investing in in fully fully completed completed units units in in new new developments, developments, with with returns returns of of 14% 14% per per year. year. With With an an investment investment period period estimated estimated at at just just two two years, years, these these shorter shorter investment investment timeframes timeframes compared compared to to traditional traditional property property investments investments are are advantageous. advantageous.

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INVESTMENT SUMMARY INVESTMENT SUMMARY

Capital Investors are invited to Capital Investors are invited to participate in a limited investment participate in a limited investment offering. The primary consideration for offering. The primary consideration for the offering is the protection of invested the offering is the protection of invested capital. Development assets capital. Development assets (properties) are held as security for (properties) are held as security for capital, until investors are repaid. capital, until investors are repaid.

The total total Investment Investment required required for for this this The participation is is R R 14 14 250 250 000, 000, with with a a participation minimum investment investment amount amount of of R R 100 100 minimum 000. The The investment investment returns returns are are fixed fixed at at 000. a rate rate of of 14% 14% per per year. year. a

RISK PROFILE PROFILE RISK

LOW LOW

LOW MEDIUM LOW MEDIUM MEDIUM MEDIUM MEDIUM HIGH MEDIUM HIGH

HIGH HIGH

INVESTMENT TERM TERM INVESTMENT

(PROJECTED) (PROJECTED)

1 YR

YRS 2 2 YRS

YRS 3 3 YRS

YRS 4 4 YRS

YRS 5 5 YRS

INVESTMENT INVESTMENT OBJECTIVE OBJECTIVE

INVESTMENT SECURITY INVESTMENT SECURITY

The investor’s capital is The investor’s capital is protected by the property. MEDIUM HIGH LOW by protected the property. MEDIUM MEDIUM LOW Private 100% investment HIGH in MEDIUM MEDIUM 100% Private investment HIGH in HIGH MEDIUM structure - no mortgage bonds structure - no mortgage bonds Independent Security Trust Independent Security Trust mandated to safeguard mandated to safeguard investor interests. investor interests. Properties are are located located in in highhigh- Properties demand areas areas in in Cape Cape Town. Town. demand Proven track track record. record. Proven

IMPORTANT FACTORS FACTORS IMPORTANT

Capital Guaranteed. Guaranteed. Capital Secured investment investment structure. structure. Secured Limited investment investment offering. offering. Limited Estimated 24-month 24-month investment investment Estimated period. period. New property, property, recently recently New constructed. constructed.

Opportunity Private Private Capital Capital was was Opportunity founded in in 2006 2006 and and is is a a boutique boutique founded investment company company located located in in investment Cape Town. Town. Secure Secure investment investment Cape opportunities are are provided provided for for opportunities private investors investors to to invest invest capital capital private in in residential residential properties properties and and developments. developments.

The aim is is to to provide provide private private investors investors with alternative alternative diversification diversification by by offering access access to to investing investing in in residential residential property projects. projects. The The result result being being formidable formidable returns returns based based on on reasonably reasonably predictable predictable timeframes timeframes with with assets assets employed employed to to protect protect invested invested funds. funds.

Opportunity Number FSP53400. Opportunity Private Private Capital Capital (Pty) (Pty) Ltd Ltd is is a a licensed licensed Financial Financial Services Services Provider. Provider. Number FSP53400.

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INVESTING

Patricia Tshitema: Celebrated

Year - A Remarkable Journey in

By Neale Petersen

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as 2024 Investor of the

Property Investment

On 14 September 2024, Patricia Tshitema was honoured as the Overall Winner for Investor of the Year hosted by SAPIN at a glittering Awards event at Shepstone Gardens in Johannesburg.

This accolade marks a significant milestone in her life and career, reflecting not just her achievements but also her commitment to empowering women in the property investment sector. Patricia’s journey from her humble beginnings in Limpopo to becoming a recognised leader in property investment is both inspiring and transformative. 41

INVESTING

During her acceptance speech when asked about winning Investor of the Year, Patricia, CEO of Bono Property Group, said, “Winning three categories leaves me humbled and grateful. This is just the beginning; I’ll be returning to the drawing board to multiply my dreams. My journey focuses on empowering the young people we house, which drives me daily. Being named overall winner confirms that dreams are worth pursuing. Starting immediately, we’ll strategise for greater opportunities in South Africa.”

Early Life and Inspiration

Born in the tranquil village of Ha-Makhuvha, Venda, Patricia was raised by her grandparents, who instilled in her a deep love for education. Despite their limited formal education, they excelled in their community as leaders, emphasising the importance of learning and personal growth. Patricia often recalls her grandmother’s unwavering belief in her potential, which shaped her aspirations. “She always told me that I was destined for greatness,” Patricia reflects.

Patricia attended Makhuvha Primary School and later matriculated from Tshivhase Secondary School. She pursued her education further, earning a B-Tech in Horticulture from UNISA, followed by an MSc in Environmental Management. Throughout her studies, she remained motivated by her grandparents’ legacy, positioning herself as a future leader. flow without significant capital investment. This strategy provides an accessible entry point for everyday investors to profit from property.

PATRICIA TSHITEMA PROFILE

Company: BoNo Property Investments

Position: CEO

Highlight: We grew our business from 10 to 645 student beds in less than 3 years.

Qualifications: MSc Environmental Management & B-Tech Horticulture (UNISA)

Family: Married to Mulalo Tshitema, and we work together in the business. I am a mother of 3 amazing children (2 x boys and a beautiful princess)

Hobbies: Outdoors with high adrenalin activities, Cooking, Singing & involved in youth mentoring programmes.

Favourite Book: ‘The Alchemist’ by Paulo Coelho

Personal motto: “When you want something, the whole universe conspires in order for you to achieve it” — The Alchemist.

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Corporate world and the call to Purpose

Patricia spent over 18 years in the corporate sector, gaining invaluable experience yet feeling unfulfilled. The turning point came after the 2015-2016 #FeesMustFall protests, which exposed her to the severe shortage of student accommodation in South Africa. Having faced similar challenges during her university years, she felt compelled to make a difference.

“I woke up one day and knew it was time to leave corporate life,” she recalls. Fuelled by a desire to create safe, affordable housing for students, she enrolled at the University of Cape Town to study property development and management. This decision laid the foundation for her future endeavours.

The Birth of BoNo Property Investment

In 2017, Patricia and her husband established BoNo Property Investment (Pty) Ltd, a company focused on affordable housing and student accommodation. They started modestly, purchasing houses near universities and converting them into student residences. “We wanted to learn the ropes before scaling up,” Patricia explains.

Their brand, OpaL Students, quickly gained recognition, managing 645 student beds with a property portfolio valued at R100 million. Patricia’s vision for the company is ambitious: by 2030, she aims to expand the portfolio to R400 million, encompassing 2,000 student beds.

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Overcoming Challenges

Patricia’s path was not without obstacles. Accessing funding proved challenging, particularly due to her status as a new developer. Collaborations became vital, allowing her to leverage shared expertise and resources. “Partnerships were our gateway into the industry,” she says. These alliances helped Patricia navigate the competitive, male-dominated landscape of property investment.

As a woman leading an organisation, Patricia faced additional hurdles in positioning her business as a serious contender. Yet, her resilience and adaptability allowed her to overcome these barriers, transforming challenges into opportunities for growth.

Investing in Personal Development

One of Patricia’s most impactful investments has been in her own education. Enrolling in property investment mentorship programs equipped her with the skills needed to excel in the field. “Opportunities meet preparation,” she emphasizes, underlining the importance of continuous learning. This philosophy not only fuelled her success but also inspired her to advocate for other women to pursue their goals.

Empowering Future Generations

Patricia’s vision extends beyond her own achievements. She believes in empowering the youth, particularly women, to unlock their potential. OpaL Students is not merely a housing provider; it’s a platform that fosters holistic personal and professional development. Through initiatives that bridge education and entrepreneurship, she aims to cultivate a generation of self-starters and visionary leaders. The brand focuses on creating a vibrant community where students can thrive, learn, and connect. Patricia’s commitment to building a supportive environment is evident in her efforts to offer high-end living experiences that go beyond mere accommodation. “We provide a place of safety—a home away from home,” she explains.

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Recognition and Future Aspirations

Patricia’s impact in the property sector has not gone unnoticed. In June 2024, she was named Leading Woman by the South African Institute of Black Property Practitioners (SAIBPP), solidifying her role as a champion for women in the industry. This recognition is a testament to her dedication to paving the way for future female leaders.

In addition, her achievements culminated in her being named one of the 50 Most Memorable Women in South Africa by Feature Magazine in November 2023. These accolades serve as a reminder of her relentless pursuit of excellence and her unwavering belief in the power of women.

A Vision for the Future

As Patricia reflects on her journey, she sees her recent awards as a stepping stone rather than an endpoint. “Winning these awards means I’m paving a way for women, showing that it’s possible to dream big and achieve greatness,” she states.

Looking ahead, she is excited about ongoing projects, including plans to develop an additional 250 student beds. Her vision is clear: to redefine student living in South Africa while inspiring other women to take bold steps in their own careers.

Conclusion

Patricia Tshitema’s journey is a powerful narrative of resilience, determination, and the drive to uplift others. From her modest beginnings in Limpopo to becoming a leading figure in the property investment sector, her story exemplifies the transformative power of education, mentorship, and community support.

As she continues to break barriers and inspire future generations, Patricia stands as a beacon of hope and empowerment for women everywhere. The recognition she has received in 2024 is not just a celebration of her achievements but also a call to action for women to step into their power and chase their dreams.

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Mastering the Property

12 Essential Guidelines for

By Jaco Grobbelaar

If you’re going to take the property investment journey seriously, you’re going to submit many offers to purchase (OTPs).

Once you have submitted an OTP, you’ve signed a legally binding contract, and this is where property investment becomes real.

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Deal:

submitting a winning OTP

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Each OTP requires careful thought and strategy to ensure your property purchase aligns with your long-term goals.

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Essential Guidelines to follow:

1. OTP in the name of purchasing entity

Always ensure that the OTP is in the name of the entity that you plan to use for purchasing the property. It is advisable to purchase property in the name of a property company with a holdings trust holding the shares of the property company.

As a property investor, it’s generally not wise to buy properties in your name, as this exposes you to risks, including personal liabilities and tax inefficiencies. Proper structuring from the beginning ensures asset protection and better future financing options.

No matter how emotionally attached you become to a property deal, always be prepared to walk away if the OTP terms don’t suit your investment strategy.

2. Declaring 100% financing from the Bank

The less of your own cash you use, the better the investment. Specify in your OTP that you intend to obtain 100% financing from the bank. This allows you to keep your capital free for other ventures. If the bank does not offer you 100% financing, you can still decide whether to proceed by putting down a deposit.

However, including this in the OTP gives you the leverage to walk away if the financing is not favourable.

3. Utilise the finance clause to your advantage

The finance clause is a powerful protective measure. As made famous by Dolf de Roos in Real Estate Riches, the finance clause states, “This offer to purchase is subject to and conditional upon the purchaser arranging financing suitable to itself.”

This essentially means that if you can’t arrange financing on terms that are favourable to you, you are not obligated to proceed with the transaction. Always make sure this clause is included.

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4. Use a Property Inspection company

If you are unable to view the property in person, or if you have concerns about structural integrity, bring in a professional property inspection company. This is especially important when purchasing older buildings or properties from distressed sales.

Moreover, this can serve as a negotiation tool, as any issues uncovered by the inspection may allow you to negotiate a lower price or have the seller make repairs. Insert an inspection clause: “This offer to purchase is subject to and conditional upon an inspection approved by the purchaser within 5 days of signing.”

5. Insist on using your own Conveyancing Attorney

When it comes to transferring property, the choice of a conveyancing attorney can have a significant impact on costs and service. Insist on using your own conveyancer instead of the seller’s.

Your attorney is more likely to prioritize your needs and ensure the process goes smoothly, while also negotiating lower fees for you. This can save you thousands of Rands.

6. Ensure the Property Description Is accurate

Check that the property description on the OTP is correct and matches the actual property you intend to purchase. Whether the property is a freehold or sectional title, make sure all the relevant details are accurately filled in, and any unnecessary sections are crossed out. The smallest error can create confusion later on, so always double-check.

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7. Verify Levies and Rates

If the OTP provides for it, ensure that the levies, rates, and taxes communicated to you are correct and that you’re comfortable with them. Unexpected increases in levies or municipal rates can impact your cash flow and affect the profitability of your investment. Be proactive in obtaining confirmation of these figures from the seller or their agent.

8. Remove unnecessary sale of second Property Clauses

In most OTPs, there may be provisions for the sale of a second property to make the transaction viable. If this is not applicable to your situation, make sure to cross it out. Leaving unnecessary clauses in the OTP can create confusion and potential legal issues down the line.

9. Ensure Occupational Rent Is market-related

Occupational rent is the rent paid by a seller (or buyer) if they occupy the property after the OTP is signed but before the transfer is finalized. Ensure the occupational rent is market-related—whether it’s in your favour or the seller’s, you want to ensure fairness and avoid unnecessary costs. If the seller wants to stay on the property after the sale, ensure the rent covers your bond repayment and any other associated costs.

10. Clearly define Fixtures and Fittings

Fixtures and fittings can cause disputes if not clearly stipulated. Be specific inyour OTP about which fixtures and fittings—such as light fittings, appliances, or blinds—are to remain with the property. Anything that isn’t nailed down should be agreed upon in writing. A common mistake is assuming these items come with the property, only to find out after transfer that they’ve been removed.

11. Set a reasonable time for the offer to be irrevocable

Give the seller a reasonable time frame in which the OTP remains irrevocable— typically three to five working days. This allows you some flexibility if you need to submit multiple offers on different properties without locking yourself into any single deal for too long. However, don’t leave it too short, as the seller may feel pressured and reject your offer altogether.

12. Complete the information sheet and include supporting documentation

In most cases, the agent will request an information sheet where you need to enter your personal details and submit supporting documentation, such as proof of funds or pre-approval letters. Ensure you have all these documents readily available to avoid delays. Having everything organised shows that you are a serious buyer and can sometimes give you a competitive edge in a multipleoffer situation.

13. Be prepared to walk away

No matter how emotionally attached you become to a property, always be prepared to walk away if the terms don’t suit your investment strategy. Investment decisions should be based on numbers and logic, not emotions.

By keeping these guidelines handy and applying them diligently, you’ll soon become an OTP-completing machine, ready to build your property empire with confidence and clarity!

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Christelle Jansen van

From Adversity to Real Estate

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Rensburg:

Success

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She initially explored media consulting, selling radio ads, but when her employer failed to pay her, she sought a new path.

I contacted my aunt, who had experience in real estate. She referred me to her former principal, who had just opened a Keller Williams office in Gqeberha.

Real Estate Journey Progresses

Christelle’s career evolved as she moved from Keller Williams to NRG Property, where she found a mentor in eXp South Africa agent James Conyers.

I was drawn to working with James; he’s a genuine and gentle leader. I’m thrilled that NRG joined eXp Realty.

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Christelle’s trust in James led her to join eXp Realty as well. “When James announced his move to eXp Realty and invited the team to join, I wasn’t nervous at all. I trust James implicitly. And it has been an amazing experience ever since I joined eXp Realty in October 2021.”

Her tenure at eXp Realty has been marked by dedication and achievement, with Christelle capping twice already. However, her journey has not been without significant personal challenges.

She Was Involved in a Traumatic Accident

On April 9, 2017, Christelle’s life took a dramatic turn when she was involved in a severe motorbike accident. Riding her husband’s ZX10 Kawasaki, she lost control on a bend, resulting in life-threatening injuries.

Despite the severity of her injuries, Christelle was resilient. Her recovery was long and arduous, involving extensive surgeries and rehabilitation.

I underwent about 18-19 hours of operations. I was in ICU for a month and a half and mostly on a ventilator, followed by a few days in high care, and then I spent two and a half months at Aurora Rehab Hospital.

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Motivation Behind Her Resilience

I had to be strong for my kids. I have three children, including little Theo, whom we adopted at 20 months old. He was just five at the time of the accident. And a very caring husband. It was their love and support that subconsciously motivated me to pull through and start doing what I needed to do again.

Christelle’s motivation to recover was fueled by her love for her family and her passion for real estate.

Christelle said returning to real estate wasn’t easy and it was difficult to leave Aurora Rehab Hospital, which she describes as her “safe space with medical staff and fellow patients.”

Returning home meant adjusting to normal life in a different body, where my injuries are often invisible to others. Daily pain and limited movement are my new reality. For instance, I recently fell in front of a client during a viewing and had to ask for help to get up.

My orthopedic surgeon credits my strong mind for 90% of my swift recovery. Subconsciously, even while in a medically induced coma, I was driven by the need to be there for my three traumatized boys.

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Returning to Real Estate Helped Her Recovery

Christelle’s passion for real estate and helping others kept her going.

I love interacting with people, especially guiding first-time buyers through the process. It gave me purpose and helped me heal because I was helping others.

“Our business model is hugely beneficial to me as I don’t have to be at the office. On bad pain days, I have the luxury of working from home and even in bed if I need to. I also love the environment of collaboration that eXp fosters, so you never feel like you are competing with each other.

Join Us

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SHARED VALUE

BROKERING

T & CS APPLY

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Finance

Unlocking Financing

Your Guide to approaching Banks

By Jason Lee

Navigating the real estate financing landscape can feel daunting, but with the right strategies, you can turn challenges into opportunities.

Here’s your roadmap to successfully approach banks and tap into private investors for your next property venture!

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Success:

and Private Investors

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Maximise Your Banking Options

1. Cast a Wide Net

When seeking finance for a deal, don’t limit yourself to one bank. Each institution has unique lending criteria and risk appetites. By approaching multiple banks, you significantly boost your chances of securing the funding you need. If all banks decline, it’s a signal to reevaluate the viability of the deal.

2. Play the Field

For smaller projects, like buy to let properties, consider enlisting mortgage originators to help you navigate offers from various banks. They can gather offers from various banks on your behalf, saving you time and effort. But for larger deals, a direct approach to banks often yields better results.

Once you build a solid track record as a property investor, you can negotiate better terms by playing banks off against one another. Trust me, it’s a game worth playing! I’ve made over 20 calls in a single day just to test how far banks are willing to go. For example, if Bank A offers to finance your project at prime minus 1%, call Bank B and see if they’ll sweeten the deal to prime minus 1.5%. You’d be amazed at how often you can turn a “no” into a “yes” simply by asking.

The Art of Negotiation

1. Prepare for Battle

Securing financing can be a rigorous process, especially if you’re new to the property game. Seasoned investors rarely accept the first offer. It’s all about persistence and negotiation skills. Expect back-and-forth discussions as you present your case for better terms. The art of negotiation takes patience and strategy—it’s a war of attrition!

2. Read the Fine Print

Always scrutinise the documentation. Miscommunications between bank divisions can lead to costly mistakes. Confirm that what you agreed upon verbally matches what’s on paper. This diligence could save you from unexpected surprises down the line. Pay attention to the fine print and protect your interests!

Engage Private Investors when needed

Sometimes, banks may not cover 100% of your financing needs. If you find yourself in this position, consider two options: invest your own money or seek private investors. If you’re leaning towards the latter, you’re not alone. Learning how to attract private investors is crucial for funding your projects without dipping into your own pockets.

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Finding the Right Investors

1. Leverage Your Network

Start by reaching out to family, friends, and colleagues. Don’t hesitate to tap into investment clubs or online communities. You’d be surprised how many people might be interested in investing if they see a solid opportunity.

2. Be Creative

Private financing can take many forms, from mezzanine financing to equity stakes. Tailor your approach based on the specific deal and investor.

Understanding Cash vs. Guarantee

In many situations, banks will finance a portion of the deal but expect you or an investor to cover the shortfall. For instance, if you need R1 million to finance your project but the bank only offers R800,000, you’ll need to come up with that extra R200,000.

Alternatively, you can work to persuade the bank to offer you 100% financing against a bank guarantee for the shortfall. This means you don’t have to dip into your or the investors own cash reserves. Instead, your private investor can provide a guarantee that allows them to secure the financing without pulling cash from other investments. This is a game changer for investors because it keeps their money working for them elsewhere while still backing your deal.

Profit-Sharing Basis

Now, let’s talk about how to structure deals with private investors. A good rule of thumb is that what investors put in—whether cash or guarantees—should align with their share of the profits. If a private investor contributes 30% of the funding, they should generally receive 30% of the profits.

But if you’re not putting in any of your own cash, you’ll need to justify why you deserve a bigger slice of the pie. Here are three key points to make your case:

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1. Your Deal-Maker Status

Emphasize your role in finding and securing the deal. Without your expertise and efforts, the project wouldn’t be happening.

2. Risk Mitigation

Ensure that the bank financing is offered on a non-recourse basis for private investors. This means if anything goes south, they only risk what they put in—not the entire loan amount. This adds a layer of security for them.

3. Attractive Returns

Once private investors see the potential returns from leveraging their investment, they’re often more than willing to jump on board. The power of gearing—using borrowed funds to amplify returns—can make for a very enticing proposal.

The Bottom Line

Securing financing, whether through banks or private investors, is a critical skill for property investors. It requires strategy, persistence, and a bit of finesse. By casting a wide net, negotiating assertively, and engaging your network effectively, you can unlock new opportunities in the property market. Remember, every conversation can lead you closer to your next big deal.

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Boost Your Chances of Bond in a lower Interest

By Neale Petersen

The recent 0.25% interest rate cut has ignited optimism in the South African economy and property market, signalling a potential new growth cycle. If you’re considering applying for a mortgage bond, this could be your moment.

However, navigating the process can be challenging. Here’s a step-by-step guide to help improve your chances of securing that crucial bond.

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securing a Mortgage Rate environment

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1. Get Pre-Approved

Before you dive into your property search, securing pre-approval for a property loan is essential. This not only clarifies your budget but also minimizes the risk of rejection later on. Many applicants are declined due to poor credit scores, so it’s vital to regularly monitor your credit report.

Focus on three key areas to enhance your credit score:

Lower Your Credit Utilization: Aim to keep your credit card balances well below your limits.

Avoid Missed Payments: Make all your payments on time. A consistent payment history is crucial.

Stay Current on All Accounts: Prioritize paying off high-interest debt, but ensure you’re meeting minimum payments on all accounts to maintain a healthy credit profile.

2. Prepare for Upfront Costs

Many prospective buyers underestimate the upfront costs associated with purchasing a property. These can include transfer duty, bond initiation fees, and other related expenses. Before making an offer, use an online bond calculator to estimate your total costs, ensuring you have sufficient savings set aside.

3. Don’t skip the Home Inspection

While hiring a contractor for a home inspection may seem like an additional expense, it can save you from unexpected costs down the line. Inspections can uncover issues like structural damage or plumbing problems that sellers may not disclose. A thorough inspection provides peace of mind before finalizing the purchase.

4. Understand your Affordability

Before approaching a bank, conduct a realistic cash flow assessment. This should include all your monthly expenses and proof of income. Banks typically follow the National Credit Act, allowing a maximum monthly instalment that does not exceed 30% of your gross monthly income. Be honest; any discrepancies can lead to application rejection.

5. Build a solid Deposit

A larger deposit can significantly improve your chances of securing a mortgage bond. It reduces your loan-to-value ratio, indicating to banks that you are financially responsible. The average deposit among first-time homebuyers has recently increased to 10.9% of the purchase price, showcasing the trend toward larger down payments.

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6. Avoid overstretching your Budget

When you receive your pre-approval, resist the temptation to take the maximum amount offered. Stick to your original budget to allow for unexpected expenses. This approach not only minimizes the risk of default but also ensures long-term sustainability of your investment.

7. Utilize resources wisely

Consider utilizing platforms like Buyers Trust, which offers a free bank guarantee until the transfer process is complete. This can help safeguard your funds while also providing competitive investment returns.

8. Conclusion

The recent interest rate cut presents a unique opportunity for potential property buyers. By being proactive and informed, you can navigate the complexities of securing a mortgage bond. Remember, preparation is key. With the right strategies in place, you can confidently approach the market and make your dream of property ownership a reality.

Apply here

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South African Interest Rates

Date

2024/09/19 2023/07/20 2023/05/25 2023/03/30 2023/01/26 2022/11/24 2022/09/22 2022/07/21 2022/05/19 2022/03/24 2022/01/27 2 0 21 / 1 1 / 1 8 2021/01/21 2020/11/19 2020/07/23 2020/05/21 2020/04/14 2020/03/19 2020/01/16 2019/07/18 2018/11/22 2018/03/28 2017/07/20 2016/03/17 2016/01/28 2 01 5 / 1 1 / 1 9 2015/07/23 2014/08/01 2014/02/01 2012/08/01 2010/12/01 2010/10/01 2010/04/01 2009/09/01 2009/06/01 2009/04/01 2009/03/01 2009/01/01 2008/07/01 2008/05/01 2008/01/01 2007/11/01 2007/09/01 2007/07/01

%

11.50% 1 1 .7 5 % 1 1 .7 5 % 11.25% 10.75% 10.50% 9,75% 9,00% 8,25% 7,7 5 % 7,50% 7,25% 7,00% 7,00% 7,00% 7,25% 7,7 5 % 8,75% 9,75% 10,00% 10,25% 10,00% 10,25% 10,50% 10,25% 9,7 5 % 9,50% 9, 2 5 % 9,00% 8,50% 9,00% 9,50% 10,00% 10,50% 11,00% 13,00% 14,00% 15,00% 15,50% 15,00% 14,50% 14,00% 13,50% 13,00%

Date

2007/01/01 2 0 0 6 / 1 1 / 01 2006/09/01 2006/07/01 2005/05/01 2004/09/01 2004/01/01 2 0 0 3 / 1 1 / 01 2003/10/01 2003/09/01 2003/07/01 2002/10/01 2002/07/01 2002/04/01 2002/02/01 2 0 01 / 1 0 / 01 2001/08/01 2001/07/01 2000/02/01 1999/11/01 1999/09/01 1999/08/01 1 9 9 9/ 07/ 01 1999/05/01 1999/04/01 1999/03/01 1999/02/01 1 9 9 9/ 01 / 01 1998/12/01 1998/11/01 1998/09/01 1998/08/01 1998/07/01 1998/04/01 1 9 9 7/ 1 1 / 01 1996/12/01 1996/11/01 1996/08/01 1996/06/01 1996/05/01 1995/08/01 1995/03/01 1 9 94 / 1 0 / 01 1993/12/01

%

12,50% 12,00% 11,50% 11,00% 10,50% 11,00% 11,50% 12,00% 13,50% 14,50% 15,50% 17,00% 16,00% 15,00% 14,00% 13,00% 13,50% 1 3 ,7 5 % 14,50% 15,50% 16,50% 17,50% 18,00% 19,00% 20,00% 21,00% 22,00% 23,00% 23,50% 24,50% 25,50% 24,00% 22,25% 18,25% 19,25% 20,25% 19,25% 19,50% 20,50% 19,50% 18,50% 17,50% 16,25% 15,25%

Date

1993/03/01 1992/12/01 1992/08/01 1992/05/01 1991/11/01 1 9 9 1 / 0 5 / 01 1989/11/01 1989/06/01 1989/03/01 1988/12/01 1988/08/01 1988/06/01 1988/04/01 1988/02/01 1987/02/01 1 9 8 7/ 0 1 / 0 1 1 9 8 6 / 1 0 / 01 1986/09/01 1986/06/01 1986/02/01 1985/12/01 1985/11/01 1 9 8 5 / 1 0 / 01 1985/08/01 1 9 8 5 / 07/ 01 1985/06/01 1985/02/01 1 9 8 5 / 01 / 01 1984/12/01 1984/09/01 1984/08/01 1984/04/01 1 9 8 4 / 01 / 01 1983/12/01 1983/09/01 1983/ 07/ 01 1983/04/01 1983/03/01 1983/02/01 1982/12/01 1982/04/01 1982/03/01 1 9 8 2 / 01 / 01 1 9 8 1 / 0 8 / 01

%

16,25% 1 7, 2 5 % 18,25% 19,25% 20,25% 20,00% 21,00% 20,00% 19,00% 18,00% 16,00% 15,00% 14,00% 13,00% 12,50% 12,00% 13,50% 14,00% 14,50% 15,50% 16,50% 18,50% 19,50% 21,00% 22,00% 23,00% 25,00% 24,00% 23,00% 25,00% 22,00% 21,00% 20,00% 19,00% 18,00% 16,00% 14,00% 16,00% 17,00% 18,00% 20,00% 19,00% 17,00% 16,00%

Date

1 9 8 1 / 0 7/ 0 1 1 9 8 1 / 0 6 / 01 1 9 8 1 / 0 4 / 01 1 9 8 1 / 0 3 / 01 1 9 8 1 / 0 2 / 01 1979/09/01 1979/04/01 1979/03/01 1 9 7 8 / 1 0 / 01 1978/09/01 1 9 76 / 07/ 01 1975/11/01 1975/09/01 1975/08/01 1 9 74 / 1 1 / 01 1 974 / 0 9/ 01 1 974 / 0 6/ 01 1 974 / 0 3 / 01 1973/12/01 1973/08/01 1973/05/01 1 97 2/ 0 9/ 01 1971/05/01 1971/04/01 1 9 70 / 1 0 / 01 1968/09/10 1 9 67/ 07/ 0 1 1 9 6 6 / 07/ 1 5 1965/03/08 1964/12/12 1964/07/24 1962/12/01 1 962 / 07/ 01 1962/01/01 1 9 61 / 0 5 / 1 5 1960/08/19 1 9 5 9/ 01 / 2 2 1958/06/01 1955/10/01 1952/04/01 1949/10/17 1948/12/31

%

14,00% 13,00% 11,50% 11,00% 10,00% 9, 5 0 % 10,00% 11,00% 11,50% 12,00% 12,50% 12,00% 11,50% 11,00% 12,00% 11,00% 10,00% 9,0 0 % 8,00% 7, 5 0 % 8,00% 8,50% 9,0 0 % 8,50% 8,50% 8,00% 8,50% 8,00% 7, 0 0 % 6,50% 6,00% 5,50% 6,00% 6,50% 7, 0 0 % 6,50% 6,00% 6,50% 6,00% 5,50% 5,00% 4,50%

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Property Management

AI: Hype or Reality?

cons against alternative tools like

By Neale Petersen

Despite the hype of the past few years, McKinsey reports that only 8% of enterprises have adopted AI in five or more functions, highlighting the gap between potential and implementation.

We are seeing a transition from the age of AI excitement to the age of practical and tactical AI.

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Weighing the pros and

Excel.

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Daron Acemoglu, economist of the Institute of Technolgy in the US said he believed AI is overrated because humans are underrated. “A lot of people in the industry don’t recognise how versatile, talented, multifaceted human skills and capabilities are,” Acemoglu says. “And once you do that, you tend to overrate machines ahead of humans and underrate the humans.”

AI’s biggest competitors in the Proptech space tends to be Excel but in the broader tech space it is not just individual software tools like Excel, but rather a combination of technologies and systems that fulfil similar roles in automation, data analysis, and decision-making.

Here are some key competitors or alternatives to AI

1. Traditional Software (e.g., Excel, SAP) Excel is still widely used for data analysis, financial modelling, and reporting. While AI can automate and enhance these tasks, Excel’s ease of use and deep integration into business processes make it a strong alternative.

2. Robotic Process Automation (RPA) Tools like UiPath and Blue Prism automate repetitive tasks, similar to AI, but are rule-based rather than learning-based.

3. Human Expertise In many industries, human decision-making, intuition, and expertise remain a significant competitor to AI’s algorithmic approach.

4. Big Data Platforms Solutions like Hadoop or traditional analytics platforms like SAS compete with AI by offering powerful data-crunching capabilities without necessarily relying on machine learning or AI models.

5. Cloud-Based Analytics Tools Platforms like Power BI, Tableau, or Google Data Studio provide strong data visualisation and reporting features, often competing with AI solutions that offer insights.

While Excel can be a competitor in specific areas like data manipulation and analysis, AI’s broader capabilities in predictive modelling, natural language processing, and autonomous systems give it a much wider scope.

The question of whether AI is more profitable than Excel depends on several factors, including the specific use case, industry, and how both tools are implemented.

Here’s a breakdown of Five key profitability pros and cons:

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1. Automation and Efficiency Excel: Excel is widely used for manual data entry, calculations, and reporting, but it’s time-intensive and prone to human error when handling complex or largescale data.

AI: AI can automate repetitive tasks, reduce errors, and speed up processes by analysing large datasets more effectively. In scenarios where manual data handling in Excel takes hours or days, AI can deliver results in seconds or minutes, improving profitability by saving time and resources.

Profitability Edge: AI wins by automating tasks and cutting down on human intervention and errors, making workflows more efficient. Predictive Capabilities

2. Excel: Excel can perform basic statistical analysis but lacks built-in advanced predictive analytics and machine learning capabilities.

AI: AI excels in predictive modelling, using machine learning to forecast trends, optimize decisions, and recommend actions, such as predicting property values, investment returns, or customer behaviour.

Profitability Edge: AI adds greater value in data-driven decision-making, helping businesses anticipate trends, which can increase revenue or reduce risks.

3. Scalability Excel: Excel struggles to handle very large datasets (millions of rows) and complex workflows, which limits its use for large-scale operations.

AI: AI systems are built to scale and can manage massive amounts of data efficiently, making them more suitable for industries that require constant data processing and insights generation.

Profitability Edge: AI scales easily, allowing businesses to grow without hitting operational bottlenecks that would otherwise require manual intervention or more human resources.

4. Cost Excel: Excel is relatively inexpensive and familiar, with a low learning curve, making it an easy tool for businesses with smaller budgets.

AI: AI solutions can have high upfront costs, including infrastructure, training, and data acquisition, but they typically offer a higher return on investment in the long term.

Profitability Edge: Excel might be more cost-effective for simple tasks, but AI’s long-term profitability comes from cost savings through automation, fewer errors, and more strategic insights.

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5. Complex Decision Making Excel: While Excel allows for complex formulas and macros, it lacks the ability to learn or adapt from past data or make intelligent decisions.

AI: AI can handle complex decision-making by analyzing patterns and evolving its predictions and recommendations over time.

Profitability Edge: AI provides more sophisticated, data-driven decision-making capabilities, which can lead to more profitable outcomes in industries like finance, real estate, and marketing

6. Conclusion: AI can be more profitable than Excel in scenarios that involve:

•Large-scale data analysis •Predictive modelling •Automation of repetitive tasks •Scalability and complex decision-making

However, Excel remains more cost-effective and practical for simpler, less data-intensive tasks. For maximum profitability, many businesses integrate both tools, using Excel for simpler tasks and AI for more advanced automation and insights.

more strategic insights.

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Hidden costs of Renting

What Tenants need to know

By Neale Petersen

Renting a home in South Africa often comes with unexpected costs beyond the monthly rental amount, leaving tenants caught off guard.

The market is indicative of higher utility costs and inflationary pressures.

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in South Africa:

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Market Trends and Vacancy Rates The recent TPN Residential Vacancy Survey indicates a rise in residential vacancies across South Africa, increasing from 4.42% in Q1 to 6.72% in Q2 of 2024. Notably, KwaZulu-Natal and the Eastern Cape faced significant double-digit increases, while Gauteng and the Western Cape reported fewer vacancies. Waldo Marcus, Industry Principal at MRI Software, attributes this rise to fluctuating supply and demand, economic pressures, and shifting consumer behaviour.

Despite the uptick in vacancies, the average annual vacancy rate for the first half of 2024 stands at 5.57%, the lowest since 2016. The TPN Market Strength Index, which gauges rental demand versus supply, improved slightly from 59.66 to 60.36 points, indicating ongoing demand despite higher vacancy rates.

André van Rooyen from PayProp emphasizes that while tenants typically budget for rent and security deposits, understanding additional fees is crucial for entering rental agreements fully informed.

Breakdown of Rental Costs

According to PayProp, which processes over R1 billion in rental transactions monthly, various fees are commonly associated with renting:

1. Application Fee: A non-refundable fee averaging R250, covering the costs of processing applications and conducting credit checks. This fee is not refundable, even if the lease isn’t signed, but tenants can request a copy of their credit report.

2. Initial Lease Fee: This non-refundable fee, typically around R1,000 but can reach R2,000 in high-demand areas, covers the creation and execution of the lease agreement, including administrative costs.

3. Incoming Inspection Fee: Averaging R500, this fee is often paid by landlords to document the property’s condition before a tenant moves in, ensuring that any existing damages are noted.

4. Monthly Administration Fee: Generally around R100, this fee covers ongoing management costs, which are legal as long as they are outlined in the lease agreement..

5. Outgoing Inspection Fee: This is around R500, this fee covers the inspection of the property at the end of the lease, helping tenants secure their deposit back if no damages beyond normal wear and tear are found.

6. Interest on Arrears: Landlords can charge interest on late rent payments, commonly at 24% per annum, unless otherwise specified in the rental agreement.

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The Consumer Protection Act mandates that all fees must be disclosed to tenants upfront, highlighting the importance of transparency in rental agreements. Tenants need to proactively inquire about any additional fees.

Inflationary Pressures Current inflationary trends in South Africa are driving up various costs associated with renting. Rising utility rates, including electricity, alongside increases in municipal rates and property taxes, have compounded the financial burden on tenants.

The Landsdowne Property Group notes that the recovery of the residential market may take time, but factors like interest rate cuts and lower inflation could stimulate a positive shift in demand.

Jonathan Kohler, CEO of Landsdowne, observes that while a decrease in interest rates could enhance consumer confidence and affordability in home loans, households still face significant financial strain due to ongoing utility increases and potential water-shedding issues.

The Role of Technology To manage these costs effectively, property management software has become indispensable. PayProp and WeconnectU are leading the way with innovative solutions that streamline rental management. WeconnectU’s RedRabbit is particularly noteworthy for its Inspection & Maintenance Management capabilities, allowing property managers to optimize workflows and maintain accurate records efficiently.

Trafalgar, another key player in the property management space, highlights the necessity for sectional title owners to prioritize maintenance as a means to mitigate escalating insurance premiums driven by climate-related risks. Andrew Schaefer, Trafalgar’s MD, explains that insurers are increasing rates significantly, making it crucial for property managers to negotiate effectively and maintain properties to avoid unnecessary costs.

Conclusion

Understanding the real costs of renting in South Africa involves more than just the monthly rental fee. Tenants must navigate a landscape of additional charges while facing inflationary pressures on utilities and taxes.

Utilising property management software can help both landlords and tenants maintain transparency and efficiency, ensuring that rental agreements are not just viable but also sustainable in the long run. As the market evolves, a proactive approach to managing rental costs will be vital for tenants and property managers alike.

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Technology

The Rise of Women in

Pioneering a Transformative Shift

By Neale Petersen

The emergence of women in PropTech represents more than just a trend; it signifies a transformative shift toward inclusivity and innovation in two traditionally male-dominated fields: property and technology.

As this sector evolves, it’s clear that diversity is a crucial driver of progress.

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PropTech:

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We spotlight three influential women leading South Africa’s PropTech landscape at Cushman & Wakefield | BROLL:

1. Azola Mabinza – Programmer 2. Charlene Kanny – Project Manager 3. Jess Moyer – Executive and Director of Strategy & Research

Azola’s journey began with a passion for real estate and a background in computer science. Transitioning from property management to IT programming, she now works at b#, an innovative tech-driven real estate solution. Her focus is on integrating technology into commercial real estate to boost efficiency and sustainability.

portion of real estate consumers and decision-makers, their presence in PropTech is crucial for understanding user needs. Jess stresses the need for balanced datasets in machine learning, warning that relying on historical data can perpetuate biases. Women’s empathy and diverse perspectives can help create fairer solutions.

Charlene attributes her success to her “continuous curiosity and solutionsdriven approach.” As a project manager at Broll, her experience in dynamic technology landscapes is fueled by the belief that solutions can be found even in complex situations.

Each of these women draws inspiration from trailblazers in their fields. Azola admires Tsholofelo Ramokoka, while Charlene looks up to Meirav Oren for her contributions to safe construction solutions. Jess finds inspiration in Mary Kingsley, a Victorian explorer who defied norms and explored West Africa.

Jess brings a diverse background that includes mechanical engineering, property research, and data science. This multifaceted expertise allows her to provide data-driven solutions to clients’ challenges, highlighting the importance of varied perspectives in an industry with broad community implications.

Despite their different paths, all three women agree on the importance of diversity. Azola notes that women contribute unique perspectives essential for innovation and social responsibility. Charlene emphasizes that a diverse workforce leads to better decisionmaking processes, while Jess points out that women’s insights help ensure technology solutions are inclusive and comprehensive.

With women constituting a significant

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Jess Moyer

Navigating the challenges of being a woman in PropTech requires resilience. Azola has built a strong skill set and supportive network to overcome gender biases and advocates for quotas to ensure women’s representation. Jess agrees that quotas can drive systemic change, while Charlene emphasizes that increasing diversity will create a more vibrant industry.

For young women aspiring to enter PropTech, the advice is clear: stay curious, build strong networks, and specialize in areas of interest. Jess encourages balancing generalist knowledge with specialization, while Azola highlights the importance of staying updated with trends and taking risks. Charlene advises focusing on solving problems passionately.

All three women are optimistic about the future of PropTech, envisioning a field that evolves with inclusivity and sustainability. They point to technologies like IoT and AIdriven property management as key components of this evolution.

These leaders not only excel in their fields but also advocate for a more inclusive PropTech industry. As Azola aptly puts it, “When one woman makes a place for herself, she paves the way for countless others to follow.” Their journeys remind us that empowering women benefits everyone.

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AI CASE STUDY: Transforming

with innovative Artificial Intelligence

By Eric Nienaber

Discussions around Artificial Intelligence (AI) are often highly conceptual and theoretical. In this article, I’d like to share some practical insights from our experience implementing an AI solution with a client.

Unfortunately, due to confidentiality agreements and the competitive advantage they see in this implementation, I am unable to disclose the client’s identity.

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ground-level challenges

(AI)

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Our client approached the integration of AI with caution, as expected. They had numerous questions regarding costs, risks, the handling of company-specific information, the user interface, and most importantly: would this AI work? As a result, they decided to move forward with a proof of concept (PoC) for a single module within their application.

Why they chose our AI Solution The client ultimately selected our AI solution because it offered several unique features that were not readily available elsewhere.

1.The AI’s ability to take autonomous actions within their application.

2.The flexibility to easily switch between different large language models (LLMs), whether using APIs for existing models or deploying their own open-source models.

3.Fine-tuning of AI interactions based on ongoing conversations with the AI.

The key factors that influenced their decision were:

4.Customisable user interfaces that could be fully integrated with their own applications.

Implementation and Outcomes The implementation yielded both expected and surprising outcomes. Setting up our AI solution took a little longer than anticipated, largely due to the complexity of the client’s existing application. It was more a matter of our team getting up to speed with the client’s system than any issues with the AI itself. Once the setup was complete, the integration process went relatively smoothly.

We expected the implementation of IntelliWeave AI to streamline interactions with the client’s application, reducing the learning curve for users. The AI interface allowed users to immediately engage with the application, bypassing the need for extensive familiarisation.

By combining the company’s internal data with the LLM’s knowledge, the AI produced spectacular results—delivering insights and information that would not have been accessible through traditional means. User feedback during testing has exceeded our expectations.

Unexpected Benefits: Cost Savings and UI Improvements One surprising outcome was the emergence of cost savings from an unexpected source. The AI’s capabilities allow for significant simplification of the application’s user interface (UI), resulting in reduced design and development costs. This will not only cut expenses but also improve the overall user experience with a cleaner, simpler UI.

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Future Considerations: Running Costs and AI Efficiency While we have not yet fully tested the ongoing costs of running the AI model daily, we are confident that these costs will be reasonable, especially when weighed against the benefits. The cost of training and running AI models continues to decrease, and this trend is likely to persist.

We can draw parallels to Moore’s Law, which predicted the doubling of transistors on a chip approximately every two years, leading to exponential growth in computing power. In the AI era, two emerging trends—Koomey’s Law and Mosaic’s Law—offer insights into AI’s future.

Koomey’s Law suggests that the energy efficiency of computing doubles every 1.57 years, meaning the energy required for a given amount of computation is halved in that timeframe. Although this trend has slowed, significant improvements in efficiency continue. Mosaic’s Law, while more of an

observation than a strict law, notes that the cost of training AI models seems to decrease by around 75% annually.

Both trends bode well for the future of AI, both in terms of commercial viability and environmental sustainability.

In summary, our experience implementing AI within a real-world application has proven both rewarding and insightful. The benefits of AI, from streamlining user interactions to unexpected cost savings, have exceeded initial expectations. As technology continues to advance and costs decrease, the potential for AI to drive efficiency, innovation, and competitive advantage will only grow. We’re excited about the future and confident that AI will play an increasingly pivotal role in transforming businesses for the better.

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Commercial

Designing for the Future:

How Architects are shaping

By Gidgette Osborne

The world of work has changed, and office design is changing with it.

As workspace architects increasingly plan spaces with hybrid workers in mind, landlords and building owners can take advantage of the hybrid movement.

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spaces for the hybrid workforce

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As the productivity debate between the proponents of remote and onsite work rages on, companies are starting to recognise that they may need to make significant changes if they really want employees to return to the office full-time - or even most of the time.

Chaim Bronstein, head of the commercial department at Firzt Realty, who has recently concluded two major transactions involving companies moving premises to provide a better work environment for employees. “We’ve all seen the headlines about employees overseas threatening to quit or being willing to forego any promotions rather than being forced to return to full-time onsite work. But the reality in SA is that very few corporate employees can actually afford to do that, so what they are generally doing instead is negotiating more favourable working hours or conditions

Office design has always evolved as new ways of working emerge. The cubicles that characterised offices in the 1960s and 1970s gave way to open-plan offices, which have dominated workspace design ever since. Now, we’re seeing the needs of the increasingly common hybrid worker shape how architects and planners design our workspaces, with diverse, technologically advanced, and multi-functional spaces becoming the norm.

The Wall Street Journal reports that “Leading architects and real-estate developers are pioneering concepts aimed at workers who are splitting their time between home and office, and they predict these innovations will become mainstream in the years to come.”. These concepts the Wall Street Journal predicts, feature “workplaces that look like your living room”, with architects designing flexible, multi-use spaces that even include features like outdoor terraces.

In other words, offices will become destinations designed to complement remote work. “Partnering with IWG is an effective way for landlords and building owners to deliver a return on investment in office design. We design empty office space with beauty and practicality in mind, providing plans that maximise and monetise the area and ensure success for landlords and businesses alike”, say Joanne Bushell, MD, IWG, South Africa “As specialists in the area, IWG knows how to maximise and monetise working spaces, collaboration and quiet time”, she adds.

One of the many benefits of hybrid working is that it mixes collaboration with quiet time when workers can get their heads down and work productively alone. Architects are now designing spaces that reflect these differing needs. In addition to livelier collaboration areas, they’re striking the balance by delivering more private working zones, such as the innovative new noise-cancelling cubicles in Meta’s hybrid offices.

These features have arisen out of the different ways people are now working. For example, with so many meetings now conducted on Zoom, Teams, and other video conferencing platforms, workers need quiet spaces where they can log into meetings. An open-plan office simply isn’t conducive to this. It’s no coincidence that this kind of workplace balance is now at the forefront of office designers’ minds as the practice of ‘experience design’ continues to grow alongside the boom of hybrid work.

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What workers want

Research by IWG found that 90% of employees want

Crucially for landlords and building owners, evidence suggests that neither 100% onsite nor 100% remote working provides the best solution for

This group saw a decline of five points in engagement and an increase of seven points in active disengagement. Meanwhile, those working exclusively remotely saw an increase of four points in “quiet quitting”, meaning they’re not engaged in their work and workplace.

These new design trends are a response to the desires of the workers themselves, with plentiful research to back up what they’re looking for.

• Flexibility in where and when they work. As a result, 88% of companies are planning a full shift to flexible working.

•Research also makes it clear that hybrid is crucial to businesses being able to attract and retain talent, showing that if hybrid working isn’t on offer, employee satisfaction and engagement dips.

businesses. Indeed, in its annual employee engagement survey, Gallup found that the largest decline in employee engagement was among those in remote-ready jobs who are currently working fully on-site.

Clearly, a balance is what’s needed, and that’s exactly what hybrid offers. Gallup has called for businesses to “Embrace hybrid work for remote-ready employees”, finding that “the right mix of in-person time can result in the highest levels of employee engagement.”

For maximum return on investment, landlords and building owners need to take advantage of the hybrid movement and deliver flexible workspace that can address this balance. Whether you have a whole building or a single floor, companies such as IWG are interested in partnering with you to capitalise on this surge in demand. Start generating returns today and partner with the leader in flexible workspace.

IWG continues to sign record-breaking numbers of partnership agreements with building owners around the world to turn empty building space into profitable income-generating flexible workspaces.

Partner with IWG Here

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COMMERCIAL

South Africa’s REITs

Stronger Investor sentiment fuels

By John Jack

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bounce back:

growth

Despite several tumultuous years, South Africa’s Real Estate Investment Trusts (REITs) have regained their strength, rebounding to four-year highs.

Listed property companies have been some of the strongest contenders on the JSE in recent months thanks to improved investor sentiment, a stronger rand, an interest rate cut and softer yields.

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In sharp contrast to this time last year, when South Africa’s top five REITs shed a collective R100 billion in value, the situation today is significantly improved. Year-on-year highs posted on 12 September underpin robust growth figures by Attacq (+60.57%), Fortress (+55.37%), Vukile (+26.77%), GrowthPoint (21.83%) and Redefine (+29.61%).

In addition, from January to July, South Africa’s listed property funds delivered 14.4% in returns (income and capital growth), outshining bonds (9.8%), equities (10.0%) and cash (4.9%).

These diversified portfolios are highly sought-after at the moment, particularly with a recent interest rate cut. It’s an exciting time for South Africa’s listed property sector and I would like to think that some healthy competition and pressure to deliver returns have yielded the positive outcomes that we see today.

Top Five REIT Performances Unpacked

GrowthPoint Properties

Looking to the current activities and performance by top REITs, Jack points to GrowthPoint’s reported drop in vacancies (now at 8.7%) and its renewal success which has been a big focus for the leasing team. “They also announced the construction investment of R4.5 billion at the V&A Waterfront, marking the most building activity that has taken place at the property in more than 30 years,” says Jack.

Another interesting development that has been taking place is GrowthPoint’s investment in student accommodation – a stable asset class delivering continuous returns.

“In response to the shortage of approximately half a million beds in student housing, GrowthPoint plans to invest a further R1.2 billion in the market by 2026,” says Jack.

Fortress Real Estate Investments

Fortress CEO Steven Brown sat down with me in July to discuss the shifts taking place at Fortress in recent years. In 2018, we had to split the businesses and crafted a new strategy for Fortress at the time. From 2019 to now our net asset value per share has gone up, which is impressive considering COVID and the market.

Brown said we sat back and thought about the simplification and specialisation of the business,” continues Brown, pointing to the dual share structure where Fortress cancelled its B shares in exchange for NEPI Rockcastle shares as a R14 billion shareholder.

NEPI Rockcastle is the premier owner and operator of shopping centres in Central and Eastern Europe (CEE). This bold move was welcomed by the market and put the REIT back on track to pay out dividends.

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Attacq Limited

While a significant portion of Vukile Property Fund’s assets are located in Spain (61%), it’s domestic earnings are driven by South Africa’s retail frontrunner: the informal cash economy.

Attacq has reported phenomenal growth year-to-date, with a 19% increase in fullyear dividends; has repurchased 5.4 million of its shares and acquired a further 25% in Waterfall Junction. The REIT also shared that its occupancy rate rose to 92.8%.

Vukile Property Fund

This retail-focused REIT knows where it strength lies. With a booming cash economy, Vukile are aggressively targeting growth in the rural and township retail sector, and this is proving to be a fruitful exercise.

As it stands, South Africa’s informal economy is outpacing its formal counterpart and is responsible for providing jobs to a large portion of the unemployed population. The informal economy or cash retail economy is driven by spaza shops and is said to be worth an estimated R750 billion in total.

Redefine Properties

While some naysayers have written off South Africa’s office sector, Redefine Properties did the opposite, allocating R730 million in capital expenditures to its office portfolio of 87 properties during the 2023 reporting period.

The office sector accounts for a large portion of Redefine’s portfolio (35%) and therefore the group has been heavily focused on boosting this sector. The combination of a boom in the Western Cape’s office sector and the return of workers to offices in Gauteng has led to an increase in demand.

The strongest demand appears to be for high-end A- and P-grade office assets, which account for 95% of Redefine’s office portfolio. This has resulted in an office occupancy rate of 87.8% for the 2024 financial year.

REITs will continue to rise

Speaking to the investment class, in addition to regular dividends and special tax considerations, perhaps one of the biggest appeals of REITs for the general public is the opportunity to invest in properties without directly owning or managing the property.

Looking ahead, he anticipates that the market sentiment will lead the way. REITs continue to gain ground because of an anticipated decline in interest rates and a positive sentiment created by the GNU. ________________________________________________________________

About the author John Jack, CEO of Galetti Corporate Real Estate.

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Offshore

Invest in UK Property

A Simple Guide for South African

By Neale Petersen

Investing in UK property can be a smart way to earn steady passive income, especially for international investors.

Despite economic challenges, foreign investment in the UK has been growing since 2023. A recent survey found that 69% of international investors plan to invest in the UK in 2024, showing confidence in the market.

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without a Mortgage:

Investors

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Even during tough times, foreign investors have increased their investments, with a positive net investment of £21 billion. The UK is expected to continue being a top choice for international investors, with many predicting a rise in market activity.

Why Now Is a Good Time to Invest

The UK government, led by new Prime Minister Keir Starmer of the Labour party, is focused on boosting economic growth. The economy has recently recovered from a recession, and the government is working to attract new investments through partnerships and a National Wealth Fund.

A global investment summit will bring together leaders to discuss ways to encourage investment in the UK. This could lead to more opportunities for private investors and a brighter economic future. 1,000 per year.

Mortgage-Free Property Investment

For those looking to invest without dealing with high mortgage rates, there are is a highly attractive UK mortgage-free option available. Concept Capital Group, specialises in affordable buy-to-let modular homes that provides a hassle-free investment experience.

For a one-time payment of £42,999, you can fully own a high-quality modular home. This means you’ll receive monthly rental income without worrying about extra fees or mortgage payments.

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Benefits of Modular Homes

Our modular homes are designed for comfort and sustainability. They meet strict UK building standards and are built to last for at least 25 years.

Here are some key features:

• Prices start at £42,999 • 2 to 3 Bedrooms available • Return on Investment (ROI) of 10% • Fully Managed and Insured

With no hidden fees and a straightforward investment process, you can own UK property without the stress of traditional property investments.

Learn More Interested in investing in UK property without the complications of mortgages?

Click Here

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OFFSHORE

Why High-Net-Worth are investing in Property and Namibia: Step by step

By Neale Petersen

Understanding Africa’s Wealth Boom Africa is experiencing a significant wealth increase, with $2.5 trillion in investable assets.

Over the next decade, the continent’s millionaire population is expected to surge by 65%. Mauritius and Namibia are at the forefront, with projected growth of 95% and 85% in their millionaire populations by 2033.

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South Africans in Mauritius Guide

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OFFSHORE

Namibia offers a high quality of life, with stunning scenery, friendly people and a variety of outdoor activities to enjoy. Mauritius on the other hand also has a good quality of life on an island lifestyle with a top notch climate with warm and pleasant weather.

Why Choose Mauritius and Namibia?

Investment Migration: Both countries offer attractive pathways for high-net-worth individuals (HNWIs) looking to invest in property.

Political and Economic Stability: These nations have favourable policies that encourage foreign investment.

Tax Advantages: Neither country imposes capital gains tax. Namibia has no estate duty, while Mauritius has flexible trust laws.

Investing in Mauritius

Gateway to Global Mobility: Mauritius allows access to over 50% of global GDP without a visa, making it an appealing option for international investors.

Residency Options: You can obtain residency through property investment, starting from $375,000. This grants you the right to live, work, and retire on the island.

Favourable tax regime: No inheritance or capital gains taxes.

Investment Schemes: Consider government-approved property schemes, with significant capital gains such as:

-Property Development Scheme -Integrated Resort Scheme -Real Estate Scheme

Exploring Namibia

Tax Benefits: Namibia’s trust laws offer tax advantages for holding assets, with no capital gains, donations, or estate taxes (excluding agricultural land).

Protection for Investors: The Foreign Investment Act ensures equal treatment for foreign and local investors.

Strong rental demand: With a growing population means there is a growing demand for rental properties.

Residency by Investment: A minimum investment of $365,000 allows you to live, work, and study in Namibia without restrictions.

Learn More about Namibia

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Professional Guidance

It’s crucial to seek professional advice to navigate the investment process effectively:

Diversify Your Investments: Spreading wealth across different countries can help manage risk and access a broader range of opportunities.

Tailored Strategies: Work with advisors who understand your financial goals to find the best offshore structures and favorable legal frameworks.

Take the Next Step

Whether you’re looking to invest in property, retire, or secure your estate, understanding the market and seeking expert guidance will empower you to make informed decisions confidently.

By following these steps, you can capitalise on the burgeoning opportunities in Mauritius and Namibia and enjoy the benefits of your investments.

Learn More about Mauritius

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Mauritius

THE ONE RESIDENCE

LEEDS

Explore prime UK real estate opportunities

rei@sableinternational.com | www.sableinternational.com | +27 (0) 21 657 1584

Your gateway to international investment

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SABLE

I N T E R N AT I O N A L

Leeds is one of the UK’s most promising property markets, boasting a thriving population of young, affluent renters. The city centre is transforming, creating tens of thousands of new jobs and driving strong rental demand. With supply struggling to keep pace, rental rates are rising, highlighting a significant investment opportunity. Major infrastructure investments, including a £46.1 million train station upgrade and the £500 million South Bank initiative, position Leeds for substantial growth. Projected increases of 20.2% in house prices and 18.3% in rental values by 2028 make this market highly attractive. For more on The One Residences, contact us today!

Contact Megan Copley on +27 (0) 66 292 7057 or megan.copley@sableinternational.com

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Wealth

Revitalising Retirement

Five Design Trends Transforming Modern Living Spaces

By Gus van der Spek

Modern retirement developments are reputation, embracing innovative design today’s discerning retirees.

As individuals leave their multi-million-rand seek environments that match their design and modern comforts.

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Living:

shaking off their bland principles that cater to

family homes, they expectations for tasteful

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WEALTH

Income Disparities and Economic Impact

1. Safety Meets Aesthetics:

Thoughtful design for accessibility is essential as mobility often declines with age. Beyond traditional features like wheelchair ramps, forwardthinking developers are incorporating wide doors, step-free entrances, and strategically placed grab bars.

This attention to detail ensures that living spaces remain both beautiful and functional, allowing residents to move with ease.

2. Wellness-Centred Environments

Recognising the importance of health, many retirement communities now include on-site amenities such as gyms, yoga studios, and croquet lawns. These facilities encourage daily exercise, which is vital for both physical and cognitive health. Biophilic design trends, like living plant walls and water features, further enhance wellness by maximizing natural light and promoting emotional wellbeing.

3. Smart Technology Integration

Smart technology is revolutionizing retirement living, providing residents with greater control over their environments. Features like remotecontrolled lighting, temperature settings, and voice-activated assistants enhance comfort and convenience. High-speed internet is crucial, supporting not only leisure but also work-from-home opportunities for those who wish to maintain their independence and financial security.

4. Eco-Friendly Living Solutions

With challenges like loadshedding affecting South Africa, retirement developments are investing in renewable energy sources such as solar panels and generators. These eco-friendly solutions ensure uninterrupted power for essential services, enhancing safety for residents. Moreover, sustainable design principles reduce the overall carbon footprint while lowering energy costs, aligning with the values of today’s retirees.

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DIVE INTO THE SECRETS OF

STUDENT ACCOMMODATION SUCCESS

RETHA VAN ROOYEN

This tell-all masterpiece unveils the blueprint for building passive income through student accommodation. Learn the art of property selection, effective student marketing, and successful house management.

Get your hands on this riveting read and master the game of wealth creation today!

BUY PRINTED BOOK

www.mystudenthouse.co.za

084 575 1000

BUY E-BOOK

getinfo@mystudenthouse.co.za

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5.Inter-Generational Connections

To combat isolation, modern retirement communities are incorporating features that foster inter-generational connections. By adding boutique hotel rooms for visiting family and including mixed-use spaces with dining and retail options, these developments encourage interactions between residents and their younger family members. This not only enriches the lives of seniors but also enhances community engagement.

These emerging trends reflect a holistic approach to retirement living, prioritizing the physical, emotional, and social needs of residents. As developers innovate, they create vibrant, inclusive environments that enhance the quality of life and ensure that retirement is truly a time for enjoying the Golden Years. ________________________________________________________________

About the author

Gus van der Spek, owner of upmarket retirement lifestyle development Wytham Estate in Cape Town’s Southern Suburbs.

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Education

2024 Investor 2024

Winners announced, ceremony

By Neale Petersen

The prestigious Investor of the Year (IOTY) Awards, hosted by SA Property Investors Network (SAPIN) and proudly sponsored by Absa Home Loans, celebrated South Africa’s top property entrepreneurs at a dazzling ceremony at Shepstone Gardens in Johannesburg.

After an intense review of hundreds of entries by a panel of expert judges, 18 finalists across 10 categories emerged. Leading the night was Patricia Tshitema, who not only took home the coveted 2024 Investor of the Year title but also triumphed in both the Big Leagues and Inner-City categories.

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Awards:

shines

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Patricia, CEO of Bono Property Group, expressed her gratitude after winning Investor of the Year in three categories, saying, “I’m humbled and at a loss for words. This is just the beginning, and I’m determined to multiply my dreams. My mission is to empower the young people we house, which drives me daily. Winning confirms that dreams matter. On Monday, I’ll start strategic planning to expand our impact in South Africa. Thank you to SAPIN for connecting us with essential resources and partnerships for success in property investment.”

The IOTY Awards celebrate ordinary South Africans doing the extraordinary in property investment. From township entrepreneurs who started their investor journeys renting out rooms and expanding their portfolios to managing buildings, to women who’ve defied the odds to become landlords, the Awards shines a spotlight on the stories of everyday South Africans who created possibilities while facing challenging economic circumstances.

This year’s Awards feature new categories that celebrate diversity, including the Township Entrepreneurs, Women and Youth Entrepreneurs, Big Leagues, and Social Change Agents categories.

Andrew Walker, CEO and Founder of the SA Property Investors Network said, “Winning at the IOTY Awards significantly boosts the reputation and new business opportunities of budding and experienced property investors and solidifies their positions as top-tier investors in the competitive real estate market. Patricia was a worthy winner in her category and overall..”

Nondumiso Ncapai, Managing Executive at Absa Home Loans concurs: “Through the IOTY Awards, Absa are proud to live out the purpose of that ‘Your story matters’ and actively participate in the journeys of property investors who help develop the real estate sector and the greater economy.”

Besides the coveted title of Investor of the Year, category winners can look forward to an array of fantastic prizes.

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All the winners include:

Runner Up 1 Percy Madiba

Investor of the Year

Winner Patricia Tshitema

Runner Up 2 Robert Tsekoa

Big Leagues Investor

Intermediate Investor

Winner Patricia Tshitema

Winner Robert Tsekoa

Runner Up 1 Alewyn Bron

Runner Up Amanda Mhlong

Starter/ Beginner Investor

Most Innovative Investor

Winner Percy Madiba

Winner Nkateko Mlambo

Runner Up 1 Nokukhanya Ngcobo

Inner City Investor

Winner Patricia Tshitema

Runner Up 1 Lorick Barlow

Runner Up 2 Laurens Boel

Township Investor

Youth Investor

Winner Naledi Toona

Winner Percy Madiba

Runner Up 1 Percy Madiba

Runner Up 1 Stevens Molai

Women Investor

Social Change Investor

Runner Up 2 Leonard Dos Santos

Winner Nthabiseng Masithela

Winner Lorick Barlow

Most Growth Investor

Runner Up 1 Julia Haddon

Winner Laurens Boel

Runner Up 2 Lindiwe Farlane

Runner Up 1 Mabuye Mokoena

Runner Up 1 Dean Oliver Runner Up 2 Bruce Lee

Runner Up 1 Naledi Toona

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Until our next edition of REAL ESTATE INVESTOR Magazine

In November 2024

WEBSITE www.rei.co.za EMAIL info@rei.co.za TELEPHONE +27 21 761 3848

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