March 2025 edition: full text

2

REI MAGAZINE MARCH 2025

3

Publishing & Editorial 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

CHRISTIAN SCHUTTE

DIGITAL MARKETER christian@rei.co.za

PAUL VAN RIJSEWIJK

SENIOR DESIGNER paul@rei.co.za

CONTRIBUTORS

Andrew Thompson Lizna Nel Jaco Grobbelaar Robin Booth Christill Cave

4

Gavin Lomberg Schalk van der Merwe Danie van der Merwe Johann van der Merwe Retha van Rooyen

REI MAGAZINE MARCH 2025

Waldo Marcus Carola Koblitz Nicola Channing-Pearce Ayanda Khumalo Daniel Lombard

RECALIBRATING

the development conversation

12 th ANNUAL CONFERENCE

4 & 5 JUNE 2025

CTICC

JOIN US IN CAPE TOWN IN JUNE 2025

for this prestigious Property & Construction Event that annually brings together thought leaders from the Private & Public Sectors

Network with delegates from across the Built Environment - from large-scale and micro-developers, specialist consultants, contractors, NPO/NGO organisations & associations and industry service providers to representation from the financial and legal fraternity.

Hear our thought-provoking speakers and panelists as they RECALIBRATE the development discussion through robust discussion, debates and innovation to drive the collaborative solutions needed to grow our industry and economy.

EARLY BIRD BOOKINGS OPEN UNTIL 15 APRIL 2025

Further special discounts for WCPDF Members & Group Bookings

SPONSORSHIPS & LIMITED EXHIBITION SPACE AVAILABLE

SESSIONS INCLUDE

• Understanding who has skin in the game

• Recalibrating sustainability to sustain development

• The role of CIDs in creating investorfriendly centres

• Thinking creatively about finance

• Taking Product Western Cape to the world

• Recalibrating the Ratings Conversation

For info to register, exhibit or be a sponsor, 5 visit wcpdfconference.org.za

Lizna Nel

PUBLISHERS

WEBSITE

SUBSCRIBE

www.rei.co.za

Subscribe now

READERSHIP CIRCULATION ADVERTISING

1,210,054 Views

15,732 ( ABC Oct - Dec 24)

+27 21 761 3848

info@rei.co.za

Media Kit

2025

+27 21 761 3848

info@rei.co.za

Download Media Kit

www.rei.co.za

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.

6

REI MAGAZINE MARCH 2025

OUR 220 MILLION SHOPPER VISITS A YEAR CREATE SUSTAINABLE GROWTH AND SUPERIOR VALUE .

This is Faith M, aged 55. She shops weekly, mostly mid-morning when the roads are quiet. It’s a short drive, and this is her favourite community centre close to home.

She used to shop monthly, but now enjoys doing more frequent top-ups. She likes to spend time in the centre and will often arrange to meet a friend at the local coffee shop.

Faith and her husband like to pop in at the centre over weekends, especially when there’s a spice festival or other community event, or when they’re with their grandchildren in the school holidays.

We know all this and more about Faith M and our other visitors, too. Our multi-faceted consumer behaviour research, combined with our deep understanding of the needs and desires of the communities we serve, leads us every step of the way.

Our unique focus on a superior customer experience ultimately benefits all our key stakeholders, including our tenants and investors.

As a Vukile stakeholder, you too will benefit from our extensive analysis of shopper behaviour and the factors that drive continuously evolving retail trends.

There’s never been a better time to invest in people like Faith M.

BUILDING COMMUNITIES, GROWING VALUE.

7

Editor’s Viewpoint

Turning negative news into Opportunity:

How shifting focus leads to Success, Growth and Wealth

In a world dominated by negative headlines, it’s easy to feel overwhelmed. Political corruption, economic challenges, and constant bad news can cloud our mindset. However, as entrepreneurial property investor Gordon Mackay shared, when he stopped consuming negative news and focused on self-improvement, his business and wealth soared.

The key to his transformation lies in understanding the “negativity bias.” Humans are wired to focus on what’s wrong, which can hold us back. Constant exposure to negativity can distract us from our potential. But by prioritizing personal growth, we build resilience, allowing us to tackle life’s challenges with clarity and confidence.

Success isn’t instant; it’s a process of growth. Real progress often comes from stepping out of your comfort zone, facing discomfort, and embracing uncertainty. It’s in confronting our fears that true growth and success emerge.

In this issue, we feature the inspiring stories of Lizna Nel from eXp Realty, who thrived through adversity with focus and grit, and Christill Cave, a marketing entrepreneur whose innovative property investment approach reshaped her business. These stories remind us that success is rooted in mindset and perseverance.

Real estate offers incredible opportunities, especially in South Africa. Our magazine, website, and webinars provide valuable insights to help you build wealth and achieve success. Now is the time to invest in yourself and your future.

Enjoy the read!

8

REI MAGAZINE MARCH 2025

Founder & Editor-In-Chief

MASTER QUOTE

The only limit to our realisation of tomorrow is our doubts of today.

FRANKLIN D.ROOSEVELT

9

Contents

16

UPFRONT

28

04 PUBLISHING TEAM & CONTRIBUTORS 08 EDITOR’S VIEWPOINT: Neale Petersen 12 ASK THE EXPERTS: Damian Judge

Cover Story

16 MASTER INVESTOR: Lizna Nel

Investing

28 Cape Town vs Johannesburg: Which City offers the best Property Investment Opportunities?

35 Maximising Short-Term Rental Returns: Global Platforms for South African Investors

Residential

44 Christill Cave: Leading Uncommon Group with Integrity, Creativity, and Faith

54 10 Budget-friendly Bathroom Upgrades to boost appeal and increase Property ValueCreativity, and Faith

10

REI MAGAZINE MARCH 2025

72

94

Finance

60 5 Hidden costs Property Buyers often overlook And how to budget for them

66 Boost your Credit Score to secure easier Home Loan approval and Property

Property Management

72 Maximise Returns: Stress-Free Student Accommodation Management vs.Traditional Self-Managed Landlord Solutions

80 The WeconnectU Difference More than just Software!

Technology

86 From rental shifts to AI innovations: Navigating South Africa’s property evolution

92 Preferental unveils AI-Powered app to transform Tenant Screening for Landlords in South Africa

102 Western Cape Property Development Forum Recalibrating the development conversation

106 Cape Town’s Innovative Leasehold Auctions Pave the Way for Sustainable Growth and Prime Development Opportunities

Offshore

114 The Future of EB-5: Will Trump’s “Gold Card” Replace the Investor Visa?

Commercial

Wealth

118 Expropriation Act becomes Law: A Solution to South Africa’s Land Reform Challenges or not?

126 Making the Mind-Shift: Buy-to-Keep vs. Compound Impact Property Investment

Events

132 GTP Hosts exclusive Mayoral Dinner with economic Focus on Bellville, Cape Town

138 Launch of Veliciae Luxury Estate Agency in Cape Town – Introducing a New Era of Luxury Real Estate

11

Ask the Experts

Leveraging Auctions expertise in Real Estate and TRI Solutions to drive growth and capture new market opportunities

MEET OUR GUEST EXPERT

GREG DART

Director High Street Auctions

Question

High Street Auctions has built a strong reputation in real estate disposals, and more recently, in turnaround, restructuring, and insolvency (TRI) solutions.

How have your experiences and expertise in these areas shaped the company’s ability to pivot and expand into new sectors. What strategies are you using to ensure this evolution keeps you relevant and helps capture new clients and income opportunities?

12

REI MAGAZINE MARCH 2025

Answer from Greg Dart

High Street Auctions has been quick to pivot along with its target markets and take advantage of the support of owners of moveable and immovable asset owners to use auctions to speed up the sales process and cut down on selling costs whilst reaching a completely different pool of potential buyers.

Amongst others, we work closely with financial institutions and insolvency experts to enable struggling businesses to dispose of assets quickly to recapitalise their companies or to assist companies with new business strategies that no longer include property ownership to implement these rapidly without the hurdle of a protracted sales period.

While auctions are no longer seen as only a last resort in monetising immovable assets within distressed estates, they are also becoming more and more popular as an effective means to reach new target markets for those selling movable assets.

High Street’s decision to move into new movable asset sectors mid-year is a logical progression in our strategy for expansion, with Fleet auctions already underway.

A launch into our expansion into other categories will be revealed before mid-year.

This evolution has been made possible because of the brand equity and reputation built over time with our successes in the auction industry. New clients will be able to trust our brand promise The Premier Marketplace for Buying and Selling. The product offering can change but the promise remains consistent within our experienced group.

High Street Auctions has continued to be agile and has moved with the times, offering a tangible solution that is both efficient and effective.

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

Enquire here

13

Newsstand Archives

MARCH 25

FEB 25

JAN25

DEC/JAN 25

NOV 24

OCT 24

14

SEPT 24

REI MAGAZINE MARCH 2025

AUG JUNE JULY 24 24

Subscribe for Free

to receive future editions of Real Estate Investor Magazine in your inbox

Subscribe for Free

www.rei.co.za

15

Cover Story

Lizna Nel: A Journey of Transformation, and

By Neale Petersen

When you hear Lizna Nel’s name in the world of property, one thing becomes clear: she is more than just a real estate entrepreneur; she is a force of nature. A visionary who has leveraged her entrepreneurial spirit, grit, and boundless passion for people to not only carve out a prominent space for herself in the property industry but also to create lasting, transformative change in the lives of those she mentors.

From her humble beginnings in a small, remote town in South Africa to becoming one of the most influential property entrepreneurs in the world, Lizna’s story is one of overcoming obstacles, seizing opportunities, and leading with heart and authenticity.

16

REI MAGAZINE MARCH 2025

Determination, Empowerment in Real Estate

17

A Humble Beginning: The Foundation of Hard Work and Perseverance

Lizna was born in Carnarvon, a small town in the Northern Cape, and grew up in Van Wyksvlei, a tiny community of just 1,700 people. Life in a small town, where every face is familiar and resources are limited, shaped Lizna’s core values of hard work, resilience, and a deep appreciation for community.

With grandparents who were farmers and business owners, and parents who were driven entrepreneurs, Lizna learned early that success doesn’t come without sacrifice and dedication. Her family’s struggles with financial challenges, coupled with their unwavering determination, formed the foundation of her future path.

“My childhood taught me the importance of perseverance and determination. I saw first-hand how hard work and vision could turn dreams into reality,” Lizna reflects.

These early experiences not only shaped her work ethic but also instilled in her a sense of purpose to create something more significant than herself. She matriculated in Oudtshoorn and went on to pursue a twoyear diploma in Somatology. This marked the beginning of her broader global journey - one that would see her lead teams on some of the world’s largest cruise ships, manage HR and recruitment across multiple countries, and, ultimately, shift into the world of real estate.

18

REI MAGAZINE MARCH 2025

eXp REALTY SA

The Start of a Career: From Spa Manager to Entrepreneur

Lizna’s professional journey began humbly, managing a small spa in George while she was still studying. Initially, it was a part-time position, but it soon became a defining moment that would influence her entire career.

“Leadership isn’t about age or title. It’s about the impact you have and the relationships you build,” she shares. The experience of leading a team at a young age opened her eyes to the power of influence and collaboration.

Her career evolved rapidly from managing spa teams of up to 40 people on cruise ships to overseeing HR and recruitment, where she hired 600 - 800 people annually across South Africa, Namibia, and Mauritius. It was during this time that Lizna recognised a gap in the market - one that would drive her next entrepreneurial move.

In 2012, she founded a private higher education college in South Africa, a leap that proved to be a pivotal moment in her life. What began as a small venture quickly grew from 20 students to over 400, setting the stage for the next chapter in her career. In 2017, Lizna made the bold decision to sell her college, choosing to embrace a new challenge that would bring her closer to her true passion - real estate.

19

LIZNA NEL PROFILE

Company: eXp Realty (Founder of Realtor South Africa, powered by eXp Realty)

Position: Real Estate Leader, Entrepreneur, Podcast Host

Qualifications: Diploma in Somatology, Certified Real Estate Professional, Certified in Cultural Diversity, Customer Service, Business Management, HR & Recruitment, and Digital Marketing

Company Description: eXp Realty is a global cloud-based real estate brokerage empowering agents to scale their businesses through cutting-edge technology, collaboration, and a revenue-sharing model. As the founder of Realtor South Africa under eXp Realty, I have leveraged this platform to build a dynamic team, launch industry-leading initiatives, and help agents achieve unparalleled growth.

Uniqueness of Company: eXp Realty offers an agent-centric, tech-driven model that prioritises collaboration over competition, global networking, and revenue-sharing, enabling agents like me to expand, innovate, and thrive.

Family: Married to Daniel, mother to Clea (12) and Aiden (14)

Hobbies: Reading, creating art, and exploring new ideas

Best Book Read Lately: Let Them Theory by Mel Robbins

Personal Motto: “As I am blessed, I bless others. Life is about paying it forward, staying authentic, and inspiring others to embrace who they truly are and then grow into the best version of themselves.”

20

REI MAGAZINE MARCH 2025

A Leap into Real Estate: A New Path of Empowerment and Leadership

In 2018, Lizna made the transformative move into the real estate industry. The decision to join eXp Realty was a game-changer. “I was looking for a career where I could blend my business acumen with my passion for personal growth and empowerment. Real estate offered that freedom,” she explains. Lizna quickly recognized that this was more than just a career change - it was the perfect environment to scale her leadership abilities and help others build successful careers.

As the Founder of Realtor South Africa, powered by eXp Realty, Lizna’s leadership has been defined by her commitment to innovation and collaboration. Through initiatives like the AHA Club (Agents Helping Agents) and the Success Builders Podcast, Lizna created platforms that not only focus on real estate transactions but also on personal transformation and growth for the agents she mentors.

Real estate is about more than properties; it’s about connection, trust, and transformation. I get to be part of people’s life-changing moments, and that’s what makes this work so rewarding. Lizna shares

Her focus on empowerment, collaboration, and transparency sets her apart from competitors. Through the Realtor South Africa brand, she emphasises a model where agents support each other, as opposed to working in competition.

Technology and personal branding also play a central role in her approach to agent training, ensuring that her team thrives in a digital-first market.

21

Lizna was recognised as our ‘First Lady Icon’ agent which ensures that Lizna is paid R150,000 of eXp shares. Subject to her offering further value to Social Responsibility and adding further value to Agent eXperiences through training and coaching - in true eXp Spirit. This accolade can repeat every year and is a game changer for top producing agents and most certainly a wealth creator and more.

Calculated Risks: A Key to Her Success

Lizna’s success has not come without its risks, but she approaches them with an insightful and calculated mindset. Her entrepreneurial journey has been built on bold decisions, from founding her college to entering the property industry and launching transformative projects like the AHA Club. One of the most significant risks was joining eXp Realty, a decision that reshaped her career and opened global doors.

“Risk-taking has always been at the core of my career. I thrive on calculated risks, trusting my instincts, analysing opportunities, and jumping in with both feet,” she says. This bold approach has paid off, earning Lizna recognition as one of the top 50 global agents at eXp Realty, among a pool of 89,000 agents worldwide. She also became the first female ICON Agent with eXp Realty South Africa, a testament to her leadership and innovation in the real estate space.

Leadership with Heart: A Philosophy Rooted in Authenticity

Lizna’s leadership philosophy is grounded in authenticity and empowerment. “I lead with heart and vision,” she says. For Lizna, it’s about creating spaces where people feel seen, heard, and valued. Her approach to leadership is focused on mentorship, open communication, and trust.

“When people feel safe, they thrive. My role is to push them to grow beyond their comfort zones while ensuring they know they are supported every step of the way.”

22

REI MAGAZINE MARCH 2025

Her commitment to empowering others extends beyond her agents. Lizna believes in giving back to her community and supporting underprivileged groups.

Empowerment starts with action. I’m passionate about inspiring others to rise beyond their circumstances and giving them the tools to succeed.

A Legacy of Empowerment and Impact

“I want to inspire people to dream bigger, love deeper, and live authentically,” she shares.

As Lizna continues to build her real estate empire, she is also focused on leaving a lasting legacy - one that transcends business success. She wants to be remembered as someone who empowered others to embrace their authenticity and push beyond their limitations.

In addition to her business accomplishments, Lizna is working on her first book, further demonstrating her commitment to inspiring others through storytelling. “I’m an artist at heart. My happy place is creating - whether it’s with words, art, or in my business,” she adds. Her upcoming projects include expanding the AHA Club and growing her public speaking and mentoring brand.

23

The Future of Real Estate: Embracing Technology and Community

Lizna is also deeply invested in the future of the real estate industry, recognizing the pivotal role technology will play in shaping its landscape.

“Technology is the future of real estate. AI, data analytics, and blockchain will continue to reshape how we buy, sell, and invest in properties. Being tech-savvy is no longer optional - it’s essential,” she states.

But despite the technological advancements, Lizna believes that the heart of real estate will always be people. It’s about relationships, trust, and providing a space for individuals to grow and thrive. She is committed to staying ahead of industry trends, ensuring that she and her team are always equipped with the latest tools and insights to succeed.

A Word of Wisdom: Embrace Your Journey

For aspiring entrepreneurs, Lizna offers the following advice: “Be authentic, stay curious, and embrace failure as a learning tool. Success isn’t linear. Find your voice, back yourself, and never stop growing.” Her story is a testament to the power of persistence, resilience, and the relentless pursuit of one’s goals.

From her small-town roots to becoming a global leader in real estate, Lizna Nel’s journey is proof that with determination, vision, and a passion for empowering others, anything is possible. As she continues to push boundaries and inspire others to dream bigger, her legacy of empowerment and transformation in the property space is just beginning to unfold.

24

REI MAGAZINE MARCH 2025

A Commitment to Lifelong Learning: Staying Ahead in an Evolving Industry

In the fast-paced world of real estate, staying ahead of the curve is essential.

For Lizna, continuous learning and self-improvement have been pillars of her success. “I’m a lifelong learner. Whether it’s attending international conferences, participating in mastermind groups, or following global market leaders, I’m always striving to expand my knowledge and skillset,” she explains.

Her commitment to learning is not just about keeping up with industry trends but about personal growth as well. Lizna believes that staying curious and open-minded allows her to adapt quickly to the ever-evolving landscape of real estate, ensuring she remains at the forefront of innovation.

Her role as Chair of the International Agent Advisory Council has given her the opportunity to share her insights with a global network of leaders, while also learning from them. This exchange of ideas and best practices has enhanced her ability to mentor and empower her agents, fostering a culture of collaboration and continuous improvement.

We as the eXp Family salute Lizna in every respect, she is one dynamic person. It’s these key relationships that foster the incredible community of real estate professionals. We are truly thankful to have Lizna and Daniel be part of this growing disruptive and visionary team

said Andrew Thompson Country Leader of eXp Realty South Africa. “To put it simply, she is iconic.”

The Power of Community: Building Relationships that Matter

Beyond her role as a leader, Lizna is deeply committed to building a supportive, thriving community within the real estate industry. She emphasizes that success is not achieved in isolation but through relationships and collaboration.

25

This philosophy is at the heart of her initiatives like the AHA Club, which focuses on creating a network of agents who help each other grow. “The AHA Club is more than just a business tool - it’s a movement,” Lizna says. “It’s about creating a space where agents don’t just compete against each other but work together to elevate everyone’s success.”

This collaborative spirit extends to her personal life, where Lizna surrounds herself with people who share her values and vision. Whether it’s her family, friends, or her professional network, Lizna’s life is built on meaningful connections that encourage growth, support, and inspiration.

A Future Focused on Giving Back

As Lizna continues to scale her business, she is equally focused on giving back to her community. Her commitment to social responsibility is evident in the many initiatives she supports, particularly those aimed at empowering underprivileged communities.

True success is not just about financial gain; it’s about making a positive impact on the lives of others,” she says.

Lizna’s vision extends beyond property sales and entrepreneurship - it’s about leaving a legacy of kindness, empowerment, and transformative change for future generations.

Through her work, Lizna Nel proves that success is not only about building wealth; it’s about uplifting others and making a meaningful difference in the world. With her unique blend of leadership, innovation, and compassion, Lizna continues to inspire and lead by example, creating opportunities for others to dream bigger and achieve more.

26

REI MAGAZINE MARCH 2025

27

Investing

Cape Town vs Johannesburg: the best Property Investment

By Jaco Grobbelaar

When it comes to property investment in South Africa, two consistently stand out: Cape Town and Johannesburg. Each unique opportunities, but their markets differ significantly, advantages and challenges.

Whether you’re seeking capital appreciation, high rental term stability, your investment strategy will guide your article, we’ll break down the key differences between these helping you decide where to best allocate your investment.

28

REI MAGAZINE MARCH 2025

Which City offers Opportunities?

cities offers with distinct

yields, or longdecision. In this two cities,

29

The Highlights

1. Cape Town’s Capital Growth Cape Town offers strong long-term capital appreciation in prime areas, though high property prices require larger upfront investments.

2. Johannesburg’s Rental Yields Johannesburg offers more affordable properties and higher rental yields, making it ideal for cash flow-focused investors.

3. Stability and Consistency in Johannesburg Johannesburg’s rental market remains stable year-round, offering predictable income with steady demand from professionals, students, and families

Let’s break down the key differences and help you decide where to put your money.

Investing in Cape Town: Unlocking Potential in a High-Demand, High-Growth Market

Cape Town is widely regarded as South Africa’s jewel - with stunning natural beauty, incredible beaches, iconic mountains, diverse culture, excellent education facilities, a booming tourism industry with world class infrastructure and a quality lifestyle.

Beyond its appeal as a holiday destination, it’s also a lucrative property market for investors with some of the most prime real estate locations in South Africa.

30

REI MAGAZINE MARCH 2025

1. Strong Capital Appreciation

One of Cape Town’s biggest selling points is capital growth. Areas such as the Atlantic Seaboard, CBD, and Southern Suburbs have experienced significant value increases over the years. Investors looking for long-term capital appreciation often favour Cape Town due to its high demand and limited land availability.

However, the downside is that property prices are generally much higher than in other cities. This means you need a larger upfront investment to enter the market. While the returns can be impressive over time, affordability is a key factor to consider.

2. Short-Term Rental Opportunities

Cape Town’s status as a tourist hotspot makes it one of the best places in South Africa for short-term rentals like Airbnb. Areas such as Sea Point, Green Point, and the V&A Waterfront are in high demand yearround, especially among international travellers. If you’re considering an investment in short-stay rentals, Cape Town can deliver excellent returns.

However, it’s important to note that short-term rentals are highly seasonal. During peak tourist seasons, you can charge premium rates, but in quieter months, occupancy rates may drop. Managing cash flow effectively is crucial for investors in this market.

3. Premium Lifestyle and High-End Tenants

Cape Town attracts a unique mix of tourists, digital nomads, expatriates, and young professionals who want to live in scenic locations. This translates into a strong tenant demand for high-end rentals, particularly in desirable areas.

That said, Cape Town has a higher cost of living, which means rental yields are generally lower compared to Johannesburg. Investors need to carefully select properties that will generate sustainable rental income.

Cape Town: Weighing the Benefits and Drawbacks for Property Investors

Pros: • High capital appreciation in prime areas • Strong demand for short-term rentals (Airbnb market) • Attractive lifestyle and international appeal

Cons: • Expensive property prices and high upfront costs • Seasonal fluctuations in rental demand • Lower rental yields compared to Johannesburg

31

Investing in Johannesburg: Capitalising on Affordability and Strong Rental Yields

Johannesburg is best known as South Africa’s economic powerhouse. As the financial hub of the country and with the financial sector booming, it offers strong long-term rental demand from high income tenants, affordability, and better rental yields.

It also attracts many business travellers as an economic hub, a growing retail sector, an airport that is easy to connect globally and a focus on sustainability as a key focus.

1. Affordable Property Prices & Better Rental Yields

Compared to Cape Town, Johannesburg is significantly more affordable. Investors can purchase properties at lower prices while still securing strong rental income.

Key areas like Sandton, Rosebank, and Midrand attract working professionals, creating a consistent demand for rental properties. As a result, Johannesburg offers better rental yields on average, making it a great option for cash flow-focused investors.

2. Stable Rental Market

Unlike Cape Town’s seasonal market, Johannesburg’s rental demand is consistent year-round. With its high concentration of corporate headquarters, universities, and business hubs, the city has a steady influx of tenants, including:

• • • •

Young professionals Students Corporate executives Middle-class families

For investors looking for long-term rentals with fewer fluctuations, Johannesburg provides a safer, more predictable income stream.

32

REI MAGAZINE MARCH 2025

3. Growth Potential in Emerging Areas

Johannesburg has several up-and-coming areas with strong investment potential. Neighbourhoods like Fourways, Midrand, and parts of Soweto are seeing increased development and infrastructure upgrades, making them ideal for early investors looking for future appreciation.

If you’re interested in buying undervalued properties and watching them grow in value over time, Johannesburg offers more opportunities in this space compared to Cape Town.

4. Commercial and Business Hub

Johannesburg is home to South Africa’s biggest corporations and multinational companies, particularly in Sandton and Bryanston.

The high demand for executive rentals in these areas ensures a steady flow of quality tenants, making it a great option for high-end rental investments.

Johannesburg: Weighing the benefits and drawbacks for Property Investors

Pros: • More affordable property prices • Higher rental yields and better cash flow potential • Stable long-term rental market with consistent demand • Emerging areas offer great capital growth opportunities

Cons: • Slower capital appreciation compared to Cape Town • Less potential for short-term rentals • Some areas require careful research due to crime rates and economic fluctuations

33

Uncovering the Key Factors to Consider Before Investing in Cape Town or Johannesburg

Both cities offer great property investment opportunities, but the best choice depends on your investment goals and strategy. Here’s a quick guide to help you decide:

Choose Cape Town if… You want long-term capital appreciation You’re interested in short-term Airbnb rentals You prefer premium properties in high-demand areas

Choose Johannesburg if… You’re focused on high rental yields and cash flow You want affordable entry-level investments You prefer long-term, stable tenants

At the end of the day, both cities have their advantages, and your decision should be based on what works best for your financial goals. Whether you prioritize appreciation, rental income, or affordability, investing in either Cape Town or Johannesburg can be a fantastic way to build wealth through property.

Final thoughts about investing Investing in property is about understanding the market and choosing a strategy that aligns with your goals. If you’re serious about property investing, take the time to research the best locations, analyse rental trends, and plan your cash flow carefully.

What’s your take? Would you invest in Cape Town or Johannesburg? Share your thoughts in the comments section below!

34

REI MAGAZINE MARCH 2025

FROM

2025

ONLY R495

PER PERSON

PROPERTY INVESTORS EVENING

3 APRIL | 18:00 - 21:00

PROUDLY SPONSORED BY

DURBAN

Includes Consultation Discount Voucher

Snacks and Drinks to be served

Black Tie

Link: https://shorturl.at/8z25z

BOOK N OW !

Limited seats available

Hosted by Jaco Grobbelaar

CELEBRATING 35 10 YEARS

Investing

Maximising Short-Term Key Insights and Strategies Platforms for South African

By Robin Booth

The short-term rental industry has transformed dramatically over the last decade. Once an informal practice, it is now a global multi-billion-dollar market attracting professional investors and real estate developers alike. Platforms like Airbnb, Booking.com, and Vrbo have revolutionised how travellers book accommodations and how property investors can generate income.

For investors, especially those in South Africa, it’s crucial to stay informed about global trends, rising competition, and shifting guest expectations. This article breaks down key strategies from topperforming hosts worldwide to help South African investors navigate the market and maximize returns.

36

REI MAGAZINE MARCH 2025

Rental Returns: from Global Investors

37

The Gist

1. Leverage dynamic pricing tools and targeted discounts to maximise occupancy and revenue in competitive markets.

2. Capitalise on the growing demand for longer stays by targeting remote workers and offering tailored amenities.

3. Enhance guest experiences with professional photos, fast responses, and personalised touches to increase repeat bookings and boost revenue.

1. Data-Driven Pricing & Discount Strategies: Maximising Occupancy and Revenue

Key Takeaways from Global Platforms:

• Airbnb reported that listings with dynamic pricing experienced 30% higher occupancy than those with static rates. The key takeaway here is that rather than setting a single rate for the entire year, hosts should adjust their pricing dynamically based on factors like seasons, demand, and booking lead times.

• Booking.com’s Genius loyalty programme boosted bookings by 29% for participating properties. While Airbnb doesn’t have a formal loyalty program, Booking.com rewards repeat customers with discounts. Subscribing to such programmes can attract loyal guests who may otherwise browse competitors.

• Expedia emphasised that offering targeted discounts led to improved customer retention and more repeat guests.

38

REI MAGAZINE MARCH 2025

How to Apply This in South Africa:

Use dynamic pricing tools like Pricelabs, Beyond Pricing, or Airbnb’s Smart Pricing to optimise your rates in real-time. Alternatively, manually adjust prices periodically to increase visibility on the platform.

Offer last-minute discounts or early-bird discounts during slower periods to ensure consistent bookings.

Leverage Airbnb’s ‘Special Offer’ tool to secure bookings quickly. Consider joining Booking.com’s Genius programme to tap into its loyal customer base, though be mindful of its review system and lack of host insurance, which is available through Airbnb.

Key Insight: Competing solely on price can be a losing strategy. Instead, differentiate your property by offering unique value and ensuring your pricing strategy reflects that. Flexibility in pricing will give you a competitive edge in crowded markets.

2. The Rise of Longer Stays: Attracting Remote Workers and Extended Travellers

Key Takeaways from Global Platforms:

• Airbnb’s Q4 2024 earnings revealed that 23% of all bookings were for stays of 28 days or longer.

• Both Booking.com and Vrbo highlighted the growing demand for corporate travel-friendly accommodations, with more business travellers opting for vacation rentals over traditional hotels.

How to Apply This in South Africa:

• Embrace the growing demand for longer stays. Highlight your property’s suitability for remote workers by promoting workspaces, high-speed internet, and other amenities.

• Offer weekly and monthly discounts on platforms like Airbnb to attract digital nomads and business travellers.

• Partner with corporate relocation agencies to secure longer-term bookings.

• Price your long-term stays at 2.5x to 3x the typical long-term rental rate for a profitable return, while offering guests flexibility and convenience.

• South Africa’s affordability and scenic landscapes make it an appealing destination for remote workers, presenting a significant opportunity for investors to cater to this growing trend.

39

3. Guest Experience: What Separates Top Listings from the Rest?

Key Takeaways from Global Platforms:

• Airbnb’s “Guest Favourites” listings receive 40% more bookings than the average property.

• Booking.com reported that properties with professional photos generate 24% more revenue.

• Expedia found that unique listings, such as themed homes, outperformed standard properties by 20%.

How to Apply This in South Africa:

• Invest in professional photography. High-quality images are crucial to attracting guests and improving reviews.

• Upgrade your property’s aesthetics. Whether it’s creating an ecoretreat, industrial loft, or beach-themed space, guests are increasingly looking for unique experiences rather than just a place to sleep

• Automate guest communication with pre-arrival emails and self-checkin instructions to ensure smooth check-ins.

• Maintain fast response times. Airbnb prioritizes listings with quick response times, often rewarding these properties with better visibility

• By focusing on creating a seamless guest experience, you can boost occupancy, increase repeat bookings, and command higher nightly rates.

40

REI MAGAZINE MARCH 2025

4. Scaling Operations Without Burnout: Automation & Efficiency

Key Takeaways from Global Platforms:

Hosts using automated check-ins saw higher guest satisfaction.

Expedia Group’s AI-powered tools helped improve operational efficiency for large-scale investors.

How to Apply This in South Africa:

• Invest in smart locks and keyless entry systems to simplify the check-in process and enhance guest flexibility.

• Use AI-powered pricing tools to adjust rates dynamically based on demand, competitor pricing, and market conditions.

• Automate your cleaning and turnover scheduling by using shared calendars or a reliable cleaning service to streamline operations.

• Consider hiring a co-host or virtual assistant to handle guest inquiries and maintenance, ensuring you can scale operations without the stress of constant management.

• By implementing automation in areas like guest communication, checkins, and cleaning, you can streamline operations, reduce stress, and focus on growing your business.

41

5. Marketing & Repeat Guests: Creating a Direct Booking Strategy

Key Takeaways from Global Platforms:

• Expedia Group saw a rise in direct bookings, allowing hosts to save on platform fees.

• Airbnb introduced tools to help encourage repeat guests, reducing the costs associated with acquiring new guests.

• Booking.com’s loyalty programs help build long-term guest relationships and improve retention.

How to Apply This in South Africa:

• Encourage direct bookings by offering discounts for repeat guests. However, consider the risks of not having the same protections as on major platforms like Airbnb.

Build your social media presence and create a website to capture bookings outside the major platforms.

• Offer added perks such as late check-outs or discounted future stays to incentivise guests to book directly.

• Despite the potential risks of handling direct bookings outside platforms like Airbnb, offering personalised experiences and discounted rates can help build loyalty and minimise platform commissions.

The Future of Airbnb Investing in South Africa

The global short-term rental market is continuously evolving. For South African investors, staying competitive means leveraging the most effective strategies that top hosts worldwide use: datadriven pricing, optimised guest experiences, operational efficiency, and direct marketing. As the market becomes more competitive, these strategies are essential for maximising revenue and ensuring long-term success.

42

REI MAGAZINE MARCH 2025

Investors in South Africa have a unique advantage - affordability, diverse landscapes, and a strong appeal to international travellers make it an attractive destination for short-term rentals. By embracing technology and adopting global best practices, South African hosts can stay ahead of the competition, attract high-quality guests, and build sustainable short-term rental businesses.

Key Actionable Steps for South African Investors

1. Implement dynamic pricing tools and adjust rates based on demand.

2. Cater to the growing demand for long-term stays by targeting remote workers and business travellers.

3. Invest in professional photography and unique design to differentiate your property.

4. Automate guest communication and operational tasks to scale without burnout.

5. Consider offering discounts and building a direct booking strategy to reduce platform fees.

By following these insights, investors can create a high-performing shortterm rental business that capitalises on the growing market and changing guest expectations. Stay informed, adapt quickly, and implement these strategies to unlock the full potential of your investment.

43

Residential

Christill Cave: Leading with Integrity, Creativity,

By Neale Petersen

Christill Cave is the Founder and CEO of Uncommon Group, a dynamic marketing and events agency that specialises in highimpact corporate brand positioning, event planning, and digital marketing solutions.

As a leader, Christill is committed to setting herself apart from others in the property and real estate marketing industry.

44

REI MAGAZINE MARCH 2025

Uncommon Group and Faith

45

With a background in Public Relations, her expertise in building brand narratives and executing powerful, audience-driven campaigns has made her an influential figure in the marketing sector. She is now actively shaping her presence, not just as a marketer, but as someone who seeks to elevate the property industry, making her mark with upcoming collaborations and events designed to forge valuable connections and partnerships.

Christill’s company, Uncommon Group, was built on the pillars of integrity, creativity, and connection, making it an innovative force in a competitive industry. These core values set the foundation for her vision to provide clients with impactful experiences that transcend traditional marketing tactics.

Uncommon Group’s focus on building trust, delivering creative storytelling, and fostering genuine relationships allows businesses to not only reach their audiences but connect with them in a meaningful way. For Christill, these principles are the key to driving success and transforming visions into lasting brand legacies.

• Purpose-Driven Leadership: Christill Cave leads Uncommon Group with integrity and creativity, shaping impactful brand experiences and fostering deep, authentic connections.

• Innovative Marketing Expertise: Specializing in strategic brand positioning, event planning, and digital marketing, Uncommon Group elevates clients through tailored, high-impact campaigns.

• Faith-Inspired Vision: Grounded in faith, Christill combines business strategy and spiritual purpose to drive success, inspire change, and build a lasting legacy.

The Genesis of Uncommon Group Christill’s professional journey began when she was just 15 years old. Encouraged by her late grandfather, a figure who always believed in her potential, Christill took the leap into the world of business and started her own venture, Christill Cave Relations.

It was this bold move that sparked her passion for marketing, and over the years, she expanded her business into what is now Uncommon Group. Her journey as an entrepreneur, though not without its challenges, laid the foundation for the innovative approach that Uncommon Group is known for today

46

REI MAGAZINE MARCH 2025

CHRISTILL CAVE PROFILE

Company: Founder & CEO of Uncommon Group

Education: Bachelor of Public Relations

Company Overview: Uncommon Group specializes in strategic brand positioning, event planning, and innovative digital marketing solutions.

Commitment: Focuses on excellence, creativity, and transforming visions into impactful brand experiences

Core Services: Crafting compelling narratives, executing seamless events, and driving audience engagement through tailored campaigns.

47

Christill’s journey wasn’t without its tough lessons. From early ventures in corporate roles to navigating the highly competitive business environment in Johannesburg, she learned firsthand the importance of strategic adaptation and personal resilience.

Yet, despite the hurdles, Christill’s faith and purpose have guided her to build a business that combines creativity, integrity, and connection.

Her leadership philosophy - one that is deeply rooted in faith and service - has been integral in fostering a team that is united in vision and values.

Core Values and Unique Approach

Uncommon Group isn’t just a typical marketing agency; it represents Christill’s commitment to providing something extraordinary. The agency is known for three key pillars that define its work and philosophy.

1. Uncommon Integrity: In a world where trends often drive decisions, Uncommon Group prioritises integrity above all else. This means providing transparent, ethical, and honest communication with clients, ensuring that every strategy is not only effective but true to the brand’s mission and values.

2. Uncommon Creativity: The agency’s ability to craft impactful, soulstirring narratives sets it apart. Christill believes in thinking beyond the ordinary and consistently produces work that resonates deeply with audiences.

Each campaign is designed to stand out in an over-saturated market, leaving lasting impressions and fostering genuine connections.

3. Uncommon Connection: At the heart of Christill’s work is the belief that marketing is about more than publicity - it’s about building meaningful, long-lasting relationships. Through personalised strategies, collaborative problem-solving, and a genuine commitment to client success, Uncommon Group ensures that every interaction creates a deeper bond with the audience.

48

REI MAGAZINE MARCH 2025

This unique approach has led Christill to work with a variety of high-profile corporate clients across different sectors. From real estate developers and investors to homebuyers, her company specialises in creating tailored marketing strategies that amplify brand presence and engagement.

Her work has bridged the gap between clients and their target audiences, using a combination of influencer marketing, corporate communications, and events that captivate and engage.

Leading Through Purpose

Christill’s leadership style is rooted in her faith and a deep understanding of purpose. Her work is not just about growing her business but about serving others and making a meaningful impact on the people she works with. This vision goes beyond profitability, as she aims to leave a legacy of excellence, integrity, and contribution to the marketing and property industries.

Christill’s approach to leadership is servanthearted; she believes that true leadership comes from leading by example, with integrity and grace, and ensuring that every decision aligns with values of excellence and service.

This philosophy extends to the culture she has cultivated within Uncommon Group. She values open communication, trust, and empowerment, ensuring that her team not only has the skills needed to thrive but is also aligned with the company’s higher purpose.

Through a combination of prayer, encouragement, and accountability, Christill has created a work environment where personal well-being and professional excellence are prioritised, allowing her team to work with passion and dedication.

Making Her Mark in the Property Industry

While her company has enjoyed success across various industries, Christill is particularly focused on the property sector, where she is positioning herself as a standout marketer. Recognising the power of networking and collaboration, Christill is actively shaping her presence within the property industry.

49

One of her upcoming initiatives includes hosting property networking events, aimed at connecting real estate developers, investors, and potential homebuyers. These events will provide a platform for professionals in the property sector to collaborate, share insights, and build lasting partnerships.

Christill’s unique position as a marketer rather than a property agent allows her to bring a fresh perspective to the property market. She leverages her expertise in brand positioning, digital marketing, and event planning to create highly effective campaigns for property developers and investors.

By curating immersive experiences and utilising data-driven strategies, Christill is redefining the way the property industry connects with its audiences.

50

REI MAGAZINE MARCH 2025

Challenges and Milestones

Christill’s journey to success has been marked by significant milestones. One of her key accomplishments was organizing high-profile corporate events for clients in sectors such as finance, government, and mining. These events required careful planning, stakeholder coordination, and a focus on brand alignment to ensure they were executed flawlessly.

Managing diverse client expectations while ensuring top-quality delivery proved to be one of her greatest challenges, but it was through this that she honed her strategic thinking, problem-solving, and leadership skills. Another major milestone was her work in driving digital engagement.

As the digital landscape continuously evolves, Christill’s ability to adapt and leverage social media and content marketing has significantly contributed to the growth of her clients’ brands. By staying ahead of trends and using data-driven insights, Christill has positioned Uncommon Group as a leader in digital marketing strategies.

A Vision for the Future

Looking ahead, Christill is focused on pushing the boundaries of what’s possible in the property sector.

Her vision includes not only the continued growth of Uncommon Group but also the development of her own personal brand as a thought leader in the marketing space.

Through her work, she aims to empower others in the industry, build lasting connections, and create innovative solutions that help businesses achieve long-term success.

Christill’s commitment to continuous learning and staying ahead of industry trends ensures that she remains adaptable and relevant in an ever-changing marketplace. Her faith-driven resilience and ability to leverage her professional network make her a unique and invaluable asset to the property marketing sector.

51

Journey as an entrepreneur

Christill Cave’s journey as an entrepreneur, marketer, and leader is one marked by resilience, purpose, and innovation. Through Uncommon Group, she continues to make waves in the marketing and property industries, providing creative, tailored solutions that exceed client expectations.

As she builds her presence in the property sector and shapes the future of property marketing, Christill remains dedicated to delivering impactful results, fostering meaningful relationships, and leaving a legacy of excellence and integrity. Her unwavering commitment to integrity, creativity, and connection positions her as a force to be reckoned with in the marketing industry, and her influence is only set to grow as she continues to forge new paths and create lasting impact.

52

REI MAGAZINE MARCH 2025

53

Residential

10 Budget-friendly to boost appeal and ValueCreativity, and Faith

By Neale Petersen

Renovating your bathroom on a budget or preparing key areas of your property for sale involves a balance of cosmetic updates and essential repairs. By making strategic, costeffective improvements, you can significantly enhance your property’s appeal.

This not only makes your space more attractive to potential buyers but also helps you secure a better sale price. Whether you’re looking to refresh your bathroom or upgrade key property areas, these tips will show you how to achieve a stylish, polished look without breaking the bank.

54

REI MAGAZINE MARCH 2025

Bathroom Upgrades increase Property

55

10 Top Ways to make your Bathroom look expensive on a Budget

Transforming your bathroom into a luxurious retreat doesn’t have to come with a hefty price tag. With a little creativity and attention to detail, you can elevate your bathroom’s aesthetic and create a highend look without breaking the bank.

Here are ten ways to make your bathroom look expensive on a budget.

1.Enhance with Mirrors

Mirrors are an affordable yet powerful tool to make a bathroom feel more luxurious. Not only do they add sophistication, but they also create the illusion of more space and light.

Choose a statement mirror with an ornate frame for classic elegance or opt for sleek, frameless designs for a modern feel. Multiple smaller mirrors can also make a stylish, contemporary statement.

2.Incorporate Luxurious Lighting

Lighting is key in setting the tone for a luxury bathroom. Opt for a combination of ambient, task, and accent lighting to enhance both functionality and atmosphere.

Swap out basic fixtures for more glamorous options like contemporary sconces or budget-friendly crystal chandeliers. Consider adding dimmable lights for flexibility and backlit mirrors or LED strips to create a soft, luxurious glow.

3. Include Plants

Plants bring life and elegance to any space, and the bathroom is no exception. Choose humidity-loving plants like ferns, orchids, or bamboo, which thrive in moist environments. Display them in stylish pots, on shelves, or in hanging baskets to infuse the space with vibrant colour and a serene, calming vibe.

56

REI MAGAZINE MARCH 2025

4. Hang Artwork

Artwork adds a sophisticated touch and personality to your bathroom. Whether you choose a classic painting or a contemporary piece, artwork can transform your bathroom into a personal sanctuary. Pair it with highquality frames to enhance its impact and position your art thoughtfully - above the bathtub or vanity are ideal spots.

5. Select a Stylish Bathtub

A bathtub can be the centre piece of your bathroom and elevate its look instantly. Consider a freestanding tub with a modern design or a timeless clawfoot style for a luxurious feel. Pair it with elegant accessories such as a floor-mounted faucet or a bathtub tray for an extra touch of glamour and indulgence.

6. Improve Towel Display

Towels are a simple way to add a luxurious feel to your bathroom. Invest in plush, high-quality towels that feel soft to the touch and match your decor. Display them elegantly on towel racks, or in baskets made of woven materials like wicker. You can also use towel hooks or ladder racks to give your bathroom an upscale, well-organised look.

7. Set up a Seating Spot

Incorporating a seating area into your bathroom can instantly add sophistication and comfort. A plush upholstered bench or sleek modern stool near the vanity creates a cozy, inviting atmosphere. Choose a piece with stylish detailing or luxurious fabric that complements your bathroom’s overall aesthetic.

57

8. Add Metallic Touches

Metallic accents bring an instant sense of luxury to any room. Incorporate gold, brass, or chrome fixtures, such as faucets, towel bars, and cabinet handles, to add a refined touch. Consider metallic-framed mirrors, light fixtures, or even accent tiles to further elevate the space. These shiny details reflect light beautifully and add a layer of glamour.

9. Embrace Minimalism

Minimalism can transform your bathroom into a serene and sophisticated sanctuary. Opt for sleek, clean lines and avoid overcrowding the space with excessive decorations.

Choose high-quality essentials and incorporate understated textures and neutral tones to maintain a balanced, elegant atmosphere. The goal is to create a visually impactful room with simplicity at its core.

10. Keep the Area Clean and Tidy

A clean, organised bathroom is crucial for achieving a luxurious look. Declutter your countertops, tidy shelves, and maintain spotless surfaces to create a tranquil, upscale vibe.

Invest in chic storage solutions to discreetly store toiletries and personal items, ensuring your bathroom remains pristine and organised. A tidy space will enhance the overall ambiance and maintain the illusion of luxury.

58

REI MAGAZINE MARCH 2025

59

Finance

5 Hidden costs Property - And how to budget for

By Gavin Lomberg

Renovating your bathroom on a budget or preparing key areas of your property for sale involves a balance of cosmetic updates and essential repairs. By making strategic, costeffective improvements, you can significantly enhance your property’s appeal.

This not only makes your space more attractive to potential buyers but also helps you secure a better sale price. Whether you’re looking to refresh your bathroom or upgrade key property areas, these tips will show you how to achieve a stylish, polished look without breaking the bank.

60

REI MAGAZINE MARCH 2025

Buyers often overlook them

61

1. Moving and Transport Costs

One of the first unexpected expenses new homeowners face is the cost of moving. In South Africa, moving costs vary based on several factors including distance, the amount of belongings, and any additional services like packing or storage. Local moves tend to be more affordable, starting from around R1,500, while long-distance moves can range from R4,000 to R15,000 or more.

Beyond distance, factors like accessibility of your new home can impact pricing. Narrow streets, stairs, or difficult entry points may result in additional charges. Extra services, such as packing, storage, and insurance, can quickly add to the total moving expenses. Homebuyers should shop around for comparative quotes and to budget for a worst-case scenario to ensure they aren’t caught off guard financially.

2. Levies, Rates, and Special Levies

When purchasing a sectional title property (like a townhouse or apartment), homebuyers are obligated to pay monthly levies to maintain the property. These levies typically range from R1,500 to upwards of R10,000, especially in exclusive lifestyle estates. They cover various costs such as insurance, security, maintenance, and utilities in common areas. For freehold property owners, it’s equally important to factor in the costs of insurance, ongoing maintenance, and security services. I recommend that buyers inquire about the levies in any complex and review the financial statements before making an offer.

Understanding a complex’s financial standing can help prevent future issues, such as the need for special levies to cover large repairs or improvements. Special levies for major costs like roof repairs or security upgrades can arise unexpectedly, so it’s crucial to research the property’s history with these costs and check for any planned future levies.

3. Utilities Setup

New homeowners must also budget for the setup of essential services like water, electricity, telephone, and internet. Depending on the area, the cost to connect utilities can vary significantly. On average, you should set aside between R1,000 to R3,000 for connecting services like electricity, water, and phone/internet lines, especially if these services are not already installed at the property.

Costs for these connections can depend on the type of service required and the region in which you’re moving.

62

REI MAGAZINE MARCH 2025

4. Home Insurance

Securing home insurance is a non-negotiable part of the homebuying process. Lenders require buildings insurance to cover the structure of your property in the event of fire, flooding, or other disasters. Typically, this insurance costs a few hundred rands a month. Beyond that, buyers may also want to consider bond protection insurance and home contents insurance.

Bond protection insurance ensures that your home loan repayments will be covered if you encounter unforeseen circumstances like illness, unemployment, or disability. While not mandatory, home contents insurance offers protection for your belongings in case of theft, loss, or damage.

5. Home Furnishings

Many homebuyers overlook the cost of soft furnishings when planning their budget. When moving into a new home, you may need to replace curtains, blinds, carpets, or furniture to fit the space.

Existing furnishings may no longer match, or your new home may require additional decorative elements. Budgeting for these extras ensures that you’re not caught off guard when it’s time to decorate and furnish your new space.

63

Top Saving Tips for Homebuyers

1. When preparing for homeownership, here a few essential essentials to help prospective buyers develop strong financial habits and save effectively.

2. Open a separate interest-bearing savings account to store your homebuying funds.

3. Stick to a budget and keep track of your income and expenses. 4. Automate your savings to ensure consistency and avoid temptation to dip into the fund.

5. Monitor your spending and look for areas where you can cut back to save more.

Prioritise paying off debts to maintain a strong credit standing and reduce financial stress.

The journey to homeownership is incredibly exciting, but it requires careful financial planning. By understanding these hidden costs and implementing smart savings strategies, you can set yourself up for long-term financial success and avoid unnecessary stress during the process.

By being proactive about budgeting for all these potential costs, you can confidently navigate the property market and ensure a smooth, financially secure transition into your new home.

64

REI MAGAZINE MARCH 2025

Join Neale Petersen

Founder & Editor-at-Large of REI, as he hosts exclusive weekly webinars featuring top real estate thought leaders covering the hottest topics shaping the property market today.

EVERY THURSDAY 12:00 - 13:00

See UPCOMING EVENTS

www.rei.co.za 65

Finance

Boost your Credit Score Home Loan approval Financing

By Neale Petersen

Securing a home loan or mortgage bond can feel like a daunting process, but with the right guidance and financial partners, it can be smoother and quicker.

According to Marleze Moller from My Home Loans, a leading mortgage originator company, the key to improving your chances of approval is to work with professionals who can streamline the process and help you navigate your credit score.

66

REI MAGAZINE MARCH 2025

to secure easier and Property

67

Here’s how you can improve your credit score and increase your chances of obtaining a home loan:

Why Use a Mortgage Originator?

1.Access to Multiple Lenders Mortgage originators have access to various lenders, which allows them to find the best options for your financial situation. They don’t just submit your application to one bank – they can present it to several, increasing your chances of approval.

2.Saves Time and Effort Instead of going through the loan application process multiple times with different banks, a mortgage originator will do all the hard work for you, saving you time and hassle.

3.Expert Guidance Mortgage originators are experts in the field. They know exactly what lenders look for in an application and can guide you through the process, ensuring you’re on the right path to securing the best deal.

68

REI MAGAZINE MARCH 2025

Understanding Credit Scores: The Five Key Criteria

Your credit score, sometimes referred to as your FICO score (in the US), is a crucial factor in determining whether you will be approved for a home loan. There are five primary factors that influence your credit score:

1.Payment History Your track record of on-time payments is the most significant factor in your credit score. Late or missed payments can substantially lower your score.

2.Amounts Owed This refers to your outstanding balances compared to your total credit limits. Higher balances relative to your available credit limit can hurt your score.

3.Length of Credit History A longer credit history demonstrates stability and responsible credit management, which helps improve your credit score.

4.Type of Credit Lenders look at the variety of credit accounts you hold, such as mortgage bonds, car loans, credit cards, and store credit accounts. A healthy mix of different types of credit can be beneficial.

5.New Credit Opening many new credit accounts in a short period of time can raise red flags for lenders, as it may suggest financial instability.

69

What Impacts Your Credit Score?

In addition to the above criteria, there are other factors that can negatively affect your credit score. These include:

1. Credit Utilisation Have you maxed out your credit cards or exceeded your credit limits in the past six months? High utilization rates can significantly lower your score.

2. Missed Payments Missed payments in the last two years can seriously impact your score. The more missed payments, the lower your score.

3. Credit Enquiries How many credit inquiries have been made with companies like Experian? Multiple credit checks within a short time frame can lower your score and make you seem risky to lenders.

4. Unsettled Debt Any accounts with unsettled debt, such as overdue balances, can harm your credit score. Lenders see this as a sign of financial mismanagement.

5. Defaults in the Last 5 Years Defaults on loans or credit agreements in the past five years will negatively affect your score, as they indicate poor repayment history.

6. Bankruptcies or Court Judgments Public records such as bankruptcies or court judgments can seriously damage your credit score, as they are seen as significant financial red flags.

70

REI MAGAZINE MARCH 2025

How to Improve Your Credit Score

To boost your chances of securing a home loan, start by ensuring your credit score is as healthy as possible. Here are some practical steps to improve your credit:

• Pay Your Bills On Time: Ensure that you make all payments on time, as your payment history is the most important factor.

• Reduce Your Debt: Try to lower the outstanding balances on your credit accounts and avoid exceeding your credit limits.

• Limit New Credit Applications: Avoid opening new credit accounts unless absolutely necessary.

• Clear Unsettled Debt: Settle any outstanding balances to improve your credit utilization ratio and show lenders that you are responsible.

Partner with a Mortgage Originator Moller strongly recommends using a certified mortgage originator to guide you through the home loan application process. Mortgage originators help you navigate the complexities of the process and increase your chances of loan approval by submitting your application to multiple banks, ensuring the best possible outcomes.

Even if you’re concerned about your credit score, they can offer expert advice and help you compare multiple home loan packages, allowing you to select the one with the lowest interest rates.

By working with a mortgage originator and improving your credit score, you can significantly enhance your chances of securing the home loan that will bring you closer to your dream property.

71

Property Management

Maximise Returns: Accommodation Management Traditional Self-Managed

By Retha van Rooyen

At My Student House, we specialise in student management, offering investors and landlords a hands-off experience. As landlords and investors understand the challenges of managing student properties aim to provide services that optimise cash flow and strong return on investment.

Our goal is to give landlords the benefits of excellent all while allowing them to avoid the day-to-day responsibilities that come with owning student

Unlike typical rental agencies, we’ve structured our to provide a seamless, passive income experience, that landlords achieve outstanding returns from student accommodation without the hassle of direct involvement. Here’s REI a MAGAZINE closer MARCH look at how our services benefit landlords. 2025 72

Stress-Free Student vs. Landlord Solutions

accommodation stress-free, ourselves, we and ensure a

returns, management accommodation.

services ensuring

73

Why Landlords choose My Student House for stress-free Student Accommodation Management

Property Sourcing and Conversion

IWe understand that selecting the right student accommodation property is key to success. Our team works closely with you to identify properties that align with your investment goals, budget, and preferences. We offer a range of services, including:

• Property Screening: We assess the suitability of properties, analyzing potential profitability for you.

• Furniture Recommendations and Procurement: We suggest the best furniture options for student accommodation and can supply items at discounted rates thanks to our bulk purchasing power.

• Modifications: We recommend property modifications that maximize income while ensuring compliance with legislation and accreditation requirements (e.g., NSFAS).

• Project Management: Our team coordinates the entire conversion process, using trusted suppliers who specialise in student accommodation.

Student Placement Services

Our extensive network ensures your property gets maximum exposure. We utilise a range of channels, including email, social media, and targeted advertising, to reach over 200,000 students. In addition, we leverage our university connections and placement agencies to secure tenants quickly.

Our placement services include:

• • • • •

74

Professional property photography for marketing. Organising viewings for prospective students and parents. Collecting necessary documentation for student applications. Screening applicants for suitability. Securely managing lease agreements.

REI MAGAZINE MARCH 2025

Rental Collection and Payment Management

Our close collaboration with universities allows us to efficiently manage rental collections, including handling any delinquencies. We ensure that all necessary documents are prepared for processes such as NSFAS private boarding applications. Additionally, we:

• Issue invoices & statements to students, parents and bursary officers.

• Submit NSFAS applications with required documents.

• Collect rent payments, including from universities, students, and bursaries.

• Track outstanding payments and escalate arrears to attorneys if necessary.

House Parent and Student Support

To maintain a positive living environment, we offer House Parent services. These live-out student liaison officers monitor properties and check in on students daily, ensuring that everything runs smoothly.

Key responsibilities of our House Parents include:

• • • •

Ensuring students adhere to house rules. Managing complaints from students and parents. Enforcing discipline and collecting fines for rule violations. Reporting issues to universities and discussing remedial actions with parents. • Overseeing property maintenance, including cleaning, gardening, and security. • In certain cases, a live-in House Parent is required, especially when managing larger properties or properties in areas with safety concerns.

75

Operational Efficiency and Cost-Effective Services

We aim to minimise costs for landlords by offering in-house services, reducing the need for external contractors. Our operational services include:

• Maintenance: Our in-house team handles minor repairs, saving on contractor fees.

• Cleaning: We provide cleaning services for common areas, with regular monitoring by management.

• Gardening and Pest Control: We maintain the exterior of your property and ensure pest control through regular treatments.

Investor Services and Risk Mitigation

We offer services tailored to help landlords maximise their investment potential:

• Property Conversion: We specialize in converting properties into optimal student living spaces, handling everything from furnishing to space management.

• Leverage Bulk Purchasing Power: We use our volume purchasing power to secure significant savings on furnishings and supplies.

• Risk Mitigation: We analyze the financial differences between NSFAS and privately funded students, helping you diversify your tenant base to manage cash flow effectively.

• Vacancy Risk: To minimise vacancy risk, we offer pre-signed leases once students accept their university placements, ensuring tenants are secured in advance.

• Budget Management: We help landlords benefit from bulk discounts and negotiate better deals thanks to our extensive student network.

76

REI MAGAZINE MARCH 2025

77

One-Stop Service for Comprehensive Management

Managing student accommodation can be overwhelming, and many landlords give up within the first year due to the challenges involved.

My Student House offers a one-stop service that takes care of everything - from leasing and maintenance to tenant relations and administrative tasks. We handle all aspects of student accommodation management so you can enjoy a passive income while ensuring your property operates smoothly.

We follow a structured process to ensure every property we manage is set up for success, from selecting suitable tenants to ensuring efficient rent collection.

The Responsibility of providing quality Student Housing

Providing students with safe, secure, and well-maintained accommodation is an immense responsibility - one that shapes their success and helps develop future leaders.

At My Student House, we understand the importance of this duty, and we are dedicated to making this experience seamless and rewarding for landlords.

Are you ready to entrust us with your property management needs and provide the best accommodation for students across South Africa?

Contact us today to learn more about how we can help you manage your property and ensure your tenants have the best possible experience.

https://mystudenthouse.co.za/contact-us/

78

REI MAGAZINE MARCH 2025

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

79

getinfo@mystudenthouse.co.za

80

REI MAGAZINE MARCH 2025

81

82

REI MAGAZINE MARCH 2025

83

84

REI MAGAZINE MARCH 2025

85

Technology

From rental shifts to AI Navigating South Africa’s

By Waldo Marcus

The South African property market in 2024 has presented a tough environment for investors. Sluggish economic growth and rising interest rates have led to slower residential rental escalations across most regions. However, as we move into 2025, several key trends are expected to shape the landscape.

From technological advancements, particularly AI, to changes in consumer behaviour, the market is experiencing a period of transformation that will require property investors to adapt quickly. Let’s dive deeper into these evolving trends and challenges and explore how technology and market dynamics are playing a pivotal role in the future of property investment.

86

REI MAGAZINE MARCH 2025

innovations: property evolution

87

Key Trends

• AI and technology streamline property operations, but balancing with human expertise and data security remains crucial for the industry.

• Commercial property growth continues, with a focus on convenience, while industrial properties outperform in key areas like logistics and warehousing.

• Municipal performance and infrastructure quality are key factors impacting property values, with well-maintained areas attracting more investment.

Economic Pressures & shifting Rental Market

In 2024, economic pressures took a toll on the residential rental market, with a notable slowdown in rental escalations across the country. This trend is expected to continue into 2025, with rental increases being applied more cautiously to avoid vacancies.

A key factor influencing this shift is the reduction in demand for rental properties, driven by the drop in interest rates. Lower rates have made it more financially viable for tenants to transition to homeownership, leading to a decline in the pool of potential renters.

In response to the stagnation in rental income, investors are increasingly turning to alternative strategies to boost their returns. One such strategy is short-term holiday rentals, which have gained significant traction, especially in tourist-heavy areas like the Western Cape.

The holiday rental market has driven rental prices higher, particularly during peak holiday seasons, pushing out longterm tenants and causing further disruption in the traditional rental market.

While short-term rentals can yield higher returns during peak seasons, their dependency on tourism and platforms like Airbnb creates risks for investors, as fluctuating demand and external factors such as regulatory changes could impact rental income.

Lobbyists are calling for stricter regulations to manage this trend, ensuring better transparency and consumer protection.

88

REI MAGAZINE MARCH 2025

The Role of Technology & AI in Property Management

One of the most significant shifts in the property market is the increasing reliance on technology, particularly Artificial Intelligence (AI), to streamline property operations.

From AI-powered marketing tools to automated management systems, technology is transforming the way property companies operate, making processes more efficient and data-driven. AI is improving decision-making, enabling property managers to analyse market trends, forecast demand, and optimize pricing strategies in real time.

Despite its advantages, the integration of AI into property management also presents new challenges, particularly when it comes to balancing technology with human expertise. While AI can enhance operational efficiency, it is still essential for property companies to rely on human judgment to navigate complex situations such as tenant relationships and legal matters.

Additionally, the implementation of AI systems introduces concerns regarding data security and risk management. Property companies must adopt robust data protection measures to safeguard tenant information and ensure compliance with regulatory requirements.

As AI technology continues to evolve, property companies must find the right balance between leveraging AI for operational efficiency while retaining the human touch that is vital for maintaining customer satisfaction and business integrity.

89

3. The Growth of Commercial Property

The commercial property sector in South Africa showed resilience in 2024, and its positive trajectory is expected to continue into 2025, particularly with the anticipated reduction in interest rates.

Developers are focusing on creating more accessible, convenience-driven spaces that meet the needs of modern consumers. In urban areas, the demand for convenience is growing, with property developers integrating neighbourhood retail centres that cater to the rise of online shopping and e-commerce.

The blending of physical retail and online retail needs is becoming a key strategy for commercial property developers, especially in highly urbanized areas.

Simultaneously, industrial properties especially logistics and warehousing have shown exceptional growth, particularly in key regions like the Western Cape, KwaZulu-Natal, and Gauteng.

The rise of e-commerce has fuelled demand for industrial spaces, as companies require more warehouses and distribution centres to meet consumer demands. Secure, well-serviced industrial parks are in high demand, as businesses look for properties that can support efficient operations.

However, traditional industrial areas, such as those around Johannesburg and Pretoria, are facing a decline in value due to rising security risks and the lack of infrastructure maintenance.

In 2025, commercial property investors will likely face increasing pressure to prioritize Environmental, Social, and Governance (ESG) factors. The need for sustainable building practices, energy-efficient systems, and responsible resource management is expected to become a major agenda item for investors.

According to the latest SAPOA Operating Cost Report, electricity costs account for 29% of operating expenses, with property taxes representing another 23%. These rising costs highlight the importance of reducing operating expenses through the adoption of green building practices and

90

REI MAGAZINE MARCH 2025

4. The Water Shortage challenge and Infrastructure Risks

One of the most pressing challenges for property investors is the looming risk of water shortages. The South African government and municipalities must act quickly to address this issue before it escalates into another catastrophe akin to the country’s ongoing energy crisis with Eskom. Water shortages will have a direct impact on property values, particularly in areas that are already water-stressed. Property owners will face higher costs and operational challenges if adequate water infrastructure is not built and maintained.

Beyond water, property owners also face risks associated with revenue leakages. Missed recoveries, escalations, lease changes, and renewal options can result in significant financial losses. Increased regulatory requirements in the property sector also mean that property companies must allocate more time and resources to compliance, which diverts attention from core operational processes.

To mitigate these risks, property companies will likely invest in technology to monitor revenue streams more closely and ensure that potential leakages are identified early on. Technology tools can also help reduce operating costs and improve overall efficiency, ultimately safeguarding the profitability of property investments.

91

5. The necessity of accurate Data and diverse Decision-Making

As the property market evolves, the need for accurate, reliable data becomes even more crucial. Property investment decisions are highstakes and complex, often involving significant financial commitments. In this context, the role of data-driven insights cannot be overstated. Property investors must have access to accurate market data to make informed decisions, identify hidden opportunities, and avoid costly mistakes.

The necessity for diversity in decision-making has also become increasingly important. By mitigating bias and leveraging a range of perspectives, investors can improve their decision-making processes and reduce risk. As technology advances, property companies are increasingly turning to external data sources to enhance their insights and remain competitive. Access to high-quality data is a powerful tool that enables investors to navigate the complexities of the market, identify trends, and make more strategic investments.

6. The lingering effects of High Interest Rates and shift toward Ownership

The South African property market has been impacted by persistently high interest rates, which have raised the cost of credit and made it more difficult for consumers to acquire residential property.

This has led to a slowdown in home loan applications and a decline in property transfers. However, with the recent reduction in interest rates, there are signs of a gradual recovery in the residential property market. First-time buyers are starting to show renewed interest, as evidenced by the rise in home loan applications in late 2024.

In the coming years, the demand for rental properties may slow down as more consumers shift from renting to owning, especially as interest rates continue to decrease. For property investors, this trend will require a shift in strategy. Many investors are choosing to maintain smaller portfolios and invest in tax-efficient structures, such as companies and trusts, to minimise their tax liabilities and manage risk more effectively.

Adapting to the changing Property Landscape

The South African property market is undergoing a period of significant transformation. Economic challenges, technological advancements, and shifting consumer behaviour are reshaping the way properties are bought, sold, and managed.

This year, property investors will need to adapt quickly to these changes by embracing new technologies, staying informed about market trends, and making data-driven decisions. By doing so, they can position themselves for success in an increasingly competitive and dynamic market.

92

REI MAGAZINE MARCH 2025

93

Technology

Preferental unveils transform Tenant Screening South Africa

By Neale Petersen

In the face of South Africa’s challenging rental market, where high tenant defaults and legal complexities are increasingly common, Preferental has introduced an innovative AI-powered tenant screening app designed to streamline and simplify the process for landlords.

This cutting-edge solution promises to save time, reduce risks, and ultimately transform how landlords manage their rental properties.

94

REI MAGAZINE MARCH 2025

AI-Powered app to for Landlords in

95

The Highlights

• Automated Tenant Screening: AI-driven app streamlines credit checks, background verifications, and rental history assessments, reducing screening time to seconds.

• Enhanced Accuracy & Risk Mitigation: Utilizes machine learning for precise tenant evaluations, minimising risks like defaults and property damage.

• Cost-effective & Transparent: Shifts screening cost to tenants, ensuring affordability and transparency, while offering seamless integration with leading financial services.

Why Tenant Screening is more important than ever

With South Africa’s rental market facing escalating financial strain, tenant screening has become essential for landlords. The country’s high unemployment rate of 33.5%, coupled with rising inflation and interest rates, has created an environment where many tenants struggle to meet their financial obligations.

Landlords are facing increasing risks of tenants defaulting on rent, leading to costly and lengthy legal evictions. Shockingly, 18.3% of tenants are currently in arrears, with those in default owing an average of 77.5% of one month’s rent.

Despite these risks, 40% of South African landlords still fail to conduct any form of tenant vetting, leaving themselves vulnerable to financial loss.

As Ross Fitzcharles, founder and CEO of Preferental, points out, ‘tenant screening is not just a good idea, it’s an essential step to protecting rental income and maintaining the long-term viability of property investments.

Without it, landlords expose themselves to a range of costly issues, including rent defaults, property damage, and illegal activities.

96

REI MAGAZINE MARCH 2025

The limitations of traditional Tenant Screening

Traditionally, tenant screening in South Africa has been a slow, labourintensive process that can take anywhere from 12 to 24 hours or more. Credit checks, background verifications, and rental history assessments are necessary but time-consuming tasks that can delay the leasing process, leading to missed opportunities and operational inefficiencies. These delays also result in higher costs for landlords who are trying to find the right tenants quickly.

The Preferental Screenings App is designed to eliminate these challenges, offering landlords a more efficient, faster, and cost-effective solution.

How the Preferental Screenings App Transforms Tenant Screening

The Preferental Screenings App leverages artificial intelligence (AI) and machine learning (ML) to automate tenant evaluations, reducing the entire process to just seconds. This breakthrough technology enables landlords to make faster, more informed decisions when choosing tenants, with realtime, accurate evaluations that can significantly minimise risks.

97

Key features that make the Preferental Screenings App a game-changer for landlords:

• Automated Screening: The app performs credit checks, background verifications, and rental history assessments in a matter of seconds, offering comprehensive reports that are ready to use immediately.

• Increased Efficiency: By reducing the screening time from hours to seconds, the app allows landlords to make faster decisions, filling vacancies more quickly and preventing lost rental income.

• Enhanced Accuracy: Using AI and ML algorithms, the app provides highly accurate tenant evaluations, ensuring landlords select tenants who are financially stable and less likely to default on payments or cause property damage.

• User-Friendly Interface: The app’s intuitive design makes it easy to use, with a streamlined dashboard and real-time updates that keep landlords informed throughout the screening process.

• Comprehensive Integration: The app integrates with leading financial and background check services, including TPN, TransUnion, and Compuscan, ensuring a thorough and reliable screening process.

• Fraud Prevention: The app includes real-time verification of bank statements and employment, significantly reducing the likelihood of fraudulent applications.

• Risk-Based Deposit Recommendations: One of the standout features of the app is its automated system for recommending an appropriate deposit amount based on the identified risks from the screening process.

• Compliance and Security: The app complies with data protection laws, including POPIA and GDPR, ensuring robust security and privacy for both landlords and tenants.

98

REI MAGAZINE MARCH 2025

Cost-Effective and Transparent Pricing

One of the most significant advantages of the Preferental Screenings App is its cost structure. Traditionally, the financial burden of tenant screening falls on the landlord. However, with the Preferental app, the cost is shifted to the tenant.

Tenants are charged a one-time fee of R249 per screening, which covers credit checks, background verifications, and rental history assessments. This upfront fee is collected by the app, ensuring full transparency with no hidden costs.

This approach makes the screening process not only more affordable but also more efficient, as landlords no longer need to pay for the service out of pocket. Tenants pay for the screening, which allows landlords to pass on these costs without impacting their rental income.

Why Landlords Should Embrace This Technology

As the South African property management industry faces increasing challenges, the Preferental Screenings App offers a much-needed solution.

Landlords who adopt this technology will benefit from:

• Faster decision-making: With the app’s quick turnaround, landlords can finalize tenant selections in less time, reducing vacancy periods.

• Reduced risks: By providing accurate, AI-driven evaluations, the app helps landlords avoid the costly consequences of renting to unreliable tenants.

• Cost savings: Shifting the cost of tenant screening to the tenant ensures landlords don’t bear the financial burden, making the process more affordable.

• Seamless integration: The app integrates with key financial services, providing a comprehensive screening solution that covers all the necessary checks.

Ross Fitzcharles believes that the app is more than just a tool for property management; it’s a solution that empowers landlords.

99

Image: Ross Fitzcharles - Founder Preferental

We’re helping landlords reduce the complexities of tenant vetting,” says Fitzcharles. “Our app gives landlords the ability to make confident, informed decisions in a fraction of the time, enabling them to protect their investments, reduce risks, and build long-term wealth.

The Preferental Screenings App enables landlords to take control of their rental business by improving efficiency, reducing risk, and protecting their investment. As the property management industry continues to evolve, technology like this will become essential for landlords who want to stay ahead of the curve and build a sustainable, profitable rental business.

Get Started Today

To learn more about how the Preferental Screenings App can transform your tenant screening process, visit www.preferental.com and schedule a demonstration. Empower your property management with AI-driven technology and reduce your risks while saving time and money.

For more information about the Preferental Screenings App and to schedule a demonstration, visit: www.preferental.com

100

REI MAGAZINE MARCH 2025

South African Interest Rates

Date

2025/01/30 2024/11/21 2024/09/19 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 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 2007/01/01

%

11,00% 11,25% 11,50% 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% 7,25% 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% 12,50%

Date

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 1993/03/01

%

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% 16,25%

Date

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 1 9 8 3 / 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 1 9 8 1 / 0 7/ 0 1

%

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% 14,00%

Date

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

%

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%

101

Commercial

Western Cape Property (WCPDF) Annual development conversation

By Carola Koblitz

The 12th Annual Conference of the Western Cape Property Development Forum will be held on Wednesday 4 and Thursday 5 June 2025, at the CTICC in Cape Town.

Under the theme of “Recalibrating the development conversation”, this always sold-out event brings together public and private sector thought leaders involved in fixed-capital investment. Once again, it will stimulate robust discussion and debate that lead to collaborative solutions to grow the property development and construction industry, the economy and – most importantly - create jobs.

102

REI MAGAZINE MARCH 2025

Development Forum Conference: Recalibrating the

103

The WCPDF Conference highlights

1. The 12th Annual Western Cape Property Development Forum explores key issues in property development, sustainability, and private-public sector collaboration.

2. Key sessions will focus on finance, City Improvement Districts, global development projects, and recalibrating the property ratings conversation.

3. The conference aims to attract over 450 delegates, offering expanded exhibition space and networking opportunities with public sector and industry leaders.

According to Deon van Zyl, WCPDF chairperson: “The 2024 national elections saw the GNU formed, and there is now a critical need to recalibrate exactly who still has a seat at the table of economic development, particularly as 2026 local government elections loom.

We will also investigate how the private sector is innovating to step into the void of government.

“We must find the happy median for cooperation, transparency and good basic service delivery.”

Conference sessions include: Understanding who has skin in the game; Recalibrating sustainability to sustain development; The role of City Improvement Districts in creating investor-friendly centres;

Thinking creatively about finance; Taking ‘Product Western Cape’ development projects to the world; and Recalibrating the Ratings Conversation.

104

REI MAGAZINE MARCH 2025

“Across the globe, it can no longer be business as usual. Civil society is raising its voice,” says Van Zyl. “South African voters will be at a serious crossroads next year to choose between historic political loyalties and service delivery realities, and government needs to balance long-term projects with short-term achievables. We hope to hear these in June, but we’ll also see how private sector is stepping up innovatively to fill the gaps.”

Aiming for 450-plus delegates this year, the conference attracts participants from across the Built Environment, from large-scale and micro-developers, specialist consultants and service industry providers to the financial and legal worlds.

“We are particularly excited to see how participation has expanded over the years to include public sector politicians and officials willing to talk to and network with delegates,” says Van Zyl. “We’ve also seen participation grow from beyond the Western Cape to other South African regions.”

Sponsorship opportunities are nearly all taken up, and exhibition space will be expanded this year to 25 stands. Early Bird registration is now open until mid-March, and there are further discounts for paid-up WCPDF members.

For more info, visit https://wcpdfconference.org.za/

105

Commercial

Cape Town’s Innovative Pave the Way for Sustainable Development Opportunities

By Nicola Channing-Pearce

The City of Cape Town is becoming something of a trailblazer as it takes a whole new approach to selling off development rights to properties in key locations whilst retaining ownership and ensuring ongoing earnings from its property portfolio.

High Street Auctions Director Greg Dart says a unique relationship with the City of Cape Town (COCT) has seen the auction hammer fall on a number of multi-million rand leasehold deals with the hope that there will be more to come at upcoming auctions during 2025.

106

REI MAGAZINE MARCH 2025

Leasehold Auctions Growth and Prime

107

• Cape Town’s leasehold auctions provide guaranteed, long-term income while enabling prime commercial tenants access to key properties without ownership.

• The city’s lease auctions generate sustainable income streams, enhancing infrastructure, services, and future development while supporting economic growth.

• The success of Cape Town’s leasehold model has led to additional auctions, including future developments like a R1.2-billion mixeduse project.

The value of this model was most apparent in June 2023 when, after one of the longest property auctions ever conducted in South Africa, the High Street Auctions hammer fell at R3.7 million a month for the Green Point Virgin Active site lease.

What is now regarded as the city’s most successful lease auction to date is, however, part of a far bigger picture. The lease of carefully considered parcels of properties augments the City’s commitment to driving accelerated inclusive economic growth.

Funds generated by these lease agreements provide sustainable, previously untapped income streams that increase the city’s capacity to deliver services to its citizens, provide and maintain infrastructure and fund the future development of the Mother City. Leasehold paves the way for growth

Leasehold deals of this ilk are a win-win solution for all, according to Dart. The City has a guaranteed and predictable income into the future whilst high profile commercial tenants who do not see property ownership as integral to their business strategies have access to prime locations.

An added plus is that the landlord also happens to be the City, ensuring that surrounding infrastructure is maintained with input from its lessees to ultimately ensure the marketability of this and future assets.

On top of that, neighbouring property owners also benefit as the maintenance of the precinct which drives up their property values too.

108

REI MAGAZINE MARCH 2025

In South Africa, leasehold is not new but, up until now, has certainly been secondary to freehold ownership where developers retain ownership of both the land and buildings and act as landlords.

Unlike freehold, leasehold grants the occupant the right to use the property for a predetermined period, typically for a very long term.

This, says Dart, is ideal for landowners who do not envisage selling properties in the short term. In South Africa, leasehold agreements typically range from 10 to 99 years, offering a long-term occupancy right often in locations such as the Greenpoint stadium or other historical sites where it is impossible to put a value to the land or contemplate selling it.

Other cities have used the leasehold option to a far lesser degree with High Street Auctions, while some large malls in the City of Johannesburg have been developed using a leasehold model while other state owned enterprises (SOEs) such as Telkom and Eskom have also benefitted from leasehold auctions.

Alternatively, other municipalities and SOEs do not support this approach and remain committed to entrenched procedures, often finding that properties in strategic locations remain untenanted for long periods, bringing in no income and being vulnerable to vagrants which ultimately brings down property values in the surrounds.

109

One good leasehold auction paves the way for another

Almost a year to the day after Virgin Active stood on a DHL Stadium auction floor waving a bidding battle to retain occupancy of its flagship Point Gym in Green Point, fast food giant, McDonald’s fought fiercely to sign a new five-year, R420 000 per month lease on its iconic heritage building also located right next to the stadium.

McDonald’s lease auction was one of three outright bidding wars at the High Street auction in June 2024. The City of Cape Town had put forward more than a dozen properties including commercial retail sites in prime mixed-use hubs for auction on a leasehold basis.

The iconic heritage building that now remains home to McDonald’s has housed restaurants in Green Point for nearly 50 years.

It measures around 3 131m² and will remain a restaurant both because of its new lessees and because of a stipulation in the City’s lease agreement that precludes any other business use.

“Like the Virgin Active auction a year before, the McDonalds site was one of three food retail locations to be knocked down on a lease framework that we designed for the City to derive maximum benefit from its non-core land, while retaining the original assets in trust for future generations,” Dart notes.

At this auction, there were two other big bidding battles for leases – this time over arguably the two tiniest lots which together comprised barely 40m².

“But what those food retail kiosks lack in size, they make up for in prime location, being at the heart of the MiCiTi bus terminal in Century City. The hammer fell on those kiosks at monthly rentals of R45 000 and R39 000 respectively with leases of five years and options to renew for an additional five,” he adds.

110

REI MAGAZINE MARCH 2025

The benefits of the lease auction model that High Street has been producing for COCT sees corporates benefitting from signing long-term at prime locations that would otherwise not be accessible to them.

In turn, those brands pay substantial monthly rentals for the benefit of occupying prime locations, carry the costs of infrastructure maintenance and improvements, cover all standard service charges associated with delivering municipal services and also pay pre-determined annual rent escalations, Dart explains.

Leasehold auctions into the future

Going forward, the leasehold auction model is not restricted to existing and historical buildings but also to future developments.

High Street Auctions closed 2024 with a successful lease auction of prime land that will form the foundation for a new R1.2-billon mixed-use development in Cape Town.

Situated next to the Cape Town International Convention Centre (CTICC), this development will include lifestyle, retail, and office space, as well as a hotel.

Ahead of the auction, the city stated that it anticipated R1 billion worth of investment going into the site, which carries a 99-year lease agreement for a 25,000 square metre development block in the city’s Foreshore district.

111

The auction process is a key part of the Economic Growth Directorate’s strategy to leverage City-owned land in ways that stimulate private sector investment, create jobs, and foster long-term growth.

This is a project I believe will invigorate our economy, draw in visitors, and contribute significantly to Cape Town’s role as a leading global destination for both business and tourism,” James Vos, Mayoral Committee Member for Economic Growth said at the time.

The property, on portions of Erf 270 and Erf 192 Roggebaai, is zoned for general business and transport, supporting the city’s vision for a multipurpose hub in the CBD.

In terms of the lease agreement, approximately R1.6 million per month will make its way into public coffers, which can, in turn, be reinvested in services and infrastructure across the metro.

Although developments in Cape Town are underscored by local government’s strong record of service delivery and good corporate governance as well as above average returns on property investment in general, Dart nevertheless believes that a similar approach could see meaningful development of other key sites and cities.

He believes that parastatals cannot ignore the leasehold option for much longer. The opportunities are significant and are in line with government’s willingness to open up state owned land for development - starting with the release of 24 state-owned properties worth an estimated R120-million for proposals from public and private entities by the national Department of Public Work and Infrastructure in December 2024.

112

REI MAGAZINE MARCH 2025

113

Offshore

The Future of EB-5: Will Replace the Investor Visa?

By Neale Petersen

On February 25, 2025, the Trump administration revealed plans to introduce a new “Gold Card” visa, offering permanent residency in the United States to eligible candidates in exchange for a significant investment of $5 million.

While the full details of the proposal remain unclear, the announcement has raised questions about the future of the well-established EB-5 Investor Visa, which has been a cornerstone of U.S. investment immigration since 1990.

114

REI MAGAZINE MARCH 2025

Trump’s “Gold Card”

115

What We Know About the “Gold Card”

At its core, the proposed Gold Card visa aims to streamline the path to U.S. permanent residency for wealthy investors. With a hefty price tag of $5 million, the Gold Card would be a premium alternative to the EB-5 visa, but specifics about how the funds would be used remain murky.

Some reports suggest that the Gold Card could direct funds towards reducing the U.S. national deficit, further complicating the picture for investors.

Will the Gold Card Replace the EB-5?

While early reports suggested that the Gold Card might replace the EB-5, recent statements indicate that the administration intends to “modify” the existing EB-5 program rather than replace it.

According to Commerce Secretary Howard Lutnick, the administration’s focus is on modifying the EB-5, which has already undergone several changes since its inception, most recently through the EB-5 Reform and Integrity Act (RIA) of 2022.

The EB-5 Programme Is Protected by Law

It is important to note that the EB-5 program is codified into law, and any changes to it must be authorized through Congressional action.

The regional center program, a crucial part of EB-5, was reauthorised by Congress until 2027 through the RIA. As a result, any alterations to the program - whether it’s changes to investment amounts or other key requirements - must be approved by Congress, not simply implemented by the executive branch.

Furthermore, the RIA includes provisions that protect investors who have filed an I-526E petition before September 30, 2026. Known as the “grandfathering” provision, this clause ensures that applicants who file petitions by this date will be safeguarded from any potential termination of the EB-5 program.

In essence, the U.S. Citizenship and Immigration Services (USCIS) must continue processing these petitions, even if the program is eventually discontinued.

116

REI MAGAZINE MARCH 2025

What Does This Mean for Prospective EB-5 Investors?

For current and future EB-5 investors, the message is clear: act now to take advantage of the existing EB-5 program while it remains in effect.

The Gold Card proposal may introduce an exclusive new option for high-net-worth individuals, but it is unlikely to replace the EB-5 entirely. In fact, the Gold Card may coexist alongside the EB-5 as a premium option.

It’s also essential for investors to note that changes to the EB-5 program, including potential hikes in investment thresholds, must be passed by Congress.

As such, the $800,000 minimum investment required under the current EB-5 program is unlikely to increase unless Congress enacts a formal change.

The Path Forward

As the situation develops, the future of the EB-5 visa remains uncertain. However, prospective investors can rest assured that the program is currently operating under the legal framework of the RIA, with protections in place for those who submit their petitions before the September 30, 2026 deadline.

As such, those looking to secure U.S. residency through investment are advised to consider the current EB-5 offering, especially while it is protected by existing laws.

In conclusion, while the Trump administration’s Gold Card proposal may present an exciting new avenue for wealthy investors, the EB-5 program remains an essential tool for U.S. investment immigration.

out more! CLICK TO Find FIND OUT MORE

117

Wealth

Expropriation Act

South Africa’s Land Reform

By Ayanda Khumalo

The Expropriation Act (the Act), recently signed into law by President Ramaphosa, has sparked mixed reactions from various groupings across the country. Some, probably influenced by certain misconceptions, remain strongly opposed to the Act’s purport, while some have strongly defended the Act.

Of particular concern to those opposed to the Act is the provision for nil compensation when it is just and equitable. The key objective of the Act, as explained in its preamble, is to give effect to the constitutional promise of land reform; a promise which, over 30 years post the Constitution’s adoption, has not really materialised. Is the Act a solution?

118

REI MAGAZINE MARCH 2025

becomes Law: A Solution to

Challenges or not?

119

The key points

• The Expropriation Act allows for nil compensation, aligning with the Constitution’s guidelines for just and equitable land reform.

• The Act grants the Minister of Public Works authority to expropriate land, potentially bypassing the Department of Rural Development.

• Concerns arise for informal land rights holders and successful land claimants, with risks of land deprivation and insufficient recourse protections.

Section 25 of the Constitution, known as the property clause, prescribes in section 25(1) that no one may be deprived of property, except in terms of a law of general application (a law that applies to everyone equally), and any such law may not authorise the arbitrary deprivation of property (deprivation of property without due process). Section 25(2) permits the expropriation of property for a public purpose or public interest, and section 25(4) clarifies that “public interest” includes the country’s commitment to land reform.

Section 25(3) provides for the payment of just and equitable compensation in the event of expropriation, “reflecting an equitable balance between the public interest and the interests of those affected”.

Section 25(3) also prescribes the circumstances to be considered when determining just and equitable compensation.

120

REI MAGAZINE MARCH 2025

These include the current use of the property, the history of the property’s acquisition, the market value, the extent of state support in the acquisition and improvement of the property and the purpose of the expropriation.

This provision is mirrored in the Act to determine just and equitable compensation. Arguably, the Act is many years late. The constitutional assembly, tasked with crafting our constitution just over a quarter of century ago, would have probably been the most appropriate forum to challenge the vision the Act seeks to realise.

The Controversy of Nil Compensation

The main point of contestation is that the Act provides for nil compensation when it is just and equitable. However, this aligns with the Constitution, as Section 25 does not prescribe what just and equitable compensation ought to be but rather provides guidance for its determination.

It is therefore conceivable that in appropriate circumstances, compensation could be nil. Fortunately, the Act does provide guidance to determine when nil compensation may be justifiable.

This includes whether the property is held for speculative purposes; is owned by an organ of the state but not used for core functions and is unlikely to be needed in future; has been abandoned; or has a market value equivalent or less than what the state has invested in the property. 121

In addition to the above point of contestation, some argue that the Act could be seen as a backdoor mechanism for expropriation without compensation for the purpose of land reform. This, however, should not necessarily be contentious as the Act clearly outlines its intent in this regard.

Addressing Land Reform: Will the Act Resuscitate the Process? Additionally, as noted above, land reform is a constitutional promise. What ought to be probed is whether the Act will help resuscitate the failing land reform process. From our perspective, three concerns emerge: first, the government department granted the power of expropriation; second, the potential impact for informal land rights holders; and third, the possible effects on successful land claimants.

According to the Act, the Minister of Public Works (the Minister) is granted the authority to expropriate on behalf of other organs of state, upon the request of the minister responsible for that organ of state. Ostensibly then, the Land Claims Commission, responsible for overseeing land claims, may request through the Minister of Rural Development and Land Reform, the expropriation of land. If circumstances permit, this could be for nil compensation.

The implementation of this is, however, at the discretion of the Minister of Public Works, who may or may not be satisfied with a particular request from the Department of Rural Development and Land Reform. In our assessment, it may perhaps have been preferable for the expropriation power, aimed at transforming the property relations in South Africa, to reside with the Minister of Rural Development and Land Reform.

Implications for Informal Land Rights Holders

On the issue of informal land rights holders, the Act appears to practically treat informal land rights holders as ordinary land rights holders.

The terminology used is ‘unregistered rights’, which the Act defines as “right[s] in property, recognised and protected by law […] which does not require registration and includes a right to occupy or use land”.

122

REI MAGAZINE MARCH 2025

According to the Act, when gathering information for expropriation, the expropriating authority must establish whether unregistered rights over the property in question exist. Thereafter, the process followed mirrors that of ordinary right holders.

This in effect means that the land held by informal/ unregistered holders may be expropriated in terms of the Act.

The Act also contains some post-expropriation relief, which permits the holders of informal rights to claim compensation. Notably, the Interim Protection of Informal Land Rights Act (IPILRA) may not be available as protection, since the limitation on the deprivation of informal land rights in IPILRA is subject to the Expropriation Act of 1975. The Act will now stand instead of the 1975 Act. We hope that informal land rights holders will not be subjected to nil compensation. This would, at least, be somewhat of a silver lining in all the uncertainty.

Regarding successful land claimants, the Act poses a risk of land deprivation. It is conceivable that when land is not used effectively, if at all, and circumstances militate in favour of expropriation, then the awardees could be deprived of said land within the parameters of the Act. This risk is not as remote as may perhaps be argued.

For example, the Mineral and Petroleum Development Act permits expropriation of land for purposes of mining, and there are recorded instances of newly reinstituted land being subject to prospecting, bulk sampling and mining rights and thereby limiting the holders’ rights, if not depriving them entirely.

The Act does not create a carve-out for such instances, and the mechanisms for recourse contained in the Act may not be a sufficient safeguard. This is likely to result in tension between successful claimant communities and the state.

123

Operationalizing the Constitution: What the Act Really Grants

Overall, the Act operationalises the Constitution’s property clause, and on a balanced and simple reading, it does not grant the state any additional powers than what is already constitutionally prescribed.

Additionally, those aggrieved by any decision to expropriate, whether with nil compensation or otherwise, have the Constitution’s protection and access to the courts. What remains unclear is whether the Act will achieve its stated goals in relation to land reform.

Based on our initial reading and understanding of the Act, we have concerns that it may not achieve its stated goals in respect of land reform and may potentially further slow the process.

Ayanda Khumalo is a Partner & Senior Associate at Webber Wentzel

124

REI MAGAZINE MARCH 2025

125

Wealth

Making the Mind-Shift:

Impact Property Investment

By Daniel Lombard

Most people who are taught how to start investing in property are generally advised to buy a property, rent it out, and hold onto it long-term in order to eventually earn a passive income.

126

REI MAGAZINE MARCH 2025

Buy-to-Keep vs. Compound

127

Statistics Show a Significant Variance in returns

Looking at statistics from the past 24 years, the net yields (rental returns and capital growth) on residential properties have varied greatly, with some years offering very good returns and others, not so much. In recent years, returns have dropped significantly. These figures include net rental

yields combined with capital growth on property values.

128

REI MAGAZINE MARCH 2025

Imagine a rollercoaster ride

• 2001–2007: Investors were on a steep climb, enjoying returns as high as 35%.

• 2008–2012: Then came the sudden drop, with yields crashing to as low as 0%.

• 2013–2015: A slow recovery followed, peaking again with 11%–13% returns.

• 2016–2021: However, the ride has been on a steady decline, dropping down to 6%–11%.

• 2022–2024: Levelling off at just 6%–9% currently.

Let’s Use a Fair Comparison

To be fair to the Buy-to-Let strategy, we’ll use the average return over the last 12 years for a Buy-to-Let property investment projection.

This will give us a realistic expectation, even though we recognize that returns are currently much lower than in previous years.

129

How Do You Achieve This?The reality is that if you had been investing during those

cycles and did not simply followed the traditional buy-to-keep approach, but instead used the Wealth Assist Modelyou could have secured the illustrated returns by creating compound real estate investments. This can be achieved by investing in short- to medium-term transactions - such as those offered through our Recovery, Restart, and For Sale By Owner Investment products

(www.wealthassist.co.za).

This strategy combines compound returns on the monthly rental income and capital returns in every 24-month cycle, significantly improving your investment outcomes over a 10-year period and helping you achieve your passive income goals much faster or yielding much higher returns.

Is This Sustainable? Can You Continue Finding Investment Opportunities? With distressed and impaired real estate at an all-time high and Buy-to-Let returns at the lowest in years, there has never been a better time to “make a mind shift”.Moving away from the traditional buy-to-keep model to a more efficient and profitable investment strategy and partnering with Wealth Assist to ensure that you can consistently find opportunities while optimizing returns.

The Key to Compound Returns in Property InvestmentThe real secret to achieving compound returns in property investment is not simply buying and keeping properties, but rather making the mindset shift to innovative real estate investment products that allow you to generate compound returns—while still having a cash flow positive income from day one and having the property in your name as security. This enables you to reach your financial goals in a significantly shorter time frame and achieve passive income much sooner. Join our live Webinar on Tuesday, 25 March at 7 PM to learn more about the details of these opportunities.

Click Here to Register

The Cherry on Top Beyond generating excellent compound returns, the Wealth Assist Model also creates financial and social impact by helping real estate owners find solutions to their challenges—ensuring that your investments not only grow your wealth but also make a meaningful difference.

130

CLICK TO FIND OUT MORE More Info

REI MAGAZINE MARCH 2025

131

Events

GTP Hosts exclusive economic Focus on

By Neale Petersen

The Greater Tygerberg Partnership (GTP) hosted its third exclusive dinner with Cape Town Executive Mayor, Geordin Hill-Lewis, on 12 February, at the 360 Sky Lounge at Bloemendal Wine Estate, with Sanlam. The evening, aimed at fostering change and creating connections, focused on the economic progress and future of Valley, and the surrounding northern suburbs.

132

REI MAGAZINE MARCH 2025

Mayoral Dinner with Bellville, Cape Town

annual Wednesday, in partnership meaningful Bellville, Tyger

133

An Evening of Progress and Collaboration

The event brought together key stakeholders from various businesses and partnerships to discuss impactful projects shaping the local economy.

Presentations highlighted the progress of initiatives that address job creation, development, and collaboration with local stakeholders. A key highlight was the 2024 State of Bellville Report, which showcased progress in areas such as the textile industry, waste management, and small business incubation.

The evening began with a warm welcome from GTP CEO, Warren Hewitt, who set the tone for a thoughtful and engaging evening of discussions.

134

REI MAGAZINE MARCH 2025

A standout moment came during Executive Mayor Hill-Lewis’ keynote address, which was met with applause as he shared his vision for the city’s growth. His speech underscored the urgency of accelerating economic growth, creating jobs, enhancing safety, and lifting people out of poverty.

135

Key Presentations: Driving Economic Growth and Partnerships

A series of key presentations followed:

Warren Hewitt (CEO of GTP) provided an update on the 2024 State of Bellville, highlighting key areas of growth and challenges.

James Vos (Mayco Member, Councillor for Economic Development) shared insights on strategies to drive business growth in Cape Town.

Leon Daniels (Expert in Public Sector Transport) provided a global perspective on urban challenges in the UK, Europe, and the Far East.

136

REI MAGAZINE MARCH 2025

137

Events

Launch of Veliciae Luxury Cape Town – Introducing Luxury Real Estate

By Neale Petersen

138

REI MAGAZINE MARCH 2025

Estate Agency in a New Era of

139

EVENTS

On Tuesday, 4th March 2025, Veliciae Luxury Real Estate marked the launch of its premium real estate services at the exclusive Hugo’s venue in Cape Town. The event attracted top-tier investors, property professionals, and real estate enthusiasts, celebrating the brand’s entry into the luxury real estate market, offering clients more than just homes – but personalised, luxury lifestyles.

A Vision for Luxury Real Estate

Veliciae is redefining luxury real estate. The brand, which takes its name from the Italian word for “speed,” reflects its commitment to delivering prompt, impeccable service without sacrificing quality. The launch event was the perfect platform to introduce Sarah Davies as the lead agent and Rube’ Bradfield as the principal agent. Sarah, with her vast experience in Port Elizabeth and Johannesburg, is now expanding the Veliciae legacy in Cape Town, capitalising on the growing trend of semigration to the region.

140

REI MAGAZINE MARCH 2025

Sarah shared, “At Veliciae, we offer more than a transaction. We deliver a tailored experience that anticipates long-term lifestyle aspirations, curating homes that match clients’ needs and desires.

Rube’ Bradfield on Leading the Charge

Rube’ Bradfield, the director and principal agent, emphasized the agency’s unique approach: “We’re not just selling properties; we’re curating lifestyles. It’s about connecting clients with homes that match their dreams—whether that’s a family retreat or an investment opportunity.”

Exclusive Property Portfolio

Veliciae’s portfolio features exclusive properties in Cape Town’s most sought-after areas, including Camps Bay, Clifton, and Constantia.

141

EVENTS

These homes are not simply buildings; they are sanctuaries designed to integrate seamlessly with their natural surroundings, elevating the living experience. In addition, Veliciae recently launched a Villa Rentals Department, catering to high-net-worth individuals seeking luxury shortterm accommodations, further expanding its reach and services.

Global Reach with Cutting-Edge Technology

Veliciae is also leveraging technology to cater to a global clientele. The agency’s website, Veliciae.com, offers an intuitive platform that includes a currency converter, the ability to translate listings into 17 languages, and an easy-to-navigate digital experience.

Personalised Concierge Service

At Veliciae, the real estate experience goes beyond simply buying or selling property. The Property Concierge Service ensures each client’s vision is understood and executed, from sourcing the ideal property to managing renovations and relocation logistics.

142

REI MAGAZINE MARCH 2025

143

The Launch Event

The launch event was a gathering of thought leaders in real estate. Neale Petersen founder of REI was the MC who kicked off the evening with a discussion about the role of luxury real estate in Cape Town’s growth. Bradd Bendall, Head of Sales at BetterBond, followed with insights into the latest trends in real estate finance, while Liezel Solomon, an attorney at STBB, provided legal insights on property transactions. The evening concluded with networking over coffee and dessert.

Looking Ahead

As Veliciae begins this exciting journey, Rube’ Bradfield reflected on the brand’s future: “Tonight is just the beginning. We’re committed to delivering exceptional service and building lasting relationships. We’re excited about what lies ahead and the opportunities we’ll create.”

For more information about Veliciae Luxury Real Estate or to explore their portfolio of luxury properties, visit Veliciae.com.

144

REI MAGAZINE MARCH 2025

Do it Simply.

Life, disability and funeral cover for you and your staff.

Simply Financial Services (Pty) Ltd is a registered financial services provider (FSP 47146). T&Cs online.

READ MORE

145

Until our next edition of REAL ESTATE INVESTOR Magazine

APRIL 2025

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

146

REI MAGAZINE MARCH 2025

147