May 2025 edition: full text

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REI MAGAZINE MAY 2025

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Publishing & Editorial Team

GRAHAM MILLER

MARISA GEORGE

NEALE PETERSEN

WEBSITE SPECIALIST graham@rei.co.za

ACCOUNTS MANAGER marisa@rei.co.za

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

JADE NICHOLSON

SENIOR DESIGNER design@rei.co.za

CHRISTIAN SCHUTTE

DIGITAL MARKETER christian@rei.co.za

CONTRIBUTORS

Andrew Thompson Glen Sanford Felix Bravo Steve Johnstone Ferdi Abrahams Reghard Goussard

Robin Booth Jaco Grobbelaar Jason Lee Paul Stevens Jason Berkovitz Johann van der Merwe

Jean Joubert Eric Nienaber Mary-Ann Shaw Shirley le Guern Daniel Lombard

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REI MAGAZINE MAY 2025

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.

LIMITED SEATS STILL AVAILABLE but book NOW to avoid disappointment

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

• Large-scale events, tourism, and infrastructure

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

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

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REI MAGAZINE MAY 2025

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Editor’s Viewpoint

Shaping Real Estate’s Future:

Leadership, Innovation & Empowerment

Charting the Course in Uncertain Times

For over 18 years, Real Estate Investor has been a trusted guide for property investors, delivering strategic insights to help you grow your business and make sound decisions.

As the real estate landscape evolves rapidly, we take inspiration from timeless thinkers like Mark Twain, Napoleon Hill, and Warren Buffett - visionaries who understood success and shared wisdom that still resonates today.

In this issue, our cover story spotlights three dynamic leaders reshaping South Africa’s real estate market: Andrew Thompson, Ferdi Abrahams, and Steve Johnstone, the founding forces behind eXp South Africa. Their work is redefining estate agency through innovation, empowerment, and a shared mission to uplift agents across the continent.

Their leadership goes beyond influence; it’s about building a platform where others can thrive. They remind us that great leaders don’t just lead, they create opportunity.

Mark Twain once said, “If you don’t read the newspaper, you’re uninformed. If you do, you’re misinformed.” In a world overflowing with information - and misinformation - investors must stay discerning, question narratives, and rely on facts over hype.

Napoleon Hill’s timeless advice, “Your big opportunity might be right where you are now” rings especially true today. In uncertain times, innovation and strong leadership are unlocking new possibilities in places we might not expect.

Now is the time to stay focused, informed, and bold. The future of real estate is being shaped by those who lead with purpose. Let’s step forward with vision, clarity, and confidence.

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REI MAGAZINE MAY 2025

Founder & Editor-In-Chief

MASTER QUOTE

The best thing you can do is to find a big opportunity and take advantage of it.

- WARREN BUFFETT

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CONTENTS

EDITOR’S VIEWPOINT

8 - 9

NEW DEVELOPMENT

8 - Neale Petersen

ASK THE EXPERTS

31 - Devonbosch: A Smart Village rising from the Earth itself

12 - 13

12 - Jaco Grobbelaar

INVESTING

COMPANY PROFILE

52 - 5 Proven Steps for massive long-term gains

18 - Glenn Sanford and Felix Bravo

26 - 30

RESIDENTIAL

16 - Ferdi Abrahams and Steve Johnstone

60 - Modular Gymsare

66 - Andrew Thompson

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REI MAGAZINE MAY 2025

42 - 55

42 - 6 Ways to Profit from the Short-Term- Rental

18 - 25

MASTER INVESTOR

31 - 41

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60 - 73

FINANCE

COMMERCIAL

74 - 79

74 - FICA Compliance made easy

PROPERTY MANAGEMENT

100 - 115

100 - Affordable, Simple, Resilient, and Ready for the Future

WEALTH

80 - 93

116 - 129

80 - When a Lease falls flat

116 - Immediate Compliance Solutions

88 - WeconnectU: Redefining value in Rental Property Management

122 - Why South African Residential Property

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TECHNOLOGY

EVENTS

94 - 98

94 - How to Build Intelligence as a Core Service

128 - 139

128 - Unlock a thriving career

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164

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Unlock Tax Savings, Asset Protection & Growth Potential: Why a Holdings Trust is the Smarter Choice

Ask the Experts

MEET OUR GUEST EXPERT

JACO GROBBELAAR REI MAGAZINE MAY 2025 12

CEO of Prosperity Enterprises, Investor & Author

Question

Can you explain why is it more beneficial to structure property ownership through a company with shares held in a Holdings Trust, rather than directly in a Property Trust?

^

Answer

When it comes to building a successful property portfolio, structure is everything. Over the years, we’ve worked with countless investors and refined the best practices for protecting assets, minimising tax liabilities, and enabling long-term growth. Initially, many property investors favoured holding properties directly in trusts due to the perceived benefits of asset protection and continuity.

However, our experience has shown that a more flexible and scalable structure exists: owning property through a company, with the shares held in a Holdings Trust.

Here’s why this structure is the superior choice for serious investors.

1.Control and Efficiency

When you own property through a trust, all significant decisions must be signed off by an independent trustee. This creates delays for crucial actions like refinancing, signing leases, or selling properties. As your portfolio expands, the dependency on trustees can become a bottleneck. On the other hand, if the property is owned by a company (with you as a director), you gain the ability to make fast decisions, allowing for quicker actions without sacrificing asset protection through the trust.

2. Lower Administrative Burden

A trust holding property directly involves an overwhelming amount of paperwork. Every document, from leases to bond applications, must be signed by all trustees, which can delay deals and complicate financing.

In contrast, a company structure allows you to manage the property like a business streamlining administrative tasks, making financing easier, and accelerating growth. The shares in the company can still be held in a Holdings Trust, maintaining the asset protection benefits.

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ASK THE EXPERTS

3. The Tax Trap of Trusts

Many investors believe that trusts are “tax-free” vehicles. However, the reality is that unless you continually refinance your properties to unlock capital losses, profits retained in a trust are taxed at 45%. This is a significant pitfall, particularly as you grow your portfolio.

Companies, on the other hand, are taxed at a lower rate of 27%. With a company structure, you can also plan strategically by issuing dividends or loans, enabling more tax-efficient distributions through your Holdings Trust.

4. Legal Risks of Trusts

One often-overlooked aspect of holding property in a trust is the legal risk. While a trust itself cannot be sued, the trustees can be personally held liable. This exposes you to potential legal action if a tenant sues or if a service provider seeks damages.

With a company structure, limited liability ensures that legal claims are directed at the company, not you personally. This separation protects both your personal assets and those held within the trust.

5. Flexibility for Tax Planning

For investors already in high tax brackets, a trust that retains rental profits will face a hefty 45% tax rate. Alternatively, profits distributed to beneficiaries can be taxed at their marginal rate, which may also be high.

A company taxed at 27% provides more flexibility to manage taxes. Through strategic planning, you can control when and how dividends are declared or loans are issued, giving you the flexibility to optimize tax outcomes.

The Ideal Structure for Property Investors We recommend a combination of two core trusts: the Holdings Trust, which owns the shares in your property companies, and the Family Trust, which manages your personal wealth and lifestyle.

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REI MAGAZINE MAY 2025

Here’s how it works

• Properties are purchased by a Pty Ltd company.

• The shares of the company are held in the Holdings Trust.

• The Family Trust can lend funds to the Holdings Trust or receive distributions.

• The Family Trust manages your lifestyle assets, while your wealth grows within the Holdings Trust.

This setup offers a balanced approach, providing control, scalability, asset protection, and tax efficiency.

Key Benefits of This Structure

Increased Financing Capacity: Companies are more attractive to banks because they operate like traditional businesses. With financial statements, clear ownership, and a director in place, you’ll be able to secure financing more easily and scale your portfolio faster.

Better Asset Protection: By separating risk across multiple entities including your property Company, Holdings Trust, and Family Trust, you essentially shield your lifestyle assets from potential claims. Property debts and risks are carried by the company, while your personal assets remain protected.

Long-Term Wealth and Legacy Building: Unlike properties held directly in your name, which are subject to estate duties, executor’s fees, and capital gains tax upon your death, assets in a trust are shielded. They remain outside your estate and can be seamlessly passed down to future generations, ensuring that your legacy is preserved.

Strategic Tax Efficiency: By combining trusts and companies, investors can create a tax-efficient structure that allows for optimised profit distribution and tax planning strategies that lower the effective tax rate.\

In summary, structuring your property portfolio through a company with shares held in a Holdings Trust offers more control, better asset protection, lower taxes, and greater scalability compared to the traditional trust model. It’s the ideal setup for investors seeking longterm success and a smooth legacy transition.

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

Submit now

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eXp REALTY

By Editorial

Global by and Felix Borderless

In a sector shaped by market volatility and digital disruption, eXp Realty is standing out not just by navigating the tides of change, but by engineering them.

Built from the ground up as a virtual-first brokerage, eXp is now operating in over 26 countries, rapidly evolving into one of the most scalable and tech-enabled real estate platforms on the planet.

At the centre of this global surge are two key figures: Glenn Sanford, Founder and CEO of eXp World Holdings, and Felix Bravo, who now leads the company’s international business as Managing Director, International.

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REI MAGAZINE MAY 2025

Pics from left: Felix Bravo

Design: Glenn Sanford Bravo on eXp Realty’s Expansion

& Glenn Sanford - eXp

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COMPANY PROFILE

Top 3 eXp Takeaways

• eXp Realty is accelerating global expansion, now active in 26+ countries, targeting 50,000 agents across 50 nations by 2030.

• Leadership by Glenn Sanford and Felix Bravo emphasises agent autonomy, AI-driven tools, and hyper-localised support to scale efficiently and smartly.

• South Africa is emerging as a standout market, showcasing rapid growth, strong leadership, and the success of eXp’s borderless, tech-enabled model.

In the company’s recent Q1 2025 earnings call, Sanford framed the international opportunity with clarity and conviction:

“No other brokerage operates like we do. We’ve built an interconnected platform, North America as the engine, International as the expansion frontier, SUCCESS as our growth layer, and FrameVR as our immersive global infrastructure. Every investment we make is through the lens of agent success.”

Sanford also formally introduced Felix Bravo in his expanded leadership role, who now leads the company’s international business as Managing Director, International.

He points to his recent successes in launching Peru and Türkiye, and positioning him as the strategist guiding eXp toward its 2030 target: 50,000 agents across 50 countries.

“Felix Bravo has shown what’s possible when you put trust in local leaders and equip them with the right systems. His leadership has been defined by precision, accountability, and a relentless focus on agent experience.”

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EXP REALTY

A Platform Built for Global Velocity

Taking the stage, Bravo outlined the next chapter of eXp’s global playbook and the metrics to match. International revenue in Q1 grew 103% yearover-year, with newly launched markets outperforming expectations.

“We’re scaling smarter and faster than ever before,” said Bravo. “This year, we’ve shifted from launching markets to building ecosystems. We’re not just entering countries - we’re embedding ourselves into the agent experience from day one.”

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Glenn Sanford Founder, Chairman, and CEO of eXp World Holdings.

COMPANY PROFILE

Bravo detailed how eXp has reengineered its launch strategy to prioritise localisation, in-person kick-off events, and regionalised support structures. In Peru, more than 600 agents attended the national launch event, and over 100 onboarded within the first month. In Türkiye, eXp went live with key strategic partnerships on stage securing instant credibility.

“It’s all about strong local alignment,” Bravo explained. “By putting country leaders in the driver’s seat with real autonomy and AI-powered tools, we’re seeing results immediately. We’ve built a launch model that’s scalable, repeatable, and most importantly agent-centric.”

South Africa: A Standout Success

Among eXp’s 26+ global markets, South Africa is quickly emerging as one of the most promising both in size and leadership.

“South Africa has grown to over 1,300 agents, and we’ve attracted incredibly strong leaders,” Bravo said. “The team there has been guided with focus and purpose by Andrew Thompson, our Managing Director for South Africa, who has remained deeply agent-centric while building operational strength.”

He continued:

“Andrew exemplifies the kind of leadership we’re scaling globally trusted, adaptable, and obsessed with agent outcomes. South Africa’s momentum is a direct result of that kind of local excellence, and we’re just getting started.”

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EXP REALTY

For the South African real estate community, the impact is tangible: faster onboarding, better tools, more support, and global visibility all while maintaining a local voice and presence.

From AI to Autonomy: The Real Differentiator

One of the most transformative developments in eXp’s international strategy is the use of artificial intelligence to accelerate market readiness. Bravo and Sanford shared how country teams are now independently launching their own digital infrastructure including national websites, onboarding systems, and localized marketing funnels thanks to userfriendly AI integrations.

“We had a situation in Peru where the web development vendor dropped the ball,” Sanford recalled. “Within hours, the local team rebuilt the site using AI—with no coding experience. That’s the kind of autonomy that changes everything.”

Bravo added:

“We’ve created a system where subject matter experts, marketers, recruiters, trainers are becoming builders. They’re using AI to launch faster and operate smarter. This is how we scale a global real estate company without the drag of legacy systems.”

These AI tools are now being deployed in Türkiye, Egypt, and across Europe, Middle East, India and Africa, making it easier for leaders in markets like South Africa to localise quickly without waiting for global dependencies.

Eyes on 2030: Expansion with Intention

With plans to enter Ecuador, Egypt, and Japan, and with several other markets under review, Bravo is clear-eyed about the path ahead.

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COMPANY PROFILE

“Every new country isn’t just another flag, it’s a chance to raise the global standard of real estate. From technology to training, we’re building infrastructures that empower agents to run modern, profitable, sustainable businesses.”

Sanford reinforced this vision with his closing remarks:

“Our North Star hasn’t changed. We’re building the most agent-centric brokerage on the planet and we’re proving it market by market, leader by leader.”

What It Means for South African Investors

For investors and agents in South Africa, eXp’s international strategy sends a powerful message: You don’t need a local office to have global infrastructure. You don’t need legacy systems to build with speed. And you don’t need to choose between scale and personalisation you can have both.

With the tools, tech, and talent now in place and over 1,300 agents inmarket eXp South Africa is becoming a case study in how to build a highimpact real estate operation in the digital age.

“We’re only just beginning,” Bravo said. “South Africa is a cornerstone in our international journey and we’re excited to grow alongside such a dynamic, entrepreneurial agent base.”

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eXp REALTY

By Neale Petersen

Question Building South Africa and Steve eXp South

In a rapidly transforming real estate landscape, two visionary leaders Ferdi Abrahams, newly elected Chairman of the South African Agent Advisory Council (SAAAC), and Steve Johnstone, a founding force behind eXp South Africa are shaping the next chapter of agent empowerment and innovation.

In this candid Q&A, they share their motivations, leadership philosophies, and the deep sense of purpose driving their mission to redefine success for agents across the continent.

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REI MAGAZINE MAY 2025

Left: Steve Johnstone &

& Answer Feature: Legacy and Leadership in with Ferdi Abrahams Johnstone of Africa

Right: Ferdi Abrahams

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MASTER INVESTOR

Q: Ferdi, as newly elected Chairman of the South African Agent Advisory Council (SAAAC), what’s your mission moving forward?

Ferdi Abrahams: My mission is simple - elevate the agent experience. This role is about more than leadership; it’s about listening, collaborating, and acting on what our agents need to grow. I believe in open-door leadership, both for business strategy and personal support.

Q: Steve, you were one of the founding forces behind eXp South Africa. What inspired that bold move?

Steve Johnstone: Having been a real estate trainer for almost 20 years, I faced the same challenge many agents face, no exit strategy. I was stuck on a treadmill: when I stopped training or speaking, I stopped earning. When I saw eXp’s model especially the revenue share opportunity, I realised this could be a life-changing shift. What drew me in was the potential to use my industry network and hard work to build something lasting. Now, instead of going it alone, I get to work alongside like-minded leaders, growing something meaningful together.

Q: What attracted each of you to the eXp model?

Ferdi: Freedom. Flexibility. Ownership. eXp’s platform gives agents the tools to scale without limits. From a five-person team to 205+ agents, I’ve seen firsthand how this model changes lives.

Steve: For me, it’s about opportunity and alignment. This isn’t just a real estate agency, it’s a global movement. We’re not here to compete with each other; we’re here to grow together. The revenue share, equity, cloudbased tools, it all creates a flywheel of success.

Q: You both emphasise mentorship and growth. Why does that matter at eXp?

Ferdi: Because this is a business built by agents, for agents. We’re not climbing a corporate ladder, we’re linking arms to build something better.

Steve: Mentorship is the multiplier. My goal has always been to create value at scale, not just through one-on-one support but through shared tools, training, and community.

Whether it’s through team meetings like our biweekly “Family Time,” national conferences, or masterminds with top performers, I’ve found that helping others grow creates the strongest ripple effect. Your success is our success.

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EXP REALTY

Q: Steve, you’re approaching 1,000 agents in your downline. What drives you?

Steve: Honestly, it’s not about the number, it’s about the ripple effect of empowering others. Building a revenue share organisation starts with a lot of hard work: making calls, hosting events, facing rejection.

But once it starts to grow, it becomes about creating culture and support. We’ve built a team that feels like family and agents who help each other succeed. That’s what drives me every day.

Q: Ferdi, tell us about launching Prosperity Real Estate powered by eXp.

Ferdi: Breaking away from franchise restrictions was one of the best decisions I’ve made. With eXp, I own my brand, my business, and my future.

That’s real empowerment and it’s exactly what I want for every agent I work with.

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MASTER INVESTOR

Q: What do you say to agents still on the fence?

Steve: First, I tell them - don’t rush. Really take the time to understand the model. This is more than just a career move; it could redefine your financial future and your family’s legacy.

I always invite agents to attend our events or Model eXplained sessions and experience our culture firsthand. The more they interact with our agents and leadership, the more they’ll see what’s possible here.

Ferdi: Be all in. No half-measures. Find a mentor, commit to growth, and protect your integrity. The agents who lean in fully are the ones rewriting what success looks like in this industry.

Q: And finally, what does legacy mean to you?

Ferdi: Legacy is about lifting others. It’s about creating something that lasts beyond you and building it together.

Steve: Legacy, to me, is about impact. With eXp, we’re not just building a team, we’re building a new model for success in African real estate.

The idea that agents can become financially free, lead others, and pass that success on for generations… that’s powerful. We’re building the most respected real estate organisation in Africa, one agent, one success story at a time.

With bold leadership, heartfelt mentorship, and a shared commitment to empowering agents, Ferdi Abrahams and Steve Johnstone are leading eXp South Africa into a future defined by growth, collaboration, and legacy.

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New Developments

By Neale Petersen

Devonbosch: from the

Reimagining Development Through Renewal, Community, and Sustainability What happens when you take a former quarry, a place once stripped for its resources and reimagine it not as a scar on the landscape but as fertile ground for regeneration?

Devonbosch, set in the heart of the Bottelary Valley, answers that question with ambition, care, and visionary design. It’s not just a new development; it’s a blueprint for the future of integrated, sustainable living in the Cape Winelands.

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A Smart Village rising Earth itself

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NEW DEVELOPMENTS

Devonbosch at a Glance

• From quarry to connected precinct: Devonbosch transforms a previously industrial site into a vibrant, mixed-use hub rooted in sustainability.

• Pedestrian-first living: Thoughtfully designed public spaces, retail walkways and green corridors encourage connection, movement and a sense of community.

• Built on local legacy: Regional heritage and locally sourced materials shape every detail, from bricks to buildings, creating continuity and place-based identity.

Reclaimed Land, Renewed Purpose

Unlike many developments that extend urban footprints into untouched farmland or natural landscapes, Devonbosch is a rare and intentional brownfield project. Built on the rehabilitated site of a quarry, it represents a conscious decision to repurpose rather than consume. This act of reclamation has deep environmental significance, aligning with global best practices for sustainable urbanisation.

Here, sustainability begins not with add-ons but with foundations. The transformation from quarry to community illustrates a new way forward - one that asks: How can we build without destroying? How do we honour the land, even as we shape it for modern use?

Designed for Daily Life, Not Just Luxury

Too often, lifestyle estates are equated with exclusivity - private enclaves separated from real life. Devonbosch takes a different approach. Its design philosophy is rooted in accessibility, flow, and vibrancy. Rather than isolating residents behind walls, it brings together homes, shops, cafés, co-working spaces and public areas into a fluid, walkable environment.

The precinct is intentionally mixed-use. You can stop for a coffee, walk your dog, work from an office space, visit a gallery, and return home all without leaving Devonbosch. It’s a 15-minute city concept brought to life: everything you need, within reach.

This isn’t luxury defined by high fences and marble counters it’s luxury as livability. As ease. As waking up to mountain views and walking to work through a green corridor.

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REI MAGAZINE MAY 2025

DEVONBOSCH

Greener from the Ground Up

Sustainability at Devonbosch is more than aesthetic greenery. It’s deeply material quite literally, in the very bricks used to build. These bricks come from Cabrico, a family-run factory operating nearby since 1992. Made from local Bottelary clay, the bricks travel short distances, cutting down on carbon emissions associated with transport and supporting the regional economy.

But the significance is cultural as well. Using locally sourced materials weaves a thread of heritage through the development. It’s a quiet tribute to the people and processes that shaped the region long before this new chapter began.

Moreover, this approach echoes the UN’s Sustainable Development Goals, particularly in promoting responsible resource use and reducing environmental impact. Devonbosch’s story isn’t just one of building it’s one of healing and stewardship.

Left to right - Las Lemmer - Development Director; Carlo Capri - Founder and Shareholder & Reghard Goussard - Executive Director Sales Marketing all from SquareTurn Development

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NEW DEVELOPMENTS

Architecture with a Conscience

Good design doesn’t just look good - it works harder for people and the planet. At Devonbosch, architectural innovation is married to environmental performance. Buildings are designed to maximise natural light and ventilation, with tall ground-floor spaces that encourage passive temperature control and reduce reliance on heating and cooling systems.

Double-glazed windows retain or reflect heat as needed, and carefully planted internal courtyards and gardens serve both aesthetic and functional purposes. These design elements create comfort, reduce energy consumption, and support year-round sustainability all while contributing to a visual language that is unmistakably contemporary, elegant and local.

It’s architecture that serves its environment and community, not the other way around.

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DEVONBOSCH

A Complete Lifestyle Ecosystem

Devonbosch doesn’t follow the typical real estate script. Instead of separating commercial and residential zones, it blends them. The result is a live-work-play model that reduces commutes and encourages meaningful interaction.

By integrating housing with business and recreational infrastructure, Devonbosch fosters a lifestyle of convenience and connection.

Retailers, restaurants and service providers benefit from immediate access to a community of residents and workers, while locals enjoy the walkable ease of having everything they need nearby.

Future plans include medical facilities, educational centres, and sports hubs - ensuring that the precinct continues to evolve in ways that support holistic living.

Add in the convenience of nearby highways and the Winelands Airport, and Devonbosch becomes not just a local node, but a well-connected gateway to Cape Town, Paarl, and Stellenbosch.

Smart Mobility and Human Spaces

Devonbosch’s innovative “super-basement” is more than an engineering feat it’s a social and spatial reimagining. By placing parking underground, surface-level spaces are freed up for people.

This prioritisation of pedestrians over cars isn’t just a nice-to-have. It’s fundamental to the precinct’s human-first ethos.

Instead of heat-radiating asphalt and car-choked streets, you find treelined walkways, pocket parks, and cycle paths. Children can ride safely, residents can walk to their destinations, and the streets feel like spaces to inhabit - not just pass through.

It’s a simple yet powerful shift: when you build for people, you get communities instead of traffic.

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NEW DEVELOPMENTS

A Smart Village with a Local Heart

While the term “smart city” often conjures images of cold tech and impersonal efficiency, Devonbosch reclaims it as something warmer and more grounded.

Here, smartness is measured not just in fibre-optic cables or integrated systems - though those are present - but in design that enhances life.

Security systems are seamless and sophisticated, but not intrusive. Public areas remain open and welcoming, while private residences and offices enjoy discrete, high-level protection.

This balance ensures both freedom and peace of mind, and it’s achieved without sacrificing charm or community spirit.

The development is open to visitors, workers, and future residents alike. It’s smart but it’s also sociable.

A Long-Term Vision, Built to Last

Devonbosch isn’t a flash-in-the-pan development. It’s a 25- to 30- year project with multiple phases, each carefully planned to expand infrastructure, enhance public amenities, and increase accessibility.

Phase 1 has already sold out, with commercial and retail space fully let. Phase 2 brings residential offerings designed to meet growing demand for quality, convenient living in the Winelands.

The long timeline is an advantage, not a drawback. It allows the developers to respond to emerging needs, refine their approach, and grow organically.

As the broader Bottelary area evolves from industrial corridor to cultural and commercial node, Devonbosch is poised to lead that transformation - thoughtfully and sustainably.

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DEVONBOSCH

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A Legacy Built on Connection

Every detail in Devonbosch reflects a commitment to continuity — between past and future, local and global, built form and natural landscape. Even the main road through the precinct, Alberto Drive, honours the late Alberto Capri, whose legacy lives on through the Cabrico brickworks and the vision his family continues to build upon.

The clay, stone and water of the Bottelary Valley are not just resources here — they are part of a story. One that respects history while embracing the future. Devonbosch is a space where heritage, innovation, and inclusion converge.

NEW DEVELOPMENTS

This isn’t development as expansion. It’s development as renewal.

Discover Devonbosch Today

Devonbosch is not just reshaping land it’s reshaping what South Africans can expect from modern development. It demonstrates that luxury doesn’t have to mean isolation, that sustainability can be beautiful and practical, and that community isn’t a buzzword - it’s a design principle.

For those seeking a place to live, work, invest or simply connect, Devonbosch offers more than property. It offers a vision.

Find out more about Devonbosch

Website: www.devonbosch.co.za Contact: Reghard Goussard - Executive Director Sales Marketing from SquareTurn Developments Email: reghard@squareturn.co.za Tel: +27829074447

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REI MAGAZINE MAY 2025

LIFE AND ADVENTURE WILL FIND YOU!

SquareTurn - we deliver change

A NEW PERSPECTIVE...

360 °

KLEI APARTHOTEL AT DEVONBOSCH OFFERS A UNIQUE INVESTMENT OPPORTUNITY WITH GUARANTEED RETURNS IN A PRIME LOCATION.

Featuring modern design and seamless hotel-style services, this luxury Aparthotel combines high-end finishes with convenience, ensuring an exceptional guest experience. With stunning mountain views and direct access to Devonbosch’s vibrant lifestyle, KLEI is the perfect balance of smart investment

and elevated living.

www.devonbosch.co.za

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Investing

By Robin Booth

6 Ways to Profit Term-Rental Why ST Rentals

As we move deeper into 2025, the global Short-Term Rental (STR) landscape continues to evolve, shaped by changing travel patterns, economic conditions, regulatory developments, and platform innovations.

For South African and global investors alike, this presents a critical opportunity: those who understand the latest trends can position themselves ahead of the curve.

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from the Short- Boom in 2025 & Beyond: are still Winning

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INVESTING

Short-Term Rentals: Still a Smarter Investment in 2025

As global travel continues its rebound and lifestyle-driven relocation becomes the norm, the short-term rental (STR) industry stands out as one of the most dynamic and rewarding real estate strategies of our time.

In 2025, despite the headwinds of tighter regulations, rising interest rates, and shifting guest expectations, STRs are thriving driven by stronger data tools, more mature platforms, and evolving consumer preferences.

Top 3 Takeaways

• Rental yields remain high - Especially in markets like Cape Town, with STRs outperforming long-term leases by 30–50%.

• Platforms are upgrading tools and rewarding quality - Professional hosts now get better visibility, bookings, and profits.

• Travel demand is surging - with longer stays and lifestyle travel driving steady occupancy across well-positioned rentals.

For forward-thinking investors, this moment presents a unique window of opportunity. Whether you’re scaling a portfolio, exploring rental arbitrage, or looking to turn an underperforming property into a cash-flow machine, the time to act strategically is now.

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Here’s how to position yourself for success in 2025 and beyond in the Short-term-rental market:

1.The Numbers still work: STRs are outperforming Traditional Rentals

Despite global economic uncertainty, the financial fundamentals of STRs remain compelling. In fact, across many markets, short-term rentals are outperforming long-term rentals by wide margins.

In 2024, Airbnb reported a 12% year-on-year revenue increase in Q4 alone, and Booking Holdings (parent company of Booking.com) saw alternative accommodations make up over a third of all room nights. This is a sharp uptick from pre-pandemic levels.

Average global occupancy rates for STRs now hover between 50 - 60%, with many top-performing listings achieving 70% or higher, particularly in leisure-heavy or remote-worker-friendly areas.

ADR (Average Daily Rate) has also risen in key markets. For example, Europe saw an 18.9% increase in ADR during the second half of 2024, and the U.S. saw STRs in second-tier cities generate $3,000 - $5,000+ in monthly gross revenue.

In South Africa, STR performance is even more eye-catching. Cape Town, now home to over 21,000 active Airbnb listings, is globally recognised as a premier destination for both leisure and remote work travellers.

On the Atlantic Seaboard, annual STR rental yields can hit 10 - 15%, with some hosts reporting 30 - 50% more income than they would earn from longterm leases especially during the December–March peak.

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2. Platforms are Investing in Hosts and Raising the Bar

One of the biggest shifts in the STR landscape is how platforms like Airbnb, Booking.com, and Vrbo are actively supporting hosts to become more professional and scalable.

Airbnb’s initiatives include:

• Co-Host Marketplace: A game-changer for investors, this feature connects property owners with vetted Superhosts, enabling passive income without hands-on management.

• Global pricing transparency: Airbnb now displays total costs upfront, improving guest trust and boosting booking conversions. Hosts are encouraged to price competitively and strategically.

• Diversification investment: Airbnb is investing over $200M into expanding beyond traditional stays—expect new property types and verticals to emerge that open more investment channels.

Booking.com and Vrbo are also stepping up:

• AI-powered trip planning tools, review summaries, and pricing algorithms are helping hosts improve visibility and revenue.

• Vrbo is focused on quality control, actively delisting underperforming properties and boosting exposure for listings with high guest ratings, availability, and responsiveness.

The takeaway? As platforms mature, those who treat hosting like a business - not a hobby - will dominate search rankings and win the best guests. 3. Where to Invest in 2025: High-Yield Markets to Watch

Not all STR markets are created equal. In 2025, the strongest investment potential lies in destinations that combine high traveller demand, limited supply, and year-round appeal.

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South Africa’s Top Markets:

• Cape Town remains the flagship destination, with demand from both domestic and international travellers, digital nomads, and seasonal tourists.

• Knysna & Plettenberg Bay (Garden Route): High lifestyle value, limited competition, and a growing eco-tourism segment make these towns strong bets.

• Durban beachfront: A hidden gem still underutilised by global tourists but growing in popularity due to warmer waters and affordability.

• Johannesburg’s business districts: Executive and mid-stay travel is increasing, especially for remote employees mixing business and leisure.

Global High-Potential Cities:

• Lisbon: A remote work hub with lenient visa policies and high STR yields.

• Medellín: Known for year-round spring weather and booming expat appeal.

• Eastern European capitals (like Budapest and Sofia): Affordable entry points with rising tourist traffic.

• U.S. mountain towns (e.g., Asheville, Bozeman): Strong domestic tourism and high ADRs make these markets lucrative.

The sweet spot? Cities that offer lifestyle-driven travel, flexibility for longer stays, and a favourable regulatory environment.

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4. Rental Arbitrage: Low Capital, High Reward Rental arbitrage - renting a property long-term and re-renting it short-term is seeing a resurgence in 2025, especially as high interest rates price many investors out of property purchases.

Why it works:

• You lease a unit at R15,000 per month.

• You earn R45,000 - R60,000 per month during peak seasons.

• After expenses (cleaning, furnishing, platform fees), net profits can range from R12,000 - R20,000 per month.

Caveats to keep in mind:

• Landlord consent is crucial. Be transparent and consider offering revenue sharing or added guarantees.

• Regulations matter. Ensure the building and zoning laws allow STR activity.

• Seasonality must be accounted for. Plan cash flow around peak/offpeak cycles.

Arbitrage is especially effective for testing new markets, building brand presence, or scaling quickly without the burden of large capital outlays.

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5. Travel demand Is surging and evolving

The post-pandemic travel surge is no longer a temporary rebound - it’s a reshaping of how and why people travel.

• The U.S. expects 77.1 million international arrivals in 2025, a 6.5% increase year on year (YoY).

• Europe and Latin America are seeing record-breaking occupancy in STR-friendly cities.

• On Airbnb, 60% of guests prefer staying in local neighbourhoods over hotels.

• Families and groups are increasingly choosing STRs for space and kitchen access.

• Most notably, longer stays (28+ days) now account for more than 20% of Airbnb bookings, fuelled by remote work, sabbaticals, and lifestyle travel.

The message is clear: STRs that offer comfort, flexibility, and location relevance are best positioned to ride the next wave of travel growth.

6. The Bottom Line: STRs are a Future- Proof Strategy

In an investment world grappling with uncertainty from fluctuating interest rates to geopolitical instability. Short-term rentals remain one of the most resilient, adaptable, and profitable real estate strategies available.

Why?

• They offer high cash flow and strong yields.

• They’re supported by data-rich platforms and scalable systems.

• They allow for creative models (arbitrage, co-hosting, remote management).

• They align with changing consumer behaviour - longer stays, blended travel, and lifestyle-first decisions.

As platforms continue to refine quality standards,

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hosts who act like business owners will enjoy compounding returns over time.

Advice for Investors

To succeed in STRs in 2025, investors need to think beyond property ownership and embrace the full ecosystem of short-term rental innovation.

Key steps to move forward

Professionalise your operations: Use dynamic pricing tools, automate guest messaging, and invest in quality design and amenities.

Optimise for guest experience: Fast Wi-Fi, local guides, and thoughtful touches can drive 5-star reviews and repeat bookings.

Stay ahead of regulation: Know the laws in your area and advocate for clear, fair STR policies.

Leverage new platform features: Whether it’s Airbnb’s Co-Host tools or Booking.com’s AI upgrades, let tech work for you.

Diversify smartly: Blend ownership with arbitrage or co-hosting to scale intelligently and reduce risk.

Whether you’re acquiring, arbitraging, or optimising, short-term rentals are no longer just an opportunity they’re a strategic advantage.

In a shifting market, the flexibility, income potential, and scalability of STRs make them a cornerstone for any serious real estate investor.

About the Author: Robin Booth

Robin Booth is a property investor, educator, and Airbnb strategist with over 20 years of experience. From a single rental, he’s built a successful short-term rental portfolio in Cape Town and now mentors others in navigating the evolving property landscape.

With a background in innovation and entrepreneurship, Robin focuses on building smart, resilient investment strategies. He writes from realworld experience dealing with seasonality, regulations, and global trends affecting local markets.

This article shares insights and tools to help fellow South African investors make informed, future-focused decisions in the Airbnb and real estate space.

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Investing

By Jason Lee

Unlocking Wealth 5 Proven Steps Strategy’ for

In times of economic uncertainty, smart investors turn to what holds its value - real estate. At a recent conference attended by leaders from some of the world’s largest real estate investment trusts (REITs), one message stood out: income-producing real estate remains a solid, long-term wealth-building strategy.

Despite market turbulence and fears around inflation, the most seasoned investors are doubling down, not retreating.

What’s their secret? It’s a simple yet powerful framework called “The Real Estate Trifecta”.

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in Real Estate: to Master the ‘Trifecta massive long-term gains

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INVESTING

Real Estate amid market uncertainty

• Focus on regions with low vacancy rates and high population growth - to maximise potential for long-term property appreciation.

• Falling interest rates ignite booms - they lower borrowing costs and fuel demand, driving both rents and property values upward.

• Avoid markets with declining growth - cheap properties often come with hidden long-term risks and stagnating returns.

The Real Estate Trifecta: Five Step Strategy

1. Understand the Market Drivers

Income real estate is a hedge against volatility especially when the stock market gets shaky.

REITs are snapping up properties and even buying back their own undervalued shares, confident in real estate fundamentals.

2. The Core Ingredients of a Real Estate Boom

Low Interest Rates: When borrowing becomes cheaper, demand rises. This drives up property values and rental returns.

Low Vacancy Rates: Areas with tight rental markets offer better rental income and long-term stability.

High Population Growth: More people mean more housing demand, which translates into price appreciation over time.

3. Capitalise on Timing

Watch for interest rate pauses or cuts they often signal the start of a real estate upswing.

Act early in buyer’s markets to secure the best opportunities before prices rise.

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4. Beware of False Bargains

Cheap real estate in declining regions can be a money trap. If population growth is negative, long-term returns stall.

Prioritise economic fundamentals over low purchase prices true value lies in growth potential.

5. Support Free Market Solutions

Encourage development-friendly policies. Oversupply can help solve housing crises naturally by reducing rent pressure.

When governments overregulate, housing shortages persist, and affordability worsens.

The Way Forward for Real Estate Investors

Success in real estate isn’t about chasing bargains. it’s about following the trifecta of smart investing:

• Low interest rates • Low vacancies, and • High population growth.

When these three align, real estate markets surge. The key is to look past the headlines and invest where the fundamentals are strong.

Stay focused. Stay informed. Position yourself where growth is inevitable.

That’s how long-term wealth in real estate is built.

About the Author

Jason Lee is a property investor, developer, and author now based in Vancouver, BC, Canada. He invests in multi-million rand property deals in South Africa and Canada. He is also a best-selling author of 4 Property Investment books in South Africa.

BUY JASON LEE’S BEST SELLING SA PROPERTY INVESTMENT BOOKS

VISIT www.jasonlee.co.za

• Making money out of Property in South Africa

• Fast forward your retirement through property

• Retire rich through property

• 10 Simple steps to Property Wealth

Buy Now

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Residential

By Jaco Grobbelaar

7 Compelling could be your

Homeownership has long been seen as the pinnacle of success, but could renting and investing in property actually be the smarter wealth-building strategy?

Let’s explore the top benefits of renting and investing in real estate, an approach that can build wealth faster than traditional homeownership.

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Reasons: Why Renting Fast-Track to Wealth

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Introduction: The Shift from Ownership to Investment

• Rent and Invest: Renting frees up capital for investment in income-generating properties, offering cash flow and long-term equity growth.

• Leverage for Growth: Use the bank’s money to control multiple properties, creating compound returns and faster wealth accumulation compared to homeownership.

• Flexibility and Mobility: Renting offers the freedom to adapt your lifestyle without the constraints of homeownership, while your investments build wealth.

For generations, owning a home has symbolised stability and success. However, what if the path to building wealth isn’t through homeownership but by renting and investing in income-generating properties instead? In today’s market, more and more investors are considering the latter approach.

Let’s break down 7 reasons why renting could be your ticket to faster wealth-building.

1. Homeownership: Emotional Comfort vs. Financial Investment Homeownership provides emotional security, but it doesn’t offer the same financial benefits as a rental property generating income or appreciating in value.

2. Rent and Invest: Maximise Your Capital By renting and investing your deposit into multiple buy-to-let properties, you generate immediate cash flow and long-term equity without the burden of bond repayments.

3. Leverage: Grow Faster with the Bank’s Money Leverage allows investors to control multiple high-value properties with a smaller upfront investment, creating faster equity growth compared to owning a single home.

4. Flexibility: Move Without Financial Constraints Renting offers unparalleled flexibility. If life circumstances change, you’re not tied to a property allowing you to live where you want while investing where it’s most profitable.

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5. Renting vs. Owning: The Financial Comparison Renting frees up your capital for investments, while homeownership ties up your funds. Over time, rental income and asset appreciation can far exceed the equity built in a primary residence.

6. Long-Term Wealth: Building Through Income-Generating Properties Rental properties provide recurring income, while homeownership is a non-performing asset. Diversifying your property portfolio accelerates wealth creation and supports long-term financial goals.

7. When Buying Makes Sense: Life Stage and Stability Buying a home may still be the right choice if you’re settled in an area, looking for stability, and willing to sacrifice short-term investment gains for emotional security.

The Verdict: Should You Buy or Rent your own home?

The answer depends on your financial goals, life stage, and willingness to invest. From an investor’s perspective, renting while building a diverse property portfolio can offer quicker, more substantial wealth-building opportunities.

If you choose to buy, make sure it aligns with your long-term financial strategy. Whether you decide to buy or rent, make it a conscious, intentional decision that serves your broader investment goals.

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Residential

By Neale Petersen

Flex Appeal: are raising attracting modern

Enter the modular outdoor gym: a smart, stylish solution that caters to modern lifestyle needs while offering a significant value boost to residential properties.

For property investors, this trend presents a unique opportunity. By adding a customisable, ready-to-use gym unit to your outdoor space, you’re not just building a fitness area you’re creating a lifestyle asset that can set your property apart in a competitive market. REI MAGAZINE MAY 2025 60

How Modular Gyms Property Values and Buyers

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Step-by-Step: Maximising ROI on an Outdoor Gym Investment

1. Choose the Right Modular Unit

Select a structure known for durability, portability, and size efficiency. A 3m x 3m Kwikspace unit is ideal for most gym setups.

2. Plan the Layout and Location

Place the gym in an area that allows for privacy, shade, and accessibility ideally with space for air circulation and natural light.

3. Customise for Performance and Appeal

Install rubber flooring for shock absorption, add large mirrors, good lighting, and consider climate control to enhance the user experience.

3. Add Versatile Equipment

Use space-saving gear like resistance bands, compact cardio machines, and adjustable weights to maximise functionality.

4. Ensure Legal and HOA Compliance

Check local building codes or homeowners’ association rules regarding external structures before installation.

5. Enhance with Landscaping or Screening

Surround the unit with greenery, decking, or privacy panels to make it more visually appealing and integrated with the property.

6. Showcase in Property Listings

Professionally photograph the gym and market it as a premium amenity for health-conscious buyers and renters.

7. Track Tenant Use (for Rentals)

Monitor how tenants use the space to optimise future installations and highlight its popularity in marketing materials.

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Advice for Property Investors

• Follow Market Trends: Wellness, sustainability, and self-sufficiency are top priorities for buyers and tenants especially post-pandemic. An outdoor gym aligns with all three.

• Know Your Buyer or Renter: Young professionals, families, and remote workers are most likely to value a personal fitness space.

• Work with Trusted Modular Providers: Choose experienced suppliers like Kwikspace, who can offer turnkey solutions tailored to South African climates and property types.

• Bundle with Other Upgrades: Combine the gym with solar panels, rainwater harvesting, or outdoor lounges to create a compelling lifestyle package.

• Think Beyond Urban Markets: Outdoor gyms appeal in both city and suburban areas, especially where gym access is limited or security is a concern.

• Promote as a Long-Term Saving: Gym memberships add up—your investment saves users both time and money, making it an attractive perk.

Build Wellness, Build Value

Adding a modular outdoor gym isn’t just about creating a place to work out, it’s about investing in a lifestyle. As buyers become more selective and tenants more discerning, features that enhance health, convenience, and quality of life can significantly influence purchasing decisions and rental preferences.

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Whether you’re flipping, renting, or improving long-term assets, an outdoor gym is a forward-thinking feature that adds functional beauty, increases property value, and meets the evolving demands of the modern market. With the right approach, it’s a low-risk, high-reward investment that flexes serious appeal.

Picture this: The sun is rising, your alarm is ringing, and instead of debating whether you’ll make it to the gym, you take just a few steps from your back door into your very own private workout space. No waiting for machines. No awkward side glances from seasoned lifters. Just you, your goals, and the freedom to train on your terms.

With increasingly busy lifestyles pushing a desire for convenience, many fitness enthusiasts are moving away from expensive gym memberships and long commutes to exercise, opting instead for customisable home gym solutions. Portable, modular buildings make this possible, with customisable units designed to meet the needs of fitness enthusiasts who enjoy a little flexibility.

The evolution of home fitness: A gym that suits your lifestyle

Most of us start the year with fitness resolutions, signing up for gym memberships with the best of intentions. But as work commitments, family obligations, and daily life take over, we often find ourselves unable to keep up with a solid gym routine. These challenges, coupled with ongoing loadshedding issues and the rising costs of gym memberships, have pushed many South Africans to rethink their approach to fitness.

That’s where modular solutions, like Kwikspace’s Zozo On The Go, are providing a practical alternative. Their portable design can be fully customised to function as personal workout spaces—whether for yoga, Pilates, strength training, or cardio. The modular nature of the units offers an easy-to-assemble solution that brings the gym to your doorstep.

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From box to gym in a day

Unlike traditional home gym setups or costly renovations, setting up a modular home gym is a quick and stress-free process. The prefabricated units arrive as an easy-to-assemble kit that requires minimal tools and time. Designed for durability, modular units are built to withstand weather, wear, and all the sweat you’ll throw at it. In just a few hours, users can set up a gym that fits perfectly into their space and transform their fitness experience without the burden of long-term commitments or monthly fees.

For the best workout experience, here are our tips for personalising your modular gym:

• Size: Kwikspace’s Zozo on the Go units are available in various sizes, but we’d recommend the larger 3m x 3m model for a home gym to provide enough space for your equipment and movement.

• Flooring: Install your own protective flooring, like rubber mats, for a safe workout surface and to protect the unit’s foundation.

• Ventilation: Install windows or an aircon and keep the air flowing for a comfortable workout, especially in warmer months.

• Equipment: Choose compact, multifunctional equipment like adjustable dumbbells, resistance bands, and foldable benches to maximise the space in your unit.

• Aesthetics: Install your own mirrors, good lighting, and other personal touches to make your home gym a place you want to spend time in and enhance your fitness experience.

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Andrew Vision and heart fastest-growing

At the helm of eXp Realty South Africa is Andrew Thompson, a leader whose clarity of purpose is matched only by his deep commitment to people.

As Managing Director, Andrew is guiding the business toward an ambitious and bold future - one defined not only by growth in agent count, listings, and production, but by building the most sought-after real estate company to work for in Africa.

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Thompson: Leading with at South Africa’s Real Estate Brand

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Andrew Thompson redefines real estate at eXp South Africa

• Andrew Thompson leads eXp South Africa with a peoplefirst vision, aiming to build the continent’s most agentcentric and impactful real estate brand.

• Agents thrive through multiple income streams - commission, equity, international revenue share and are invited to see the model firsthand at events.

• eXp’s culture blends global innovation with community upliftment, celebrating success while creating real impact through partnerships and agent empowerment.

An Invitation to see the Vision firsthand

Andrew shares the mission and passion of eXp South Africa with vision, heart, and a bold mission to redefine real estate success.

“Our mission is to remain firmly agent-centric,” Andrew affirms. “By supporting high-performing agents and empowering entrepreneurial minds who want to stay ahead of the curve in technology, we’re not just growing Top 3 Highlights a company, we’re enabling people to Boost property value with a custom outdoor gym, appealing build legacies. eXp is a game-changer to health-conscious buyers and long-term tenants. and a wealth creator.” Save on renovation costs with modular, portable gym units

ready to assemble in a day.

Andrew encourages any estate agent considering a shift to explore eXp’s Meet rising demand for flexible, private fitness spaces in platform up close. the age of hybrid work and wellness-focused living.

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ANDREW THOMPSON

“Connect with an eXp agent, attend a ‘Model eXplained’ session, or join one of our magical Roadshows. Bring your spouse, a friend, or a colleague. Come and see the vision for yourself. We offer not just a new path but possibly the best compensation model in the world.”

At eXp, agents aren’t just earning income they’re building businesses that scale through multiple streams: commission, international revenue share, equity in EXPI, and even powerful third-party opportunities.

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“Our agents are redefining what financial freedom looks like,” Andrew adds. “No other company offers what we do at this level. And no one celebrates success like we do.”

Recognising the Leaders behind the momentum

With sincere appreciation, Andrew reflects on those who’ve played a pivotal role in shaping eXp South Africa’s trajectory:

“To Glenn Sanford - thank you for your trust and your visionary leadership. To Felix Bravo - your support has been phenomenal.

To Ferdi Abrahams, our new SAAAC Chair, congratulations on this wellearned milestone. And to Steve Johnstone, one of our founding forces, thank you for being the powerhouse entrepreneur and unwavering leader that you are. We’re proud to call you family.”

A Culture That Celebrates Collaboration and Impact

At eXp, success isn’t just measured in production, but in people.

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“There’s no other company as welcoming, uplifting, and committed to recognition and reward,” Andrew says. “We’re part of a global, collaborative ecosystem where agents truly own their future.”

That ownership extends to impact, too.

“Through our partnership with Laureus Sport for Good, led by Bryan Habana and Marlene Coetzee, we’re creating opportunities for youth and giving back to communities that need it most. Because success isn’t just what we build, it’s who we uplift along the way.”

Looking Ahead: The Vision Expands

As the movement grows, so does the platform.

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“In February 2026, we’ll host a Mega Event in Cape Town. It’s going to be massive - global guests, African delegations, world-class speakers. It will mark a new chapter for eXp on the continent, and it will celebrate everything we’ve built together.”

A Personal Note from the heart of Andrew Thompson

With sincere appreciation, Andrew reflects on those who’ve played a pivotal role in shaping eXp South Africa’s trajectory:

“To my leadership team - you are my greatest inspiration. Your resilience and support, especially over these last 18 months, has been nothing short of extraordinary.

And to our agent team, you are the heartbeat of eXp South Africa. Thank you for your courage, your energy, and your belief in this mission. The best is still to come.”

Under Andrew Thompson’s leadership, eXp South Africa isn’t just scaling - it’s setting the standard.

Rooted in purpose, powered by innovation, and united by community, this is more than real estate. This is a revolution in how careers, businesses, and lives are built.

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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 benefi ts all our key stakeholders, including our tenants and investors.

As a Vukile stakeholder, you too will benefi t 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.

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Finance

By Paul Stevens

FICA Compliance for Protecting from Financial

Have you ever wondered why property practitioners ask so many personal questions when you’re buying or selling a property? While it might feel invasive, there’s a very good reason for it compliance with the Financial Intelligence Centre Act (FICA).

In South Africa, FICA plays a vital role in protecting property transactions from criminal activities such as money laundering, terrorist financing, and tax evasion. Understanding the requirements behind FICA can make the process smoother and help ensure that property dealings are safe, secure, and legally sound.

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made easy: A Guide Property Transactions Crime

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FICA Highlights

• FICA compliance prevents money laundering and terrorist financing, ensuring safe, legal property transactions for buyers and sellers.

• Property practitioners must verify clients’ identities and financial records to comply with FICA, avoiding severe penalties.

• Updated FICA guidelines require practitioners to identify high-risk transactions, particularly in luxury property markets, to prevent illicit activities.

Why FICA Matters in Property Transactions

FICA, introduced in 2003, was designed to prevent the abuse of the property market for illegal financial activities. Before FICA, criminals often used property transactions to launder illicit funds, converting illegal gains into legitimate assets. Real estate, particularly high-value properties, became a popular tool for money laundering.

To address this, FICA mandates that property practitioners verify their clients’ identities and financial details before finalising any transaction. This legal requirement ensures that every property transaction is legitimate, reducing the risk of criminal exploitation. Without compliance, property agents cannot proceed with a sale or accept mandates, and noncompliance can result in severe penalties.

When buying or selling property, you may be asked to provide various documents to comply with FICA. While it may seem like an invasion of privacy, this paperwork is essential to ensure a safe transaction.

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FICA

Common Documents requested by Property Practitioners

• Certified copy of your ID or Passport Verifies your identity to confirm you are who you say you are.

• Recent Utility Bill (less than 3 months old) or Lease Agreement Confirms your residential address for verification purposes.

• SARS Tax Number Ensures you’re registered with the South African Revenue Service (SARS).

• Confirmation of Your Bank Account Ensures proper processing of funds during the transaction.

• Proof of the Source of Funds Verifies that the money being used in the transaction comes from a legitimate source.

Depending on whether you are a buyer or seller, or even whether you’re an individual or a business, you may be required to provide additional documents.

Self-employed individuals and business owners, for example, may need to submit extra paperwork to validate their income or financial standing.

Step-by-Step Guide to FICA Compliance

1. Document Collection

The first step is submitting your personal documents. Property practitioners will request proof of your identity, residential address, tax registration, and the source of funds for the transaction.

Be sure to provide clear and up-to-date documents to avoid delays.

2. Verification Process

Once documents are collected, the property practitioner verifies your details.

This step ensures your identity and financial position are legitimate, minimizing the risk of fraud or illegal activity.

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3. Transaction Monitoring

Property practitioners must assess the legitimacy of the transaction, ensuring that the funds used are clean and come from a legal source.

Any discrepancies or irregularities could delay or even halt the transaction.

4. Reporting Suspicious Transactions

If any red flags arise such as unusual sources of funds, thirdparty payments, or reluctance to provide documentation then the property practitioner is legally obligated to report these to the Financial Intelligence Centre (FIC).

How FICA Supports a Safer Property Market

While the process of gathering personal documents may seem tedious, it plays a crucial role in maintaining the integrity of the property market.

By ensuring compliance with FICA, property practitioners: helping to:

• Prevent Financial Crimes FICA reduces the opportunity for criminals to launder money through property transactions, protecting both the economy and individual buyers and sellers.

• Create a Transparent Market FICA fosters transparency, making it more difficult for illicit transactions to go unnoticed.

• Promote Trust and Confidence For property buyers and sellers, knowing that transactions are compliant with the law provides peace of mind, ensuring fairness and security.

In 2024, the Financial Intelligence Centre updated its risk assessment guidelines for property practitioners, introducing new risk indicators.

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These guidelines help practitioners identify potentially suspicious activity in high-value transactions, such as those involving luxury properties in areas like Cape Town’s Atlantic Seaboard or Franschhoek. Practitioners are now advised to implement stricter measures in these areas to combat money laundering and terrorist financing.

The FICA Future

Although it might seem like a hassle, FICA is a vital tool for safeguarding South Africa’s property market. By following these compliance measures, property practitioners help create a safer, more transparent environment for everyone involved.

Whether you’re buying your first home or making an investment, you can be confident that FICA’s checks and balances are working to protect you from potential financial crime.

Ultimately, FICA isn’t just about meeting legal requirements, it’s about building a trustworthy, secure, and fair property market. With the rise of updated risk assessments and growing compliance measures, South Africa is better positioned to resist illicit financial activities and continue growing a thriving property sector.

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Property Management

By Jason Berkovitz

When a Clarifying ‘Huur

Can a lease agreement be enforced against the true owner of a property if it was entered into with someone who was never lawfully entitled to lease it in the first place?

The outcome reinforces the importance of valid title in property transactions and clarifies the limits of the huur gaat voor koop principle when dealing with invalid transfers.

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Lease falls flat: the limits of Gaat Voor Koop’

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Key takeaways

Good faith isn’t enough: A lease with someone lacking lawful title offers no protection, even if the tenant acted honestly.

Huur gaat voor koop is limited: It only applies when a valid and lawful ownership transfer has occurred—not in cases of defective title.

No ratification without consensus: Allowing occupation or accepting rent doesn’t equal a lease, clear agreement on essential terms is required.

This was the central issue in the recent case of Van den Heever NO and Others v Evolv Outdoor (Pty) Ltd and Another1. The court was asked to decide whether a tenant could remain in occupation under a lease concluded with a party who, despite being listed on the title deed, had acquired no legal ownership of the property.

The Background - An Unlawful Transfer and Disputed Lease

Bedford Conference Centre CC (in liquidation) was the owner of commercial premises in Bedfordview. After the entity was placed in liquidation in August 2020, the property was transferred to a third party, The Med Office Park (Pty) Ltd (“Med Office”).

However, this transfer was later found to be unlawful, as it had taken place without compliance with the Insolvency Act or proper authority.

Med Office, while reflected as the registered owner, went on to lease part of the premises to Evolv Outdoor (Pty) Ltd (“Evolv”) for its advertising business. Evolv entered the lease in good faith, unaware that Med Office had acquired title improperly.

The liquidators of the CC challenged the transfer in court and obtained an order in January 2023, which directed the Deeds Office to correct the title. In March 2023, the CC was officially restored as the lawful owner.

Shortly thereafter, the liquidators informed all tenants, including Evolv, that existing lease agreements would be reviewed. They made it clear that they did not consider themselves bound to any agreements concluded by Med Office and that rent should be paid into their trust account, pending further discussions.

Evolv, however, resisted these instructions, insisting that its lease remained valid. When negotiations failed, the liquidators applied for Evolv’s eviction.

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Determining the Lawfulness of Occupation

At the heart of the dispute was the question of whether Evolv’s occupation of the property remained lawful, even though its lease agreement had been entered into with a party that never legally owned the premises or had authority to bind the lawful owners.

To resolve this, the court had to consider three key arguments raised by Evolv:

1. That the lease was entered into in good faith at a time when Med Office was reflected as the registered owner and was therefore valid and enforceable.

2. That the lease remained binding under the huur gaat voor koop principle, which protects existing leases following a change in ownership; and

3. That, even if the original lease was invalid, the liquidators had either ratified it or entered into a new agreement by their conduct after taking control of the property.

Key Findings and Legal Principles

1. Registration and Ownership

The court confirmed that South Africa operates under a negative deeds registration system, which records transactions relating to immovable property.

While this system generally reflects the legal position accurately, the information contained may not always guarantee the true legal position. A title deed for example, may be incorrect or defective and not reflect the correct legal position in respect of an immovable property.

As such, parties must exercise caution and ensure that the person reflected as owner in the registry has acquired title through a lawful and enforceable process.

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Even though Med Office appeared as the registered owner at the time, it was not the lawful owner. The transfer had been unlawful and void. Med Office therefore had no legal authority to enter into any lease agreement that would bind the true owner, the CC.

2. Huur Gaat Voor Koop Does Not Always Apply

The well-known huur gaat voor koop rule provides that a valid lease will survive the sale of a property. It protects tenants by allowing the lease agreement to remain in place when a new owner takes transfer of the property. The new owner, in essence, steps into the shoes of the previous one.

Crucially however, this rule only applies where there has been a valid sale and lawful transfer of ownership.

In this case, there was no valid sale to Med Office and no valid transfer. The “new owner” (Med Office) never acquired valid title, so there was no legal change in ownership for the rule to apply to. As the court noted, huur gaat voor koop has no application where ownership never lawfully changed hands.

3. No Ratification, No Agreement

Evolv also argued that the liquidators had, through their conduct, accepted the existing lease or concluded a new one.

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LEASE AGREEMENTS

The court disagreed. While the liquidators allowed temporary occupation during the lease review process, they consistently stated that they were not bound by Med Office’s agreements. There was no consensus on rent, utilities, or any other essential terms. Therefore, no new lease had been concluded, and no ratification had occurred.

Key Considerations for Landlords, Owners and Investors This judgment serves as a timely reminder that a lease is only as strong as the title behind it.

The following points are key for landlords, property owners and investors: Good faith is not always enough: Even tenants who act in good faith may find themselves without legal protection if the lease is entered into with someone who lacked the necessary authority or valid ownership.

Courts will not hesitate to grant eviction orders when occupants unlawfully hold over a property with reliance on an agreement entered without the necessary authority.

• Huur gaat voor koop has limits: It only applies where there has been a valid and lawful transfer of property. If the original “sale” was invalid or unlawful, the rule cannot apply.

• Ratification must be clear: Accepting rent or allowing occupation does not, on its own, create a binding lease. There must be agreement on essential terms.

For investors acquiring tenanted properties or landlords dealing with third-party lease arrangements, this case serves as a strong argument for thorough legal due diligence.

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When ownership is unclear or contested, it’s vital to act quickly, communicate clearly, and, where necessary, seek the appropriate legal guidance to protect your rights.

About the author

As a property litigation specialist, Jason Berkowitz regularly advises REITs, landlords, and commercial investors on eviction proceedings, arrear rent recovery, and complex lease disputes across South Africa.

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Technology

AI Knowledge Intelligence as

By Eric Nienaber

In my previous article last month, I touched on the growing importance of a company’s knowledge base in unlocking the full benefits of Artificial Intelligence (AI) and gaining a strategic edge.

We build on that discussion and look at how companies should think about their knowledge assets and organisational structures in the age of AI.

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Bases: How to Build a Core Service

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TECHNOLOGY

Every company is built on a combination of processes, systems, and people, working together to deliver products and services to their customers. These operations span across departments - from finance and marketing to operations and customer service.

At the heart of every task lies information: customer data, product knowledge, regulatory requirements, and internal policies, to name a few. However, this critical information often sits fragmented across the organisation – stored in databases, transactional systems, documents, websites, wikis, manuals, and, just as importantly, in the minds of employees. While this has historically worked (with varying degrees of efficiency), AI demands a new level of discipline.

For AI to effectively assist with automation, decision support, customer service, and countless other tasks, information needs to be: Consolidated

• Organised and categorised by use case • Converted into machine-readable formats • Tagged and enriched with metadata.

The scale and complexity of this task will depend on the size of the organisation, the number and nature of AI use cases envisioned, and the underlying technologies chosen for AI delivery.

To succeed, companies must shift their mindset. Knowledge and data must be treated not merely as operational necessities, but as strategic assets - forming the foundation of an “intelligence function” within the organisation. AI is no longer a tool tucked away in IT departments; it is becoming a core service, integral to how a company operates and competes.

Different companies will structure themselves differently around this. Some may initially organise through AI project teams, while others will position AI leadership more formally, placing it within the C-suite alongside the CEO, CFO, and CTO. Hybrid approaches are likely to be common, where AI strategy is set centrally but AI specialists are embedded within business units to drive specific use cases.

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CONVEYANCING

In my view, organisations should strongly consider creating a Chief Artificial Intelligence Officer (CAIO) role.

Much like the Chief Technology Officer became essential during the digital revolution, the CAIO would be responsible for integrating AI across organisational boundaries, balancing technical, operational, and ethical considerations.

Other new roles are emerging as well, including:

Knowledge Engineers - experts in structuring and curating internal information for AI

Prompt Engineers - specialists in designing prompts for large language models

AI Systems Architects - responsible for designing scalable, secure AI infrastructure

Use-Case Specific AI Engineers - tailored specialists for fields like property management, customer service, or finance.

Naturally, the extent to which companies invest in these roles will vary depending on their size, industry, and the criticality of AI to their operations. In addition to people, companies must make good decisions about systems and platforms.

A key choice is whether to build internal systems, leverage external solutions, or pursue a hybrid approach. Regardless of the path chosen, certain capabilities are essential when establishing an AI-ready knowledge base:

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• Flexibility to assimilate and manage a wide variety of information sources

• Integration capabilities to connect with external content providers or third-party services

• Robust security and governance to protect proprietary and confidential information

• Scope management to control which data is accessible to which AI functions

• Dynamic updating to ensure AI always works with the most current policies, data, and documentation (for example, not referencing an outdated employee leave policy)

Human knowledge capture to ensure institutional wisdom, often held informally by employees, is systematically incorporated. The ability to review AI interaction response and fine tune the knowledge base accordingly

Ultimately, the company’s AI knowledge base will sit at the heart of successful AI deployments. Without well-organised, highquality information feeding the system, AI will struggle to provide meaningful support, insights, or automation.

Conversely, organisations that treat their data as a living, strategic asset - and organise themselves accordingly - will be the ones best positioned to thrive in this new era.

AI is not simply a matter of installing new software. It demands a rethinking of how companies harness their collective intelligence and deliver it as a service - both internally, and ultimately, to their customers.

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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.

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Commercial

Green Buildings: Affordable, and Ready for the Future

By Mary-Ann Shaw

Green buildings are not only for the privileged few, they are accessible and beneficial to all. As South Africa faces rising energy costs, water shortages, and growing investor pressure for assets that meet ESG (Environmental, Social, and Governance) criteria, the property industry must adapt.

Contrary to common misconceptions, green buildings are not inherently more expensive. In fact, they deliver longterm financial and environmental benefits, often at little to no extra cost.

The Green Building Council South Africa (GBCSA), an independent third-party verifier, defines a green building as one that reduces its environmental impact across multiple areas, including energy and water efficiency, material use, waste, indoor air quality, transport access, and socio-economic benefits.

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Simple, Resilient,

The Hasso Plattner School of Design Thinking Afrika (d-school Afrika) at the University of Cape Town (6-Star Green Star GBCSA 101 rating).

COMMERCIAL

• Green buildings are cost-effective: They deliver long-term savings with efficiency in energy, water, and materials, often costing the same as conventional buildings.

• Financial performance matters: Green-certified properties outperform non-certified buildings, offering higher returns, lower vacancy rates, and attracting investors with lower risk profiles.

• Retrofitting is key: Simple upgrades like LED lighting and insulation can improve energy efficiency, with payback periods of just 3 to 7 years.

“People often assume green buildings are about extravagant add-ons like solar panels,”

“In reality, they prioritise efficient design - reducing resource consumption while enhancing occupant well-being and long-term sustainability.”

Lisa Reynolds, CEO of GBCSA

Efficiency First is the Smartest Way to Build Green

The most cost-effective way to build ‘green’ is through efficiency, not only in energy and water use, but across materials, waste, and the quality of the indoor environment.

Efficient design focuses on consuming less resources overall through optimised building performance. This results in lower operational costs and enhanced occupant well-being.

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GREEN BUILDINGS

According to the MSCI South Africa Green Annual Property Index (2023)*, over eight-years, greencertified buildings used 7% less electricity and 21% less water per square metre.

“The greatest energy saved is the energy never used,” says Reynolds. “Energy efficiency is the ‘first fuel’, it should always come before adding solar panels or high-tech solutions. Simple design choices like passive cooling, insulation, efficient lighting, responsible material selection, and water and waste reduction strategies can dramatically lower a building’s environmental footprint while keeping costs in check.”

Green Buildings don’t need to cost more

A common misconception is that green buildings are significantly more expensive to construct. In reality, a 4-star Green Star-certified commercial building costs about the same as a conventional one.

“You can build a ‘Ferrari’ of a green building if you want to, but you can also achieve certification at industry-standard costs by applying best practices,” says Reynolds.

GBCSA’s 2022 Cost of Green Report* found that the average ‘green premium’ for office projects was 3.15% for projects certified between 2019 and 2021, with steady decreases year-on-year. Fast-forward to 2025, and you’re looking at negligible cost differences.

Reynolds adds: The lifespan of a new building is at least 30 years, meaning today’s decisions impact long-term value. In 10 years’ time, inefficient buildings will struggle to attract tenants and investors, facing higher operational costs, expensive retrofits, or even declining property values.

Future-proofing through green building practices and certification is a smart business decision for long-term resilience and competitiveness.”

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Financial Performance: Green Buildings Outperform

Green-certified buildings prove that sustainability can be profitable through their better financial returns.

The MSCI Index reports that green-certified offices in South Africa delivered a total return of 5.8%, outperforming similar non-certified offices by 1.5 percentage points. Net operating income per square meter was 30% higher for green-certified offices.

“The data proves that certified buildings attract higher rental yields, lower vacancy rates, and offer stronger returns,”

Georgina Smit, Head of Technical at GBCSA

Certified green buildings also attract financial benefits such as lower risk profiles for investors, sustainability-linked financing, green bonds, and preferential loan rates.

Retrofitting is the Fastest Route to Sustainability

With the fact that globally 70-80% of the buildings that will exist in 2050 are already built, retrofitting is key to achieving our sustainability goals. In South Africa we can start achieving this through simple upgrades such as LED lighting and insulation. Smart building management systems can cut energy use by 30-50%, with payback periods as low as 3 to 7 years. “One of the easiest ways to improve a building’s energy efficiency is by shading windows to reduce heat gain. It’s more cost-effective than retrofitting double glazing,” says Reynolds.

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The Role of Independent Certification in Mitigating Greenwashing

As demand for sustainability grows, so does the risk of companies making unverified environmental claims known as ‘greenwashing’. GBCSA provides accountability through independent, third-party verification, ensuring that green buildings meet measurable performance benchmarks rather than self-declaring sustainability.

A Call to Action for South African Developers and Investors

GBCSA drives systemic change beyond certification. As a not-for-profit organisation, it collaborates with relevant stakeholders such as the Presidential Climate Commission, municipalities, and the private sector to shape green building regulations and financing solutions.

South African developers, investors, and building owners should be prioritising green building, whether through new builds or retrofits. This is the most effective way to future-proof their properties and deliver sustainable, high-performing buildings.

The Visual Arts Building at Stellenbosch University (Heritage structure constructed in 1905, 6-Star 105 Green Star rating from GBCSA)

Commercial

The High Street Auction during uncertain times

By Shirley le Guern

During times of massive uncertainty, investors tend to favour two key approaches.

Some return to safe and lucrative havens such as brick and mortar property, whilst others take to innovation and move away from the usual suspects of cash, bonds, or safe haven stocks and instead invest in more unusual things, like collectibles which have the attraction of being scarce and lowly correlated with other assets classes.

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Co supports investors

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COMMERCIAL

It comes as no surprise that one of the country’s premier property auction establishments has decided to take a leaf out of its own real estate book and extend its auction offering to include what director Lance Chalwin- Milton refers to as” the four w’s: whiskey, wine, watches and wheels”.

He says the High Street Auction Co will evolve from a strictly property auction business to a multi-divisional company, started with a highly successful fleet auction in April and is extending this to an inaugural event at the end of May that will see unique items like heritage diamonds and rare, classic cars go under the very same hammer that in the past has despatched everything from large shopping malls and the Kyalami Race Track to leases of strategic City of Cape Town properties.

New brooms sweeping the High Street

It is this synergy that saw 100% black-owned and managed mobility, energy, leisure and gaming group, Afrirent Holdings, secure a majority shareholding in the High Street Auction Co in October 2024 as part of its diversification and expansion strategy. It is now expected to play a pivotal role in the auction house’s new business chapter.

Greg Dart, director of The High Street Auction Co who has driven the real estate offering for over two years, agrees that it is time for the High Street Auction Co to grow into its name and not only sell the real estate but the luxury goods that would be traded by premier establishments if this was a bricks and mortar shopping destination.

“It makes sense that, to complement our organic growth, we look to pivot and target new revenue streams and clients. I’m looking forward to the journey with new lines of business and our new shareholders,” he says.

He, too, believes that with more conventional investments - including even crypto currencies - take a pounding from US President Donald Trump’s tariff tsunami, it appears that many investors have developed a fresh appetite to consider everything from fine art and collectible time pieces to wines, spirts or even classic automobiles.

Gordon Institute of Business (GIBS) professor, Adrian Saville, a strategist, economist and financial savant, also believes this makes perfect sense:

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THE HIGH STREET AUCTION CO

Change is on

the horizon

“In a market characterised by high uncertainty, lower economic growth and higher inflation, there is a case for investment in property as a protector of wealth. There’s certainly also an argument for looking at luxury markets.

Effective investing in uncertain environments necessitates diversification. Investments in high end cars, premium watches, fine whiskey, have a degree of immunity to economic distress.

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Ironically, luxury seems to carry on regardless. For centuries, the likes of champagne and jewellery have been an asset class that delivers returns above inflation. In other words, the likes of luxury assets and collectibles are a fantastic store of wealth.”

Chalwin-Milton says that the high-net-worth investors that are on the property investment trail and already attend High Street Auction Co events also potentially have broader investment portfolios that could include luxury goods. Hence, the future vision is for The High Street Auction Co to include everything from vehicle fleets to luxury investments such as heritage diamonds, metals and more. In short, it will be positioned as a conduit for creative investment.

At the same time, the company will be rebranded to reflect both the brand’s legacy and its future. “This new growth phase entails retaining our premium positioning in the property space but adding a more modern feel. If you look at the broader auction space, High Street stands apart and stands tall. By building on that legacy, we will stay grounded and continue to position ourselves as a proudly South African company,” he explains.

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Setting the scene for investment

Saville notes that Trump’s tariff tyranny has injected an immense amount of uncertainty into global markets, increasing the risk of inflation whilst lowering prospects for world economic growth. This is likely to impact on all asset classes and has already seen many economists warning of a global recession.

Saville unpacks the resultant shift in the approach to investment. For starters, property offers some long-term stability: “This allows people with dry powder to go into a market that is going to be a price taker, rather than a price maker market. Given the combination of economic circumstances, this market will specifically facilitate price discovery and liquidity through auction.”

He predicts that, “in a Trump shaped world” where investors are likely to become more inward looking than outward looking, real estate will continue to make up an important component of all fixed capital.

“If your portfolio is under weight when it comes to real estate you may want to be early to this “party” rather than late,” he suggests, “especially as inflation kicks higher.”

Right now, he recommends keeping an eye on policy uncertainty indicators which are useful and objective tools for figuring out overall market sentiment. “This is a helpful way of sanity checking and showing that you are probably not the only one feeling anxious. The temptation when uncertainty is high is to go into your shell – but that’s arguably the wrong thing to do. It is at times like these that the best opportunities often present themselves.“

South Africa, Saville adds, has had an additional dose of uncertainty thanks to the turbulence surrounding the passing of the 2025 budget and inevitable concerns about the stability of the Government of National Unity – a situation that might present investors who are able to make firm offers with even greater opportunities.

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THE HIGH STREET AUCTION CO

From an asset valuation perspective, South Africa’s primary asset classes – equities, bonds, and real estate – are attractively priced with handsome yields in places.

An attractively priced currency together with well-priced asset classes could attract global investors or act as a catalyst to attract investors with dry powder locally. He also notes that in times of high anxiety, it is worth remembering the opportunities presented in other similar periods, including the global financial crisis of 2008 and the recent Covid pandemic.

Building an investment legacy

During uncertain times, real estate belongs in the investment basket but should not be the only means of counterbalancing negative sentiment, Saville advises. He insists: “Diversification is exactly that, a portfolio of assets.”

According to Chalwin-Milton, despite the ambiguity that investors are clearly feeling right now, the strength of the High Street Auction Co approach is the processing and due diligence carried out on properties that it auctions.

“This allows the buyer to have a clear vision of what they’re getting. They can view a due diligence and make an informed decision before going to the auction itself,” he says.

Investors wishing to spend on luxury assets will have a similar experience, putting paid to any concerns that collectors’ items and heritage pieces that go under the hammer may not be the unique or limited-edition treasures that they are made out to be.

In this spirit, he says, the inaugural 29 May auction when magnificent classic cars, heritage diamonds, exclusive watches and fine whisky will be displayed, will begin with a multi-property auction and progress to other investment opportunities as part of a prestigious event. It will offer the same premier auction experience that is ordinarily associated with High Street Auction Co events and take place across two remote venues in Johannesburg and Cape Town.

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COMMERCIAL

Built on heritage rising

towards excellence

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THE HIGH STREET AUCTION CO

Although the different divisions that will make up the High Street Auction Co will ultimately be independent and host their own auctions, Chalwin- Milton explains that this high-profile joint event will set the scene by offering a premium experience that will enable the newly branded company to leverage the legacy of trust and credibility it has earned within the property space.

He concedes that many auction houses have branched out into other markets. This is now a crowded space that is characterised by urgency to dispose of assets, sometimes at the expense of quality.

“While I can understand the need to move as many goods as possible, there is always the risk of doing that without offering the support and expertise that comes when a bit more time is given. It is about taking a more thoughtful, considered approach. This is what the High Street Auction Co is known for in property and what we want to be known for in other divisions. We want to continue to foster a relationship of trust with our clients,” he says.

Added to that is the vision of building a future “investment through auction” legacy that will bring this experience to all South Africans regardless of wallet size and keep pace with them as they grow their investment portfolios during both tough and more certain times.

“South Africa is an exciting market in that sense. A huge range of people can attend our auctions. That is why we want investments to be carefully considered. We don’t want it to feel rushed,” he concludes.

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Wealth

Lawyers and Estate to help South Africa ‘Immediate Compliance

By Neale Petersen

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Agents must step-up escape Greylisting – Solutions’ available

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Top 3 Takeaways

• Lawyers and estate agents’ failure to comply with AML and CTF regulations jeopardises South Africa’s exit from the grey list.

• FIC warns that delinquency in submitting Risk and Compliance Returns (RCRs) continues to hinder South Africa’s efforts.

• Ncino offers lawyers and estate agents accessible, handson solutions with expert advice, certified FICA training, and ongoing compliance support.

Introduction

South Africa’s financial reputation is at a critical juncture. The country’s greylisting by the Financial Action Task Force (FATF) has raised concerns over inadequate Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) controls.

The Financial Intelligence Centre (FIC) has been vocal about the role of Designated Non-Financial Businesses and Professions (DNFBPs) in the country’s progress, with lawyers, estate agents, and trust service providers being flagged for noncompliance.

In particular, these professionals are failing to submit essential Risk and Compliance Returns (RCRs), a vital step in preventing illicit financial activities. If this pattern continues, South Africa may struggle to exit the grey list, with consequences for both businesses and the economy.

The Current Challenge

Despite some positive progress from DNFBPs, South Africa remains at risk of failing the FATF’s upcoming on-site evaluation later this year.

According to Christopher Malan, the FIC’s Executive Manager for Compliance and Prevention, lawyers, estate agents, and others have been delinquent in fulfilling critical obligations, such as submitting RCRs, which are crucial for identifying high-risk entities that could be used for money laundering or terrorism financing.

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LAND REFORM

This delinquency has directly undermined efforts to exit the grey list, affecting South Africa’s international standing and its ability to attract foreign investment.

Step-by-Step Solution

1. Understand the Importance of Compliance South Africa’s position on the FATF grey list directly impacts business operations, especially for lawyers and estate agents.

These professionals must prioritise compliance with AML and CTF regulations to help the country improve its standing.

2. Submit Risk and Compliance Returns (RCRs) Failing to submit these returns has been a key issue. Professionals must ensure timely and accurate submission to avoid penalties and further delay the country’s removal from the grey list.

3. Leverage available Compliance Support Companies like Ncino offer comprehensive FICA compliance subscription services.

These services provide hands-on support, expert advice, and certified FICA training to help legal and real estate professionals stay on track with regulatory requirements.

4. Stay Informed and Proactive Continuous learning and adaptation to evolving regulations are essential. Professionals must stay updated on the latest compliance protocols to avoid falling behind.

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The Way Forward

The path to lifting South Africa from the FATF’s grey list requires collective effort. Legal practitioners, estate agents, and trust service providers must recognise the importance of submitting accurate RCRs and adhering to AML/CTF regulations.

The clock is ticking, and the FATF’s on-site visit later this year will assess the progress made.

To mitigate the risks of further delays, professionals can seek support from companies like Ncino, which provide expert compliance services, certified training, and expert advice.

By embracing available resources and committing to robust compliance, South African businesses can help pave the way toward a more secure and globally competitive financial system.

REQUEST A DEMO from NCINO

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Stress-Free

Student Letting

for Smart Landlords

Your Passive Income Partner in Student Housing

Retha van Rooyen

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084 575 1000

getinfo@mystudenthouse.co.za

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Wealth

Why South African

is one of the World’s High-Yield Investments

By Daniel Lombard

As global investors search for real estate markets that offer both strong returns and long-term security, South Africa stands out as a compelling contender.

Combining high rental yields, steady capital growth, low entry costs, and full foreign ownership rights, the country offers a powerful case for both international and local residential property investment.

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Residential Property

most undervalued

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WEALTH

When evaluating residential property investment across borders, key criteria help determine whether a country is a strong candidate:

1. Return on Investment (ROI) & Financial Metrics

• • • • • •

Rental Yield: Annual rent as a % of property value. Capital Appreciation: Long-term increase in value. Property Taxes: Stamp duty, local taxes. Maintenance Costs: Ongoing upkeep, levies. Transaction Costs: Agent, legal fees. Financing: Mortgage availability and rates for foreigners.

2. Market Conditions & Demand

• • • •

Supply vs Demand: Imbalance drives appreciation. Urban Growth: Expanding cities increase value. Tourism: Short-term rental potential. Rental Regulations: Limitations on rentals and foreign ownership.

3. Legal and Political Environment

• • • •

Property Rights: Can foreigners own freely? Stability: Low political risk supports investment. Legal Clarity: Transparent systems protect buyers. Land Titles: Reliable registration processes.

4. Economic Indicators

• • • •

GDP Growth: Strong economies drive real estate growth. Currency & Inflation: Stable currencies preserve returns. Employment & Income: Key for rental demand. Interest Rates: Affect affordability and returns.

5. Lifestyle & Personal Use

• • • • •

Residency Incentives: Golden Visas, PR. Quality of Life: Safety, healthcare, education. Cultural Fit: Language, time zone, lifestyle. Accessibility: International airports, transport links.

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6. Regulatory & Tax Considerations

• • • •

Rental Income Tax: Some countries offer tax relief. Capital Gains Tax: Levied on sale profits. Double Tax Treaties: Prevent double taxation. Inheritance Rules: Affect long-term ownership strategy

2025 Residential Property Investment Scorecard

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HIGH-YIELD INVESTMENTS

Why South Africa?

• High Yields: 5 - 8%, often exceeding 6% in Cape Town, Johannesburg, and coastal areas.

• Capital Growth: Nominal average of 7 - 8% annually over 25 years, despite cyclical trends.

• Foreign Ownership: Fully legal with secure title systems.

• Low Entry Cost: Favourable exchange rate for foreign investors.

• Risks: Currency volatility and policy uncertainty but hedging options exist.

South Africa’s long-term data reveals a solid investment case, grounded in demand, affordability, and appreciation. Its market fundamentals are resilient despite political noise.

Long-Term Strengths - Over 35 Years

1. Urbanisation & Population Growth 2. Growing Middle Class 3. Consistent Capital Growth 4. Lifestyle Appeal (Climate, Culture) 5. Regional Business Hubs (Cape Town, Johannesburg) 6. Hedge Against Local Volatility 7. International Investment Demand

Key Risks to Monitor

• ZAR depreciation • Political instability • Crime in urban areas

However, with strong local partners and a long-term view, these risks are manageable, especially considering yields of 10 - 12% p.a. in the normal residential property investment market (17%+ via structured models like with Wealth Assist).

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Why Wealth Assist amplifies the opportunity

Wealth Assist (www.wealthassist.co.za) offers a structured model that amplifies property investment benefits while creating measurable social impact.

How Wealth Assist Enhances the Investment Model

• High Returns: Average 17% p.a. via below-market property acquisitions

• Acquisition Strategy: Properties are acquired at or below 75% of market value - all costs included.

• Social Impact: Help distressed homeowners via rent-to-buy and leaseback

Product Variety:

• On Sale Products: Pre-sold for fixed profits.

• Recovery Products: Rent-backed, cashflow positive from day one. • Assist to Own: Long-term tenant models with high margins.

• Transparency: Full due diligence and contractual clarity.

• Education & Support: Investor readiness programs and advisory services.

Wealth Assist’s model supports both financial goals and ethical investing, offering entry to real estate with impact.

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FNB House Price Index - 25-Year SA Property Review

Average Annual Growth Nominal: 7–8% Real (inflation-adjusted): 2–3%

Best Performing Year 2004 Nominal: +35.4% Real: +32.5%

Worst Performing Year 2008 Nominal: -5.1% Real: -13.2%

The data confirms SA’s market is cyclical but resilient, especially over decades.

Investor Assurance - Expert Review by Erwin Rode A study commissioned by Wealth Assist by Erwin Rode evaluated housing resilience during downturns.

Key Findings: “In a normal recession, house prices in low and middle bands are unlikely to decline more than 10% with most downturns limited to around 5%.”

Longest Recovery Period: 10 quarters or 2.5 years

This confirms that property in key segments is defensive, especially when properly structured.

Wealth Assist, with its acquisition strategy to purchase property at below 75% of market value, all costs included, will be able to keep providing these high returns with property as security.

Why South Africa is a Long-Term Winner

• • • •

Proven long-term capital appreciation Strong rental income opportunities Legal protection for foreign investors Affordable high-quality lifestyle

Strategic entry via Wealth Assist’s innovative, high-yield model South Africa isn’t just a good option it’s still a well-kept global property secret with significant upside and deep market fundamentals for discerning investors.

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Training

Unlock a thriving Your Step-by-Step Property Practitioner

By Paul Stevens

If you’ve ever considered a career in real estate, 2025 presents the perfect opportunity to make it happen. With a dynamic market offering opportunities for growth and financial success, becoming a property practitioner can an incredibly rewarding career.

Whether you’re passionate about helping people find their dream homes or assisting clients with strategic property investments, the pathway to becoming a licensed professional is well-defined and achievable.

This article will guide you through the essential steps to becoming a property practitioner in South Africa. From meeting educational requirements to gaining handson experience, we’ll break down the process so you can navigate your way to success in the real estate industry.

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career in Real Estate: Guide to Becoming a in 2025

be

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Top 3 Bullet Points:

• Start with a Candidate Property Practitioner role at a reputable agency for mentorship and hands-on training.

• Complete NQF Level 4 Certification to gain essential knowledge in property practices, law, and business operations.

• Pass the EISA & PDE4 exams to gain full-status recognition and start working independently as a property practitioner.

Step-by-Step Guide to Becoming a Property Practitioner

Step 1: Secure a Candidate Property Practitioner Role

Your first step is to secure a position with a registered real estate agency as a Candidate Property Practitioner. The agency principal will register you with the Property Practitioners Regulatory Authority (PPRA), giving you the necessary Fidelity Fund Certificate (FFC) and access to start your NQF4 certification.

As a candidate, you’ll be mentored by qualified professionals, gaining invaluable experience in the field. Ensure that the agency you choose offers robust mentorship and training programs. For example, Just Property provides hands-on support to ensure you get the right start.

Step 2: Obtain the Required Certification (NQF Level 4)

As part of your candidacy, you will need to complete the Occupational Certificate: Real Estate (NQF Level 4). This certification covers everything from understanding the Property Practitioners Act to mastering day-to-day operations like property valuations, marketing, and business planning. It’s crucial to attend a structured training program that equips you with the theoretical and practical knowledge required to navigate the real estate industry successfully.

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Step 3: Pass the EISA and Professional Designation Exams (PDE4)

Upon completing your NQF4 certification, the next step is to pass the External Integrated Summative Assessment (EISA) exam. This is a closed-book exam administered at accredited centres.

Once you pass, you must then take and pass the Professional Designation Exam Level 4 (PDE4), ensuring you meet the industry’s standards of professionalism and competence.

Step 4: Update Your Status with the PPRA

After passing the PDE4, you can update your status with the PPRA from Candidate Property Practitioner to Full-Status Property Practitioner.

This transition signifies that you have the necessary expertise to work independently in the field. With your updated status, you will begin to engage in Continuing Professional Development (CPD) to maintain your full-status recognition.

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Choosing the Right Agency to Partner with

When choosing an agency to work with, consider what they offer beyond just meeting regulatory requirements. A successful career in real estate is supported by continuous learning, cutting-edge technology, and a strong brand presence.

Here’s what to look for in a real estate agency:

• Comprehensive Training and Development

Ensure your agency offers training programs that help you stay ahead of market trends, regulations, and practical real estate strategies. Ongoing professional development is crucial for keeping your skills sharp.

• Technology and Tools for Success

In today’s real estate environment, technology is key. Look for an agency that provides you with the latest tools, AI-driven marketing solutions, and platforms that simplify administrative tasks.

• A Strong, Recognised Brand

Choose an agency with a strong market presence. A trusted brand attracts clients and offers agents valuable marketing support, lead-generation tools, and industry recognition.

• A Collaborative and Supportive Culture

Real estate can be a competitive and challenging industry. Ensure that your agency fosters a culture of teamwork and mentorship, providing you with the guidance you need to thrive.

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The Future of Your Career in Real Estate

The real estate industry in South Africa continues to grow, and the demand for professional, well-trained property practitioners is stronger than ever.

As a qualified property practitioner, you will have the opportunity to work with a variety of clients, from first-time buyers to experienced investors, and help them navigate one of the most important decisions of their lives.

In addition to the financial rewards, the satisfaction of helping clients achieve their property goals and the potential for career advancement make real estate an attractive career choice. With the proper training, mentorship, and support from a reputable agency, you can thrive in this exciting industry.

Take the First Step Towards a Thriving Career

Ready to start your journey in real estate? 2025 is the perfect time to take that first step. With the right training, support, and guidance, you can unlock a thriving career that offers financial freedom, personal satisfaction, and endless opportunities for growth. Seek comprehensive programs to help you navigate the process, from securing your candidacy to becoming a fully qualified agent.

If you’re ready to get started, apply for a candidate position at reputable real estate agency today and take the first step toward building your successful real estate career.

CLICK TO FIND OUT now MORE Enquire

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Until our next edition of REAL ESTATE INVESTOR Magazine

JUNE 2025

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

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