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2022-03-04T11:59:46+02:00

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2022-03-04T11:58:12+02:00

Editor's View: Welcome to the new IOL

2022-03-04T11:48:08+02:00

Many months of research, sifting through datasets, canvassing input from our team members, conducting audience surveys, consulting all levels of our business, employing the services of UX (user-experience) specialists have led us to this moment.

It is an IOL built for our audience, with improved performance, easier navigation, new content verticals and more functionality for our readers.

You may find your favourite content sections have moved to verticals where they fit more naturally, and you will also find new content sections for you to enjoy.

Among these are new Weather and Traffic verticals to help you navigate your day more easily, a new market indicator widget for you to track the latest economic and financial data, and a brand-new Good News section, because who doesn't need a little pick-me-up every now and then?

There's a brand-new IOL TV vertical, where you'll find all our videos and podcasts, and you can expect even more from us in the way of live video and appointment-driven vlogcasts and podcasts on demand.

You'll find more refined recommendation tools, so you can see what other readers like you enjoy reading, and you'll be able to access your favourite authors' content more easily from within our articles.

We're also inviting you to register on our site and join our family- it's free, and there are no credit card details required.

As a registered member of our IOL family, you'll be able to listen to all our articles, so you can enjoy our content without missing a beat in your day. Over the next few months, we'll be adding even more features for our registered users.

IOL is your platform, and we will, through our content and campaigns, be making this South Africa's most inclusive platform. One of the ways we're doing this is through our new letters content section, where your letters to the editor can be published. Reach out to us by emailing iolletters-AT-inl.co-DOT-za. We'd love to hear from you.

You'll soon see much more from us that puts you, our reader, first.

New IOL is a contract between our readers and our journalists. It is reader first, mobile first and is unashamed about its inclusivity agenda. IOL is our people, it serves our readers, it serves South Africa.

Over the coming months, you will see further improvements to the site, all designed to improve your experience and bring South African voices onto the platform.

Please let us know what more we can do to ensure that we live our brand promise of an inclusive site that celebrates diversity and drives transformation.

IOL

Pretoria North estate residents living in dark despite electricity payment to Tshwane

2022-03-04T11:25:04+02:00

Residents of Mi-Casa 2 in Pretoria are frustrated with delayed turn-around time to reconnect electricity which had been disconnected as part of the #TshwaneYaTima.

The aggressive revenue collection saw the City of Tshwane disconnecting water and electricity to customers whose accounts were in arrears.

The Pretoria North residential estate paid the City the minimum amount it requested to reconnected services.

It all started when the disconnection team arrived at the estate last Tuesday, accompanied by nearly 20 members of the metro police department. They disconnected the electricity.

The disconnection was part of the City of Tshwane's #TshwaneYaTima campaign to recoup R17 billion owed to the metro in arrears for rates, taxes and services.

Resident Simon Nel said: "They disconnected us saying that the estate owed at least R350 000.

"We pay the estate, so we quickly followed up and they paid the R36 000 as per the City's request; there was a legal dispute with the other amount.

"The estate sent us proof of payment and correspondence with the City to prove to us that they wanted R36 000 and it was paid. However, we are still in the dark. We have dumped meat and groceries since last Tuesday.

"We shower with cold water every day. Residents have been going to the City customer care offices to say please come and reconnect. Some official came, but he left without reconnecting us, stating that he did not have a ladder to climb up the pole and reconnect our meter."

Nel said the campaign was good when it collected money owed to the City, but the same could not be said when innocent people who made their regular payments suffered the consequences.

"I mean, this should not frustrate us like this because we pay levies up to R2 000. We have been escalating the matter, but there is no urgent solution. I even tried reaching out to political parties like the ANC, DA and EFF to say can someone with influence come and help us," Nel added.

Spokesperson for the City, Selby Bokaba, said the matter would be investigated to establish if a reconnection was due.

Mayor Randall Williams said he would need to look at all the documents to see the proof of payment and compare it with the amount owed and what the Finance Department had agreed to.

Pretoria News

Rabie releases phase two of Quinta Estate

2022-03-04T10:17:15+02:00

With its first phase under construction and 80% sold out, Rabie is releasing the second phase of Quinta Estate on 5 March 2022. Launched in October 2021, this secure complex in Burgundy Estate is sold off plan, with first hand-overs to new owners scheduled from end September 2022.

"Due to popular demand, we are releasing the remainder of the development to market, which consists of 48 apartments," says Miguel Rodrigues, Director at Rabie. "The development has 112 apartments in total, which are made up of ground floor and first floor units across nine blocks."

"The second phase has some fantastic apartments that look out over the communal central park, and the ground floor apartments are particularly appealing as they each have exclusive fenced off gardens leading from the open plan living areas."

Purchasers can invest in Phase two of Quinta Estate from R995 00 and can acquire a one-bedroom ground floor garden apartment from R1,55m. A two-bedroom, two-bathroom ground floor apartment in Phase two starts at R1,45m.

Less than 20 kilometres from the centre of the Mother City, Burgundy Estate is central, spacious, and secure. Convenience is key with its own shopping centre, Burgundy Square, three schools from pre-school to high school, several restaurants and coffee shops, a sports club including a tennis court and a mashie golf course, kilometres of walking, running, and cycling paths as well as green pocket parks and play areas.

"The Burgundy Estate lifestyle is popular with all ages," explains Rodrigues. "With Durbanville's wine route just around the corner and easy access to highways and shopping, this quiet suburbia is close to everything, yet sufficiently removed from the hustle and bustle."

Benefits of buying in Quinta Estate include:
Gated complex with smart access control
Contactless access for residents and secure visitor access system
Secure private and visitor parking within the complex
Perimeter CCTV cameras and electric fencing
Ample green open spaces and play areas
Solar panels to power elements in the geysers
Smart upgrades available (at an additional cost)
High speed fibre
24hr Laundry room
Meeting and working venue
Pool and braai facilities

Interested parties are invited to attend the release of Phase two by visiting the Sales Centre on Saturday, 5 March from 10:00. The Sales Centre is situated on Burgundy Drive, opposite Burgundy Square shopping centre.
You are also able to reserve a unit online from the comfort of your home or office via the website.

VISIT THE QUINTA WEBSITE - HERE

Contact an agent:
Aldo Stumpher, 082 451 9990, aldo-AT-propertyworld.co-DOT-za
Natasha van der Bergh, 072 222 7560, natasha-AT-propertyworld.co-DOT-za

RE/MAX SA wins global luxury lifestyle award 2 years running

2022-03-03T13:20:26+02:00

For the second year in a row, RE/MAX of Southern Africa has claimed the coveted title of Best Real Estate Brokerage in South Africa according to the 14th annual Luxury Lifestyle Awards. These awards recognize excellence across a range of industry sectors worldwide.

Last year, RE/MAX was the first to win this award within the region as in previous years, this award category focused mainly on America and Europe. "Following last year's win, we were flattered to discover the congratulatory letter in our inbox informing us that we had claimed that coveted title for two years running. We could not be prouder of the achievement," says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

The congratulatory letter read as follows:

"After a thorough research process, RE/MAX of Southern Africa has been distinguished as one of the best in this market. Your impeccable reputation and professional performance have been recognized and acknowledged. Now we are pleased to announce, that in accordance with the results of our research and selections, RE/MAX of Southern Africa has become a Winner of Luxury Lifestyle Awards in the category of Best Real Estate Brokerage in South Africa." - Organizing Committee of Luxury Lifestyle Awards.

As part of their thorough vetting process, RE/MAX had to show a long-standing history of satisfied customers and an outstanding range of services. The winning brand was also required to have a reputation for making each customer feel special and can tailor their services to suit personal preferences. The quality and uniqueness of the brand's property marketing tools, viewings, brochures and open house techniques are also part of the evaluation process.
The criteria for winning this award is broken down into eleven categories, namely:

Reputation
Credibility
Brand awareness
Luxury experience
Personalization
Market knowledge
Exclusive listings
Quality and value of listings
Marketing,
Innovations

Recommendations or referrals from other associated industry professionals and customers.

"We are honoured to have been awarded this title for the consecutive year running. This award only reinforces that RE/MAX agents are indeed the best in the business and I want to thank each and every member of the RE/MAX SA brand for their contributions towards achieving such a prestigious award," Goslett concludes.

For luxury investors, properties listed for R5 million and above can be found on The RE/MAX Collection website. Those looking to enlist the help of a reliable and experienced real estate professional from the largest real estate brand in Southern Africa can visit www.remax.co.za.

Rental report reveals brighter outlook for year ahead

2022-03-03T13:18:14+02:00

The PayProp Rental Index Annual Market Report for 2021 reports a welcome uptick in rental growth in Q4 2021. The average residential rent increased by 0.8% year on year, from R7 854 per month in Q4 2020 to R7 906 in Q4 2021.

The country's leading rental payment processor says this compares favourably with year-on-year growth rates of 0.5%, 0.4% and 0.2% observed in the first three quarters of 2021.

PayProp head of data analytics, Johette Smuts, says it is a promising sign of things to come. "In December, the average rent increased by 1.5% year on year (YoY) – the fastest rise since July 2020. Rental growth of 0.3% and 0.6% was recorded in October and November respectively."

Arrears return to normal range

In 2021, both the percentage of tenants in arrears as well as the average arrears percentage (the percentage they owed in outstanding rental payments) showed consistent improvement. At the end of 2021, only 18.4% of tenants were in arrears, which is even lower than the pre-pandemic level of 19.4% seen in Q1 2020.

Except for a slight increase in Q4, the average arrears percentage improved similarly. "A possible explanation for the Q4 exception could be that tenants held back some of their December rent to afford increased expenses during the festive season," says Smuts. This metric measured 82.7% in Q4, still above the more normal 78.5% seen in pre-pandemic Q1 2020.

Consumers advised to watch rising interest rates
Nationally, tenants spent 45.3% of their income on debt repayments in Q4 2021, up from 40% the year before. A further 29% was spent on rent, in line with the position the year before. Overall, this left tenants with 25.7% of their take-home pay as disposable income to cover everyday expenses, down from 30.9% the year before – largely due to increased spending on debt repayments.

Smuts says that the lower interest rate might have given tenants a false sense of financial optimism. "With the lower cost of credit, it might be that the increase in the debt-to-income ratio was due to tenants taking on more debt – something that could soon prove problematic in the rising interest rate environment."

Provincial metrics

In Gauteng, rents declined by 2% year-on-year in Q4 2021 – the third consecutive quarter of negative year-on-year growth in the province, and the lowest growth recorded in any province during the quarter. The province dropped from the second most expensive province in Q4 2020 to fourth most expensive in Q4 2021, behind the Western Cape, KwaZulu-Natal, and the Northern Cape. The average rent in Gauteng during the last quarter of 2021 was R8 253, still above the national average of R7 906.

Rents in the Western Cape increased by 1.7% from Q4 2020 to Q4 2021, ending with an average rent of R9 413. The Western Cape also outperformed all other provinces in both arrears metrics. Just 15.1% of tenants were in arrears in Q4 2021, down from 17.2% in Q1 and coming in below the 18.4% of tenants nationwide.

In the Free State, 23.7% of tenants were in arrears in Q4, the most out of all the provinces but in line with the pre-pandemic figure of 23.3% in Q1 2020.

There was good news for landlords in KwaZulu-Natal with the average rent in the fourth quarter hitting R8 286, an increase of 1.9% year on year. In terms of arrears, 21.8% of tenants in the province were in arrears in Q4 2021, in line with pre-pandemic levels of 21.7%.

Smuts say that whilst 2021 was a challenging year for tenants, landlords and property practitioners alike, it is encouraging to see that rental growth ticked up in the last quarter, showing promise of a stronger performance in 2022. "In addition, tenant financial health seems to be much improved following the economic shock of COVID-19. However, consumers should be on guard against the rising interest rate, which might leave those with high debt feeling the pinch."

Flyt Property Investment and TriStar Construction join forces on Rosebank development

2022-03-03T13:16:41+02:00

Flyt Property Investment have negotiated a partnership with TriStar Construction at the recently launched Saxon Square.

Situated in Rosebank, Saxon Square is Flyt Property's first managed development in Johannesburg and their partnership with TriStar translates into an appealing investment opportunity for investors looking for a comprehensive short-term hospitality rental management solution with excellent returns.

Flyt's Development Manager, Ryan Flowers says, "We believe in adding value to property through joint ventures and we're very happy to be involved in creating this investment opportunity with TriStar on a really outstanding development."

Saxon Square's 134, fully-furnished studio and one-and two-bedroomed apartments will offer tenants the privacy and comfort of apartment living along with all the conveniences and services of a hotel - suitable for business and leisure travellers looking for short- and long-term rental options with easy access to transport links, retail outlets, restaurants and bars. Amenities include a 24-hour concierge, biometric access control, coffee shop, rooftop garden and co-working lounge. Utility costs are low, with eco-friendly and cost-saving elements built into the design.

Flyt's management team will oversee all functions required to run a unit including the paying of levies, and rates and taxes on the owner's behalf, with on-site management being taken care of by the group's long-standing management partner and Aparthotel specialists, WINK Aparthotels. Additionally, with a Flyt-managed VAT refund claim, investors will receive 40% of the VAT on their purchase price back in the first year, in cash, providing investors with a bonus cashflow of 6%; the remainder of the VAT is used to fund the furniture pack and fit-out costs which means that the investor is not out of pocket.

"The property's location, excellent price point (with no transfer costs) and great returns combined with our on-site rental management option makes investment into Saxon Square a smart buy," states Flowers.

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2022-02-25T09:31:37+02:00

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2022-02-25T07:37:33+02:00

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Quality accommodation helps UFS students stay on course

2022-02-24T12:31:34+02:00

Steven acquired the building in late 2019. Located less than 2 km from the UFS campus, it was ideal for student accommodation. The refurbishment had to be completed within three months to ensure it would be available for students to move in when campus opened in February 2020. Transfer went through in mid-December 2019 and by mid-January Urban Lofts was ready to open its doors.

"The place was in really bad shape when I bought it," Steven says. "We put in new windows and new geysers, repaired the badly damaged plumbing and electricals, retiled and painted the roof, put up new blinds and installed the necessary appliances in the kitchen."

Urban Lofts now boasts 18 sharing units of 26 m2 each, all with ensuite bathrooms. The building includes a common area of 65 m2 that holds a kitchen for students to prepare meals, and offers space to eat together, watch TV, do laundry and get to know each other. "It's also a comfortable space for entertaining family and friends," Steven says. "But doesn't include pool tables or anything that could turn it into a hang-out for students that aren't tenants. It's about offering a safe and comfortable environment to relax and build friendships, but also to learn and do well at university."

Steven takes real pride in Urban Lofts and the safe, well-equipped environment it creates for students to study and have a great student experience. "I want to be proud of what I do," he says. "If I offer a product, I want it to be of good quality. My clients are the most important and I make sure to give them a good quality product at an affordable price."

The building was fully tenanted for the 2020 academic year. Not long after, the first COVID-19 lockdown was announced in March. "Though some of our students did go back home when lockdown was announced, most opted to come back in June," Steven says. "Urban Lofts offers Wi-Fi, as well as safe, quiet space to study and attend virtual lectures. Many of our students couldn't access these things at home, so it made sense for them to return. Also, most of our students were first years, so they wanted to preserve some of the university experience if they could, and even with lockdown regulations and social distancing we were able to provide that through the pandemic."

Steven manages his site himself, and says he's been able to build relationships with the students. "I've never had any trouble with my tenants," he says. "The university has a stringent accreditation process for private accommodation for their students, so having decent personal space, their own bathrooms, access to Wi-Fi and a fridge was critical to being approved as a provider. When the pandemic hit, having these things in place helped our students a lot."

Safety was also a possible concern when the pandemic began, as many rental properties were vacated and suffered vandalisation because they were empty. And as Steven remained hands-on, maintained his property well and has a caretaker onsite looking after the students' wellbeing, his building was always occupied and protected from this kind of safety risk.

"One student actually stayed on the property the whole year, only going home when his exams were finished, because the facilities were better suited to studying than what he had access to at home," Steven says. "He helped keep an eye on things when everyone else was away just because he cared about the space. He's passing with distinction and is still living at Urban Lofts. That makes me feel really good about what we've done with this building."

This is Steven's first foray into property entrepreneurship on this scale. "I've always wanted to get into it but never had the capital available," he says. "I believe in the power of refurbishing abandoned, vandalised buildings to uplift communities. The first property I ever bought was just such a property and was being used for illegal activities. It was unsafe for the community, and I went to great lengths to acquire it and fix it up. It wasn't a big site, but it did give me an opportunity to build reliable contacts that do good quality work and that contributed to the success of Urban Lofts"

Steven came across the property that would become Urban Lofts when he was helping a friend look for an opportunity in property. "My friend didn't go for it, but I decided I would," he says. "I wasn't sure I'd qualify for financing, but then another friend put me in contact with TUHF. The moment I walked into their offices I was greeted with a huge smile and such a willingness to help me. I told them which property I was interested in, and it turned out that they had recently done a valuation and looked at the rental income potential of the same site. They shared that information with me, and between July when we started the discussion and December when transfer went through, they were extremely supportive."

The configuration design of the property was all Steven's ideas. He looked at other well-known, privately-run student accommodation in Bloemfontein and Cape Town for inspiration. "I wanted to understand what made them sought after and popular with students," he says. "Safety, connectivity, and appropriate pricing were some of the key elements."

"I want to create something that I can leave to my children, and that will allow me to retire earlier than 65, so I do want to build my property business," Steven says. "But I want to remain focussed as well, and I think there's a lot of potential in student accommodation."

"There's always going to be a new intake every year, and so you might have regular turnover but you're never going to run out of new tenants. It's also profitable, even though your property is unoccupied for 2 months and your leases are only 10 months, not 12. Because so many students come from rural areas and haven't experienced cities before, good accommodation with access to important amenities like the police station, youth centres, groceries and hospitals will always be in demand," he says.

Keeping the buildings small means Steven can build relationships with his tenants and keep an eye on how their doing, offering support when it's needed as they adjust to student life.

Steven's advice to aspiring property entrepreneurs is: "Always be hands-on. A caretaker isn't going to run your business, they're just there to look after the building. Secondly, make sure you pick the right property so that you can align to the university's accreditation requirements – a building that's too far away means you have to provide transport, for example, and that can eat into your profits very quickly. Doing the right conversion on the right kind of property is key."

Record prices in Noordhoek and Kommetjie fuelled by semigration

2022-02-24T12:16:00+02:00

Last year the median house prices in both these scenic enclaves reached record highs with agents reporting a notable increase in upcountry buyers as well as a spike in enquiries from international investors after travel restrictions were eased.

Nancy Massing, Managing Director of the Lew Geffen Sotheby's International Realty Cape Peninsula franchises says: "Prior to the pandemic, the highest median house price in Noordhoek was R7.275m in 2017 but last year it achieved a new record high of R7.65 million.

"And in Kommetjie, the record median price of R3.51m achieved in 2021 has already been eclipsed this year with a jump to R4.35m. And last year, a record number of houses (98) also changed hands.

"Lightstone data further reveals that whilst 70% of the stable owners and 100% of recent sellers in Noordhoek during the past year were aged over 50, 100% of the recent buyers were aged between 36 and 49, which clearly depicts the changing demographic."

"Last year we began to see real movement again with many enquiries from Gauteng and KwaZulu Natal buyers looking move to the area," says Lilian Bron, Noordhoek Area Specialist for the group, "and international enquiries have also notably picked - not only from Germany, the UK, France and Belgium as per the norm, there has also been unusually high interest from US buyers."

She adds that gated communities are most sought-after by upcountry buyers for whom security is always a priority.

Partner Area Specialist, Linette Kempster, says: "Sales of vacant stands are doing particularly well in low density Chapman's Bay Eco Estate which offers excellent potential for capital growth and many of our existing estate homes are either under offer or already sold.

"The most active price band in Noordhoek is R5m to R10m, however, many upcountry buyers are astounded when comparing prices between Cape Town and other provinces although most consider the lifestyle and tranquil, scenic environment well worth the price."

In neighbouring Kommetjie, homes priced between R3.5m and R5m are most sought after with those offering sea views, proximity to the beach and flatlets being especially popular according to Area Specialist, Natalie Cooper.

"That being said, the whole market has done exceptionally well since lockdown restrictions began to ease with a much higher volume of higher priced properties selling than in previous years.

"There is also ongoing development in the area to keep up with the growing demand. Riverside Village, about 1km from the beach, is selling vacant stands and, with a design manual available, buyers will be able to design and build their own homes.

"Village Lane is a sectional title development of modern apartments in the central area with a choice of either upstairs units with balconies or downstairs units with gardens."

Kommetjie has seen considerable commercial development in recent years with very little commercial expansion in Noordhoek, however, according to Robin Lautenbach, Commercial Specialist for the group, one of the last remaining large stands in Noordhoek has just come up for sale and, with a current rural zoning it offers appealing possibilities.

"With its current zoning, the 8000m² plot in Crofters Valley would be ideal for a number of ventures, from farming and equestrian to residential development or even probably an exclusive guesthouse.

"One of the main advantages of this erf is its excellent position which boasts sweeping views from Kommetjie across to Chapman's Peak and, as the surrounding land has already been developed, these views can never be lost.

"And, with the land being gently sloping, buildings can be placed strategically to optimize these views."

Massing says: "Idyllic locations alongside the ocean, tranquil settings and laid-back country lifestyles set these two suburbs apart from most areas in Cape Town, firmly placing them in a class of their own.

"With its quiet leafy lanes, Noordhoek has a serene rural atmosphere, offering residents the epitome of a relaxed village lifestyle. Equally laid-back, Kommetjie still enjoys a strong sense of community and is especially appealing to water sport enthusiasts and nature lovers."

"Those who love the great outdoors are spoilt for choice in this scenic region as they can indulge in all manner of activities including hiking, fishing, horse riding, boating and cycling without venturing very far from their front doors."

She concludes: "We are in a really positive phase of the market with loads of potential lying ahead for buyers and sellers.

"The growth of the market and our company in the area allows us to currently expand into new areas and we are busy growing our remarkable team."

New Property Practitioners Act 'an improvement, but clarity is needed'

2022-02-24T12:14:24+02:00

With the dust settling after the announcement of the new Property Practitioners Act (PPA) that took effect at the beginning of February, it is important to note that the act is an improvement on the previous legislation that helped to govern the industry, but more clarity is needed on some important points during the interim phase, says Antonie Goosen, principal and founder of Meridian Realty.

Goosen says it is clear to him that the PPA has been designed for increased support and regularisation of the sales and rental industries and other immovable property professions and the act makes provision for more meaningful engagement between the industry and the regulator. "The act provides more clarity on grey areas in the previous legislation and brings additional protection to consumers. It also addresses certain practical issues, for example that a property practitioner will be deemed to have a Fidelity Fund Certificate (FFC) if the regulator does not issue the certificate within a specified timeframe, this being subject to everything being in place from the property practitioner's side. This has been a point of contention in the past with the previous regulatory body being notorious for delayed issue of FFC's, and the new legislation is favourable towards the property practitioner in this regard. It however remains to be seen how this will play out in practice," says Goosen.

Goosen says included in the new legislation is a much broader and clearer definition of who a property practitioner is, but there is currently debate on whether mortgage or bond originators will fall under the definition. "The PPA defines a ‘property practitioner' to be any person including a ‘bond broker', but excluding any person contemplated in the definition of ‘financial institution' in section 1 of the Financial Services Board Act (FSBA).

The FSBA has since been repealed, and as such the reference to that repealed Act is understood to be a reference to its replacement Act, namely the Financial Sector Regulations Act (FSRA). As Bond originators and bond brokers are regulated by the FSRA, the Mortgage Origination Council of South Africa (MORCSA) is of the opinion that originators are not property practitioners as defined in the PPA. More clarity from the Property Practitioners Regulatory Authority (PPRA) will be needed on this matter," says Goosen.

Goosen says clarity is also needed on the training requirement needed for candidate estate agents. "According to the new legislation, candidate estate agents must sit for the Professional Designation Exam (PDE) within six months of their FFC's being issued. It is still rather unclear if the previous set of qualifications will need to be completed in that time or if it falls away. Regulations state that PPRA must provide course materials and set standards, but we do not yet know whether anything will change here and to what degree or when, so more clarity is needed," says Goosen.

He says the new legislation now includes anyone employed by a property practitioner that do certain actions on their behalf and it includes anyone who sells any units, including fractional ownership in a property development. Such developers now seem to be restricted from selling their own stock unless they also register and qualify as property practitioners!

"Property developers will now be known as property practitioners and will have additional compliance and certification requirements. Previously, there was no legislative framework regulating the activities of property developers except that provided by the National Home Builders Registration Council," says Goosen.

The Property Practitioners Regulatory Authority (PPRA) replaces the Estate Agency Affairs Board with an expanded mandate to govern the property profession and other previously excluded professions rather than only estate agents.

Goosen says the PPA is quite strict and clear about the fact that no person or entity may act as a property practitioner without a valid FFC. "If the firm is a company, then its directors all need FFC's, if a closed corporation, the members all need FFC's and if it is a partnership or trust, the partners or trustees all need FFC's. If any person in that entity trades as a property practitioner and does not have an FFC, the entire entity may not trade," says Goosen.

Goosen says the new PPA requires that a property practitioner's marketing material shows that the property practitioner is registered with the PPRA and has a valid FFC. A major change from the previous legislation is that the PPA requires property practitioners to include a disclosure form which details a comprehensive list of property defects from the seller or lessor before a mandate is concluded. "The inclusion of these disclosure forms, which needs to be signed by all parties, is now a mandatory requirement for all property sales and lease agreements and no mandate may be accepted from a seller or a landlord without this document attached," says Goosen.

Lastly, the PPA has a major focus on transformation that did not form part of the previous legislation. "Section 21 of the legislation seeks to address property sector transformation and to establish a Property Sector Transformation Fund. The Act states that the PPRA must implement and assess measures to progressively promote an inclusive and integrated sector and introduce measures which may include incubation and capacity-building programmes to redress the imbalances of the past.

"Section 21 also mandates the authority to establish the Property Sector Transformation Fund within six months of its establishment. The fund must be used to promote black-owned property firms and principals, and to promote and encourage the participation of the historically disadvantaged people due to non-compliance.

"I see meaningful and quality transformation initiatives in the new PPA and if executed correctly it will be a force for positive change in the industry," concludes Goosen.

Does increasing repo rate mean a rebound for rental market?

2022-02-24T12:11:52+02:00

The repo rate, which directly impacts interest rates, affects many aspects of an economy, such as the exchange rate and money supply. As such, it can be used to manipulate spending to reach certain economic goals. For example, when spending and hence economic activity is low, the Reserve Bank may lower the interest rate to lower the cost of borrowing money, effectively incentivising consumers, and investors to borrow and spend more, thereby stimulating economic growth.

This, in turn, can drive up prices and inflation, which can be detrimental to an economy in the longer term. To curb this, central banks may raise interest rates. The USA, for instance, is currently experiencing its highest inflation levels in decades, and the expectation is that interest rates there will be hiked soon. After a small recent hike following a long period of low rates, South African rates are also widely expected to be increased in small increments this year and beyond.

The relationship between the repo rate and rental growth rates

Does the same inverse relationship exist between the repo rate and rental price growth, whereby higher rates will put downward pressure on rental inflation?

Due to the pandemic, rental growth was subdued throughout 2021. The market hasn't seen year-on-year increases of more than 1% since Q3 2020, which is a far cry from the increases of 4% year on year in 2019.

In response to the cooling effect of the pandemic on consumer spending, the Reserve Bank's Monetary Policy Committee dramatically lowered the repo rate. In February of 2020, it stood at 6.25%. By the end of July, 5 months and 4 rate adjustments later, the rate was at 3.5%, the lowest it has been in decades. The prime lending rate consequently changed from 9.75% to 7% during that time.

Meanwhile, over the same period, rental growth halved, and declined further to just 0.2% year-on-year at the end of 2020.

It went on to stay below 1% for the whole of 2021.

Johette Smuts, head of data analytics, says PayProp has plotted the rental growth rate against the repo rate over the last three years and calculated the correlation* between them (see explanation of the calculation below).

"The yearly correlation for 2019, 2020 and 2021 were all positive but of varying strength, ranging from 0.23 in 2019 to 0.84 in 2021. However, the calculation over the full three-year period yields a figure of 0.94 – indicating a very strong correlation indeed," she says.

What does this mean for the rental market?

Smuts explains that it would be easy to imagine that changes in the repo rate directly cause changes in the rental growth rate. "This is not true; they simply correlate or occur together. The reasons for this are a bit more complex."

She says it is more likely that the concurrent change in both indicators comes from having the same underlying economic factors, although interest rate decisions are also influenced by global economic trends. Either way, the strong correlation indicates that we could see a rebound in the rental growth rate in 2022 and beyond.

The forecasted increases in the repo rate could lower inflationary pressures in the short-term, although this is not guaranteed. Many tenants will most likely remain under financial pressure, especially since their incomes didn't keep up with inflation, thereby reducing their purchasing power.

That being said, Smuts says the average arrears position has recovered remarkably well and are in line with pre-pandemic levels. "Looking at the year ahead, we don't foresee any further significant improvements in this area, as arrears figures are back to normal, removing some pressure on rental price growth."

The value of freehold appeal in Jozi

2022-02-24T12:01:55+02:00

Cluster and complex homes are in high demand from a security and convenience perspective, but freestanding homes are still the preferred option for Jozi city dwellers who prioritise freedom of space, privacy, nature and sizeable gardens, especially those who want to add their own value and personal stamp.

So says Cobus Odendaal, CEO of Lew Geffen Sotheby's International Realty in Johannesburg and Randburg, adding that house sales have risen in sought after suburbs like Duxbury, River Club, pockets of Bryanston, Sandhurst and other older established suburbs where freehold homes still dominate.

"In River Club, where the highest median house price was R4.2 million in 2015, it reached R4.215m this year and sales volumes have also spiked with 76 transactions recorded lasts year compared to the previous high of 60 in 2013.

"In Bryanston as a whole, a record number of houses (410) changed hands last year, although some areas fared better than others."

Grahame Diedericks, Manager Principal in Midrand for the group says that location is an important factor when it comes to freestanding homes and areas like Vorna Valley which is situated close to Waterfall, Midrand's new amenities and major arterial routes is very popular.

"The median sale price of freestanding homes has been consistently record-breaking since it reached R1.7m in 2019, increasing to R1.75m in 2020, to R1.854m in 2021 to rising again R1.9m this year.

"Likewise, in Noordwyk, where last year's record median house price of R1.505m has already been trumped this year when it reached R1.6m before the end of February."

Much has been made over the years about finding that elusive gem in the rough - the "renovators dream" – which can be transformed and then sold at a good profit and, whilst it's still possible, Odendaal says that these properties are now fewer and further between.

"The best suburbs to look are in Linden, Blairgowrie, the southern side of Northcliff Koppie, Randpark Ridge and Melville and in order to snap up one of these gems you need to keep your nose to the ground and be aware of these properties as they come onto the market.

"The best way to do so is to establish a relationship with an experienced agent in your preferred area who will notify you as soon as they are listed – and then do not hesitate because it's very likely to be snapped up whilst you are still thinking about it.

"But, considering the current costs of building and vacant land, it can really be worth your while as it's can be more economical and much easier to create your dream home this way than to build from scratch."

According to Lightstone data, last year Randpark Ridge saw a record number of house sales (324), the highest number of houses changed hands in Melville since 2012 and in Blairgowrie sales volumes matched the previous high of 196 in 2015.

Diedericks says that in Midrand, a number of older established estates are also attracting the attention of buyers looking to add their own value and personal stamp.

"Kyalami Estate, Carlswald Lifestyle Estate and Kyalami Glen seem to be pulling a lot of interest in this market and are great options because for the most part, they require cosmetic upgrades such as a fresh coat of paint, garden landscaping and minor kitchen and bathroom upgrades.

"And, being sought-after developments, you will always get a return on the additional investment if you don't overcapitalise with unnecessary additions like smart home technology, pool installations and ultra-high-end finishes."
"Any good modern renovation offering good finishes receives more than its fair share of buyer attention at the moment and you can't go wrong if you focus on creating a fresh first impression and ensure there are no tired aspects to the house," concludes Odendaal.

"Make sure you know the ceiling value of properties in your area and focus on quality over quantity, especially regarding craftmanship. Replace the items that really date a home such as light fittings and tired linoleum flooring. And if your budget stretches to it, guest suites or granny cottages are always in demand."

Budget speech reaction: property sector, Joff van Reenen

2022-02-24T11:56:46+02:00

Expert real estate Lead Auctioneer and High Street Auctions Director Joff van Reenen says the Finance Minister's anxiety in his 2022 Budget Speech about South Africa's debt burden of R4.3 trillion is right on the money.

"Business confidence here and abroad will no doubt be buoyed by the news that our revenue collection overrun of R182 billion is in part going towards stabilising the country's debt position, allowing us to reduce our debt borrowing for the first time in seven years.

"That abundance also allowed for a veritable feast of ‘good news' tax announcements for both households and corporates – everything from no fuel levy increase to no rise in personal tax rates, and in fact the 1% drop in corporate tax mentioned last year is definitely going to be implemented. All in all, South Africans are looking at more than R5.2 billion in tax relief to help support the economic recovery, according to the Minister.

"That said, though, until South Africa is spending significantly less than the current 20c of every rand of government revenue to service its ever-growing multi-trillion rand debt burden, we'll have odd days of sunshine but we won't have sustainable and equitable economic growth.

"Property investment in South Africa is currently bullish with record sales last year in several areas, but to maintain this long term the country needs economic development and a government that shows strong fiscal leadership. Today's Budget Speech was a step in the right direction, but it remains to be seen whether government will be able to walk its talk."

Inner-city living - When is noise just noise and not a nuisance?

2022-02-24T11:54:45+02:00

We all live in a world of noise. Our cities reverberate with the cacophony of urban development, construction and traffic - music filtering from bars and restaurants, ringtones, taxis hooting, dogs barking and people shouting. Whilst some noise is tolerable there are instances where it becomes a nuisance or is disturbing; where it intrudes on our daily lives and can cause conflict between those who are generating it and those who have to listen to it.

There has been a drive in recent years to change the character of the inner city. Commercial premises have been converted into apartment buildings and mixed-use developments have become very much a part of the growing urban landscape in South Africa, altering the way in which we live and work. As a result, the person setting up home in a city space cannot expect the peace and quiet found in the suburbs.

All citizens are generally permitted in common law to use their properties for the purpose they choose, provided that the use of the property does not intrude unreasonably on the use and enjoyment of their neighbours.    In terms of the Noise Control Regulations as defined under the Environment Conservation Act of 73 of 1989, no person shall make or allow to be made a disturbing noise.

The definition of a disturbing noise refers to noise which exceeds the ambient sound level measured continuously at the same measuring point by seven decibels or more.   By contrast there is also a reference in the regulations to a ‘noise nuisance' which is defined as ‘sound which disturbs or impairs or may disturb or impair the convenience or peace of any person'.

"There are legal remedies for excessive noise, but in determining whether a noise nuisance exists, a ‘reasonable person' must find a particular noise intolerable or seriously affecting the enjoyment of his/her property, before pursuing legal action," says PJ Veldhuizen, MD of commercial law firm, Gillan & Veldhuizen Inc. People living and working in urban areas would reasonably be expected to be more tolerant about a higher level of noise than those living in residential homes or housing estates he adds.

If you want to make a noise about a noise that's disturbing you or is becoming a nuisance then take a quiet moment before lodging a complaint or going the legal route. First prize is talking it out and coming to a compromise that works for both parties.   If that fails and you want to take it further, consider where you live - your surroundings, and decide whether the complaint is in fact reasonable, and/or is in contravention of the law or any municipal by-laws.

Remember the appointment of an accredited commercial mediator may be an option before going to the expense of litigation.

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2022-02-18T07:50:34+02:00

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2022-02-18T07:30:27+02:00

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Ways property market trends affect you

2022-02-17T17:25:24+02:00

There are many external factors at play when buying, selling, or renting property. Consumers need to be aware of these greater property market trends to plan for how the conditions will affect them.

There are two main ways to describe the condition of the property market, namely whether it is a seller's market or a buyer's market. Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that these terms can have a range of implications for anyone involved in real estate transactions.

To elaborate on these implications, RE/MAX of Southern Africa explains how these two market trends will affect buyers, sellers, landlords and tenants:

Buyer's / Tenant's Market

The market swings to the favour of buyers or tenants when there is an abundance of similar homes for sale or for rent in an area. This oversupply will drive down demand and prices are likely to be dragged down along with it. In these conditions, a seller might want to hold onto the current property until market conditions change. For landlords, these conditions make it tricky to charge more in rent, because there are plenty of other rentals available if the current rental amount is not appealing.

Seller's / Landlord's Market

In a seller's or landlord's market, there are fewer homes for sale and for rent. This drives up demand which also pushes up asking prices. Buyers will need to act fast and make competitive offers when looking to purchase in these kinds of markets. Similarly, tenants will need to act fast and get their applications in first to make sure theirs is the one that gets accepted by the landlord.

Timing the market

It is challenging to time the market right so that you sell in a seller's market and buy in a buyer's market. Goslett reminds homeowners that when selling a home to buy a new home, the advantage from the one market will offset against the other. 'For example, sellers might be able to sell for more in a seller's market, but then they will also likely purchase for more too. Similarly, in a buyer's market, homeowners might sell for slightly less, but they will also be likely to purchase a home at a better price."

It is important to remember that each suburb will also have its own micro trends that can either mirror or be completely opposite to greater market trends. While it is easy enough to find out what type of market conditions the country is experiencing as a whole, local suburb trends are best discovered through a conversation with a local suburb expert.

'With access to real time data on the average time on market and price per square meter in the area, real estate professionals can share suburb-specific information that can help consumers to gauge timeframes and possible costs or returns. This information can help buyers, sellers, landlords, and tenants make better decisions when it comes to their real estate transactions," Goslett concludes.

For more real estate advice or to get in touch with your nearest RE/MAX Office, visit www.remax.co.za.

FNB's Residential Property Barometer

2022-02-17T17:23:49+02:00

Market volumes may have peaked, but still running above pre-pandemic levels.

The affordable market has shown the strongest relative recovery in activity following a more pronounced decline in 2020, due to the harsher impact of the pandemic on lower-income households.

In middle priced segments, buying activity remains strong, but growth is moderating. Activity is supported by lower interest rates, credit availability and pandemic-induced changes in housing needs.

Current buying activity is largely driven by demand recovery in the affluent markets, stoked by good pricing (value for money following significant price declines in recent years), the low interest rate environment, and the work from home (WFH) trend.

Despite slowing volume growth, the value of mortgage extensions continues to trend higher. This reflects a shift towards higher-priced and larger properties. In 2021, the value of outstanding mortgage advances grew by 6.3% compared to 2020, the fastest pace since 2008.

Data shows that in the first nine months of 2021, the average mortgage size approved was approximately 16% higher and the average property size approximately 6% bigger, compared to the same period in 2019.

Interest rates are set to increase by at least an additional 100bps this year, on the back of rising inflationary pressures and less accommodative global monetary policy conditions. While this may have a cooling effect on market volumes (and eventually price growth), it is important to distinguish that the current wave of buying activity is predominantly driven by buyers who are less sensitive to interest rate hikes.

The stagnant labour market, combined with rising interest rates, suggests a less supportive medium-term environment for home buying activity. However, factors such as the ongoing shifts in housing needs, relatively ample credit and higher incomes could mitigate the impact.

Global outlook

We expect demand for property and real house price growth to wane as global financial conditions tighten. This could be exacerbated by upward inflationary pressure - buoyed by resurgent waves of Covid-19 infections and related supply chain disruptions. Steeper hiking cycles, as inflation continues to surprise to the upside, will likely have a bigger impact on emerging markets, given the pre-existing labour market vulnerabilities in these economies.

Domestic homebuying market

We expect buying activity to remain relatively supported in the medium term and price growth should stabilise at lower levels compared to 2021, at around 3.5%, from 4.2%. Higher interest rates will reduce affordability and the attractiveness of homeownership relative to renting. However, we think 'marginal buyers" have already brought forward their buying decisions, taking advantage of ultra-low interest rates.

In the medium term, we expect that buying activity will predominantly be driven by less interest rate sensitive buyers, largely in higher priced brackets. Innovation and heightened competition among lenders should also boost activity. A key constraint is the stubbornly weak employment growth, which continues to lag the economic recovery. However, the wage bill has recovered to pre-pandemic levels (albeit uneven across skill and income levels).

This, combined with still-strong growth in non-labour income, and rising preference for homeownership (behavioural conditions), should counteract the downward pressures on volumes growth and, ultimately, house price growth, mainly in middle to higher-priced segments.

Domestic rental market

After troughing at 0.6% y/y in March 2021, rental inflation has been gradually normalising, lifting to 1.1% in December 2021. We expect rental inflation to lift to 2.0% on average in 2022, ending the year at around 2.5%.

This gradual normalisation is in line with the ongoing recovery in aggregate incomes and household demand, higher interest rates weighing on demand for homeownership, as well as improved mobility that might push people closer to business districts (for work). However, the pace of the recovery will be constrained by weak employment growth and rising cost of living.

Enforced compliance to new property act is a game changer

2022-02-17T17:22:10+02:00

The new Property Practitioners Act (PPA) came into effect on 1 February and, whilst the tightening up on legislation largely concerns agents and agencies and how they conduct business, consumers also need to understand the implications of these changes, especially those in relation to compliance.

'Sadly, for many years, our industry has not always had the best reputation and members of the general public have all too often, and with good reason, complained about the service they have received," says Steve Thomas, Secure Estate Specialists for Lew Geffen Sotheby's International Realty in Cape Town's Southern Suburbs.

'However, they can now rest assured in the knowledge that many of their concerns have been addressed and have been remedied through new stringent and well-conceptualised laws which very effectively curtail the root cause."

Thomas and partner Secure Estate Specialist, David Burger, believe that the vast majority of registered and certified property practitioners are proudly professional and strive to offer the best possible service and that, being equipped and knowledgeable enough to navigate the multitude of potential pitfalls, they are usually able to do so.

'The real issues generally arise when un-registered agencies and uncertified agents are allowed to operate within this arena because not only are they lacking the credentials and often also the experience and skills, when things do go wrong, the client has very little recourse.

'As of 1 February, not only were un-registered agencies unable to operate legally, all agents and the agency itself must be registered with the PPRA and hold valid Fidelity Fund Certificates (FFCs).

'Additionally, all FFCs must be displayed and/or produced on demand as well as on all company headed branding."

The new act further enforces compliance by barring conveyancing attorneys from paying commission to unregistered agents and agencies.

'If an unregistered agent or agency offers cheap commission in order to secure a mandate, but ultimately cannot legally be paid, they will have no means of marketing a client's property," adds Thomas.

And, as all un-qualified (but registered) practitioners must now present themselves as interns in training and may not conclude legal transactions, there is far less chance of costly and stressful incidences occurring.

Consumers are even further protected by the following measures:

Property Practitioners may only market properties which are mandated (in writing) by the registered owner;

All mandates must have a commencement and an end date;

Any extensions to mandates must be in writing to be deemed valid;

No mandate may be considered valid unless there is a written property condition report signed by the owner(s) prior to marketing.

'The new act is welcomed by the industry and the long-overdue regulatory enforcement to our profession is seen as a massive and necessary step toward regularising the services offered to the general public and to the clients we serve, whilst also extending the necessary protection." say Thomas and Burger.

'And with these safeguards now in place, consumers are urged to consider the importance of engaging only with fully legal, compliant property professionals as it not only ensures managed risk and relatively stress-free transactions, but in the unlikely event that something does go wrong, they have access to full recourse.

'At the end of the day, it's a win-win for all concerned – for the consumer who can more confidently embark on the process of purchasing or selling what is probably their largest investment and a dynamic industry and hard-working professionals need no longer be tainted by unethical practitioners."

Market shifts in Cape Town's commercial property landscape

2022-02-17T17:17:24+02:00

Several key factors have precipitated a number of emergent trends and market shifts in the commercial sector since the advent of covid, not least the fact that for the first time ever, qualifying lease clients have been eclipsed by qualifying buyers.

This is according to Brent Townes, Commercial Property Chief Operating Officer in Cape Town for Lew Geffen Sotheby's International Realty, who says: 'Although this has largely been within the industrial sector which was already dominant before the pandemic, we are also seeing more buyers in the retail segment as well as vacant land for development.

'The majority of sales have been warehousing, retail malls and smaller industrial units for owners to run their businesses and most are local buyers."

Townes adds that this is despite the fact that rental prices have consistently dropped for the past three years as have the lease periods, from five-years, down to three and sometimes even two years.

The beleaguered office sector which bore the brunt of the pandemic, resulting in a massive over-supply of stock, is once again showing signs of revival, but only in certain areas, according to Townes.

'The areas in which we are seeing the most movement are precincts like Century City, Westlake and Tygervalley because they are essentially live/work/play nodes that require little or no travel time and offer the convenience of an array of on-site amenities.

'And, with rental prices remaining constant for the time being, more people are encouraged to take their businesses back into the workplace."

Another notable shift is the growing demand for ‘big box' industrial spaces which were not as sought-after as small-to-medium sized properties prior to the pandemic.

'These are currently in very short supply and even non-existent above 35 000sqm," says Townes, adding that the industrial park take-up along the N7 is going well with the development of medium to larger-sized units.

'HOAs also need professional managers'

2022-02-17T17:14:40+02:00

Most home buyers in residential estates are prepared for the fact that stands may be smaller than those in ordinary freehold suburbs, and that they will probably have to sacrifice some measure of privacy in return for the additional security, facilities and convenience of living in a gated community.

However, they are often unprepared for the fact that their purchase will also make them members of the homeowners' association (HOA) and subject to the 'rules' of the estate regarding residents' conduct as well as the appearance and usage of the individual properties

And similarly, says Andrew Schaefer, MD of leading property management company Trafalgar, they often don't think about all the additional responsibilities of the HOA, such as the maintenance of roads, pavements, streetlights, landscaping and communal green spaces within the estate, stormwater management and refuse removal, as well as the maintenance of the security systems and equipment.

'The HOA also has many financial management, statutory reporting and governance responsibilities and on top of that many estates also have extra facilities that need to be managed, such as clubhouses, restaurants, wellness centres, tennis courts, swimming pools and golf courses – and quite possibly back-up electricity and water supply systems too.'

When an estate is well-run, he notes, these are all the things that make it attractive to buyers, 'but the bottom line is that the quality of the environment and services depends on the ability and willingness of all the owners to pay their levies, and on the directors of the HOA having the know-how and time to manage them.

'But unfortunately, those owners elected to run an estate as directors of the HOA are most often well-meaning volunteers who actually don't have much property management experience or time - and unlike the trustees of Sectional Title schemes, also have no specific legislation to guide them.'

On the other hand, says Schaefer, effective management of an estate really requires a working knowledge of the Companies Act, the Consumer Protection Act, the Protection of Personal Information Act and Community Housing Schemes Ombud Services Act at least – and an efficient accounting and levy collection system.

'Sometimes the directors will also need to enforce the appearance/property usage rules contained in the HOA constitution or institute legal proceedings against owners who are in arrears with their levies, and that can lead to them being at odds with their neighbours.'

'This is why it is strongly recommended that HOAs should appoint an experienced, knowledgeable property manager to assist their directors. A good management company will be able to provide a range of services, from straightforward levy collection and payment of accounts to maintenance management, planning and supervision and even emergency responses to service failures.'

It will also, he says, be able to provide the continuity that is often lacking in HOAs by filling the gaps where volunteerism falls short, keeping centralised records and arranging induction sessions to help new directors maximise their effectiveness. Because it has no personal axe to grind, it will also be able to execute unpopular decisions without posing a threat to the unity of the HOA.

'Having said that, though, it is also important for the HOA not only to choose a property manager with estate management experience, but also to draw up a clear, written agreement setting out all the manager's duties and responsibilities. This will enable the directors to monitor performance and decide whether the HOA is getting value for money – or whether it is time to change managers.

'An estate manager working on-site and reporting to the directors is generally a good idea if levy income affordability allows, because the estate manager will be able to oversee and quickly respond to any facility management needs, while an off-site manager is best placed to oversee the financial management and administration of the HOA in parallel.'

Promises, promises: Property's take on SONA 2022

2022-02-17T17:13:04+02:00

Opening on scenes of fiery devastation, looting and violence, President Ramaphosa's SONA 2022 certainly didn't shy away from acknowledging the dire state South Africa is in. Despite the lack of sugar-coating - or perhaps because of it - the speech has been widely regarded as surprisingly hopeful.

'From a property perspective, the key factors that we were hoping to see addressed are the recovery of the economy and business and consumer confidence," says Tony Clarke, MD of the Rawson Property Group. 'These impact real estate directly by influencing the perceived security and attractiveness of long-term investments like property. They also contribute to job security and income growth, which directly affect consumer affordability and, consequently, the accessibility of the property market.'

According to Clarke, the president's frank acknowledgement of the need for transformation was positive for confidence levels, in itself. However, there were a number of more concrete promises that Clarke believes could not only improve confidence levels, but also trigger long-overdue, tangible change.

'One of the most encouraging elements of the speech, for me, was seeing the president publicly acknowledge the critical role of the private sector in job creation and the importance of improving market access," says Clarke. 'If we're ever going to address our vast unemployment issues, we need to support business growth. A real commitment to cut through the red tape holding businesses - and professionals - back is exceptionally welcome.'

Clarke says this mirrors the direction already taken in the new Property Practitioner's Act, which has dramatically reduced the time and expense involved in becoming a qualified and self-sufficient real estate agent. By removing similar barriers to entry in other industries, and supporting the growth of small businesses, he believes it's possible to expedite the entry of more South Africans into the workforce.

'That would not only reduce unemployment and decrease reliance on social grants, it would also add to our shrinking tax base and give a much-needed boost to the fiscus,' says Clarke.

Another potential boost to investor confidence came in the form of the President's recognition of state capture, and his pledge to see those responsible brought to justice. While Clarke says more detail on how corruption will be prevented in future would have been welcomed, acting on previous wrongs is definitely a step in the right direction.

'If we want to convince investors that economic growth is returning, we need to show zero tolerance for repeating past mistakes,' says Clarke. 'That means taking decisive action against those who engineered and profited from state capture, and disincentivising further corruption through the demonstration of appropriately harsh consequences.'

In a, perhaps, more controversial move, the President also reaffirmed his commitment to land redistribution. This, Clarke says, is welcomed by the property industry now that Section 25 of the constitution remains secure.

'We fully support expropriation for the purpose of improving access to land, particularly for agricultural use – we need to feed our country," says Clarke. 'I, for one, am really looking forward to seeing the new expropriation bill as it is going to play a vital role in the future of our country. How we achieve that will say a lot about our values as a nation and deeply influence our standing in the international community. I'm optimistic that our presidency will find a solution that empowers the people of South Africa without impinging on our fundamental human rights.

'Only time will tell how SONA's promises play out in reality says Clarke. 'All the words in the world mean nothing without action.'

For more information contact 021 658 7100 or email marketing-AT-rawsonproperties-DOT-com

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2022-02-11T10:40:43+02:00

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2022-02-11T07:36:37+02:00

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Payprop to bolster real estate qualification

2022-02-10T12:56:17+02:00

PayProp has partnered with Chartall Business College to create and deliver educational modules that will supplement the current real estate courses offered by the institution and give additional value to their learners.

PayProp CEO Jan Davel says that investing in industry education has always been a priority for PayProp, to ensure the ongoing success and professionalism of the sector. "Besides boosting the curriculum, our three new Chartall modules offer guidance with compliance for first-time estate agents and agents branching out into rentals, which will help Chartall's mission to professionalise and prepare new market entrants to hit the ground running in an ever-green sector of the economy."

He says that despite slow economic growth over the past two years, newcomers are still entering the real estate fraternity. "During the past year, we identified no less than 50 new real estate agencies that registered with the Estate Agency Affairs Board, and we're proud to invest our time and expertise in helping to equip the estate agents of tomorrow with the knowledge and skills that will stand them in good stead to succeed in the industry."

Chartall Business College is an innovative and modern provider of education and training, with one of their areas of speciality being in the real estate sector. Chartall Business College offers the National FET Certificate in Real Estate as well as various other qualifications in accordance with the education guidelines set out by the Estate Agency Affairs Board, the real estate sector's regulator, that will soon be replaced by the Property Practitioners Regulatory Authority now that the regulations have been published. Magda Erasmus, head of the Real Estate faculty at Chartall says that industry input is crucial to the ongoing relevance and success of the course material, specifically when it pertains to interesting, and fast-moving topics like payments and technology.

"Chartall has always been focused on assisting learners to remain relevant by providing training that is up-to-date and exciting," says Erasmus. "We provide innovative learning opportunities through our subject matter experts and through collaboration with industry players."

PayProp and Chartall are offering three modules pertaining broadly to automated payment processing within the property rental industry. The first covers an introduction to property payments while the second deals with property payment risk mitigation and the third, presented by Davel himself, covers regulatory compliance in rental payments.

"Now that the long awaited regulations have been published, the Property Practitioners' Act, 22 of 2019 will come into effect from 1 February 2022. This consumer-focused legislation is very clear regarding the legal requirements governing payments, and current as well as future principals will need to be aware of them," says Davel.

"We are proud of this collaboration and look forward to sharing these updates and value-add modules with new and current students," says Erasmus.

Estate agent training improves under new property act

2022-02-10T12:48:30+02:00

Becoming a real estate agent just became far more achievable as many of the onerous qualification roadblocks are now removed thanks to the introduction of the new Property Practitioners Act.

According to Tony Clarke, Chairman of the Real Estate Business Owners of South Africa (REBOSA), the new act is a welcome step in the right direction for an industry previously plagued by unclear and often poorly implemented legislation. The new regulations also promise smoother and more affordable property practitioner training.

"Under the PP Act, prospective agents can study and sit their Professional Designation Examination (PDE) before joining an agency," says Clarke. "No more year-long internships or expensive NQF4 exams. If you've passed your PDE, you can literally start selling property in less than six months - under supervision - provided you complete a further six practical course modules."

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that this removes one of the largest obstacles aspiring real estate professionals face when attempting to join the profession. "Under the previous regulations, it could take a year before a new agent could earn any of their commission. This hindered transformation within the industry and kept many from successfully making the transition into the real estate profession," he explains.

All this changes with the introduction of the new Act. Regulation 33.2.3 under chapter 7 of the PPA Regulations states the following:

"no person shall be entitled to practice as a property practitioner unless such person has first completed a practical training course […] will constitute a minimum of six modules to be completed over a maximum period of six months."

According to the Regulations, "[f]or a period of six months following the date upon which a person first becomes qualified and registered as a non-principal property practitioner, such person shall not in their capacity as a property practitioner (a) enter into any mandate for the sale or purchase of any property or the letting or hiring of any property with any member of the public or (b) conclude or cause to be concluded any agreement for the sale or purchase of any property or the letting or hiring of any property, unless such mandate or agreement has first been reviewed and co-signed by another qualified property practitioner"

Goslett explains that this allows anyone who has passed the professional designation examinations the opportunity to earn commission much sooner, providing that they have a registered property practitioner to sign off on and oversee their transactions. "This also only lasts for six months, which is far less taxing for both the candidate estate agent as well as for the registered property practitioner who has to oversee the deals," Goslett highlights.

To ensure greater access to the professional designation examinations, the Act states that the professional designation examinations will be capable of being written at least four times per annum at such intervals as are determined by the Authority. These exams may be written in any official language other than English and can also completed orally.

In addition to this, the costs of the regulated Continued Professional Development training are also significantly reduced thanks to the introduction of the new Act. Businesses are now allowed to develop and run their own CPD training "which shall be charged for by the Authority at the rate of R 500 per annum" subject to inflationary adjustments (Regulation 33.5.4 under chapter 7 of the PPA Regulations). The Act also states that "[c]ontinuing professional development will be charged for by the Authority at a rate of R1500 per annum."

Goslett mentions that all CPD training prepared by anyone other than the Authority itself will need to be in compliance with both the rolling three-year cycle requirements and the requirement that there be 12 modules and that a minimum of four modules must be completed during each year of such cycle.

"Course content must be approved by the Authority, but this approval can't be unreasonably withheld," says Clarke. "Those doing CPD training via the Authority should also have a smoother experience, as all course modules can now be available at all times and at a reduced fee, i.e., R1500. This should make issues like delayed course content a thing of the past, supporting agents in honing their skills rather than acting as a professional roadblock."

All these changes introduced by the Act bode well for both South Africans as well as the property industry. "I believe that the real estate industry has the power to change lives as it offers greater earning potential to those who are willing to put in the hard work to achieve it. Many of the obstacles that hindered aspiring real estate agents have now been removed with the introduction of this act. I therefore remain hopeful to see the real estate sector continue to grow and transform with the introduction of this new Act," Goslett concludes.

To learn more about what is covered by the Property Practitioners Act, readers can download a free copy of it by visiting the government website. For more real estate advice or get in touch with a real estate professional from the world's leading real estate brand, visit www.remax.co.za.

Migration trends shift residential market

2022-02-10T12:46:52+02:00

Local and international migration have undoubtedly been driving forces in the South African property market during the past decade and their recent resurgence after travel and lockdown restrictions were eased have come as no surprise.

"Locally, there has been considerable focus on the new wave of semigration to the coast," says Grahame Diedericks, Manager Principal of Lew Geffen Sotheby's International Realty in Midrand, "but we are also seeing inland migration to Jozi, especially among local corporates and aspirant professionals who follow the money and opportunity trail.

"This has boosted not only the sales markets in certain areas and sectors, but also the rental market as many of these young professionals are considering emigration at a later stage and are therefore opting to rent rather than buy for the time being."

FNB's latest Property Barometer has revealed that, on average, 8% of people are selling their homes with plans to leave the country, which is up a percentage point compared to the Q2 2020 report.

This figure increases to 11% in the R3.6 million+ price band and to 14% in the R2.6m to R3.6m house price band nationally.
"In Midrand and surrounding areas, around 10% of all our sales are due to emigration with the majority of these properties being investment units and high-end primary homes," says Diedericks.

He adds that, due to the current value of the Rand against major currencies, sellers who are emigrating try to hold out for a premium price which often results in their homes remaining on the market for extended periods.

"In some cases, due to the time constraints involved in emigration, sellers take the rental option rather than selling at a reduced price.".

Foreign investment is also on the up again but, whereas the majority of buyers prior to the pandemic were from Europe and the UK, they are now being matched by US investors who now also account for the majority of tourism in South Africa.

Prior to the pandemic, European and UK visitors accounted for around 60% of foreign tourists entering South Africa annually, whilst tourists from North America (the US and Canada combined), accounted for just 17%.

However, in 2021 South Africa welcomed more tourists from the United States than from anywhere else and this increase has been mirrored in the number of enquiries received by estate agents from interested US investors.

Diedericks says that in Johannesburg, there has been a slight uptick in international buyer interest but that more activity is being seen in the corporate rental market.

"There has been an increase in foreigners doing business in Jozi and, in some cases, companies and individuals are opting to invest in a property instead of renting but this trend is also very dependent on the state of the nation and whether the foreign buyers' investments are secure in SA."

In the Western Cape, agents are reporting much keener foreign investor interest, with areas like Constantia and the Garden Route being especially popular.

Joanna Thomas, Area Specialist in Constantia for the group said: "In our area, Covid has actually improved the market in our area, with renewed upcountry and international interest.

"Many people are now able to work from anywhere in the world and South Africa is attracting considerable interest for its lifestyle and the good value to be had here.

"We've been receiving many overseas enquiries, including from ex-pats, and often the interested parties will ask family members, friends, to view and even carry out facetime or video tours etc."

George and Wilderness Principal, Tim Kirby, also reports hugely increased activity during the past year, both in the estate sector and single residential sales in traditional non-gated suburbs, with Gauteng buyers making up almost 70% of recent buyers.

He adds that there has also been an increase in enquiries from ex-pats looking to return to South Africa, and to the Garden Route in particular, as they are now able to work remotely.

Diedericks concludes: "This is where an established agency with a broad local reach and international affiliation is invaluable.

"It affords clients access to a vast network that offers them considerable advantages, from established relationships with a worldwide community of professionals to a wide-ranging marketing reach. In other words, a turnkey solution.

"From selling a home to sell in South Africa to buying a new property in the country to which they are moving or investing in property along with residency to establish their plan B, dealing with on agency is the best way to conclude international transactions as seamlessly as possible."