Boland Sold 10-01-13

MASTERPLANNEEDED FORHOUSING

SaveSA fromhousing cliff

J

ust as the US needs all hands on

deck to stop it sailing over the fiscal

cliff, soSAneedsamultifacetedeffort

now to solve a housing crisis that threat-

ens to overwhelm the country.

So says Rudi Botha, CEO of South Africas

biggest mortgage originator BetterBond,

who notes that of the 14,5 million households

recorded in the latest census, at least half live

in homes they dont own some in accommo-

dation provided by their employers, some in

rented homes and back-yard shacks and

shockingly,more than 1,3million in squatter

camps.

No-one has actually quantified howmany

millions of people this involves, but clearly

it is a recipe for serious political and econom-

ic instability as evidencedby the increasing

number of service delivery protests and

strikes that have already so badly affected

SAs productivity levels, credit ratings and

economic output this year.

Allover theworld,hesays, ithasbeenprov-

en that home ownership has a stabilizing in-

fluence because it pulls people out of the pov-

erty trap and provides the basis for individu-

al financial security and wealth creation. It

is at the heart of a healthy community and

not surprisingly, research has shown that it

is also a major influence in lowering crime

rates, substance abuse rates and teenage

pregnancy rates.

But the reverse is also truewhen the own-

ership of even a modest home becomes in-

creasingly beyond the reach of ordinary,

hard-working families and totally out of the

question for the poor. People become hope-

less and their protests at the unfairness of

theirsituationareapt tobecomeincreasingly

violet, as we are seeing all too clearly in SA.

According to Botha, the problem has be-

come toobignowtobe solvedbyanyoneplay-

er in the housing scenario acting alone.

What we need is for government, the banks

and the private sector to urgently agree and

getmoving on a plan to get all

South Africans properly

housed.

The banks, for example,

are being hamstrung by the

imminent implementation of

the Basel III banking regula-

tions,whichprovide for them

to hold much bigger reserves

on long-term lending like

home loans and will almost

certainly result in them pull-

ing back on home loans. So

perhaps it is time for Treas-

uryor theReserveBank to re-

assess those regulations now

and evaluate whether they

are actually appropriate for

SA.

On the other hand, he says,

household debt levels are un-

doubtedly too high and get-

ting higher because of the

ease with which consumers

can get unsecured short-term

and personal loans at very

high interest rates. The

banks need to reassess their

role in helping to create the

situation in which so many

people who actually earn

enough to buy their own

homecant qualify for ahome

loan because they have too

much debt already.

Meanwhile one might well ask what has

happened to the gap housing subsidy plan

announced with such fanfare earlier this

year? This supposedly affects a massive 20%

of South Africas work force.

Similarly, where is the R1 billion mort-

gage default insurance plan that has been on

the cards for several years now? Will there

be a new tax incentive for developers of af-

fordable housing in the next budget, and will

the urban development zone tax incentive be

extended?

Bigbusiness andother employers could get

more involved, Botha says, byhelping to edu-

cate employees about the dangers of short-

term lending and the advantages of saving to-

wards the goal of home ownership.

And in the provision of housing for those

who are poor and unemployed, government

should be actively seeking out and motivat-

ing themost capable developers and builders

to do this at scale, on the understanding that

such activity would also provide much need-

ed employment and skills development.

Clearly there is a mountain to climb, he

says, and consumers themselves need to play

a role in achieving their home ownership as-

pirations,whether theyprovide sweat equity

in the construction process, perhaps, or have

earnings from which they can save for a de-

posit. But all their efforts will be in vain un-

less everyone works together to develop a

master plan and soon.

Housing is desperately needed as a stabilising influence in South African society. PHOTO: SUPPLIED

3Districtmail

10 Januarie, 2013

BOLAND

SOLD

HELDERBERG

RawsonGroupset todouble their

portfolio inHelderberg in2013

T

he property management service is

uniqueintheRawsonPropertyGroup,

with Rawson Properties Somerset

West in the Western Cape being the only

residential franchise in the group to have

a property management division.

Johann van der Merwe, Rawson Properties

franchisee for SomersetWest, Strand andGor-

dons Bay, who initiated the new division that

now manages six sectional title schemes with

about 1 000 units, says it has always been one

of his goals to offer a complete one-stopproper-

ty service, because such a service would com-

plementhis franchises sales and rentingoper-

ations.

TheRawsonPropertiesSomersetWestprop-

ertymanagement team is headed byChantelle

Landers and Lilian Waldeck, who together

have 13 years of experience in this field.

Unlike most managing agents, says van

der Merwe, we are in the strong position of

being able to offer a two-prongedmodel.When

taking on a new property account we divide

the duties between the maintenance and the

management of the scheme and finance and

levy collection.

The former falls underLilian and the latter

under Chantelle.

Manysectional title schemesandhomeown-

erassociations,saysVanderMerwe,havetrus-

tees who are inexperienced in property mat-

ters, although often very competent in other

fields. As a result, he says, over a quarter of

South Africas sectional title schemes today

are allowing their members levy payments to

fall behind, sometimes with drastic conse-

quences for theupkeep, theprovisionofservic-

es and ultimately the value of the units in the

scheme.

When a scheme does run into financial diffi-

culties, saysVanderMerwe, it takes real effort

and a great deal of skill to put it right.

The rectification process can very often in-

volve the raising of a special levy, but once a

scheme has been pulled up it should not need

special levies unless someunforeseen disaster

occurs or unless a further upgrade is thought

to be essential.

Rawson Properties expect to take on at least

two more managing agents in the coming

monthsand todouble thenumberofunits they

are handling by the end of the year.

Then, Van der Merwe adds, as part of their

plan to offer a one-stop service, they will also

establishacommercialpropertymanagement,

selling and renting service.

RawsonCommercialhasbeenoneof the fast-

est growing sectors in the Rawson Property

Group over the last year and now has 21 fran-

chises.

For further information contact Johannvan

der Merwe on 021 851 0172 or email jo-

[email protected]

6Districtmail

10 Januarie, 2013

BOLAND

SOLD

HELDERBERG

for sale

luxury beachfront

apartments

2 bedroom

2 bathroom

apartments

from r 1.295.000 to 1.895.000

vat incl. no transferduty appl.

penthouses

from r 3.200.000 to 4.750.000

vat incl. no transferduty appl.

new development

sales office: 97 Beachroad, 7140 Strand

(open from 10.30 until 16.00)

phone office hours: 079-820 56 46

outside office hours: 076-043 46 40

of 082-255 95 55

[email protected]

24 5

www.97onstrand.com

8Districtmail

10 Januarie, 2013

BOLAND

SOLD

HELDERBERG

What to expect

from2013market

NevilleMcIntyre, chairmanofAidas parent

company JigsawHoldings, says the expecta-

tion all over the world, and not just in SA,

is thatascarcityofcapitalwillprevail in2013

and that there will thus be no increase in

mortgage lending.

The demand for housing, on the other

hand, is set to increase dramatically, and be-

cause of that we foresee that there will be

a slight increase in the number of property

transactionsand in thenumberofnewdevel-

opments coming to the market.

There will also, of course, be strong de-

mand for rental properties, which will be

good for buy-to-let investors and prompt an

increase in investment purchases.

He says large numbers of distressed

properties still being brought to market by

thebanksandsoldatbelowmarketvaluewill

suppress home prices in 2013 but at the

same time these bargain properties will

sustain activity and awareness and make

home ownership more accessible for quite

a number of people.

McIntyrealsonotes thata lackof skillsand

capacity in government and planning de-

partments as well as in some Deeds Office

branches remainseriousconcerns for there-

al estate industry.

It causes major delays in developments,

zoning approvals and transfers, and that has

financial implications for everyone in the

property sale chain.

JOU GROOTSTE EN BESTE EIENDOMSGIDS IN DIE BOLAND

021 870 4600 021 887 2840 021 841 4282

DistrictMail

HELDERBERG

Strand Gordons Bay Somerset West Stellenbosch Grabouw Elgin| | | | |

Kry jou sleutel

tot die

eiendom.

perfekte

10

Eikestadnuus

10 Januarie, 2013

BOLAND

SOLD

STELLENBOSCH

2013: Theyearof transformation

A

drian Goslett, CEO of RE/MAX of

Southern Africa, looks at the prop-

erty sector moving forward in the

era of transformation during 2013.

Despite the prevailing challenging econom-

ic circumstances experienced in the property

market,2012hasbeenagoodyearforRE/MAX

of Southern Africa, says Adrian Goslett, CEO

of RE/MAX of Southern Africa. He points out

that during 2012 RE/MAX of Southern Africa

has seen a marked increase in the number of

property sales achieved per agent.

During the first half of this year RE/MAX

ofSouthernAfrica sawa12%increase in sales

when compared to the same period of 2011. In

addition,more than 25 new franchises opened

in the Southern African region - which in-

cludes South Africa, Namibia, Botswana,

Swaziland,Lesotho,Mozambique,Zimbabwe,

Zambia,Angola,MauritiusandtheSeychelles

- up to the end of October 2012. The brand is

continuing to grow its footprint that encom-

passes over 170 office locations and over 1800

experienced estate agents, he says.

Locally RE/MAX agents account for about

6% of total agent numbers and for approxi-

mately 15% of all sales transactions. The av-

erage number of years of real estate experi-

ence within the RE/MAX of Southern Africa

group is over 10 years, and our average agent

commissionearnings areup31%in2012, com-

pared to the 2010 figures, says Goslett.

He notes that much like last year, 2012 can

be called a success for RE/MAX of Southern

Africa and its agents and it is expected that

the company will continue to flout industry

norms in 2013.

Sowhich factorswill influence theproperty

market and thosewithin the industrymoving

forward into 2013 the most? Goslett looks at

a few elements that will influence the trading

environment that property professionals find

themselves in:

)Access to finance:Over thepast year the

randvalue of the gross debtors book formort-

gages has shown an increase as has the

number of applicants applying for bond fi-

nance. Goslett says that this is due to the fact

thatSouthAfricas financial institutionshave

marginally relaxed their lending criteria to

the point where close on 51% of all home loan

applications are approved. He points out that

high debt-to-income ratios and a poor savings

culture are the major reasons why many

South African homebuyers have struggled to

obtain finance.SouthAfricaonlyhasadomes-

tic savings rate of around 20% of GDP, com-

pared to other emerging markets like China

which has a domestic savings rate of around

50% of GDP.

High debt and poor savings reflect nega-

tively on affordability levels, which has held

back the market and slowed down recovery.

For this to change in 2013, South African con-

sumers will need to focus on clearing their

debt and starting a savings programme to en-

sure their ability to secure home loan finance

in the future, says Goslett.

He adds that due to the limited access to fi-

nance, therentalmarketwill continue togrow

rapidly, which will assist investors who have

a buy-to-let portfolio.

)Depositsrequired:While financial insti-

tutionswillcontinuetohaveagreaterappetite

for risk, 100% bonds will still be few and far

between in 2013. Statistics suggest that over

the last 12 months only four out of every 10

bonds granted are for 100% of the purchase

price.Thismeansthatsixoutevery10success-

ful applicants have had to pay deposits to se-

cure a property. The average deposit require-

ment for repeat buyers has risen to around

20% of the homes purchase price, in other

words, buyers are required to have a fifth of

the purchase price in cash. For first-time buy-

ers, who account for about 35% to 40% of the

home loans granted each month, the average

deposit required is around 12% of the pur-

chase price.

) Transformation in the industry:A few

years ago estate agent training and qualifica-

tion were at the forefront of the industry and

therewasastronger focuson theprofessional-

ism of the industry players withmany agents

achieving the necessaryNQF levels required.

Onceagain, 2013will see theproperty indus-

try transform, this time in the form of a

revamped Estate Agency Affairs Board

(EAAB). Goslett says that Tokyo Sexwale and

the Department of Human Settlements are

taking a proactive approach to resolving the

issueswithin the industryand theEAABwith

the focus on professionalism and transparen-

cy. One of the goals of the EAAB will be to

ensure that the property industry ismore rep-

resentative of all races and genders, with an

emphasis on attracting the youth into the in-

dustry. The number of estate agents in South

Africahasdropped from80000 in2008 toabout

half that figure or less as a result of the global

economic recession.

Goslettnotes thatrealestatebusinessesthat

promote and encourage transformation will

continue to thrive andgain support across the

South African market spectrum. RE/MAX of

Southern Africa has, for a number of years,

been highly rated as a BBBEE organisation.

)Technology:Withtheconstantevolution

of technological advancement, technology

will continue to play a vital role in the proper-

ty industry intermsofmarketingstrategyand

interaction between real estate professionals

and their clients. The trend of searching for

property on linewill continue to gainmomen-

tumandmore andmore buyerswill find their

dream home through on-line property search

portals.

) Fair market value: In 2013, property

pricing and the perceived value of property

will continue to be an important factor to the

success of a sale. Statistically, if a property is

priced correctly it will be sold within the first

fourweeksofbeingonthemarketandgeneral-

ly it will sell at the asking price. Although

sellers are the ones that set their asking price,

property pricing within a certain market is

largely determined bywhat a buyer is willing

to pay for that property, says Goslett.

According to ABSA, the first ten months of

2012 saw house prices marginally down by

around 0,6% year-on-year, while the FNB

house price index revealed a house price

growth rate of around 6,6% in August this

year. The indexs average price of homes

transacted was R865 900. Goslett says that al-

though house price growth has subsequently

improvedslightly,RE/MAXexpects that trad-

ingconditionsandthehousepricegrowthwill

remain relatively low during 2013 and follow

a similar path to what we have seen during

2012. With propertymarket activity and con-

stantly increasing, somuch so that certain ar-

eas are reporting stock shortages of certain

types of property, 2013 is bound to a year of

change, with transformation coming to the

fore of the property sector, he concludes.

ADRIAN GOSLETT

CEO of RE/MAX of Southern Africa

Intodayscompetitiveworldofrealestate, for-

ward-thinking companies are always looking

to reinvent innovativemethods ofmarketing

their products and attracting new business,

says Dr Andrew Golding, CE of the Pam

Golding Property group.

While its true that digital marketing has

changed the face of real estate forever, we ac-

knowledge the important role theprintmedia

continuestoplayinadvertisingproperties for

sale, and in attracting buyers and sellers. It

is certainly not a case of digital versus print

media we believe there is synergy between

thetwo,andthattheuseofinnovativetechnol-

ogy can further enhance our advertising in

print media. As a result, we have introduced

atechnologicalinnovationwhichwilladdval-

ue to the property experience for our clients,

called PGP Reality. This augmented reality

technologyallowsus todeposit concealeddig-

ital content on our print advertising, thereby

enabling readers access to additional, useful

information which will add further appeal to

theirvisualexperienceofourpropertyportfo-

lios. This can include a video of the property,

3Dmodels, linkstothepropertylistings,agent

details, share and tweet buttons and more,

says Dr Golding.

To view the enhanced visuals of an AR

markedpageor image,downloadthe freePGP

Reality application to yourmobile device via

either the Google Play Store for compatible

android devices, or via the Apple iStore for

an iPhone or iPad. Once youve downloaded

and opened the app, position the entire page

within the camera view on your device and

the enhanced content will be displayed via

your internet connection.

While other international brands such as

Reebok,VW,NationalGeographic andHilton

Hotels are already utilising augmented reali-

ty, in South Africa PGP has announced that

it is the first real estate company to introduce

this ground-breaking new technology.

Adds Dr Golding: This is a key marketing

tool to rapidly delivermore content to todays

fast moving and tech-savvy consumers. PGP

Reality will be used in our selected weekend

newspaper advertising, printed marketing

material and billboards. As the name indi-

cates, the new technology really brings prop-

erties to life,particularlyasvideosorvirtual

toursofhomescanbemade full screenbydou-

ble-tapping your screen.

PGP Reality will enhance print media advertising

PGP Reality, a marketing tool for Pam

Golding Properties

11

Eikestadnuus

10 Januarie, 2013

BOLAND

SOLD

STELLENBOSCH

GELEENTHEID VIR STUDENTE AKKOMODASIE

Kamers 6 Badkamers 2 Parkering 2 WEB 278653

Ideaal gele op die drumpel van kampus en US

groenroete op n erf van 1100m in De Weides.

[K] 021 886 7905 LEON 082 575 7356

STELLENBOSCH R5 700 000

UPMARKET APARTMENT

Bedrooms 2 Bathrooms 2 Parking 1 WEB 277028

North facing apartment in the centre of town, within

walking distance to whatever you need.

[O] 021 886 7905 LEON 082 575 7356

LISBE 084 666 0011


HOME FOR ALL REASONS

Bedrooms 5 Bathrooms 3 Garage 2 WEB 277009

A quintessential family home offering great living and

entertainment space yet grants every family member

privacy.

[O] 021 886 7905 SOPHIA 082 824 6798


MOST BEAUTIFUL VIEW


A sixtys home with lots of character in the most

beautiful setting next to a natural park.

[O] 021 886 7905 SOPHIA 082 824 6798


SKAARS...

Kamers 2 Badkamers 2 M/Huis 1 WEB 279926

Ruim meenthuis in klein gewilde kompleks.

Uitstekende afwerking, 2 leefareas en klein privaat

tuin.

[K] 021 864 2948 MARISA 079 877 4177

WELLINGTON R1 080 000

SAFE AND SECURE TUSCAN HOME


Spacious open plan living area and designer kitchen with

granite tops. Communal swimming pool.

[O] 021 864 2948 CARMEN 082 490 0994

WELLINGTON R1 230 000

SCALING DOWN


Open plan living area with air-con. Small garden with

braai area. Garage has direct access into the house.

[O] 021 864 2948 LINDA 083 379 3769

WELLINGTON R 750 000

IN N ANDER KLAS

Kamers 4 Badkamers 4 M/Huis 2 WEB 280229

Droommooi huis met uitsigte wat net in boeke is! Die

beste van die beste. Maak n afspraak vir hierdie

onthaler se droom.

[K] 021 872 2223 LITA 083 498 1018

PAARL R5 600 000

TOP QUALITY


Top finishes with attention to detail. Stunning views

over vineyards and Table Mountain. Exclusive living.

[O] 021 843 3368 GERHARD 076 590 7758

On ShOW Sun 13 Jan 14h00 - 17h00

SOMERSET WEST R2 950 000

OCCUPATION 2013!

Bedrooms 2 Bathrooms 1 Parking 1 WEB 278951

Very neat apartment on first floor of security complex

with braai area and splash pool. Just move in!

[O] 021 886 7905 DROEKS 082 685 9189

STELLENBOSCH R 795 000

SOLE MANDATEJOINT MANDATE

SOLE MANDATE

SOLE MANDATE

SOLE MANDATE

ON SHOW

In a market thats still

largely geared to home

buyers, its tough to get

them to come to show

days or home viewings,

and tougher still to hold

their interest.

So says Berry Everitt,

MDoftheChasEveritt In-

ternational property

group, who advises that

sellers should thus do

their utmost to avoid the

following instant turn-

offs thatwill often cause

buyers to move on to the

next property without a

backward glance:

)Dirtydishesandclut-

tered kitchen counters.

Counters crowded with

the blender, coffee-mak-

er, toaster, kettle and

slow-cooker may make it

appear that the kitchen lacks work and

storage space. And the remains of last

nights supper congealing on plates in the

sink are sure to put buyers off.

) Pets and their stuff. Nobody wants to

see a dirty cat litter box next to the dining

table or the dogs chew toys scattered all

over the living room, and buyers who are

allergic to dogs or cats will probably walk

straight back out again. Frankly, when

your home is for sale, there should be no

sign at all that a pet lives there.

) Dirty toilet or toilet seat. This is

enough to put buyers right off even if they

like the rest of your home and have begun

to visualize where they would put their

own furniture. Buyers really dont want

to be reminded that they will be taking

over a used bathroom, so everything in

this room including counters, mirrors,

bath and basins should be absolutely

spotless before you put it on show.

)Toys and baby supplies. For the most

part, buyerswill understand that keeping

your home tidy when you have children

especially a baby is difficult. But its

important nevertheless tomake an effort.

Round up toys into a storage chest or cup-

board, clean out any bins with used nap-

piesinthemanddont leaveanydirtybaby

bottles lyingaround.Buyers shouldnever

feel that the home isnt clean or sanitary.

Four biggest buyer turn-offs

12

Eikestadnuus

10 Januarie, 2013

BOLAND

SOLD

STELLENBOSCH

Shouldyoubuypropertywhichhasbeen

on themarket forayear?

A

t the height of South Africas

property boom, houses were

selling within weeks, if not

days, of being listedand itwasonly the

most problematical properties that re-

mained unsold month after month.

Thats according to Richard Gray, CEO

of Harcourts Real Estate, who says the

boom period of 2004 to 2008 embodied the

rule of thumb that, in an ideal market, a

property should take about eight weeks

to sell.

There were times during these years

that buyers were literally queuing for

properties, and many instances in which

properties soldwithinhours of first being

advertised, he says. However, on the

back of the financial downturn, the cur-

rent market is far from balanced, as evi-

denced by the findings of FNBs Estate

Agent Survey for the second quarter of

2012 that houses are spending an average

of almost 18 weeks on the market.

Further, he adds, there are properties

that, despite repeat on-line and newspa-

per advertising, have been on the market

for a year or more.

Clarifyinghisuseof thewordproblem-

atical, Gray says he is referring to three

specific problem areas, namely price, lo-

cation and the condition of the property.

Of these, themost critical and yet easi-

ly remedied is price. If a property isnt

priced in accordance with prevailing

market conditions, it wont sell. Over-

pricing is one of the key reasons for prop-

erties spending months, if not years, on

the market and sellers who wont accept

that pricing has to be based on what the

market will pay, rather than what they

want in their pockets, are likely to end

up selling for a discounted price a long

way down the line if at all.

But if the price is right, he adds, then

regardless of any other problems the

property has, there will be a buyer for it.

The second problem is area. Location,

location, location is the age-old watch-

word of real estate, he emphasises. The

less desirable the locationof theproperty,

the less options the seller has. Properties

in areas characterized by high crime or

encroaching industrialization are likely

candidates for long stays on the market,

unless, of course, they are priced accord-

ingly.

Third on his list is defects. A defective

property is going to chase buyers away,

he warns. Most buyers want to buy a

place thats fit for them to move into and

start living.

While some are prepared to do cosmet-

ic improvements, most people dont want

to have to undertake major repairs, nor

do they have to in thismarket, where sup-

ply far outweighs demand. That means

the buying pool for these properties is ex-

tremely small, comprising only the brav-

est or most desperate buyers who are

looking for a bargain.

Properties that, despite being adver-

tised week in and week out, fail to sell,

become stigmatized, continues Gray.

Days on the market matter its one

of the first questions a buyer will ask an

estate agent. They feel there must be

something wrong with a house thats

been on the market for a long time, even

if in reality its a quality home that was

just over-priced when it was listed.

Once appointments to viewdryup and

buyer interest hits zero, sellers will in-

variably, depending on their personal

and financial circumstances, either

withdraw their homes from the market

or re-evaluate their pricing, he says.

Its at this point that old listings have

the potential to become todays best

buys, provided purchasers keep three

basic tenets in mind.

Buy it if the price has been brought

in line with current selling prices. Buy

it if youve done your homework on the

area so that there are no nasty surprises

with regard to crime or other negatives.

Buy it once youve done a thorough in-

spection of the roof, foundations, wiring

and plumbing, and make sure all struc-

tural changes are on plan.

If youre not confident enough to do

your own inspection, ask your agent for

the name of a professional home inspec-

tor who will advise you of the existence

of any problems and give you an idea of

the cost of remedying them.

Finally, says Gray, find out about all

recently sold comparable listings in the

neighbourhood and thenwork out an of-

fer based on the average selling price

less the cost of any renovations. RICHARD GRAY CEO of Harcourts Real Estate

Biggest and Best Property guide in the Boland

DistrictMail

HELDERBERG

Strand Gordons Bay Somerset West Stellenbosch Grabouw Elgin| | | | |

Michelle Marston

021 841 4285

Geraldine Menellevie

of Justin Cupido

021 887 2840

Ilse Fourie

021 870 4600

SOLD is die mees koste-effektiewe, ho-

impak keuse vir die bemarking van

eiendom in die Boland

Documents

Boland Sold 10-01-13