Real Estate Investor Magazine South Africa Dec/January 2020 | Page 9

EDITORIAL VIEW JOHANN RUPERT How to make a big impact in 2020 EMAIL [email protected] INTERVIEWS tv REItv Legal and municipal red-tape presents another frustration for would-be investors. In addition the release of land for development is a slow process and involves fulfilling multiple procurement requirements, not to mention dealing with zoning and time delays, and inefficient municipal billing systems. Real Estate is still a safe long-term investment. Unless you are hoping to make a quick profit, real estate is still one of the safest investment decisions a person can make if viewed as a long-term investment. While it is possible to make a profit off the sale of a property in the short-term if market conditions are good, the chance of making a profit in a downward market such as the one we are currently experiencing in the short term is a bit of a gamble, according to Adrian Goslett CEO of RE/MAX. Periods of property price decline in real terms is also normal. “The ebbs and flows of the market will even out over time to yield a stable and substantial return when it eventually comes time to sell,” he explains. Now is really a good time to enter the market. Instead of focusing on the negative, investors should notice the many opportunities that the current market offers them – especially within the luxury market which has been hit the hardest by a poorly performing economy. Buyers who purchase property now have a chance of entering the market while prices are low, which is far better than waiting to purchase when prices begin their steady upward climb. If these can be successfully navigated by aspiring entrepreneurs with the grit to succeed, however, the sky is the limit. Understand these fundamentals and you will make an impact in 2020. Successful investing NEALE PETERSEN EDITOR-IN-CHIEF MICHAEL JORDAN “ I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed. “ T his edition we decided to put Siya Kolisi captain of the Springboks on this month’s REImag cover. South Africa’s thrilling Rugby World Cup (RWC) win has had such a positive impact on the nation we hope that this is the medicine needed to fuel a stuttering economy, poor performing property market and a tough financial year for most. The sight of Kolisi our first black captain lifting the trophy will certainly give a much needed trading activity boost, hope but more importantly a positive sentiment into the country. Yearend is always a good time to reflect on the highlights and lowlights looking into the rear view mirror. It is a time for introspection to look at new ways of getting better and more importantly making a bigger impact in the world. Solutions for massive housing backlogs, property development, renewable energy, logistics and healthcare are partly entwined within the real estate sector. 90% of the world’s millionaires invest in real estate to create wealth and is tried and tested formula. Over the last two centuries, about 90 percent of the world’s millionaires have been created by investing in real estate. For the average investor, real estate offers the best way to develop significant wealth. These facts cannot be challenged. Besides just making money in real estate we are also seeing a new trend emerge in that philanthropic investment capital is on the rise, and is not new but it is called impact investing. In a nutshell impact investing is investing in any investment in this case real estate, that impacts on poverty eradication, providing housing, drinkable water, sanitation, employment and prosperity for all. Inner city investment provides a huge platform for impact investing. So what is holding property entrepreneurs back from impact investing? The opportunities for exponentially faster and grander growth in our inner cities are tantalizing according to Professor Francois Viruly of UCT. He says several hurdles remain for South Africa’s entrepreneur class as it gets a handle on this often- overlooked property segment. A legacy of Apartheid land policies means that many in South Africa have little inter-generational knowledge in the areas of buying, selling and managing property. Although programmes and incentives exist to help them break into the sector through funding, education and mentorship, these remain a rarity that TUHF Limited (an inner city focused financier and investor) has pioneered this new opportunity and hopes to see much more of in the coming years. FaceBook LIVE REAL ESTATE RADIO PodCasts SA Real Estate Investor Magazine DECEMBER/JANUARY 2020 7