Real Estate Investor Magazine South Africa June 2014 | Page 8

ASK THE EXPERTS Q To invest or not to invest? Sizwe Kekana Asks: I am considering investing in commercial or listed property. Can you give me some insights into what is currently happening in the sector so I can decide on whether to pursue this idea or leave it until a later stage when the market is perhaps that more favourable? A Mike Walters, Renprop Commercial Answers: During the past five years the South African commercial property market has been in the doldrums. Although it did not reach the same lows that Europe and the US did in 2008, it has also not seen the same level of recovery as the US is currently seeing. On a macro level, Southern Africa is still attracting multinational investment as a launch pad for the continent. In the listed property sector, the larger players have capital and are acquiring. There are bound to be some mergers, more listings and some consolidation of the smaller funds. Good industrial stock is hard to find, and if it is well tenanted, it will sell at attractive yields to the right investors. However, funding still remains a problem for the small and medium investor looking to bulk up, as the banks are still tight unless the risk profile is extremely low. The office sector, remains slow with lots of empty space available and asset managers throwing all sorts of promotions and incentives at the brokers, especially if the buildings have been empty for a while or there is a risk that they will be. There are also a number of external factors that have an influence over the market. South Africa’s political scenario, the exchange rate, petrol price and repo rate all affect consumer confidence, businesses and the markets. These factors all play a role in influencing tenants’ businesses, landlords’ attitudes and investors. Trends in the micro commercial space have also shifted, with technology making the process of finding a suitable property much easier. Q A Incompetent trustees Ronda Isaacs Asks: I am a sectional title member and have noticed over quite some time that the trustee of the body corporate has become fairly negligent bordering on incompetent. What can one do to ensure that the levels of expectation are met? Michael Bauer, IHFM Answers: The position of trustee can be a tough one in that they are working for no pay but often have to put in many hours and it can cause some trustees to become disillusioned and non-caring. If body corporate members find this happening they must make use of the Prescribed Management Rule 53 which allows them to call on the trustees to organise a special general meeting – provided that the members can show that 25% of the scheme’s members are in favour of such a meeting. If, after 14 days, the trustees have not complied with this request, the Prescribed Management Rules allow any owners in the scheme to call such a meeting himself – at which it is possible to bring about the instant dismissal of some or all the trustees and the election of new trustees. The notice tha is sent out calling this meeting must state the purpose is to remove a trustee, he or she may not be ambushed in cases such as these. As long as there is a quorum at the meeting and the majority of the attendees agree to the removal of the trustee will go ahead. Do you have a property question you would like answered by our experts? If so, post it on ASK THE EXPERTS on www.reimag.co.za or email [email protected] 6 June 2014 SA Real Estate Investor www.reimag.co.za