Real Estate Investor Magazine South Africa June 2016 | Page 25

Phillip Reynolds
DURBAN NORTH

Career Retrospective

I studied marketing at UCT and then worked for
myself selling corks to the wine industry. When we
relocated from Cape Town I became a shareholder
in a steel company, where we built warehouses and
manufactured steel for the commercial and industrial
property market. I then joined Pam Golding
Properties as an estate agent where I am enjoying
the freedom of working for myself within a very
established and respected brand.

Briefly describe your first property
investment

Our first investment was a piece of land in Hout Bay,
which we purchased for R400 000 in 2000 and then
sold for R1200 000 in 2002. This enabled us to then
buy our first home, which was also in Hout Bay. We
bought in a very popular area – we paid R1800 000
for our house and sold it in 2006 for R2750 000. We
spent about R100 000 on renovations, so we made a
good profit on it when we flipped it. It was a great
investment and taught us the value of clever upgrades
to enhance a home and of course, the cardinal rule of
always buying in a good area.

What has been your most significant
property deal and what insights can you
share from the experience?

We purchased a spectacular piece of land in Hout
Bay in 2006. The land wasn’t on the market but we
fell in love with it because of its breathtaking views.
We then sourced it, contacted the owner and made
a cash offer of R1,3 million. We then undertook a
building project that lasted over 2 years. By the time
the house was finished and ready for occupation, we
had relocated to Durban, so ended up selling our
dream grey and white beach house with panoramic
www.reimag.co.za

sea views. It was a heart-sore moment, but it taught us
some valuable lessons:
You can create a beautiful home with clever use of
space without having to build a mansion. Our house
was 240m2, had 4 bedrooms and open-plan living
areas and spectacular views. We sold it for R4,4
million and 3 years later it was sold for R6,5 million.
Big isn’t necessarily better – style, views and clever
design are far more important than size!

What opportunities do you foresee in your
sector/industry in the coming year?

Durban North and La Lucia are booming, and
although the general sentiment in the market is that
2016 is going to be a difficult year, I am optimistic
that the nodes we operate in are somewhat immune,
because the demand is so high. We are expecting
banks to tighten their lending criteria, interest rates
have already increased, so affordability will be a big
factor that will buffer house price inflation.

RESOURCES
Pam Golding

TOP FIVE TIPS FOR THOSE
SELLING THEIR HOUSE
1 Price your home correctly as the average buyer is well
informed
2 Presentation is everything
3 Award a sole mandate to a reputable company. Match your
home to the best real estate brand
4 Allow easy access and make sure you are available for
viewings.
5 Your first offer is generally the best – if you get a good
clean offer, take it.
JUNE 2016 SA Real Estate Investor

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