Real Estate Investor Magazine South Africa March/April 2019 | Page 30

2019
FINANCE
A good time to
be a developer
BY LYNELLE CLARK
H
erschel Jawitz, CEO of Jawitz Properties, Chris
Renecle, MD of Renprop and Dr. Andrew Golding,
Chief Executive of the Pam Golding Property group,
all agree that the residential market is in for an interesting time
in 2019 in South Africa.
Even though the majority in the country feel that things
will continue to decline the enlightened among us states that
all predictions for the year are positive. They believe that home
buyers and investors who take the plunge and buy early will
be well-rewarded. Buyers and investors should not allow the
current unsettled state of the global and local economies to
cloud their vision of long-term gains, states Berry Everitt,
CEO of the Chas Everitt International property group in his
article in BizCommunity.
This is, of course, terrific news for develop-
ers.
There is renewed confidence in buying property, especially
in the major metros. Prospective buyers are moving closer to
schools and parents change jobs to be closer to their homes.
Gone are the sluggish real estate market of 2018. This year
has proved to be energised as the market and banks are more
lenient towards the buyer.
2019 is the year for changes in the real estate market.
Buyers and sellers, tenants and landlords can transact easily.
Technology is being harnessed to allow a positive response to
long-held client frustrations and traditional ways of business
are being challenged. If we do not think differently, we will be
left behind in this ever-changing world which is good news
for end-consumers.
“Property transactions are going to be managed more
efficiently and with greater transparency. It will be easier
and less expensive,” says Paul Stevens, CEO of Just Property
Group Holding (Pty).
“I don’t believe that systems and technology will replace
real estate professionals; the circumstances around property
transactions are too diverse, convoluted and unpredictable.
I do believe that we have an opportunity to augment the
skills of our real estate professionals using technologies,
thereby delivering a far better level of service to our clients.
This prospect is what I most look forward to in 2019,” added
Stevens. 
“If a buyer gains the post-election jump in the value of their
property now, they will enjoy the benefits of smaller monthly
bond repayment. This means that they stand to derive the
maximum possible advantage out of the strong market recovery
that they foresee taking place over the next four years.” Berry
Everitt, CEO of the  Chas Everitt International  property
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MARCH/APRIL 2019 SA Real Estate Investor Magazine
group said.
“Although we are being subjected to increasingly loud and
distracting political in-fighting ahead of the General Election
in May, it is not surprising that many prospective buyers and
investors are deciding to ‘wait and see’ how things turn out
before making any further commitments to the market.” Berry
Everitt concludes.
“One thing is for sure, now is not the time to delay residential
property developments or put things on hold because of a
shortage of cash,” says Prevance marketing manager, Christo
Jonker. “We understand the day to day challenges which
developers face. Often the biggest frustration for property
developers is to obtain the final approval certificates or
regulations from government council departments which is of
the essence to be able to transfer to end-user buyers and this
extends to cash flow issues.”
As the adage says, the best-laid plans of mice and men
often go awry, and for this reason, it’s important to have a solid
backup system in place because money worries should be the
last thing on any developer’s mind, Jonker added.
“Our products have been developed through our vast
experience in this important sector and we are immensely
proud of the services we offer. Our team understands that
speed is of the essence when dealing with short term finance
solutions and our products have been specifically designed
to not only allow developers access to cash in the shortest
possible time but also to offer an array of options tailor-made
for developers’ needs,” said Jonker.
In order to qualify for Prevance’s short term property
finance the developer should:
• Provide security in the form of a first mortgage bond
of a property’s wortharound twice the value of the loan
required, which need not to be the land being developed;
• Should have invested his own funds into the development;
• Demonstrate the viability of the project;
• Should have a proven track record; and
• Have obtained all relevant zoning regulations/certificates
obtained.
As Prevance prides itself in giving a quick answer to all
applications and makes the funds available soon after approval,
the solution provided by Prevance is specifically for a short-
term requirement and should be repaid within a few months.
This limits the interest cost.
Those who meet the criteria could qualify for as much as R7
million per phase of development.