EDITORIAL VIEW
EDITORIAL VIEW
Property Development Onward and Forward
Confidence in the property sector from an investor and development perspective is currently on a high. Gavin Tagg of Retail Network Services says urbanization is the top trend driving retail growth and development in South Africa right now. This is particularly visible in major cities such as Johannesburg, Cape Town and Durban which all look like building sites with cranes dominating the city skylines. This suggests a property boom visible by the large amount of development activity, with little to suggest that we are living in tough economic times.
When real estate investors ask me for any secrets to successful property investing, it is hard to select just one. The following though are eternal: never stop learning, continue implementing the knowledge and that a team of people is essential for success. There are 4 common mistakes I see many investors
According to John Loos, FNB’ s household and property sector strategist, the possible bursting of a Chinese property bubble together with the weakness in other areas of the Chinese economy could have“ significant potential implications” for South Africa’ s residential property market. Chinas property market has been on a knifes edge for the last year, and a sudden swing either way could have enormous ramifications for not just SA, but the rest of the world.
Louis van der Watt, CEO of Atterbury Property Developers, is our Master Investor for May. Atterbury make regularly that sabotage their investment efforts.
1. They don’ t implement their newfound knowledge.
2. They put themselves in direct contact with the tenant. As a passive investor it’ s important to put a management company in place so that all interaction with the tenant takes place through them.
3. They focus on trying to get an active return on their money. The cash flow produced can fund their lifestyle, pay their bills and make them wealth all without having to sell, unlike the stock market.
4. They buy their investment properties with the same consumer mindset that they used when they bought their own home.
There are many other mistakes made in the game of real estate investing and it is important to implement our knowledge.
Successful Investing
China’ s Property Market Balancing Act
are currently leading SA’ s Commercial Development industry with the recently launched Mall of Africa, the largest shopping centre in Southern Africa. We speak to Louis about the Malls four-year development and chart Atterbury’ s 26-year success story.
Further in the magazine we lay out the steps to creating the perfect Guest House experience, examine the top Commercial Real Estate trends in 2016 and examine the process behind repurposing old and misused building for maximum rental income.
Enjoy the read
NEALE PETERSEN
FOUNDER & PUBLISHER
DREW HOOK
EDITOR
“ Everybody in business shares one universal problem. To succeed you have you have to persuade others to support your vision, dream or cause.” PETER GUBER
www. reimag. co. za MAY 2016 SA Real Estate Investor 5