Real Estate Investor Magazine South Africa October 2018 | Page 10

MASTER INVESTOR
structural demand for housing. That is a positive underpinning
for the market – although it will require economic growth
to ensure these potential homeowners are able to get into
the market.
South Africa is a global leader in green/sustainable
building – already in the commercial sector and increasingly
in the residential sector. This is a sector which is gaining
momentum worldwide, and SA is leading the way.
Niche accommodation such as student housing and
retirement units both of which are growing markets and
also ones in which developers are only now beginning to
adjust to the lifestyle requirements of these buyers.
“
Work like you don’t need
money, love like you’ve never
been hurt, and dance like no
one’s watching
“
UNKNOWN AUTHOR
present a big opportunity because parts of the industry – like
pricing, mortgages and building management – have been slow
to adopt software which could make business more efficient.
Until recently, the biggest tech innovations to hit the
residential real estate market have come from listing sites like
Zillow and Redfin. But the start-ups in the new wave are
tackling a wide range of areas – appraisals, building management,
financing, co-working, co-living and empty retail space.
In the US, the company Opendoor is an example of an instant
buyer’. The company replaces estate agents with algorithms
that crunch data (number of bedrooms to local crime rates) to
estimate a valuation. The home is then purchased at a discount
to the computer price, spruced up and resold. Opendoor says its
average fee is 6-6.5% - about the same cut as conventional estate
agents take on a sale (in the US)
24-hour economy:
As people increasingly adopt a live-work-place lifestyle, we
are starting to see the growth of decentralised hubs in which
there is a growing 24-hour economy. This is a major positive for
property owners as this means that it is possible to get more use
out of an existing property – not just for working or living but
instead a single building/development is used for living, working,
shopping, exercising, entertainment (for example). Francois
Viruly speaks about adding a time dimension to property.
Apartments – because first-time buyers generally start
with an apartment but so do downsizers (although they
may opt for high-end apartments). But SA housing stock
still reflects the old preference for large suburbs homes –
which for cost and security (and lifestyle) reasons are now
less popular among some home buyers.
Small towns/lifestyle towns – towns previously
considered holiday homes are now beginning to attract
a growing number of buyers looking to purchase their
primary residence in these locations. This is because of
the stress, congestion and expense of living in major urban
hubs. With private schools and hospitals being built in
smaller towns eg Hermanus, it becomes an option to live
there. Homes are more affordable, lifestyle is more relaxed
and commuting is less stressful.
The emergence of PropTech:
Having upended industries like taxis and hotels, venture
capitalists are now looking at real estate – which is seen to
ANDREW GOLDING’S INSIGHTS FOR
PROPERTY INVESTMENT
• Good location (congestion)
• Price (in current environment)
• Understanding the type of property for which
there is consistent demand e.g. first-time
homes, student accommodation, retirement
units and high-end sectional title (downsizers)
• Understand more about the market during
times of subdued activity
• Price growth in order to capitalize on sound
buying/investment opportunities.
GET INSPIRED BY THE BIGGEST NAMES IN PROPERTY
Join us on REIM TV as we interview
master investors such as Sol
Kerzner, Robert Kiyosaki, and
Christo Wiese to name a few
8
VISIT REIM TV AT WWW.REIMAG.CO.ZA
OCTOBER/NOVEMBER 2018 SA Real Estate Investor Magazine