Real Estate Investor Magazine South Africa Real Estate Investor Magazine - October 2017 | Page 8

Q&A Property advice Q NICHOLAS STOPFORTH MD at Amdec Property Development What should I look for in a development when I invest in residential property? There are a number of things to consider when investing in residential property. For example, if you are buying to rent out, con- sider employment opportunities. Locations with a growing job market and infrastruc- ture tend to attract more people, which means more tenants. Secondly, location. The quality of the location will influence the type of tenants attracted to your rental property. A good example is the mixed use development One-On-Whitely in Johannesburg. Look for good proximity to transport, healthcare, schools, businesses and shops. Consider safety. No one wants to live in an unsafe neighbourhood. And amenities: what attractions are nearby that will both be a draw and requirement for tenants? Things that must be considered are shop- ping malls, parks, movie theatres, gyms and access to public transportation and schools. Lastly, find out if there are any planned developments in the area. Would these positively or negatively impact the val- ue of your investment property? Is it a high-growth area or one that is currently in decline? A neighbourhood in the ear- ly stages of gentrification might result in a faster and higher appreciation for your investment property. Q Given the current global economic and political cli- mate, how do I go about investing my money in off- shore property?  NEWMAN LEECH CEO of Real Estate of the Gene- va Management Group (GMG) South African investors need to hedge their exposure to the South African Rand, which has lost value over time against stronger currencies.  This is where well-managed real estate assets come in.  Such property investments in locations such as Europe and the United King- dom can offer secure income-producing assets, allowing the South African inves- tor to earn a return in the stronger cur- rency, e.g. Pounds Sterling or Euros.  Examples of the real estate holdings that GMG Real Estate can offer to South African investors include: Swiss- com Building, Bern, Switzerland; IBM Headquarters, Stuttgart, Germany, Mid Kent Shopping Centre, Maidstone, UK; and Wells Court, Hampstead, UK. Q Given the environmental and economic challenges facing the hospitality industry in South Africa, what makes a good investment in this sector? MICHELE DE WITT Director of Horwath HTL SA ASK THE EXPERTS 6 The South African hospitality trading environment has never been as competi- tive as it is today. In addition to increased competition to retain and grow market share, hotels need to compete for natural resources and talent, whilst attempting to contain ever-increasing operating costs. Investing today in initiatives that will improve the longevity of a hotel’s opera- tion is an imperative. Keep these in mind: • For new properties, seek sites in urban areas with existing infrastructure. • Locate the property near mass transit to facilitate and encourage mass tran- sit use to reduce pollution. • Install power generators utilizing re- newable energy sources. • Design with rapidly renewable ma- terials including bamboo and natural fibre textiles such as wool. • Purchase electronics and lighting fix- tures that are energy-efficient models. • Design building envelopes to lessen the impact on energy loads, including proper insulation, double glazed win- dows, window film and reflective roof coverings to retain heat or cooling. • Develop a proper maintenance system. • Install a grey-water system. • Purchase water efficient equipment (i.e. laundry, dish washers, irrigation systems, etc.) 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] OCTOBER 2017 SA Real Estate Investor Magazine