Real Estate Investor Magazine South Africa September 2014 | Page 23

REI RESIDENTIAL
REI RESIDENTIAL

SHIFT TO SELLER’S MARKET

T

he residential real estate market has turned the corner and is now in
a definite upward phase, according to Seeff chairman, Samuel Seeff.
Homes are selling twice as fast compared to last year and about 90% of
buyers now pay close to, or the full asking price. Multiple offers and strong
buyer competition are driving offers to above the asking prices in many
instances. There is no doubt that we are now in a sellers’ market, he says.
The primary housing market is hot, not only in the sub-R2 million sector,
but almost across the board. Even at the top end, R20 million-plus sector
of the market, stock shortages are a significant draw-back. Foreign and
trophy home buying are at the highest levels since 2007. This buoyant buyer
activity is now also spilling over into the secondary investment and leisure
markets. The latest FNB Property Barometer confirms that buy-to-let activity
has strengthened for the third consecutive quarter, now accounting for about
10% of all buying activity.
The South African property market continues to show its resilience and
Seeff says that it was always just a matter of time before buyers would be
back and buying. While the economic outlook remains a mixed bag, we
should take encouragement from the JSE’s recent good performance and
the currency clawing back some of its value. Certainly insofar as real estate
is concerned, the confidence is high and it is undoubtedly a good cycle for
sellers.

Ken Woollcott
Manager
PGP Bedfordview
There are a number of aspects that
need to be considered when purchasing
a property to let. Find an agency
experienced in the area that can provide
you with the necessary guidance and
advice, and can assist in matching you to
the right kinds of investment properties.

Adrian Goslett
CEO
RE/MAX of Southern Africa
With security often a determining factor
for where property buyers choose to
purchase their homes, security and
lifestyle estates are a popular choice
with buyers. The popularity of these
estates generally makes them excellent
investment options due to their returns
over the long term.

www.reimag.co.za

EXPERT Q&A
Selecting
a property
management
company
Chris Renecle
Managing Director
Renprop

Why is it important to select the right
property management company?

Not all management companies are created equal.
There are different kinds of management companies
that have more experience dealing with certain kinds of
assets. It is extremely important that the management
of commercial or residential property assets is handled
by a management company with the right knowledge,
experience and qualified individuals to be able meet
the owner’s objectives. A good management company
will be able to increase the asset value of the property,
increase the potential rental income and protect the
property investment value.
What are some of the selection criteria
investors should use?

Investors should establish the company’s reputation,
the number of years that the company has been in
business, its accreditations and affiliations and the
types of properties the company specialises in.
What basic services should investors
expect?

The basic services that can be expected from a standard
management agreement are the collection of rentals
and rental analysis, bill payments, maintenance of the
property, financial reports, tenant relations and the
supervision of employees.
What fees are reasonable?

The management fees are normally charged based
on a percentage of income collected with a minimum
monthly base fee. The fees are negotiated on a per
property basis and depend on many factors including
condition, location and size of the property.
September 2014 SA Real Estate Investor

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