Predicted changes in market coming
BY LYNELLE CLARK
Property experts Herschel 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.
This is, of course, terrific news for developers.
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. 2019 proves 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. They will be easier and less expensive. 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.” Says Paul Stevens, CEO of Just Property Group Holdings.
“If a buyer gains the post-election jumpin 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 group states
“Althoughwe 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 Prevancesales & 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 adds, “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.”
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 worth ± 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.
AsPrevanceprides itself in giving a quick answer to all applications and makes the funds available soon after approval, the solution provided by Prevanceis 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.
Jonker says, “The beauty of applying for short term property finance throughPrevanceis that each application is assessed on its own merit by our highly experienced team. There are no finance raising fees – in fact, there are no hidden costs whatsoever. Our wide range of services includes providing end-user finance via our in-house mortgage originator,Prevance Bonds as well as assistance with banks’ pre-valuations,” says Jonker.
“Assistance in obtaining zoning rights and other regulation certificates can be provided by the added value service of our professionals with whom Prevance has a relationship and whose credibility is valued. This extends to assistance with a feasibility study of the entire project.” Jonker explains.
“We have a proven track record in the short-term property finance field and our products have helped numerous small to medium developers across the country to overcome cash flow issues. Part of the reason for this is that we don’t micromanage the project as long as the funds are utilised by developers to kick-start, continue or complete a project.”
“We, like the rest of the country, are excited about the changes in South Africa and are looking forward to a more vibrant economy that will be aided by an increase in development projects,” says Jonker.