Get up to speed with the amended B-BBEE Property Sector Code
Entities of a certain size are considered to be exempted micro enterprises, and thus deemed to be B-BBEE compliant as a Level 4 contributor (100%) according to Adam Ismail, partner at Webber Wentzel, who says these are entities or persons:
- With an annual turnover of less than R10 million per annum (if services based).
- With a net asset value of less than R80 million (if asset based).
- Estate agencies, brokers or valuators with an annual turnover of less than R2.5 million.
The 2017 Property Sector Code replaces the B-BBEE Property Sector Code, which was published by the DTI on 1 June 2012 (2012 Property Sector Code).
Ismail shares some key observations in relation to the 2017 Property Sector Code:
Landlords beware: What a 'bad' tenant will cost you
While most tenants are good tenants, leaving the property they have rented in almost the same state in which they found it and paying their bills in full, there will always be a certain percentage who have either caused quite a bit of physical damage to the property or still owe money to the landlord according to Michael Bauer, managing director of estate agency SAproperty.com, who says this small percentage is the reason why many landlords will not rent to tenants who do not meet all their qualifying criteria.
If there is a lot of damage to the property or unpaid utility bills or rent, the landlord could be left with the "potential rental income for that year nullified", says Bauer.
Possibly, he says the most important part is the choosing of the tenant, and landlords need to be very thorough in checking references - it is important to check professional references like other agencies, affordability and verify employment.
PGP partnership offers global property investors a turnkey service
A new strategic alliance between Pam Golding Properties and Henley & Partners allows South Africans to secure their futures while simultaneously diversifying their international real estate portfolios.
Pam Golding Properties’ International Division has partnered with global investment-migration firm Henley & Partners to provide buyers seeking international property assets with a view to acquiring dual residence or citizenship, an end-to-end service.
For savvy South Africans who wish to diversify their investment portfolios by gaining a foothold on the global property ladder, this strategic alliance comes at a time when increasing numbers of affluent locals, including families, are looking to hedge their bets overseas.
The truths and myths about real estate agents
Years ago, selling property was considered a hobby or part-time job, and anyone was able to register and start selling, but in 2008 the industry underwent rapid change and being an agent is now a fully-fledged profession according to Lara Machado, head of training at Engel & Völkers Southern Africa, who says although from a general public perspective, the exact process is not quite clear and there is still a perception that being an estate agent is very much a ‘get rich quick’ scheme.
“It is also common practice for clients to negotiate commission, which is why we look at the common misconceptions people have about estate agents,” she says.
Machado shares some insights and myths:
Tax must-knows for making money with Airbnb
A brief search on Airbnb reveals over 10 000 property listings in Cape Town alone. If not doing it yourself, most of us know of someone who has hit on the golden solution of renting out their property through this internationally-recognised online platform.
This is according to Jeremy Burman of Private Client Holdings, who says this form of income seems ideal - you get to head off for a weekend away or annual holiday destination secure in the fact that you have obtained the ultimate house sitters - those who will be paying for the privilege. This in turn also allows for holiday and property expenses to be offset, often significantly if one considers the going rate for a Cape Town property in the peak season.