Lazola breathes new life into this rundown building through TUHF

Lazola breathes new life into this rundown building through TUHF

Lazola Nyerere Kubukeli named this beautifully restored mixed-use development in East London after his late grandfather. Welcome to C.Z Kubs. 

 In March 2019, Kubukeli saw an advertisement on Property24 for a building at 266 Oxford Street in Belgravia, East London. He contacted an agent and went to view the property, put in an offer and was told that his offer had been accepted. Unfortunately, the agent never provided him with a signed offer to purchase, and a week later Kubukeli was told the property had been sold to someone else. 

 Having invested in a feasibility study, as the building was rundown and there were no building plans for the property, he was extremely disappointed. “I decided I wouldn’t look for another property for a while,” he says. 

READ MORE: Big first-time homebuyer blunders and how to avoid them

 Then, in September of the same year, a new team of real estate agents presented Kubukeli with another property for consideration, but he still had his heart set on 266 Oxford and told them so at the viewing. It turned out the property was back on the market, and Kubukeli sent in another offer of R6.8 million immediately – R400 000 less than his first offer. This time, the sale went through smoothly and on 26 March 2020 the transfer of the property went through. 

 “The Transfer came through on the day that hard lockdown was announced.” Kubukeli laughs, recognizing the irony. “Luckily from January we had started doing a bit of demolition work, since I opted for occupational rent from January. We had to delay the start of construction to June, which was extremely nerve-wracking. We started going at it hard when the construction sector reopened, because we had to make bond payments and because I wanted to catch up the lost time. I was here personally until late at night to get the property completed.” 

 TUHF has been involved in the refurbishment of C.Z Kubs since inception of the project. “In 2018, I did SAPOA’s Property Development Programme at UCT and that’s where I found out about TUHF,” Kubukeli says. “At the time I was told they didn’t have a presence in the Eastern Cape, but when I started doing my research in January 2019, I found out they had an office in PE and I approached them.” 

READ MORE: Here’s how to make a smooth transition from renting to buying your own home

 Working with his own architect, the original building at 266 Oxford – a four story mixed-use building consisting of 15 residential units and three retail spaces – was reconfigured and refurbished to comprise 46 apartments and seven retail stores downstairs. C.Z Kubs offers two 3-bed units at R7 000 per month, eight 2-bed units at R5 500 per month and 36 1-bed bachelor studios at R3 900 per month.  

 He adds, “Ask questions and get advice from people who know a bit about the market and about property development, like TUHF. Your first deal can so easily be your last deal. Be informed before you take the plunge.” 

Source: TUHF

                   

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What is the Property Practitioners Act and how will it change inspections in South Africa?    

What is the Property Practitioners Act and how will it change inspections in South Africa?   

 The Property Practitioners Act (PPA) will come into effect from 1st February 2022, President Cyril Ramaphosa has announced. 

 The Act, which will repeal the Estate Agency Affairs (EAA) Act, was originally tabled in March 2020 for public comment. At the time, no definitive date was given as to when the Act would come into force. 

 Industry commentators have said that the Act will bring a raft of significant changes to the property sector in South Africa, both for consumers and industry practitioners. 

 While it has been designed to protect consumers first and foremost, property practitioners have been urged to learn of the new changes if they haven’t already, lest they fall foul of the new regulations. 

Commission and Brokering Requires Certification 

The new Act will introduce the necessity for a valid Fidelity Fund Certificate for practitioners who broker or earn commission from sales and leases. Sellers and landlords can request this from their property professional at any time. 

 While already a part of the previous act, the new legislation will expand to include the need for tax clearance and BEE certification, with compliance a must for both individuals and businesses. 

 

 Property Inspections are Mandatory 

The Property Practitioners Act will now make property defect disclosure documents a mandatory requirement for sales and leases, whereas before it was optional, although always considered best practice.  

Like other nations, the document will become a vital part of the sale or lease agreement, though buyers may still wish to solicit a professional to conduct a property inspection separate to the legislative requirements.  

  

 What’s a Property Practitioner? 

The Act defines a property practitioner as someone involved in letting, purchasing, marketing, selling, financing or renting. In a move welcomed by many consumers, the Property Practitioners Act seeks to cover a diverse range of practitioners in the industry. Going beyond the former EEA act, which saw its definition of a practitioner fall squarely on the more traditional estate agent, the PPA includes legislation pertaining to the roles of home inspectors, homeowners’ associations, property developers and brokers, among others.  

 What Does This Mean for Inspections? 

Heavily featured in the new Act, property inspections amounting to a property defect disclosure document will become a mandatory requirement for sales and leases. With this new legislation making reports like this a must-have, how will property practitioners keep up with the demand? 

 Well, as is the case with many other paper-based processes in the property industry, technology is tipped to rise in prominence for inspections in South Africa, countering the need for even more paperwork. 

David Hutchison, Sales Director at Property Inspect South Africa, comments: “Whilst the ramifications and the opportunities due to the introduction of the new Property Practitioners Act are still unclear, what is certain is the need for better property technology to provide compliant reports and property audit trails.” 

READ MORE: Buying or selling a farm in South Africa – make sure it’s a watertight contract

 Proptech Holds the Key to Efficiency 

Failure to adopt technology could be detrimental in the wake of this new legislation, with a host of new mandatory documentation likely to swamp your average property practitioner.  

The benefits of adopting an end-to-end property inspection app are clear to see, chiefly among which is the ability to save time and money. 

 As well as full compliance, efficient workflows, and in-depth auditing, the other benefits are manifold. 

 “Dispute resolution, fairness in handling disputes, professionalism, time-saving and business risk reduction are all benefits of upgrading your inspection process, and your proptech in general.” 

 But property technology adoption in South Africa has been slow to catch on, not unlike most of the world’s property sectors. 

 Resistance to change has been a huge stumbling block over the years, though property technology is having its breakthrough moment with some leading property organisations in South Africa. 

So too organisations across the world, who are now benefitting from smarter, digital tools and platforms that speed up many facets of the property process, and inspections are no different. However, it’s not without its risks, as David Hutchinson explains: 

 “Before making a switch, look out for systems with a proven track record, a clear vision for the future, features that you actually need, as well as good quality APIs for future integrations in order to further streamline your business.” 

If you’d like to explore how Property Inspect can help you with your business’ Property Practitioners Act 2022 workload, get in touch today or book a demo. 

Property-Practitioners-Act

Disclaimer: This article does not constitute legal advice and should not be used as such. If you require further guidance, contact a legal professional with expertise in the aforementioned Property Practitioners Act.

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Sponsored: Here’s why you need Wealth Masters Club to help you structure your assets

Sponsored: Here’s why you need Wealth Masters Club to help you structure your assets

  • Many people make the mistake of thinking only the wealthy need to structure their assets.
  • We create the foundation for wealth creation, wealth preservation and continuity.
  • If your assets are in a properly administered Wealth Masters trust structure, they are not attachable by creditors.
  • Death costs can all but empty your estate, leaving nothing to your spouse or children – however, our trust structures can eradicate these costs completely, leaving everything to your loved ones.

During the past year, a lot of people lost their jobs and / or businesses, resulting in devastating consequences for their entire family. One positive consequence of the pandemic is that many people are looking for ways to do business in a safer way and to safeguard their assets.

Even if the pandemic had no direct impact on certain people’s finances, in general, people are always searching for better, bigger, quicker, more, and less. Better quality of life, a bigger house, a bigger car, quicker results, more money, less stress, and less tax. Does this sound familiar?

I also had a lot of clients re-evaluating their financial position as well as their work and family time balance. We have more clients now, during the pandemic, than ever before! The only reason I could come up with is that people are searching for the safer, better, bigger, quicker, more, and less in life.

Let’s dream big and start small.

A lot of our long-standing clients are spending more time with their families now as they have their passive income generating structures in place. Many others are not there yet, but they have clear goals and are moving forward, even if it is slowly.

They also understand what it means to apply the Wealth Masters’ principle, using other peoples’ time, other peoples’ skills, and other peoples’ money.

How can we help you in this journey?

We create the foundation for wealth creation, wealth preservation and continuity. Many people make the mistake of thinking only the wealthy need to structure their assets. This is simply not true, as every person will benefit from a trust in one or more ways.

The benefits of the types of trusts we set up include:

Doing business in a safer structure.

This might require restructuring of your current business setup, but will give you the protection of assets (business and personal) from creditors. Since the trust assets do not form part of your business or personal estate, they are not attachable by creditors, if the trust is properly administered.

Ensuring minor children are financially cared for when you pass away.

In terms of South African law, minor children cannot inherit. If both parents or the only parent pass away, the entire estate will be liquidated and the cash will be paid into the Guardian’s fund, a fund administered by the government. If you have your trust in place, the children should enjoy all the same benefits they had during the life of their parent / parents.

No freezing of the Trust bank account.

The deceased’s bank accounts must be frozen and therefore, the surviving spouse will not have access to those funds. The Trust’s bank account will not be frozen, the Trustees may grant the surviving spouse the authorization to access the Trust’s bank account.

Continuity

a South African trust has no expiry date. The trust will continue for as long as the trustees wish to continue with the trust, meaning assets can be held for the benefit of many generations to come. The Duke of Westminster is a great example of continuity of assets in a trust structure. If one of the Trustees pass away or is no longer able to comply with its duties, the remaining Trustees will appoint the replacement trustee and the day-to-day transaction and administration will continue.

Tax-efficient income splitting.

This is known as the “conduit principle”. Trustees resolve to distribute taxable income to beneficiaries in lower marginal tax rates.

No or less Estate Duty

Estate duty of 20% is payable on the value of your estate from R3 500 000. If your Estate is valued at R30 000 000 or more, 25% estate duty is payable. In addition to estate duty, executors’ fees of 3.5% of the gross value and 6% on income received in the estate is also payable. All these fees/taxes are payable in cash and therefore unfortunately most families end up selling assets just to cover these fees. The sale of assets will most probably take place at an auction and then another 10% may be added to the above costs. The assets held in trust will not form part of your estate, except for the loan between you and your trust, therefore these asset values will not be considered.

No or less capital gains tax on death

if your assets are not held in trust another, 18% may be added to your “death costs”.

I want to encourage you today to take the next step. Every small step in the right direction is one step closer to your goal!

Contact us for further guidance in this regard at services@wealthmastersclub.com

Source: Wealth Masters Club

 

 

Growthpoint, Feenstra Group & Investors | new student accommodation fund

Growthpoint, Feenstra Group & Investors | new student accommodation fund

Experienced. Trusted. Proven. “If it’s worthwhile doing, it’s worth doing well.” This is the quote that Pieter Feenstra often repeats to his young and dynamic team at the Feenstra Group in South Africa. Another, more tongue-in-cheek one is: “Be careful when euphoria is everywhere – even turkeys can fly in a hurricane.”

READ MORE : IWG | Alan Van Der Westhuizen | Leading The Co-working Revolution In South Africa 

Feenstra’s career commenced as a consulting structural engineer. He was also the founder of TFMC, which is nationwide and has regional offices in all provinces. He formed the Feenstra Group which focuses on Commercial, Student accommodation, Inner city and Residential real Estate development.

As the Group’s Chairman and Founder, Pieter Feenstra has over 30 years of experience in property development and management. His first property development project evolved out of his consulting work as a structural engineer, during which time he worked closely with several property developers and developed a fascination for the industry. Feenstra explains that this led him to eventually take the plunge and sell his consulting firm to focus exclusively on property.

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