ISSUE NO.2 / 2019/

SPOTLIGHT: WHAT IS AFFORDABLE HOUSING

BUY-TO-LET CASPER NYOVEST How to make money through property Transform Real Estate had the pleasure of investment in South Africa, and turn rental chatting with about music, properties into personal wealth. family and real estate. Vaal | | Ekurhuleni

On show daily

New Houses by DVR Property Development Prices from R410 000

REACH US ON RhodaName: Grootboom Themba Thuntubele Website: www.awciproperty.co.za Tel: 011 243 5012 083 637 8242 [email protected] Tel: 072 021 3915 011 243 5012 Email: [email protected] Email : [email protected] CONTENTS 12

REGULARS

4 Investing in the Future About AWCI Investment & Property.

6 From the Chairperson We speak to the Chairperson Ms. Elizabeth Sangion.

SPOTLIGHT

12 Affordable Housing for All Affordable housing is an often misunderstood term and for many includes everything from RDP housing and other government housing initiatives. CONVERSATIONS

22 Housing for the Missing Middle Transform Real Estate magazine had the opportunity to sit down with Nonhlanhla Buthelezi, Chief Director: Operational Policy Frameworks at the Department of Human Settlement.

30 The Ins & Outs of Real Estate Penny Mboyi, the eldest of four chil- dren, grew up during the 1960s in Kwa Thema in the East Rand of Gauteng. Gwynedd Peters sat down with Penny to find out how she transitioned from teaching to banking, and finally settling down as the principal of her own estate agency with AWCI Homes.

LEGAL

32 What 1st time buyers should know Buying a home for the first time can be a scary process, especially if you have no idea of what the process entails. 34 Housing Subsidies Did you know that as an employee of the South African Government, such a dream could be that much 26 easier to achieve? 38 Breaking Down the House NEWS Unpacking the impacts of customary marriage on estate planning, inheritance and property 8 BUY-TO-LET ownership. How to make money through property investment in South Africa.

GIRLS WITH PROPERTY

16 Securing my Future through Property Nano Shadung is a 26-year-old marketing coordinator living in who believes she is securing her future through property ownership. 19 Becoming an AirBnb Mogul Mthuthu Msibi is a worldly woman taking strides to be Johannesburg’s next property mogul.

2 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 3 HISTORY

THE TEAM CHAIRPERSON: Elizabeth Sangion EDITOR: Gwynedd Peters MANAGING EDITOR: Nthabiseng Rapuleng PHOTOGRAPHY: Sanmari Marais (Sammy Shoots Photography) ADDITIONAL PHOTOGRAPHY: Adobe Stock, Shutterstock, Cassper Nyovest Instagram, Gauteng Department of Human Settlements, Mthuthu Msibi, Nano Shadung, TGR Attorneys, DVR Property Development, Penny Mboyi, Brand South Africa, AWCI, Elizabeth Sangion, STORIES EDITORIAL CONTRIBUTORS: Gwynedd Peters, Elizabeth Sangion, Bronwen Bartlett, Nthabiseng Rapuleng, Leshoko Mokgobu, Bibi Smit, Francois Janse van Rensburg, 26 Rap, Family & Real Estate Nonhlanhla Buthelezi, Nano Shadung, Mthuthu Msibi, Penny Mboyi. Transform Real Estate had the pleasure of chatting with Cassper Nyovest about EDITORIAL ENQUIRES music, family and real estate. [email protected] 011 243 5012 Civil Servant: Now Home Owner 36 www.transformrealestate.co.za Bontle wasn’t born in Johannesburg, but for as long as she can remember she has had dreams of the big city life. After ADVERTISING AND MARKETING ENQUIRES marrying her husband, and qualifying as [email protected] a nurse, they made the decision together [email protected] to head to the City of Gold, and have 011 243 5012 since settled in Cosmo City.

SUBSCRIPTIONS [email protected] www.transformrealestate.co.za 011 243 5012

VOL.2 / JANUARY 2019/

SPOTLIGHT: TRANSFORM MAGAZINE PUBLISHED ON BEHALF OF: AWCI PROPERTY AFFORDABLE HOUSING FOR EVERYONE PUBLISHERS: Main Angel Publishing, 2 De Oude Waterkloof, Petrus Street, Rietvalleirand, Pretoria

Unless otherwise agreed to, all contributions are the property of Transform Magazine, and its publishers. All editorial, business and production correspondence should be addressed to Main Angel Publishing: 462 Grysbok Street, Waterkloof Ridge, Pretoria. © Copyright by Main Angel Publishing. All rights reserved. The opinions expressed in Transform Magazine are not necessarily those of AWCI Property, the publishers, its suppliers, subsidiaries or affiliates. The editor and publisher reserve the right to alter copy and visual material as deemed necessary. BUY-TO-LET CASPER NYOVEST Transform speaks to an expert in this field Transform speaks to this superstar about his for the inside scoop on how to turn rental house, his family and putting his wealth to properties into personal wealth. good use through property.

THE COVER Affordable housing development, by Gert Prinsloo of GP Drawing Services for DVR Property Development.

2 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 3 INVESTING IN THE FUTURE WITH

African Women Co-ordinated Investments (Pty) Ltd (AWCI) is a new-generation BEE women empowerment company with a proven track record in not only deal making, but also in growing shareholder value for its wide shareholder base. AWCI was established in the latter part of 2003 as a broad representative business and investment organisation. Ded- icated to the economic empowerment of South African women from previously disadvantaged backgrounds, AWCI is represented across all nine provinces.

The company’s unique structure consists of a registered holding Our Mission: company AWCI (Pty) Ltd. This represents nine registered provincial companies who collectively make up the majority • To encourage a culture of constant progress and economic shareholders. empowerment of women. • To help develop women through skills transfer, job creation The result is meaningful empowerment and national and financial assistance and empowerment. representation. AWCI was established on the principle that • To create strategic women business leaders across every South Africa needs to grow its economy organically, to afford sector of our economy. its majority citizens fair economic opportunities and prospects. Strategy It is 100-percent owned, controlled and managed by previously disadvantaged women representing various professions, The emergence of AWCI in the BEE landscape was a direct businesses and industries. response to a call by Government to the South African business community to commit to the empowerment of previously AWCI’s founding objectives include the following: disadvantaged individuals, especially women.

• To promote a culture of constant advancement and As part of the company’s growth strategies and plans going improvement for all black women, from both rural and forward, the company will leverage its deal- making experience, urban backgrounds. internal skills base and asset base to pursue opportunities for • To encourage investing businesses and industries to recognise women in the various sectors of our economy. that business can no longer be a male-dominated domain. • To ensure fair competition between men and women in business. The company’s internal skills capacity helped set the foundation • To facilitate the development of women through for what later proved to be a solid base in the growth plans of skills transfer, job creation, financial assistance and the business. AWCI has received admirable recognition as a empowerment. serious player in the country’s economic landscape. It is part of • To develop strategic business leaders in all areas of the our strategy to continue doing so. South African economy. • To ensure that black women are properly and strategically AWCI is committed to building and developing local talent positioned and utilised for through our involvement in communities across South Africa. • The purposes of securing BEE opportunities and projects. This determination remains one of our core goals and the most essential ingredient of our economic empowerment success. Our Vision: We also intend to invest actively in sectors and seek opportunities Our vision is to become the foremost broad empowerment vehicle that will contribute to the economic empowerment of women. AWCI for total economic emancipation of women from previously will do this through building meaningful and empowering long- disadvantaged communities. term partnerships with key players in the South African economy. AWCI PROPERTY

AWCI Property is a black women-owned, full-service property group dedicated to providing excellent, professional and top class service.

We are passionate about making a difference in people’s lives and our vision of creating wealth for black people through property ownership is what drives us.

The mission at AWCI Property is to enable black individuals to participate in the property economy, restoring dignity and hope, creating wealth and enabling you to leave a legacy for the next generation.

The AWCI Property portfolio consists of the following organisations: AWCI Bonds; AWCI Homeloans; AWCI Homes; AWCI Rentals and AWCI Wealth.

Our mission is to enable black individuals to participate in the property economy.

Restoring dignity and hope, creating wealth and enabling you to leave a legacy for the next generation.

Some of what AWCI can do for you - learn about these and more right here in TRANSFORM REAL ESTATE MAGAZINE

Wealth The greatest investment you can make is property ownership.

Homes We aspire to produce high calibre black women Real Estate Practitioners.

Property and Rental Management At AWCI Rentals we pride ourselves in putting Landlords and Tenants first. We provide professional service and guidance for all types of family housing, residential and commercial properties.

Property Institute When it comes to selling and buying a home, it is important to trust in a Real Estate Agent who cares about your neigh- bourhood as much as you do. We train such agents to be the best and most knowledgable in the business.

Home Loans We pre-qualify you and source the best home loan. Do you qualify for a home loan? How much will you qualify for?

These are the questions that go through your mind and which can make buying a home feel very scary and intimidating. Elizabeth Sangion a word from chairPERSON

Addressing inequality through property ownership - South Africa is known for its extreme income inequality, which is amongst the highest in the world. There is no doubt that the severe inequality in our country is the cause of the devas- tating poverty that currently exists and creates havoc in our people’s lives.

As a country, we have made significant progress, but unfor- Property ownership has always played a central part in this tunately, the economic disparities continue to torment us and equation that allows families to leverage opportunities to create are the biggest obstacle to the growth of the economy. further wealth for themselves and their children. By contrast (his- torically) black people were not allowed to own property and as It is important to recognise that to overcome inequality we a result were not able to cultivate generational wealth to draw have to allow people their property rights, in doing this we from when facing financial disruption. Which is one of the fac- create a sense of security. A sense of security that comes tors contributing towards what many refer to as black tax. in owning an asset which leads to feelings of self-respect, independence and pride. Hernando de Soto Polar is a Peruvian economist known for his work on the informal economy and the importance of As the World Bank puts it, “These assets interact with the business and property rights. He believes that wealthy in- market and social opportunities to generate income, a better dividuals who don’t realise that it is in their best interest quality of life and a sense of psychological well-being.” to allow the productive power of the disadvantaged to be brought into the economy, are an obstacle to realising the It is essential therefore to encourage property ownership full impact that property rights can have on those less advan- for the majority of black people in our country to increase taged. Rampant socioeconomic inequality weakens econo- their buying power and stimulate economic growth, property mies by increasing the burden on taxpayers. ownership gives a feeling of pride and makes one feel valu- able to society. It also creates stability in the country which So, it is visibly apparent that by increasing ownership of means that it has a positive impact on both the individual assets through access to land and property we can easily and the nation. diminish poverty and inequality and share prosperity, which will be for the betterment of our society and country. For many white people who were fortunate enough to have access to property ownership, they were able to amass This issue of Transform Real Estate tackles the issue of inequal- generational wealth, and their children have in many cases ity head-on, and from start to finish we give you valuable in- gone on to become wealthy adults as a result of generation formation on accumulating wealth through property and how wealth. It is a fact that generational wealth definitely plays to become involved in the property market, as well as real life a role in enabling family members to follow their dreams. stories of women who have come from different backgrounds and changed their lives through buying property.

6 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 7 HISTORY

6 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 7 NEWS BUY TO LET HOW TO MAKE MONEY- THROUGH- PROPERTY INVESTMENT IN SOUTH AFRICA Francois Janse van Resnburg of Franmar Property consulting, and author of the book Making Money Through Buy-to-Let in South Africa, sits down with Transform Real Estate to speak about his experience, advise and tips for entering into the property investment market. Transform speaks to this expert for the inside scoop.

According to Janse van Rensburg, his passion for entrepre- and sell for a profit, buy low or from a distressed owner and neurship started at an early age: “I grew up in a small town sell high, buy and increase income potential, and rent out. and from a very young age I was very intrigued by people I believe your risk with buy-to-let is much lower than all the who are considered as being successful in life. I have also other options. read a lot of biographies about successful people and love their stories of how they achieved success – Richard Branson, “I believe people are more informed and educated about Steve Jobs, Elon Musk, Robert Kiyosaki to mention a few. I property and the economy nowadays. Want-to-be investors have also realized that they were ordinary people who had a are learning that they can get more than one home loan from dream and a vision and who became extraordinary.” a bank to buy additional property or properties. People also realised that the Government can’t provide for the housing He goes on to say: “After school, most youngsters have shortage - especially in urban areas - and that the demand dreams of becoming successful and be financially free but, way exceeds the supply. In the current economic situation in as soon as reality kicks in and they have to commit to respon- South Africa, people have less disposable income to qualify sibilities of a family, buying a home, medical aid, insurance for a home loan and the additional costs involved in owning premiums, those dreams start to fade and they lose focus. I their own home and therefore have to rent.” was no different and realised that a job on its own will not allow me enough time and money to enjoy life to the fullest. I What are the benefits? have also realised that working a 9-to-5 job wouldn’t provide Says Janse van Rensburg: “The number one benefit is that me with a sustainable income after retirement.” buy-to-let property, once paid off gives you an inflation-linked income for as long as you keep that property. It was in 2002 when Janse van Resnburg attended a property investment seminar that he clearly remembers one speaker “Another benefit is that you need very little of your own mon- talking about how the money you earn must work for you. ey to invest in property as a bank will be more than willing to “Immediately after the seminar, I started researching all the give you a home loan to buy such a property and the tenant options. The ‘aha moment’ came when I realised that you can will pay that bond plus all the other expenses provided you buy assets – buy-to-let property which can be utilised to gen- have bought the right investment property. erate a sustainable income for the rest of your life. I further discovered that you are actually using the bank and tenant’s “The third biggest benefit to me is the fact that you can lev- money to pay for that asset which, once paid off will give you erage the equity in property to buy more. It is important for a constant inflation-linked income. My next step was to form any investor to be in control of your investment, therefore, a legal entity through which we bought our first property.” investing in property gives you that control such as where to buy, when to buy, what price you want to offer, selecting your But what exactly is Buy-to-Let property, according to this ex- tenant, monthly rental amount and to make the rules. pert? Buy-to-let is property, typically an apartment, you buy to rent “Lastly, buy-to-let property provides you with time and money to out. There are a number of options when it comes to investing plan a prosperous future and to leave a legacy for your family.” in residential property such as buy-and-flip, buy to renovate

8 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 NEWS

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 9 NEWS

What to look out for/be careful of when starting out in the investment opportunity as this gave me hope for the future and buy-to-let market? made my dreams come true.” “Most new investors are so anxious when buying their first property that they sometimes pay too much for a property. A Finally, he says: Buy-to-let property investment gave me the word of advice would be to practice patience and to look at opportunity to retire early and live my passion to teach and as many properties as possible, keep a spreadsheet with all mentor youngsters and other people in investing in property the details of each property, then short-list two or three prop- and most importantly to help ordinary people become ex- erties and do the sums and the one which is making financial traordinary.” sense would be the best one at the best price. Ideally, a prop- erty which is cash flow positive is usually the best option”, Just by reading and applying the easy-to-follow processes advises Janse van Rensburg. in Making Money Through Buy-to-Let in South Africa, you will realise that ordinary people can become extraordinary. “I think the best piece of advice would be to have a plan” This book explains why buy-to-let property investment is the he goes on to say. “Ask yourself why do you want to invest only sensible opportunity to earn an inflation-linked, passive in buy-to-let and what would your objectives be and how will income for the rest of your life. It gives ordinary South Africans you achieve them. Different investors will have different rea- the hope that they might enjoy a financially secure retirement sons for investing in property such as paying for a child’s by building a substantial property portfolio, either when they tertiary education, travel overseas, to be financially free or to start at a very young age or by supplementing their lifetime provide for retirement.” savings or pension pay-out at a later stage. Making Money Through Buy-to-Let in South Africa addresses all the questions You never stop learning would-be property investors would ask, including how to: “Through the years I’ve kept educating myself on property in- establish legal entities; determine which properties have the vestment and I have also learned a lot from mistakes I have best return on investment; leverage other people’s money made. I believe no one can grow or become successful in life and use very little of their own; obtain finance and register a unless you have learned from your mistakes. I am so glad bond; manage the transfer process; and select and manage I made the decision 16 years ago to research the property the best tenants.

10 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 NEWS Are you the next AWCI Homes Brand Partner?

Become part of an innovative Real Estate Agency which allows you the flexibility to grow whilst also developing your own flourishing Real Estate business. In conjunction with our AWCI Institute, AWCI Homes aims to give self-driven, experienced NQF 4 Real Estate Agents the support and training they need to obtain an NQF 5 qualification.

Above and beyond the NQF 5 qualification AWCI Homes will help you set up your own Real Estate Agency giving you the opportunity to become a Brand

Partner. For more information please visit www.awciproperty.co.za or alternatively contact [email protected] 011 243 5012

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 11 12 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 SPOTLIGHT WHAT IS AFFORDABLE HOUSING?

Affordable housing is an often-misunderstood term which for some includes every- thing from RDP housing and other government housing initiatives. Transform Real Estate magazine talks with Elizabeth Sangion and Cornell Klassen to get a better understanding of the term.

The four affordable housing types found using their sizes varying from 80 Sqm or in government policy, local government less with the property value starting at R550 developments and some of the national 000. Although different industry players such government frameworks around human as banks, policy makers, developers, Real settlements are: gap, transitional, social and Estate Agents etc. have different definitions for inclusionary. affordable housing, one common factor is that affordable housing should address the housing 1. Gap housing: Housing subsidies and needs of the middle-income households. products provided by government and financial institutions to enable households Elizabeth Sangion, Chairperson of AWCI with a monthly income of between R3 500 Property says; affordable housing promotes and R20 000 to purchase property. economic vitality, whilst it also has enormous potential in addressing inequality through the 2. Transitional housing: This is housing that asset component that home ownership offers. is temporary afforded to individuals and Through our Home Ownership education, we households which helps them prepare to emphasize to first time home owners that their transition to more permanent options. home not only provide shelter but that it is a critical component of their household wealth 3. Social housing: This is described as state- and a focus of most of their savings. subsidised rental housing for households with a monthly income of less than Having identified the enormous need for R15,000 that is developed and operated affordable housing, Cornel Klassen of DVR by an accredited social housing company Property Development has been involved in this or institution otherwise known as SHIs. market for more than 17 years and has built up a wealth of knowledge and experience. 4. Inclusionary housing: This is housing devel- oped by the private sector for a market that Recently having teamed up with AWCI Homes, would not have had access to the develop- he believes the recent increase in demand stems ment or the area within which the develop- directly from the fact that this market is where ment takes place. Due to the national and the buying power lies. “In South Africa, not local government’s lack of resources to tack- many people earn above R35 000 per month, le the country’s housing issues alone, one so there is a very high demand to provide ade- way that developers are able to contribute, quate housing and property ownership oppor- whilst still ensuring the profitability of their tunities for families and individuals.” projects, is through securing additional de- velopment rights from the city for free. He goes on to say: “In today’s tough economic climate people are also looking for value for According to AWCI Homes, affordable housing money from their property, where their home is considered housing that is affordable to is situated with regards to schools, and where people earning R18 000 and above per they work, how far they are from shops, and month. These houses can also be described services and public transport routes. South

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 13 SPOTLIGHT

Africans across the board are concerned with security, by creating affordable housing opportunities that answer all these needs, we can answer the demand and make a big difference”.

But why would someone take the leap and buy in this type of new development, rather than older more established neighbourhoods?

Sangion says: Although one can buy second hand property that fits in the affordable price bracket of around R800 000, depending on the area, new developments offer brand new homes, and buyers can save a lot of money on transfer duties. There are also no nasty surprises like burst geysers, faulty electrics, plumbing and broken gutters as everything is new. These homes are also easier to secure, they have lower rates and taxes. You have peace of mind as you get five years of major structural defects warranty as well as a one-year roof leak warranty from a building contractor registered with the National Home Builders Registration Council (NHBRC).”

She goes on to say that: If your plan is to buy this type of property for investment purposes, in order to maximize your profits through off-plan purchase, it is essential to buy early. Developers usually offer great deals at the start of a project and you need to take advantage of that. With steady growth in prices, your investment should also increase in value by the

14 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 SPOTLIGHT

time the development is completed and also the first investors in and fittings that you will get and be aware of any clauses a development have the opportunity to select the best properties that allow the developer to use cheaper substitutes. and choice units. This way you will receive the highest capital appreciation in the shortest time. In addition, the best units »» A reputable developer will ask you to draw up a list of command a higher rental income.” defects and submit it to them within a certain time frame so that they can be attended to. Things to look out for when buying from a developer Some things to look for when drawing up a list of defects »» The land must be registered in the Seller’s name (being the include: developer), »» Straightness of the walls »» Developer must be registered with NHBRC; »» Taps, shower, bath and plumbing are in working order; »» Buy from an established developer with a proven track record. »» Cupboards correctly installed;

»» Find out if the developer has completed other projects and »» Hairline cracks in tiles and tiles neatly laid; check them out. »» Stove in working order; »» Search online to check if the developer has had any bad press for work on other developments. »» Silicon sealing in bathrooms and kitchen;

»» The fixtures and fittings in the show house on the »» Plugs in working order; development may be different to those that you end up getting. Make sure that your contract specifies the fixtures »» Scratches, cracks or marks.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 15 GIRLS WITH PROPERTY

16 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 GIRLS WITH PROPERTY SECURING my FUTURE THROUGH PROPERTY Nano Shadung is a 26-year-old marketing coordinator for one of South Africa’s foremost casinos. If you ask her about herself, the first thing she will tell you proudly, is that she is the daughter of Michaeline Shadung, a single mother who worked tirelessly and selflessly as a domestic worker to provide a better life for her two daughters.

Nano spent her formative years growing up in Alexandra myself unemployed. The plan then extended to wanting to Township. She says of her journey into buying property: “I grew buy multiple properties and then rent them out until all my up in a one roomed house in Alexandra and for many years I properties are paid up but currently I just have one property wanted a place my family could call home. But as I grew up I so I am one step to the plan.” realised that buying a house is not only living up to my long life dream of providing a home for my family, but it also means I am Nano took ownership of her first house in February of 2018, creating a long term investment for myself.” at the age of 25. And while she understands that owning property will eventually mean financial freedom, she says Originally, she says, “I decided to enter the property she has struggled to see the big picture at times. She even market as a retirement plan or a backup plan should I find spent time saving for a deposit on her house, but ended up

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 17 GIRLS WITH PROPERTY

needing to spend the money on some repairs and renovations But what does independence look like to Nano? She to the house. As such she took a 100% home loan from the elaborates: Independence, to me, means survival. It means I bank, but is doing everything she can to ensure her bond is am able to provide for my family and myself without putting paid off early. myself under financial strain. I watched my mother work hard to provide for us yet she was always under terrible financial She says: “The initial plan when I bought my house was to strain, moving from one loan to the other trying to provide pay what I can when I can over and above the required home for us, while keeping a roof over our heads. Today my sister loan amount, to pay off the bond faster, but with interest rate and I are who we are because of all the sacrifices she made increasing it has made that impossible thus far, so I plan to for us, but for me my future financial independence will mean take 50% of my bonus to put into the house to make up for freedom from this same cycle. all the months I could not pay the extra. I also am aware that when I pay extra it helps me with paying off my bond quicker And what of her plans for the future? “The Plan is simple”, and decreases the interest to the house so it’s something I’m she says: “I want to pay up my current bond and buy another looking into. and another and another. I also wish I could also educate young women about the importance of buying property and She admits that monthly payments on a property may seem the process. It was a very tricky one for me as I did not know like a big commitment to a lot of people, and that she needs to how these things are done so I found myself not satisfied with sacrifice other luxuries at times, but says that the independence the service my agent gave me”. Nano has since switched to she knows owning such a large asset will bring her in the AWCI Property as her preferred agents, and hopes to be able future, makes the sacrifices worth it. to buy her investment property in the near future.

18 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 GIRLS WITH PROPERTY BECOMING AN AIRBNB MOGAL

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 19 GIRLS WITH PROPERTY

The house, in Brixton, was fully paid off, and an already established tenant in place. But very soon, Mthuthu decided she wanted to renovate and ‘flip’ the house. “I saved every Rand I could during this time and put everything into the renovation. By the time we put the house on the market, it was snatched up in an instant, and I started looking around for the next property I could sink my teeth into.”

“When I first started looking for new properties to refurbish, I thought of my aunt’s apartment in Killarney. It was big and perfect for flipping, but the more I explored properties throughout the city, the more I felt like Joburg Central was growing faster and would be a better investment.

“Using what I had saved from the sale of the Brixton house, I found my current apartment on auction and was able to snatch it up way below market value. This allowed me to spend some money on the refurbishment, including adding a second bedroom, and fixing it up as if I would want to live in it.”

Shortly after wrapping up with this project Mthuthu put the apartment on the market, and while she had a lot of interested buyers, she found that on the whole due to the downturn in the market, banks were not approving bonds and loans. She went so far as to try and auction it again but wasn’t happy with the offers, and reluctantly opted instead to hold on to it.

And what a good decision she made. Even though it cost her money, and she didn’t want to open up the property to full-time tenants, Mthuthu was advised to list the apartment on Airbnb. Mthuthu Msibi is a worldly woman. She was born in exile in the USA in 1992, and her family returned to “I had to invest a little more into the property, by kitting it out South Africa in 1994 after our first democratic elections, with furniture and Wi-Fi, and I had to live in it for a while to understand what my guests might experience in terms of where she lived in Johannesburg. This is where you the little things like lighting and water pressure, but on the will find her today, where she’s taking strides tobe whole it sounded like the best option for earning money off Johannesburg’s next property mogul. my property, while keeping it listed.”

Mthuthu, who is now based in the Gauteng, spent six years The apartment has been on the booking platform ever since in Cape Town after finishing high school. During her time and is almost permanently occupied by everyone from in the Mother City, she got her post-graduate degree in tourists and travellers, to business people and overnighters. entrepreneurship, and charged with this entrepreneurial “So far the income that is generated via this model pays all fervour started her own retail fashion business. Sadly, her the bills and allowing me some capital to put back into the business eventually had to close in 2016, which is when property for further improvements so that I can get it listed on she left the Western Cape and settled in the City of Gold for executive databases.” good. Mthuthu goes on to say: “Owning this property has so far “It was at this stage that I got into property, almost by provided me with a steady income while I’m able to explore accident”, says Mthuthu. “After closing my business, I was other interests and avenues, all the while operating in an offered the opportunity to manage a property that had once industry I am passionate about. So it allows me to grow my belonged to my mother.” entrepreneurial ventures further.”

20 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 GIRLS WITH PROPERTY

“What I am really passionate about is entrepreneurship and ABOUT THE AIRBNB MODEL as a child always thought the only way one could be an Airbnb is an online marketplace which lets people rent out entrepreneur was to either be born into a trust fund, get outside their properties or spare rooms to guests. You can rent a place investment, or do your entrepreneurial thing as a side-line gig.” to stay through Airbnb – or you can rent out your own home or apartment if you’d like to make some extra cash. Airbnb takes “I was afforded a very special opportunity though, and had 3% commission of every booking from hosts, and between a chance to engage with Elizabeth Sangion, Chairperson of 6% and 12% from guests. According to one study by the AWCI, and she advised me of all the options in the property platform in 2017 the typical Airbnb host in South Africa earns sector, and how to create a property portfolio so that I wouldn’t R28 000 a year by sharing their space for just 19 nights a need that side-line gig anymore. I now realise how misguided year. I was, and I recognise that I can use the property to pay bills and as collateral. My first business cost me dearly; this There’s plenty of criteria to list for/search a property: from a venture, so far, has a solid base and income stream.” shared room to an entire house, to having a swimming pool to having a washing machine. There are photos of the property, She still goes to a lot of auctions, both public and private, just to and the hosts/guests, with full map listing. It is simple to see what is out there, to see what will and won’t work for Airbnb, register and start advertising property by simply signing up and is steadily saving towards buying a second property. But at airbnb.com. Mthuthu admits what she actually has her eye on is buying an entire building in the future, that way turning herself from a Similarly, on a local front, investors can also sign up to small-time property owner into a bona fide mogul. afristay.com, which specialises in South African properties.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 21 CONVERSATIONS

22 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 CONVERSATIONS HOUSING FOR THE MISSING MIDDLE

Transform Real Estate magazine had the opportunity to sit down with Nonhlanhla Buthelezi, Chief Director: Operational Policy Frameworks at the Department of Human Settlement.

According to Ms Buthelezi, “FLISP is an acronym for Finance Linked Individual Subsidy Programme, a financial intervention within the National Housing Code.” She goes on to explain that the Housing Code is a policy document and contains programmes that pre- scribe rules and guide how policies should be implemented.

Ms Buthelezi tells us: “The programme was first implemented in 2006 after the approval of Breaking New Ground strategy which is officially known as the Comprehensive Strategy for the Delivery Of Sustainable Human Settlements. This was done after the government had conducted a clear diagnosis that confirmed that there was a missing middle which comprises beneficiaries that do not qualify for a full government subsidy. The programme has been amended twice to improve performance. The National Implementing agent has been allocated a role to administer FLISP for both mortgage and non-mortgage options.”

She says “FLISP addresses this gap market, or the missing middle. The subsidy works as a down-payment assistance mechanism to reduce the principal loan amount which would ultimately reduce the monthly loan repayment instalments, rendering the loan affordable to a qualifying beneficiary.”

“In previous iterations of FLISP, the rule was that beneficiaries first had to secure mort- gage loan finance before the FLISP application can be launched. However, this has been changed to accommodate GEHS (Government Employee Housing Scheme, please see page xx for more info on this scheme) and non-mortgage options such as pension backed loans, housing loan facility, deed of sale option, incremental loans and stokvel options. The income threshold has been increased to R22 000.”

But how many South Africans have benefitted from FLISP since its inception? “Since the inception of the FLISP Programme, the numbers of beneficiaries that have ben- efited have not been enormous, amounting to only about 10 000. Partly because the mortgage market has not performed well since the global financial crisis of 2008. We at DHS are, however, engaging with some stakeholders trying to find solutions. This includes workshops with the World Bank, National Treasury, NHFC, Provinces, Banks, GEHS, Pen- sion Fund, Rural Development, RHLF, etc.”

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 23 CONVERSATIONS

Figure 1: Graph This is also corroborated by information from the National Credit Regulator as analysed through work done by Illana Melzer & Claire Hayworth under 71point4

When asked about the FLISP mandate to the people of South She goes on to add, “FLISP is meant to improve the func- Africa, Buthelezi responds: “FLISP is a housing subsidy that tioning of the property market by accelerating the delivery applies to all individuals that earn above R3500 up to R22 of housing in the so-called gap-market, in other words, the 000. The people of SA must know that the government is market where government does not build.” concerned about the lack of economic growth, unemploy- ment, poverty and inequality. The lack of real growth in the The FLISP subsidy may be utilised for: mortgage market is a problem. • The purchasing of existing improved residential properties;

“The government fully understands that the housing market • The purchasing of a vacant serviced residential stand, is made up of both formal and informal market and both linked to a house-building contract which has NHBRC markets play a role in the economy and should not be under- registered home-builders; or played or under-counted. Government has delivered oppor- tunities to 4.5 million opportunities which have boosted the • The building of a new home through a house building housing and property market. A house is an economic asset contract entered into with a contractor, registered with for wealth creation and is good for growing the economy.“ the NHBRC, on a serviced residential stand that is al- ready owned by the beneficiary.

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What are the key contributing factors that inspired the cludes what government provides to the poor. The term conceptualisation of the programme? is relative - what is affordable to me may not be afforda- “The White paper of 1994 crafted a strategy for housing and set ble to you. A house worth R340 000 can be bought by a target of providing 1 million houses. This target was achieved someone earning R14500 per month. and with the revised strategy for comprehensive housing devel- opment, there was a shift from housing to human settlements. • The upper threshold of BNG almost equivalent to Mini- Human settlements is a totality which made the sector to use mum Wage of R 3500 systems theory and begin to make a special focus on the entire residential market.” • The size of the mortgage market? It has declined over the years creating space for the non-mortgage options Since the programme was implemented, what factors have changed over the years, and what were the factors behind So, do people know about the programme? “Judging from the changes in policies and overall updating of the policies? the unimpressive statistics of below 10 000 beneficiaries”, says Buthelezi, “Clearly we have not gotten the message out • The building costs and prize of a house - has led gov- to the people. As a result NDHS and the implementing agent ernment to consider changes in the subsidy quantum ap- is embarking on a massive communication campaign to pro- plicable in FLISP. The Department works with the Bureau mote the programme, to make more people aware of it, and for Economic Research Building Cost index ( BER- BCI) in so doing expand the programme.” which reflects an increase over the years and this is more or less 40%. She finishes of by saying: “The biggest problem facing potential beneficiaries is that a vast number of South Afri- • The upper-income threshold of the qualifying criteria - cans are heavily indebted and deemed as non-qualifiers The Income threshold has been changed to R 22 000 because of an inability to get a mortgage loan from finan- in line with the Banks definition of affordable housing. cial institutions. We are including education in this area into our consumer education campaigns, to teach people • The definition of affordable housing - Affordable refers how to get out of bad debt, so that they can improve their to units in the gap, but affordable in other countries in- circumstances.”

FOR YOUR INFORMATION

Who can apply? »» Anyone who earns between 3500 - 22 000 and who have never owned a house.

How can you qualify? »» Apply at a relevant Provincial Office or through the National Implementing Agent »» Approach the Bank for a mortgage application »» Submit the relevant documents for screening done by Provinces and the National Implementing Agent.

What do I need to apply? »» ID »» Proof of Income »» Marriage certificate (if married) »» Birth Certificate or ID copies of dependents

Once you have benefited from FLISP are there any “guidelines” or rules? »» You must pay your loan and treat it as an asset for wealth creation »» Guard against selling informally without valuation »» While the programme has been exempted from the provisions of the sale restriction clause, that governs other pro- grammes like RDP, always consult the MEC regarding the exemption while the legislation is being amended.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 25 CONVERSATIONS

26 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 CONVERSATIONS RAP, FAMILY & REAL ESTATE

Cassper Nyovest- born Refiloe Phoolo, is a South African recording artist and owner, known for his legendary hits, his love for the finer things in life, and industry game-changing moves. Transform Real Estate had the pleasure of chatting with Cassper about music, family and real estate.

Before the fame, there was just a young boy growing up in a town called Montshiwe in Mafikeng. He was one of three children namely; and Khutso who were all raised by Muzuki and Letsebela Phoolo, a teacher and school principal. His parents taught him life lessons that he continues to live by to this day.

He commends his father for his contagious humility which influenced him to value and respect everyone he meets, while also showing gratitude towards his mother as she has always been very supportive of his dreams.

Cassper’s life changed when he found his passion for rap at the age of 12. This happened just after he failed grade 10 and moved to his grandmother’s house in . This move was later followed by a de- cision to drop out of high school at age 16: “I told my parents that I’d rather chase my dream, which I believe is going to work out, rather than keeping it safe and regret it my whole life.”

Following his heart, in 2006 Cassper relocated to Jo- hannesburg to pursue a career in music as a rapper. “I was signed to a label called Impact Sound under Thabi- so Tsotetsi. That’s when HHP, always more like a brother to me saw me and we did a song Wamo Tseba Mtho,” says Cassper.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 27 CONVERSATIONS

But after two years of struggling in Johannesburg, he moved back home. “My grandmother gave me a mattress because I didn’t have anywhere to sleep, and it took a very long time for anything to happen.” He never gave up though, and after waiting it out for a while, he borrowed his sister’s last R100, to buy himself a return ticket to Johannesburg, and that was his turning point.

Always a money-savvy man, the rapper started his own record label ,Family Tree, the same year he released his debut , . He says: “Artists get only eight percent of their record sales, it’s the industry standard, and 50 percent of their show money. I didn’t want that; I wanted 100 percent of everything.”

Through this and other ventures, Cassper made history and broke many barriers by being the first South African artist to sell-out The Dome in Johannesburg without the help of an international act in 2015. In 2016 he pushed it further by attracting around 36 000 fans to Orlando Stadium in Soweto. And in 2017 he filled up the 5th largest stadium in the world, namely the FNB Stadium, selling nearly 70 000 tickets. He was the first South African hip-hop artist to achieve such a feat. His fans and peers who were in awe of this #FillUp movement crowned him ‘Abhuti fill up” and never ceased to congratulate and thank him for reminding them that dreams do come true.

He says: “I think as South Africans we grew up in a system and having a roof over my head is a privilege that I don’t thinking we were second best and not worthy. The reason take for granted. I worked very hard to achieve the things I do these shows is to change the mind of an African kid.” I have, and while I enjoy the finer things in life as much as anyone else, I recognise the importance of providing my He will admit that after finally moving to Johannesburg for family with the safety, security and dignity that comes with good, he spent years couch-surfing, and living with friends. home-ownership.” This made buying his first property that more important. At the tender age of 25 in 2015, he purchased his first luxury “Nothing is better than making my family proud. Buying this home in Kyalami. However, Cassper took everyone by sur- home for my family and me validates all the sleepless nights prise when he announced the purchase of his R 10 Million I have had, and all the sacrifices they have made for me. house just two years later! All I ever want to do is impress them,” he continued.

When asked about his massive move into real estate, With a property portfolio now totalling more than R 10.5 Cassper says he just wanted to make his mama proud and million, Cassper says “While fancy cars, watches and provide for his family the best way he knows how. In true clothes say a lot about the way we portray ourselves and Mufasa style, the house reportedly has a lot of rooms, a our wealth, property is the only surest way to build gener- state-of-the-art studio, an entertainment area, a cigar lounge ational wealth. I am glad that I am able to live this life and and four garages to house his well-known host of cars, from give this to my family.” BMWs and Bentleys to a Rolls Royce. Finally, he says: “I believe in following your dreams. And He goes on to say that owning a house means more than while I don’t advise telling kids to drop out of school like I just showing off to his friends. He knows the true value and did to follow my dreams, I will say never give up on yours, meaning behind it. “I came from very humble beginnings and do what is necessary to make it come true.”

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TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 29 CONVERSATIONS THE INS & OUTS OF REAL ESTATE Penny Mboyi, the eldest of four children, grew up during the 1960s in Kwa Thema in the East Rand of Gauteng. Gwynedd Peters sat down with Penny to find out how she tran- sitioned from teaching to banking, and finally settling down as the principal of her own estate agency with AWCI Homes.

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to navigate the business quite easily. The job required an eye for quality and attention to detail. You need to know your facts to give sound advice. Know where to refer your clients if there is something that needs to be done in the process. Be patient, a good negotiator, listener and facilitator, especially with peo- ple living in the townships or when dealing with family houses – you have to be a master in conflict resolution too.”

“Passion must drive you. Your clients will be your best ad- vertisement. Understanding people makes the job easy. Most importantly I would say network with other agents and Princi- ples, join organisations to stay abreast of the industry, and be an active part of a group,” she insists.

Penny says: “Transformation is slow in the industry, especially for black women, but organisations such as AWCI Proper- ty and the EAAB have come up with programmes for new recruits and interns to try and increase the number of black practitioners in the industry.”

“I believe internships and in-house training programmes are the key to successful transformation. Through these learning Penny’s life before Real Estate is an inspiring journey, which opportunities new recruits are able to gain knowledge about saw her give-up teaching only six months after her career be- business, customer relations and the industry at large. And gun, “my parents encouraged me to attain a diploma in ed- while transformation may not be as quick as we would like, ucation because they believed it would give me job security companies like AWCI Property continue to empower women, however due to the lack of a steady income and hefty trans- through the encouragement of entrepreneurial spirit, produc- port bills, I knew I had to make a change” a decision which ing a number of qualified principals.” was later followed by a move into the banking sector. Penny says she has encountered many myths since starting her Penny joined Standard Bank in Springs in 1981 making her journey in the Real Estate industry. She says: “A lot of educa- one of the first black woman to join the group and be placed in tion needs to take place in the black community, as people still a career development programme. After 16 years of serving prefer to rent rather than buy. I believe this mindset needs to in different sectors for two of the major banks, her involvement change. I believe, if you can afford to rent, you can afford to in housing happened when she joined NURCHA (National buy your own home. Doing this creates financial stability, and Urban Reconstruction and Housing Agency) an NGO that allows you the opportunity to grow your property portfolio.” worked closely with the Department of Human Settlements in running projects and tenders awarded to contractors for “Another myth is that people think they don’t qualify for RDP housing and development of schools etc. houses, so there is no hope for them. They are unaware of the various government subsidy programmes that are available. After working in the housing industry, and while studying to- Being able to buy your own home with the help of a subsidy wards her MBA in 2012 Penny took a leap of faith and regis- means you are able to contribute to your own wealth.” tered a Real Estate Agency. Penny’s final words of advice: “For potential homeowners buy Says Penny: “I knew that I had banking and business experi- smart, based on location, size and facilities best suited to you ence, and had advanced people skills. The only thing I didn’t and your family. For agents, get into a mentoring programme have is knowledge of the housing price and evaluation mar- and learn from experienced agents and Principals. ket. But I buckled down and eventually learnt what I needed to know and applied for my Real Estate license. Thanks to my “Take every opportunity that comes your way, and don’t be qualifications, and business experience I got my Principalship scared to try something new. Embrace the entrepreneurial immediately after applying for the Real Estate business.” spirit that comes with Real Estate, and break away from the idea that you have to study something that guarantees you a Penny started advertising immediately, and says she enjoyed fixed job and fixed income. Dare to dream big, and experi- every minute of it. “I learned a lot very quickly, and was able ence being your own boss.”

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 31 LEGAL TOP 10 FREQUENTLY ASKED QUESTIONS

32 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 LEGAL WHAT 1ST TIME BUYERS SHOULD KNOW

Buying a home for the first time can be a scary process, especially if you have no idea of what the process entails. Here are just the top 10 steps that every prospective home-owner should prepare themselves for.

1: What is the point of saving for a deposit if I intend on loaning Also, consider the location with regards to the distance to work, money from the bank? schools, etc. Make sure to ask about the rates and taxes, levies It is always a good idea to start saving for a deposit before and other expenses that may be associated with the property. you plan on applying for a home loan. Considering the current economic situation, and rules set in place by various banks, 6: Be prepared to ask questions first-time home-buyers are rarely given a bond for the full value Make a list of questions you would like to ask the estate agent of the home they want to buy, and in some cases are granted as before viewing a property, that way if there is anything on the 60% of the purchase price. The bigger the deposit you can put list he/she doesn’t address you can be reminded of what you down, the better your chances for a higher loan value. want to know.

2: Budget 7: What is the offer-to-purchase? You need to draw up a comprehensive household budget so Once you are ready to buy, you will have to sign an offer to that you can accurately know how much you can afford monthly purchase. This is a contract between yourself and the seller. for home loan repayments. This kind of budget analysis needs Make sure you understand everything that you are agreeing to to include everything from school fees and clothing account in the contract, and do not feel pressured to sign it if you are repayments to groceries and cell phone contract/airtime fees. unsure about anything. You have every right to ask someone with knowledge in the field or someone you trust to look it over 3: Why is my financial institution asking about my credit score? before you agree to sign. You should contact the local credit bureau for a copy of your credit report. If there are outstanding debts or other issues that 8: Time to apply for a home loan need to be corrected, it is a good idea to sort it out before you If you have already been pre-approved by your financial in- apply for a home loan. If you know that there are some black stitution, this process is far simpler, and the bank will already marks on your credit record, and you have been making an ef- have run all the checks and balances ahead of time. Which fort to rectify them, let your bank know what they are, and what means that all you will need to do is formally apply in writing. you are doing about them. The bank needs to be sure that you If not, you will need to apply for a home loan at this time. Once can be trusted to pay back your home loan, and if you have you have completed the application, your bank will do all the had unexpected circumstances that lead to a blemish on your necessary credit checks and feasibility assessments to find out credit report, its essential for the bank to understand that it is a if you qualify. once-off occurrence. 9: Why do we need to engage with an attorney? 4: What is pre-approval? While it may seems to a first time buyer that “paying” for the AWCI Homeloans can assist individuals with finding out how house means that it is yours, there are a lot of other steps that much they qualify for. Get in touch and a home loan consultant need to be taken after the bank approves your loan. A con- will assist you. Getting pre-approved means that your bank has veyancing attorney will register your home loan and aid in the already checked your tax and credit score, and cleared to for transfer of the property into your name. The attorneys will fur- purchase. This will allow you to stand out from other potential ther make sure that the previous owner of the property gets buyers when making an offer on a property. paid, and then the new home is all yours.

5: Why should I ask questions about the area I want to live in? 10: What does my tax record have to do with it? It’s always a good idea to do a bit of research before house-hunt- Make sure all your tax is in order. It is advised that you check ing. Consider your personal needs with regards to size, secu- with SARS, to ensure that your filings etc. are up to date. Your rity, accessibility to the highway, whether it is pet-friendly, and potential property cannot be registered in your name if you its proximity to shops and malls, or even future developments. have any outstanding SARS matters.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 33 LEGAL HOUSING SUBSIDIES DO YOU QUALIFY?

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Buying a home is hands-down one of the soundest invest- ployee’s individual-linked savings facility in the Government ments you can make for your family. It means future financial Employees Housing Scheme. freedom, a safe place to raise your family and make memo- ries, and at the end of a long day, it’s a place you can call What is the Individual Linked Savings Facility? your own. The individual-linked savings facility is a forced savings ac- count that can only be accessed to buy a house, building Did you know that as an employee of the South African Gov- one, and/or improving a home you intend on buying. ernment, such a dream could be that much easier to achieve? The Government Employees Housing Scheme (GEHS) is an Added benefits employee benefit scheme that offers housing access support When buying a house, you are often required to pay a de- services and subsidies to government employees. posit. But what if you don’t have the money for such a de- posit? You could access the State Guarantee Scheme, which But who can apply for this subsidy, how do you apply and how seeks to promote home ownership by obtaining a 100% much do you qualify for? home loan/bond. In this case, the State (Minister of Finance) “The housing subsidy programme caters to all persons em- guarantees a maximum 20% of your loan/bond. This kind ployed in the public service in National and Provincial De- of guarantee is only issued to financial institutions that have partments,” says Rhoda Grootboom from AWCI Homeloans. agreements with the State. “Each bank has its own lending criteria, but they definitely have minimum monthly income requirements.” How to Access the Housing Allowance? Employees must contact the Human Resource division in their She goes on to explain that this may mean that individuals respective departments in order to access the housing allow- working in public service might still be excluded from get- ance. Employees must first enrol with GEHS to access any ting a home loan if they cannot prove to lenders that they and all services offered by the scheme. can make the repayments. For many, a housing subsidy, and state guarantee is the difference between qualifying for a Purpose of enrolment: Employees enrolled with the scheme home loan. are profiled for purposes of accurate advice and housing access support. How much is the Housing Allowance? Through the GEHS, the housing allowance is paid as a How do I enrol? monthly contribution to qualifying employees to assist with Employees can enrol online www.gehs.co.za or call the call their housing costs, whether they own their home, are buying centre at 0861 12 34 34 a home or rent. Background to the GEHS GEHS Housing Allowance for Homeowners: State employ- In addition to Government Pension Fund (GEPF) and Govern- ees who are home-owners and have submitted proof of Title ment Medical Aid Scheme (GEMS), the State as employer Deed or a Permission to Occupy (PTO) certificate are eligible administers an employee housing assistance scheme (GEHS) to receive the housing allowance of R 1 336.22 per month to ensure that employees have access to adequate housing (as of July 2018). The same amount applies if you are plan- on a sustainable basis. ning to buy a house, or in the process of doing so, however, the subsidy will only become available to you upon registra- Government and Organised Labour concluded a collective tion of your property. agreement to establish a Government Employees Housing Scheme (GEHS) with the following objectives: Q: Will I qualify for the full housing allowance if my house/ bond is fully paid off? • To support, educate and advise employees on housing options and opportunities. A: Yes, subject to submitting the required proof of ownership • To enhance employees access to affordable housing. and enrolment with GEHS • To promote home ownership and facilitate asset security among employees. What if I don’t own a home, but rent one? • To assist employees to access affordable housing loans Employees who rent their homes must supply proof of rental and finance. occupancy, and will then receive the housing allowance of • To assist employees to rent houses with a view to buy R 900 per month as part of their salary. The difference in and own homes. value, an amount of R 436.22 per month (i.e. the difference • And to provide transitional arrangements towards the between R 1336.22 and R900) will be paid into the em- GEHS.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 35 STORIES CIVIL SERVANT NOW HOMEOWNER

Bontle wasn’t born in Johannesburg, but for as long as she can remember she has had dreams of the big city life. After marrying her husband, and qualifying as a nurse, they made the decision together to head to the City of Gold, and have since settled in Cosmo City.

When Bontle first came into contact with Lona from AWCI be able to help my friends and family and arm them with the Homes, she was nowhere near wrapping her head around knowledge I have now amassed. We now refer all our friends buying a home. She knew she had a bit of outstanding debt and family to AWCI because of everything they were able to to her name and was sure that she would need a significant do for us.” deposit before she could ever be considered. The next step, however, is applying for the Government Nevertheless, Lona helped her get in touch with AWCI Employees Housing Scheme subsidy – which every government Homeloans to find out what she might qualify for. Armed with employee qualifies for - to take even more pressure off her this information, she took a leap of faith and got pre-qualified monthly repayments. (See page xx for a detailed explanation with AWCI. She soon got her husband involved as well, so that for just what the subsidy is and how to enrol). they might be eligible for a larger loan. She says owning property makes her very happy, even though According to Bontle: “When we first met with our agent, she when the house came along she wasn’t really thinking about it; never once questioned their financial ability to buy a house. but today it feels like a miracle because she and her husband She spoke only in positives such as ‘What type of house are never once thought it was something they could afford, let you looking for, and in what area do you want to buy?’ She alone even dream of. “It’s someplace to call my own. It feels was the one who strongly advised us to get pre-qualified stress-free”. before we started looking; the best part about that process was that by the time we started looking around, Lona had already As for the future she says, as soon as their home loan has been identified new developments that we knew we could afford.” paid off a bit more, they want to invest in additional property to rent to others, so growing their wealth through property. As The first time she set foot in what is now her house she knew it is, soon after moving in, Bontle and her husband decided to she wanted to live there. Inside and out it spoke to her, but it let their investment work for them and built two free-standing was on the market for R 800k, while Bontle and her husband rooms on the property. They now have four tenants who each were only pre-qualified for R650k. At the time they didn’t even contribute to paying their bond every month. The team at AWCI have a deposit to put down, but the AWCI team kept urging has advised her on how to manage tenants at her existing them to go back to the banks, and also set out to negotiate property, and today the property she never thought she could with the developer on their behalf. To their surprise, the bank afford is paying for itself. “All we are paying is water”, she came back with a qualification of R750 000. This offer was says, “in future, we will be able to do the same thing with an then taken to the seller and accepted. Bontle and her husband additional property.” would now become first-time home-owners. Like Bontle many people don’t know how much they qualify “Most people don’t understand that you can buy a house for which makes them shy away from starting the home without any deposit or down-payment,” says Bontle. “I also ownership journey, but once they know how much they never thought I would be able to buy my own home without can buy for their whole view changes. For a free homeloan saving for a very long time. All around me, due to lack of prequalification please email your name and contact details to knowledge, people ask me how it is possible. I’m happy to [email protected]

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TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 37 LEGAL BREAKING DOWN THE HOUSE

Understanding the impact of customary marriage on estate planning, inheritance and property ownership. Bibi Smit, Director in Conveyancing of TGR Attorneys, unpacks the topic for Transform.

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The recent flood of reaction pursuing the judgement in favour of Lerato Sengadi, when she sought to be rec- ognised as the rightful wife of Jabulani ‘HHP’ Tsambo in terms of customary law, is proof of the uncertainty which still exists in understanding the effects of cus- tomary marriages nearly 20 years after the coming into operation of the Customary Marriages Act 120 of 1998 (“the Act”).

Due to this lack of knowledge, it is mostly the women in these marriages who get the shortest end of the stick, when the mar- riage ends, and it is therefore imperative for parties entering into a customary marriage to understand the legal implications of such a marriage before the process is started.

Even though the Act is quite clear as to what constitutes a valid customary marriage, the process which precedes these marriages, being the “lobola ceremony” could be open to a difference of in- terpretation. This is mainly due to the diversity of the various ethnic groups and often a dispute arises as to which customary proce- dure takes precedence over the other. Which could lead to the customary marriage not being recognised by one of the parties.

The following definitions contained in section 1 of the Act, needs to be highlighted in order to explain a few of the important ele- ments of the Act:

“customary law” means the customs and usages tradition- ally observed among the indigenous African peoples of South Africa and which form part of the culture of those peoples; “customary marriage” means a marriage concluded in ac- cordance with customary law; “lobola” means the property in cash or in kind, whether known as lobola, bogadi, bohadi, xuma, lumalo, thaka, ikhazi, magadi, emabheka or by any other name, which a prospective husband or the head of his family undertakes to give to the head of the prospective wife’s family in con- sideration of a customary marriage.

In terms of section 3(1) of the Act, for a customary marriage entered into after the commencement of this Act to be valid –

(a) the prospective spouses –

(i) must both be above the age of 18 years; and (ii) must both consent to be married to each other under customary law, and

(b) the marriage must be negotiated and entered into or cele- brated in accordance with customary law.

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 39 LEGAL

In terms of section 4(1) of the Act, the spouses of a customary Section 8(1) states that a customary marriage may only be marriage have a duty to ensure that their marriage is regis- dissolved by a court by a decree of divorce on the ground tered, however section 4(9) states that failure to register a cus- of the irretrievable breakdown of the marriage. Should the tomary marriage does not affect the validity of that marriage. marriage be dissolved by divorce, the spouses will be able to enter into a settlement agreement before the granting of In terms of section 7(2) a customary marriage entered into after the divorce, as any legally married spouses would have the the commencement of this Act in which a spouse is not a part- right to do. ner in any other existing customary marriage, is a marriage in community of property and of profit and loss between the Upon death of either of the spouses the marriage would be spouses, unless such consequences are specifically excluded dissolved and the effect will be that the surviving spouse by the spouses in an antenuptial contract which regulates the will have all the legal the rights of a legal spouse in that matrimonial property system of their marriage. they will be able to inherit testate or intestate, as the case may be. And it is in this section 7(2) that the crux of the matter lies. A cou- ple planning to enter into a customary marriage should be very The above do not even touch on the implications of polyga- careful not to start the customary marriage process until such mous customary marriages entered into by either of the par- time as they have made an appointment with a notary who will ties, which ads a whole new dimension to this discussion, explain the effects of being married in community of property, or and is a topic for another time. out of community of property with or without accrual. I once read that all relationships have an expiry date and Should a valid antenuptial contract not be entered into by the believe that a marriage should be entered into with caution parties and registered within the required timeframes, by the and not until such time as the prospective spouses took the notary, the marriage will be one of in community and as such time to ascertain exactly what the implications of the various the spouses will have a joint estate which could have dire con- marriage regimes will be on their lives as a married couple, sequences for the spouses in the event of insolvency of one of but also if the marriage ends for whatever reason. the spouses, for example. Knowledge is power and spending a bit of time and money Spouses married in community of property can only register beforehand could save you a lot of money and hardship later immovable property and a mortgage bond in the joint estate, and I therefore recommend that intended spouses contact while spouses married out of community of property can reg- a Notary practising at a reputable law firm to set up an ister immovable property in their own names or in both their appointment and gain as much information as possible names, as they wish. before taking one of the biggest steps in their lives.

40 TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 CONVERSATIONS

TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 AO You have dedicated your life to the noblest of HISTORY professions – serving others

NOW IT IS YOUR TURN TO BE SERVED. LET US SERVE YOU! The ‘Housing Civil Servants” Campaign is a unique targeted initiative by AWCI Property, specifically designed and geared to assist all Civil Servants (Teachers, Health Practioners, Policemen, Traffic Cops and all other Government Employees) with homeownership. It is an educational campaign on property ownership, which is backed by a full spectrum, “start to finish” property service offering, that is unique to AWCI Property.

The surest way to invest in your future is to invest in property. We know that the process can be daunting, but that’s what we here for. AWCI Property is here to help you along your homeownership journey, putting your future and your wealth back in your hands.

WHO WE ARE IN A NUTSHELL

We’re the brainchild of African Women Coordinated Investments (AWCI) – a BEE Investment Company established to empower through investments. AWCI has a wealth of investment experience, delivering great returns for it’s beneficiaries and dedicated to the economic empowerment of women from previous disadvantaged backgrounds across South Africa.

As a black women owned property group, our goal is to redress the balance of wealth through growing the number of black homeowners.

With our services we strive to empower, making property accessible to all who aspire to it.

011 243 5012 www.awciproperty.co.za PB TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 [email protected] TRANSFORM MAGAZINE / ISSUE NO. 2 / 2019 C