Sandton’s property market shifting to favour buyers

25 Oct 2016 Sandton’s property market shifting to favour buyers Sandton’s status as South Africa’s financial hub has, to a large extent, cushioned the suburb’s sectional title market, with demand for residential property remaining consistent despite the economic slump and weaker buyer sentiment. Situated in Morningside, Sandton, this townhouse offers three bedrooms, two bathrooms, open-plan living, fitted kitchen, private garden, security features, and access to tennis court and swimming pool. It is on the market for R2.55 million – click here to view. But the once-buoyant sector is being subdued by over-supply as ongoing development outpaces demand. This is according to Robin von Mayer, Sandton and Morningside Sectional Title Specialist for

It is on the market for R2.55 million – click here to view. But the once-buoyant sector is being subdued by over-supply as ongoing development outpaces demand. This is according to Robin von Mayer, Sandton and Morningside Sectional Title Specialist for Lew Geffen Sotheby’s International Realty, who says over-supply has led to a buyer’s market across the suburbs. “That said, properties offering great value at accessible prices will always find ready buyers, albeit at a slower pace,” he says. According to Von Mayer, the more affordable, value-orientated sector of the market at a lower rand per square metre has proved to be the most consistently active, which is a common response in a competitive and saturated market. It also benefits from a wider buyer base that includes first-time buyers, empty-nesters, investors and those seeking relocation. He says especially sought-after at the moment are family homes such as townhouses or cluster units in the R2.5 million to R3.5 million price band, as well as one bedroom apartments for around R1 million that generally offer investors better returns than their larger counterparts. Von Mayer says the latter are especially popular with investment buyers, who can expect a healthy rental return of R8 000 per month on an apartment that costs R900 000. He says with the growth of the commercial market in Sandton, the continued influx of people seeking accommodation closer to work has been a big positive for these market sectors. The middle- and upper-market segments may have slowed and their buyer base has narrowed in Sandton and Morningside, but they are still attracting investors. This Bryanston townhouse has two bedrooms, two bathrooms, open-plan living areas, fitted kitchen and security features. It is priced at R2.15 million – click here to view. “We have seen a steady increase in Indian and Chinese investors in the middle market, many of whom come to South Africa on fixed-term contracts, and believe it is a better option to buy rather than rent as they can either sell at a profit or rent out the properties once their contracts have expired.” According to Von Mayer, high-end apartments in Sandton still carry prestige, especially in the new luxury developments, and these are predominantly bought by affluent investors who have business interests in the area. “Sandton and Morningside may carry the location status, but many of the surrounding suburbs offer more property for the same amount of money, and landlords and investors need to acknowledge this and act accordingly,” he says. “This is especially true for two bedroom units, where demand has dropped significantly, partly due to the fact that the corporate market has taken a knock, with many companies decreasing accommodation budgets.” Von Mayer says the sectional title market is generally more competitive in areas further from the CBD due to factors like affordable off-plan options and a broader target market that offers more resale options. As a result, he says suburbs like Fourways, Douglasdale and Rivonia continue to enjoy healthy demand, especially in tougher economic climates. “In areas closer to the Sandton CBD like Illovo, Sandhurst, Morningside, Sandown and Strathavon, the sectional title off-plan developments are less affordable and more prestigious, and are aimed towards a different market segment ,and this has shrunk considerably over the past year,” he says. This Fourways duplex offers three bedrooms, two-and-a-half bathrooms, open-plan living with fireplace, newly renovated kitchen, garden and double garage. It is selling for R2.1 million – click here to view.

He says especially sought-after at the moment are family homes such as townhouses or cluster units in the R2.5 million to R3.5 million price band, as well as one bedroom apartments for around R1 million that generally offer investors better returns than their larger counterparts. Von Mayer says the latter are especially popular with investment buyers, who can expect a healthy rental return of R8 000 per month on an apartment that costs R900 000. He says with the growth of the commercial market in Sandton, the continued influx of people seeking accommodation closer to work has been a big positive for these market sectors. The middle- and upper-market segments may have slowed and their buyer base has narrowed in Sandton and Morningside, but they are still attracting investors. This Bryanston townhouse has two bedrooms, two bathrooms, open-plan living areas, fitted kitchen and security features. It is priced at R2.15 million – click here to view. “We have seen a steady increase in Indian and Chinese investors in the middle market, many of whom come to South Africa on fixed-term contracts, and believe it is a better option to buy rather than rent as they can either sell at a profit or rent out the properties once their contracts have expired.” According to Von Mayer, high-end apartments in Sandton still carry prestige, especially in the new luxury developments, and these are predominantly bought by affluent investors who have business interests in the area. “Sandton and Morningside may carry the location status, but many of the surrounding suburbs offer more property for the same amount of money, and landlords and investors need to acknowledge this and act accordingly,” he says. “This is especially true for two bedroom units, where demand has dropped significantly, partly due to the fact that the corporate market has taken a knock, with many companies decreasing accommodation budgets.” Von Mayer says the sectional title market is generally more competitive in areas further from the CBD due to factors like affordable off-plan options and a broader target market that offers more resale options.

As a result, he says suburbs like Fourways, Douglasdale and Rivonia continue to enjoy healthy demand, especially in tougher economic climates. “In areas closer to the Sandton CBD like Illovo, Sandhurst, Morningside, Sandown and Strathavon, the sectional title off-plan developments are less affordable and more prestigious, and are aimed towards a different market segment ,and this has shrunk considerably over the past year,” he says. This Fourways duplex offers three bedrooms, two-and-a-half bathrooms, open-plan living with fireplace, newly renovated kitchen, garden and double garage. It is selling for R2.1 million – click here to view.

As a result, he says suburbs like Fourways, Douglasdale and Rivonia continue to enjoy healthy demand, especially in tougher economic climates. “In areas closer to the Sandton CBD like Illovo, Sandhurst, Morningside, Sandown and Strathavon, the sectional title off-plan developments are less affordable and more prestigious, and are aimed towards a different market segment ,and this has shrunk considerably over the past year,” he says. This Fourways duplex offers three bedrooms, two-and-a-half bathrooms, open-plan living with fireplace, newly renovated kitchen, garden and double garage. It is selling for R2.1 million – click here to view. Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says although the market will continue to take pressure for some time, owners shouldn’t panic. He says Sandton will always enjoy a high demand for residential property, and it must be borne in mind that a correction process is often better for the overall health of the market. “In times like these, it is always better to sit tight and ride the storm. New investors should be prudent in their property selection and regard any purchases made now as long-term investments rather than short-term flips.” Geffen says while the ongoing sectional title development may have temporarily subdued the market, the investor confidence bodes well for the area. Large-scale office developments in Sandton, which continue to attract new corporates to the node, will benefit the residential market in the long term

Knowledge hub in Mauritius

Knowledge hub in Mauritius There are numerous questions to ask if you’re considering investing in Mauritius – the state of the country’s senior and tertiary education being critical for families. In 2012, Mauritius opened its doors wide to qualifying foreigners who want to invest in residential property – and live in the country, too. By ring-fencing specific Integrated Resort Scheme Developments for foreign investment (now known as Property Development Schemes or PDS), a $500 000 real estate purchase affords the buyer and his or her immediate family Mauritian permanent residency. The move provided the economic injection which Mauritius sought – and a highly attractive lifestyle for those wanting a stable, secure, beautiful country to call their own. For South Africans, Mauritius is a mere four-hour flight away, ideal for those who commute to their South African business interests. The country also has low inflation, tax rates, crime and unemployment, a stable political environment, free exchange controls and a low level of government regulation in the business sector. In short, it has almost everything South Africa doesn’t. Fresh and contemporary, the African Leadership College is a private tertiary institution in Beau-Plan Business Park Studying in Mauritius Since Mauritian independence in 1968, the country has undergone a significant transformation as the economy evolved from low-income agricultural to a middle-income country based on tourism, textiles, sugar and financial services. Today, that economy has diversified to include a wide range of sectors, including property development, education and training. With the political will, it looks set to continue the upward trajectory. Mauritius is consistently rated the best-run country in the Indian Ocean region, ranked first in Africa in the World Bank’s 2016 Doing Business Report and 32 on the global list. There’s been a focused, collaborative and highly successful drive by the government to raise the bar on Mauritius. The accompanying economic growth has impacted all sectors, education being a priority. It’s not only around bigger, better schooling opportunities for Mauritians but about positioning the country as an attractive educational proposition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education – the Tertiary Education Commission (TEC) – is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to ‘position Mauritius in the region as a world-class knowledge hub and the gateway

The move provided the economic injection which Mauritius sought – and a highly attractive lifestyle for those wanting a stable, secure, beautiful country to call their own. For South Africans, Mauritius is a mere four-hour flight away, ideal for those who commute to their South African business interests. The country also has low inflation, tax rates, crime and unemployment, a stable political environment, free exchange controls and a low level of government regulation in the business sector. In short, it has almost everything South Africa doesn’t. Fresh and contemporary, the African Leadership College is a private tertiary institution in Beau-Plan Business Park Studying in Mauritius Since Mauritian independence in 1968, the country has undergone a significant transformation as the economy evolved from low-income agricultural to a middle-income country based on tourism, textiles, sugar and financial services. Today, that economy has diversified to include a wide range of sectors, including property development, education and training. With the political will, it looks set to continue the upward trajectory. Mauritius is consistently rated the best-run country in the Indian Ocean region, ranked first in Africa in the World Bank’s 2016 Doing Business Report and 32 on the global list. There’s been a focused, collaborative and highly successful drive by the government to raise the bar on Mauritius. The accompanying economic growth has impacted all sectors, education being a priority. It’s not only around bigger, better schooling opportunities for Mauritians but about positioning the country as an attractive educational proposition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education – the Tertiary Education Commission (TEC) – is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to ‘position Mauritius in the region as a world-class knowledge hub and the gateway

The accompanying economic growth has impacted all sectors, education being a priority. It’s not only around bigger, better schooling opportunities for Mauritians but about positioning the country as an attractive educational proposition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education – the Tertiary Education Commission (TEC) – is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to ‘position Mauritius in the region as a world-class knowledge hub and the gateway

sition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education – the Tertiary Education Commission (TEC) – is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to ‘position Mauritius in the region as a world-class knowledge hub and the gateway for post-secondary education’. Over the past decade, Knight Frank’s The Wealth Report has provided a unique perspective on the interaction between wealth and the world’s prime property markets. A 2015 prediction pointed to the rise of education as a driver for global property investment and their survey results have been borne out by the facts. For example, 42% of Chinese ultra-high-net-worth individuals were planning to send their children overseas for secondary education. Tertiary education, student accommodation and the leisure activities of campus life are all offered at Mauritius’ African Leadership College Mauritius vs South Africa Timo Geldenhuys, a South African with young children and a director at Sotheby’s International Realty in Mauritius, has lived in the country for 11 years, watching the landscape evolve over that time. ‘Compared to the previous five years, the change in the last five or six has been exponential, particularly with regard to secondary school and tertiary education,’ he says. Compared with his early days there, South African expatriates with the means sent their children back to boarding school in South Africa. He believes perceptions have changed drastically and there’s a strong sense that the secondary education offered in Mauritius is superior to that in South Africa. One of the pillars of secondary education has to be how many doors open when a student is brandishing their final-year results. Those schooled in Mauritius are ‘cruising into any universities they choose, in the country they choose,’ Geldenhuys says. The current, somewhat fluid South African political environment and its affect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. ‘It’s far more expensive to send children to study in the UK and Australia than South Africa, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon,’ says Geldenhuys. Bel Air is situated in the southeastern region of the Royal Park residential estate with views of both the Moka Range and Turtle Bay sunsets. Bel Air’s 24 exclusive four-bedroom duplex townhouses are on the market through Pam Golding Properties International schooling destinations Mauritius primary up to senior school education is either public or private – English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%). The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

Tertiary education, student accommodation and the leisure activities of campus life are all offered at Mauritius’ African Leadership College Mauritius vs South Africa Timo Geldenhuys, a South African with young children and a director at Sotheby’s International Realty in Mauritius, has lived in the country for 11 years, watching the landscape evolve over that time. ‘Compared to the previous five years, the change in the last five or six has been exponential, particularly with regard to secondary school and tertiary education,’ he says. Compared with his early days there, South African expatriates with the means sent their children back to boarding school in South Africa. He believes perceptions have changed drastically and there’s a strong sense that the secondary education offered in Mauritius is superior to that in South Africa. One of the pillars of secondary education has to be how many doors open when a student is brandishing their final-year results. Those schooled in Mauritius are ‘cruising into any universities they choose, in the country they choose,’ Geldenhuys says. The current, somewhat fluid South African political environment and its affect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. ‘It’s far more expensive to send children to study in the UK and Australia than South Africa, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon,’ says Geldenhuys. Bel Air is situated in the southeastern region of the Royal Park residential estate with views of both the Moka Range and Turtle Bay sunsets. Bel Air’s 24 exclusive four-bedroom duplex townhouses are on the market through Pam Golding Properties International schooling destinations Mauritius primary up to senior school education is either public or private – English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%). The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

The current, somewhat fluid South African political environment and its affect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. ‘It’s far more expensive to send children to study in the UK and Australia than South Africa, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon,’ says Geldenhuys. Bel Air is situated in the southeastern region of the Royal Park residential estate with views of both the Moka Range and Turtle Bay sunsets. Bel Air’s 24 exclusive four-bedroom duplex townhouses are on the market through Pam Golding Properties International schooling destinations Mauritius primary up to senior school education is either public or private – English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%). The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%). The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

Tertiary education, student accommodation and the leisure activities of campus life are all offered at Mauritius’ African Leadership College Mauritius vs South Africa Timo Geldenhuys, a South African with young children and a director at Sotheby’s International Realty in Mauritius, has lived in the country for 11 years, watching the landscape evolve over that time. ‘Compared to the previous five years, the change in the last five or six has been exponential, particularly with regard to secondary school and tertiary education,’ he says. Compared with his early days there, South African expatriates with the means sent their children back to boarding school in South Africa. He believes perceptions have changed drastically and there’s a strong sense that the secondary education offered in Mauritius is superior to that in South Africa. One of the pillars of secondary education has to be how many doors open when a student is brandishing their final-year results. Those schooled in Mauritius are ‘cruising into any universities they choose, in the country they choose,’ Geldenhuys says. The current, somewhat fluid South African political environment and its affect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. ‘It’s far more expensive to send children to study in the UK and Australia than South Africa, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon,’ says Geldenhuys. Bel Air is situated in the southeastern region of the Royal Park residential estate with views of both the Moka Range and Turtle Bay sunsets. Bel Air’s 24 exclusive four-bedroom duplex townhouses are on the market through Pam Golding Properties International schooling destinations Mauritius primary up to senior school education is either public or private – English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%). The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities).

A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

The move provided the economic injection which Mauritius sought – and a highly attractive lifestyle for those wanting a stable, secure, beautiful country to call their own. For South Africans, Mauritius is a mere four-hour flight away, ideal for those who commute to their South African business interests. The country also has low inflation, tax rates, crime and unemployment, a stable political environment, free exchange controls and a low level of government regulation in the business sector. In short, it has almost everything South Africa doesn’t. Fresh and contemporary, the African Leadership College is a private tertiary institution in Beau-Plan Business Park Studying in Mauritius Since Mauritian independence in 1968, the country has undergone a significant transformation as the economy evolved from low-income agricultural to a middle-income country based on tourism, textiles, sugar and financial services. Today, that economy has diversified to include a wide range of sectors, including property development, education and training. With the political will, it looks set to continue the upward trajectory. Mauritius is consistently rated the best-run country in the Indian Ocean region, ranked first in Africa in the World Bank’s 2016 Doing Business Report and 32 on the global list. There’s been a focused, collaborative and highly successful drive by the government to raise the bar on Mauritius. The accompanying economic growth has impacted all sectors, education being a priority. It’s not only around bigger, better schooling opportunities for Mauritians but about positioning the country as an attractive educational proposition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education – the Tertiary Education Commission (TEC) – is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to ‘position Mauritius in the region as a world-class knowledge hub and the gateway for post-secondary education’. Over the past decade, Knight Frank’s The Wealth Report has provided a unique perspective on the interaction between wealth and the world’s prime property markets. A 2015 prediction pointed to the rise of education as a driver for global property investment and their survey results have been borne out by the facts. For example, 42% of Chinese ultra-high-net-worth individuals were planning to send their children overseas for secondary education. Tertiary education, student accommodation and the leisure activities of campus life are all offered at Mauritius’ African Leadership College Mauritius vs South Africa Timo Geldenhuys, a South African with young children and a director at Sotheby’s International Realty in Mauritius, has lived in the country for 11 years, watching the landscape evolve over that time. ‘Compared to the previous five years, the change in the last five or six has been exponential, particularly with regard to secondary school and tertiary education,’ he says. Compared with his early days there, South African expatriates with the means sent their children back to boarding school in South Africa. He believes perceptions have changed drastically and there’s a strong sense that the secondary education offered in Mauritius is superior to that in South Africa. One of the pillars of secondary education has to be how many doors open when a student is brandishing their final-year results. Those schooled in Mauritius are ‘cruising into any universities they choose, in the country they choose,’ Geldenhuys says. The current, somewhat fluid South African political environment and its affect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. ‘It’s far more expensive to send children to study in the UK and Australia than South Africa, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon,’ says Geldenhuys. Bel Air is situated in the southeastern region of the Royal Park residential estate with views of both the Moka Range and Turtle Bay sunsets. Bel Air’s 24 exclusive four-bedroom duplex townhouses are on the market through Pam Golding Properties International schooling destinations Mauritius primary up to senior school education is either public or private – English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%).

The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in

The accompanying economic growth has impacted all sectors, education being a priority. It’s not only around bigger, better schooling opportunities for Mauritians but about positioning the country as an attractive educational proposition for students globally. Education has become a cornerstone of the Mauritian vision. The regulatory body for tertiary education – the Tertiary Education Commission (TEC) – is both watchdog and facilitator, from accreditation of international-brand senior schools and tertiary institutions to ensuring superior standards. The TEC’s stated intention is to ‘position Mauritius in the region as a world-class knowledge hub and the gateway for post-secondary education’. Over the past decade, Knight Frank’s The Wealth Report has provided a unique perspective on the interaction between wealth and the world’s prime property markets. A 2015 prediction pointed to the rise of education as a driver for global property investment and their survey results have been borne out by the facts. For example, 42% of Chinese ultra-high-net-worth individuals were planning to send their children overseas for secondary education. Tertiary education, student accommodation and the leisure activities of campus life are all offered at Mauritius’ African Leadership College Mauritius vs South Africa Timo Geldenhuys, a South African with young children and a director at Sotheby’s International Realty in Mauritius, has lived in the country for 11 years, watching the landscape evolve over that time. ‘Compared to the previous five years, the change in the last five or six has been exponential, particularly with regard to secondary school and tertiary education,’ he says. Compared with his early days there, South African expatriates with the means sent their children back to boarding school in South Africa. He believes perceptions have changed drastically and there’s a strong sense that the secondary education offered in Mauritius is superior to that in South Africa. One of the pillars of secondary education has to be how many doors open when a student is brandishing their final-year results. Those schooled in Mauritius are ‘cruising into any universities they choose, in the country they choose,’ Geldenhuys says. The current, somewhat fluid South African political environment and its affect on tertiary education is increasingly proving to be off-putting. South African tertiary institutions are losing their gloss. ‘It’s far more expensive to send children to study in the UK and Australia than South Africa, but parents are making that decision anyway. They’re preparing themselves far sooner for the massive bills on the horizon,’ says Geldenhuys. Bel Air is situated in the southeastern region of the Royal Park residential estate with views of both the Moka Range and Turtle Bay sunsets. Bel Air’s 24 exclusive four-bedroom duplex townhouses are on the market through Pam Golding Properties International schooling destinations Mauritius primary up to senior school education is either public or private – English, French or dual medium. There are a number of highly rated private schools which follow internationally recognised curricula (British and international GCSE – A and O levels – and/or the International Baccalaureate). Among others, notable schools are the International Preparatory School and Northfields High School in the north; Westcoast International Primary School at Black River; and French private schools such as L’Ecole du Nord in the north, Lycée des Mascareignes in the centre and Paul & Virginie in the west. Traditionally, Australia is perceived as the Mauritian destination of choice for tertiary education, but the figures don’t bear it out. The UK topped the list with 2 515 students (24.8%), followed by Australia 1 879 (18.5%), France/La Réunion 1 756 (17.3%), India 1 308 (12.9%) and China 1 108 (11.6%). Compared to 2013, the flow of students pursuing higher studies in Australia decreased from 20.8% to 18.5% in 2014. Increasingly, now, fewer Mauritians are travelling abroad to study. They no longer need to, as the universities are coming to them. The expat figures seem to be fluctuating, however, and it remains to be seen whether the new universities will offer courses more attractive to them. What about education? This is the most common question Geldenhuys receives from those considering a move to Mauritius. ‘It’s become part of the investment paradigm. Buyers may have children of [school-going] age – and when they sell, the [next] buyer could be someone with school- or university-age children,’ he says. Looking back towards St Antoine Private Residence, the clarity of the Mauritian sea takes your breath away; the aerial view of Middlesex University Mauritius’ new campus in Medine Smart City; an artist’s rendering of what the university will look like once complete Mauritius as an international schooling destination The Board of Investment (BOI) Mauritius is the national investment promotion agency of the Mauritian government, with the mandate to promote and facilitate investment in the country. According to the BOI, the number of international students choosing to pursue higher education studies in Mauritius shows an upward trend, with students from more than 70 countries enrolled there. These include India (30%), Nigeria (11%), South Africa (10%) and France (6%). The Passport and Immigration Office (December 2015) details the evolution in the enrolment of international students increasing from 528 students in 2007 to 2 900 in 2015. Tertiary education in Mauritius isn’t considered in isolation but as an integral part of the bigger picture. Mauritius is building smart cities (www.investmauritius.com/investment-opportunities/smart-cities). A number of international brands are establishing satellite campuses or a footprint in Mauritius. Students then have the advantage of internationally accredited faculties, lecturers and qualifications. There are also opportunities for international student exchange between campuses. Medine Education Village is a perfect example. The Medine Group launched its Education Village project at Talents in Pierrefonds in 2012. In the first phase, they constructed a 60-seater amphitheatre. In the second, 35ha of land is set to be developed in Cascavelles, comprising an academic zone, student accommodation facilities and sports and leisure amenities. International institutions such as ESSEC Business School, ESCP Europe, SUPINFO and Université Sorbonne Assas are already delivering their programmes in the Talents amphitheatre. Furthermore, the Medine Group is currently focusing on the development of the Medine Smart City project that will span 202ha. This project will include commercial facilities, business parks, a medical hub, sports hub, education (preprimary, primary, secondary and tertiary), student housing and residential facilities. On the northeast coast, only 10 minutes from Grande Baie, St Antoine Private Residence is set in a charming area redolent with Mauritian tradition and authentic country appeal. Mauritius Sotheby’s International Realty offers luxury apartments and penthouses with sea views, priced from MUR20 900 000 each (more than R8 million) Middlesex University Mauritius is an integral part of Britain’s Middlesex University, subject to the same rigorous quality assurance procedures and standards and which recently earned the highest possible endorsement from the UK’s Quality Assurance Agency for Higher Education. In 2010, Middlesex opened in Mauritius (its second international campus). Some six years later, a joint venture between Middlesex and the Medine Group resulted in the construction of a state-of-the-art campus within Medine Smart City, due to be completed by September 2017. The new campus master plan is envisaged to benefit both residents and students, aligned with the country’s Smart City philosophy. ‘We are creating the island’s first integrated and international campus on the west coast of Mauritius, which will be within a city in the making,’ says Thierry Sauzier, deputy CEO of Medine Group. The UK’s Aberystwyth University recently set up a branch campus in Mauritius on 47 055m2 of land in Quartier-Militaire. The campus project will comprise various academic blocks, science and architecture laboratories, a gymnasium, an auditorium, an administrative block, accommodation facilities and various sports facilities. Phase one of the three-part project has been completed and can accommodate up to 500 students. The institution is already operational and delivers undergraduate and postgraduate courses awarded by Aberystwyth University in Wales. African Leadership College has set up a private tertiary educational institution in Beau-Plan Business Park along with Glasgow Caledonian University to offer undergraduate programmes to students. The institution has already attracted 180 international scholars from more than 30 African countries. In collaboration with Terra Group, the college is planning to construct a residential campus on 50ha of land in Pamplemousses. Student accommodation in Mauritius is plentiful, either on campus or, in the case of Student Life Residences – developed by the Medine Group in September 2015 – customised student accommodation. According to the BOI, ‘the government of Mauritius is presently developing three university campuses (Reduit, Pamplemousses and Montagne-Blanche), which will accommodate Polytechnic Institutes in different fields such as ICT, hotel management, tourism and healthcare services. This project is in line with the government’s vision to transform Mauritius into a knowledge hub by expanding access to quality higher education through the creation of state-of-the-art infrastructure across the country.’ Construction of these three university campuses is nearly complete. Mauritius as a knowledge hub is fast gaining traction. Students of the international-brand universities are acquiring a world-class education at less than it would cost if they attended the same university in its place of origin. And the opportunities for student exchange aren’t pipe dreams. They’re happening – and that opportunity for travel and global interaction is a draw card. Mauritius Sotheby’s International Realty has just launched the ultra-stylish Bagatelle Les Residences Belle Rive Text Anne Schauffer Photographs Keshawve Jeewon, iStock, supplied

Rental properties few and far between for pet-lovers in SA

Rental properties few and far between for pet-lovers in SA Published: 26 Oct 2016 South Africans are known to be animal lovers and thousands of households regard their four-legged friends as family, but across the major metros it’s becoming increasingly difficult to find pet-friendly rental properties as more landlords and body corporates adopt “no pet” policies. In Cape Town, soaring demand for rental accommodation has sparked stock shortages and skyrocketing prices, especially in the lower and middle markets of the most sought-after suburbs where the flood of semigration is making house hunting a progressively odious task. However, the situation is exacerbated for pet-owners who are faced with a shrinking pool of animal-friendly accommodation, especially on the Atlantic Seaboard and in the Southern Suburbs where fewer than 10% of rental properties allow them. And the picture isn’t much better for pet owners in Gauteng or on KwaZulu Natal’s desirable north coast, where, according to veteran realtor Manny Testa, luxury estates’ pet policies are actually impacting property values. Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl CEO, says: “There are not nearly enough pet-friendly rental properties to meet the high demand as the number of landlords and body corporates implementing a ‘no pet’ policy rises.

We’re hitting this stumbling block even on unfurnished, spacious homes with large grounds. “It has also become an issue in the sales market where we are seeing more and more sectional title and cluster developments imposing an outright ban on pets. This severely limits buyers’ choices, especially in the lower to mid-markets, which on the Atlantic Seaboard means anything from around R2 million to R10m.” Lorraine-Marie’ Dellbridge, Rental Manager for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs says: “People assume that because the suburbs are traditionally family-oriented there would be more pet-friendly accommodation available, but it’s simply not the case anymore. Most landlords these days equate animals with damage, and this sometimes even extends to smaller pets like birds and fish.” Dellbridge adds that at least 25% of their vetted and financially stable prospective tenants request pet-friendly accommodation and that it’s becoming increasingly difficult to find them homes in the ever-diminishing store of available accommodation. “Desperate people who love their pets often continue the search until the 11th hour, but sadly it’s no longer uncommon for accommodation-seekers to eventually resort to re-homing or even surrendering their animals when they fail to find somewhere to live that will allow pets.”

The situation in Johannesburg doesn’t yet appear to be as dire for pet lovers as it is in Cape Town, but Shaun Groves, Lew Geffen Sotheby’s International Realty Rental Manager in Gauteng, says it’s become a notable emergent trend, especially in certain suburbs. “Sandton landlords, in particular, are very wary when it comes to pets and Fourways is not far behind with yet another well-known complex’s body corporate recently amending its rules to a no pet policy. “We are also seeing body corporates effectively granting ‘life rights’ to existing pets, meaning when your current animal passes you’re not allowed to replace it.” Testa, Principal at Sotheby’s International Realty in Durban North and Umhlanga, says the outlook for pet owners seeking accommodation on KZN’s north coast is just as bleak as Cape Town and Johannesburg. “When you find a unit in a security complex or estate that allows pets – whether it’s to rent or sell – you’ll move it incredibly quickly simply because the demand for secure pet-friendly accommodation is so much greater than the supply,” says Testa. He cites the example of the Mount Edgecombe Country Estate, where on Estate 1 residents are permitted to keep any breed of dog if they obtain permission, but on Estate 2 no dogs that weigh more than 22kg are allowed – no exceptions granted. “In my experience it’s a lot easier to move property on Estate 1 and we see more demand for homes there because people know they can live with their dogs, which they generally consider to be members of their family. “I firmly believe landlords and body corporates are wrong in their approach; people who love animals and own pets put down deeper roots because pets tend to be a 15-year commitment. Most are not fly-by-nighters and they are usually more solid members of the community,” says Testa.

Dellbridge, who had been in the industry for many years, agrees. She says that in her experience there are numerous advantages to accepting tenants with animals, especially in the current market. “In the more sought-after suburbs, landlords can charge and achieve higher monthly rentals if they allow animals, as most pet owners are very happy to pay a premium for a pet-friendly home. “They’re also likely to be more stable and responsible long-term tenants who will appreciate and take care of the property because they know that finding another suitable home wouldn’t be easy.” In many Johannesburg suburbs the situation is reversed and supply currently outweighs demand. Groves believes it makes financial sense for landlords and body corporates to carefully consider their pet policies rather than lose money while they wait for suitable tenants without animals. “We recently listed 28 units in Sandton and my immediate advice to the developer was to amend body corporate rules to make it pet-friendly as there are a plethora of rental units available in Sandton at the moment but very few that allow animals.” Dellbridge, Testa and Groves believe that most pet-owners would gladly pay an additional “pet deposit” but advise that where a standard two-month deposit is required, a hefty additional pet deposit could price the property beyond most budgets. Dellbridge also suggests that landlords willing to allow pets would enjoy greater peace of mind if a pet-related addendum is included in the lease agreement and pets are formally noted. “Both the tenant and the landlord should have clear expectations and it is reasonable for a landlord to restrict the type, size and number of the pets allowed. “It should also be noted that the tenant agrees to maintain a high standard of cleanliness and sanitation, and to monitor noise or disturbances to neighbours.” Lynn Stacey, a Bantry Bay resident who owns an investment property in Sea Point, says that initially the body corporate was vehemently opposed to pets in the complex but after reaching an agreement, she is now able to rent out her property to pet owners. “We now allow pets with prior permission, and we have a simple set of rules that tenants agree to adhere to. If they don’t, we deal with it immediately and they are given three opportunities to comply after which they face eviction. “However, so far we have had no problems at all. I really believe that it is an educational process and the anti-pet sentiment is often a result of ignorance.” Lew Geffen, Chairman of Lew Geffen Sotheby’s International realty says: “There is no doubt that densification is the future face of every city in South Africa, just as surely as people will continue to want to keep pets. “In such a tight national economy when bonds still have to be serviced and rental properties can’t stand vacant for months, somewhere along the line there is going to have to be more compromise. “If trustees and landlords want to maintain standards by having their choice of the most desirable residents out of the entire pool of home seekers rather than simply the best of those who don’t own animals, then more flexibility will be needed in the property marketplace.” SIDEBAR South Africans and their pets According to a report about the SA pet industry by international market researchers, Euromonitor International: · There are 5.3 million pet households in South Africa; · South Africans are spending almost R5 billion a year at retail level to feed their pets and this is growing by up to 3% per annum. Statistics further reveal that: · 85% of pet owners regard their pets as part of the family; · 57% of pet owners agree that the pet is their best friend; · 81% of pet owners say they do not feel alone when in the company of their animals

SA’s economic reality is dismal – Geffen

SA’s economic reality is dismal – Geffen 26th October 2016 3:14 pm David A Steynberg 0 0 79Views “[Minister of Finance Pravin] Gordhan has been handed the proverbial sow’s ear by government and told to turn it into a publicly palatable silk purse. It’s unfortunate that the finance minister’s post doesn’t come with conjuring powers, because working as he is with one hand tied behind his back, it would have taken a magic wand for Gordhan to have been able to present anything other than a dismal economic outlook in his mini budget speech. We cannot create investor confidence without, among other things, energy security, and cash-strapped South Africans can ill afford the greater tax burden they’ll be facing next year. It certainly does not bode well for growth in the national property sector, which is currently being shored up by the Western Cape. If that market slows, driven by further shrinkage of consumer spending, property inflation will start to move into negative territory in the medium term. South Africa needs to see a drastic streamlining of the very bloated public sector and sharp cuts in superfluous government spending before a greater burden is passed onto what is actually a very small tax-paying base compared to the overall population of the country. A medium-term economic turnaround isn’t possible until that happens.” –

We cannot create investor confidence without, among other things, energy security, and cash-strapped South Africans can ill afford the greater tax burden they’ll be facing next year. It certainly does not bode well for growth in the national property sector, which is currently being shored up by the Western Cape. If that market slows, driven by further shrinkage of consumer spending, property inflation will start to move into negative territory in the medium term. South Africa needs to see a drastic streamlining of the very bloated public sector and sharp cuts in superfluous government spending before a greater burden is passed onto what is actually a very small tax-paying base compared to the overall population of the country. A medium-term economic turnaround isn’t possible until that happens.” – Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty Key take-outs from the Medium-term Budget Speech today Global growth has slowed, affecting investment and trade in many developing economies. Our economic growth will be just 0.5% this year, rising to 1.7% in 2017. If we do the right things to support investment and confidence, our economic recovery will be more rapid. Measured and balanced fiscal consolidation will continue over the period ahead, with the budget deficit declining from 3.4% this year to 2.5% in 2019/20.

Debt is projected to stabilise at just less than 48% of GDP. Over the next two years, we propose to raise an additional R43bn through tax measures. The expenditure ceiling will be lowered by R26bn. Consolidated government expenditure will rise by 7.6% a year over the Medium-Term Expenditure Framework period. Additional allocations are proposed for post-school education, health services and social protection. Infrastructure investment, mainly in energy, transport and telecommunications, will amount to over R900bn over the next three years. Efforts to improve supply chain management and ensure greater value for money in public service delivery will continue to be prioritised. David Steynberg david.steynberg@gmail.com David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation

Sandton’s sectional title market subdued by over-supply

Sandton’s sectional title market subdued by over-supply Published: 27 Oct 2016 Sandton’s status as South Africa’s financial hub has to a large extent cushioned the suburb’s sectional title market, with demand for residential property remaining consistent despite the economic slump and weaker buyer sentiment. This beautifully appointed double storey home in a cluster development has five generous bedrooms, a double garage and wrap-around garden. On the market for R5.999 million, it offers an upmarket lifestyle with 24-hour security and access control. But the once-buoyant sector is being subdued by over-supply as ongoing development outpaces demand. This is according to Robin von Mayer, Sandton and Morningside Sectional Title Specialist for

On the market for R5.999 million, it offers an upmarket lifestyle with 24-hour security and access control. But the once-buoyant sector is being subdued by over-supply as ongoing development outpaces demand. This is according to Robin von Mayer, Sandton and Morningside Sectional Title Specialist for Lew GeffenSotheby’s International Realty, who says that over-supply has led to a buyer’s market across the suburbs. “That said, properties offering great value at accessible prices will always find ready buyers, albeit at a slower pace. “The more affordable value-orientated sector of the market at a lower Rand per square metre has proved to be the most consistently active, which is a common response in a competitive and saturated market. It also benefits from a wider buyer base that includes first time buyers,

It also benefits from a wider buyer base that includes first time buyers, empty-nesters, investors and those seeking relocation. “Especially sought-after at the moment are family homes such as townhouses or cluster units in the R2.5 million to R3.5m price band as well as one bedroom apartments for around R1m that generally offer investors better returns than their larger counterparts.” Von Mayer adds that the latter are especially popular with investment buyers who can expect a very healthy rental return of R8 000 per month on an apartment that costs R900 000. “With the growth of the commercial market in Sandton, the continued influx of people seeking accommodation closer to work has definitely been a big positive for these market sectors.” The middle and upper market segments may have slowed and their buyer base has narrowed in Sandton and Morningside, but they are still attracting investors. “We have seen a steady increase in Indian and Chinese investors in the middle market, many of whom come to South Africa on fixed-term contracts and believe it is a better option to buy rather than rent as they can either sell at a profit or rent out the properties once their contracts have expired. “High-end apartments in Sandton still carry prestige, especially in the new luxury developments, and these are predominantly purchased by affluent investors who have business interests in the area.” Von Mayer says: “Sandton and Morningside may carry the location status, but many of the surrounding suburbs offer more property for the same amount of money and landlords and investors need to acknowledge this and act accordingly. “This is especially true for two-bedroom units where demand has dropped significantly, partly due to the fact that the corporate market has taken a knock with many companies decreasing accommodation budgets.” According to Von Mayer, the sectional title market is generally more competitive in areas further from the CBD due to factors like affordable off-plan options and a broader target market that offer more resale options and, as a result, suburbs like Fourways, Douglasdale and and Rivonia continue to enjoy healthy demand, especially in tougher economic climates. “In areas closer to the Sandton CBD like Illovo, Sandhurst, Morningside, Sandown and Strathavon the sectional title off-plan developments are less affordable and more prestigious, aimed towards a different market segment and this has shrunk considerably over the past year.”

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, believes that although the market will continue to take pressure for some time, owners shouldn’t panic. “Sandton will always enjoy a high demand for residential property and it must be born in mind that a correction process is often better for the overall health of the market. “In times like these it is always better to sit tight and ride the storm and new investors should be prudent in their property selection and regard any purchases made now as long term investments rather than short-term flips.” He concludes that while the ongoing sectional title development may have temporarily subdued the market, the investor confidence bodes well for the area and large-scale office developments in Sandton which continue to attract new corporates to the node will benefit the residential market in the long term

Sandton’s sectional title market subdued by over-supply

Thursday Oct 27, 2016 Sandton’s sectional title market subdued by over-supply Sandton’s status as South Africa?s financial hub has to a large extent cushioned the suburb?s sectional title market, with demand for residential property remaining consistent despite the economic slump and weaker buyer sentiment. But the once-buoyant sector is being subdued by over-supply as ongoing development outpaces demand.

This is according to Robin von Mayer, Sandton and Morningside Sectional Title Specialist for Lew Geffen Sotheby’s International Realty, who says that over-supply has led to a buyer’s market across the suburbs. “That said, properties offering great value at accessible prices will always find ready buyers, albeit at a slower pace. “The more affordable value-orientated sector of the market at a lower Rand per square metre has proved to be the most consistently active, which is a common response in a competitive and saturated market. It also benefits from a wider buyer base that includes first time buyers, empty-nesters, investors and those seeking relocation. “Especially sought-after at the moment are family homes such as townhouses or cluster units in the R2.5 million to R3.5m price band as well as one bedroom apartments for around R1m that generally offer investors better returns than their larger counterparts.” Von Mayer adds that the latter are especially popular with investment buyers who can expect a very healthy rental return of R8 000 per month on an apartment that costs R900 000. “With the growth of the commercial market in Sandton, the continued influx of people seeking accommodation closer to work has definitely been a big positive for these market sectors.”

The middle and upper market segments may have slowed and their buyer base has narrowed in Sandton and Morningside, but they are still attracting investors. “We have seen a steady increase in Indian and Chinese investors in the middle market, many of whom come to South Africa on fixed-term contracts and believe it is a better option to buy rather than rent as they can either sell at a profit or rent out the properties once their contracts have expired. “High-end apartments in Sandton still carry prestige, especially in the new luxury developments, and these are predominantly purchased by affluent investors who have business interests in the area.” Von Mayer says: “Sandton and Morningside may carry the location status, but many of the surrounding suburbs offer more property for the same amount of money and landlords and investors need to acknowledge this and act accordingly. “This is especially true for two-bedroom units where demand has dropped significantly, partly due to the fact that the corporate market has taken a knock with many companies decreasing accommodation budgets.” According to Von Mayer, the sectional title market is generally more competitive in areas further from the CBD due to factors like affordable off-plan options and a broader target market that offer more resale options and, as a result, suburbs like Fourways, Douglasdale

“That said, properties offering great value at accessible prices will always find ready buyers, albeit at a slower pace. “The more affordable value-orientated sector of the market at a lower Rand per square metre has proved to be the most consistently active, which is a common response in a competitive and saturated market. It also benefits from a wider buyer base that includes first time buyers, empty-nesters, investors and those seeking relocation. “Especially sought-after at the moment are family homes such as townhouses or cluster units in the R2.5 million to R3.5m price band as well as one bedroom apartments for around R1m that generally offer investors better returns than their larger counterparts.” Von Mayer adds that the latter are especially popular with investment buyers who can expect a very healthy rental return of R8 000 per month on an apartment that costs R900 000. “With the growth of the commercial market in Sandton, the continued influx of people seeking accommodation closer to work has definitely been a big positive for these market sectors.” The middle and upper market segments may have slowed and their buyer base has narrowed in Sandton and Morningside, but they are still attracting investors. “We have seen a steady increase in Indian and Chinese investors in the middle market, many of whom come to South Africa on fixed-term contracts and believe it is a better option to buy rather than rent as they can either sell at a profit or rent out the properties once their contracts have expired. “High-end apartments in Sandton still carry prestige, especially in the new luxury developments, and these are predominantly purchased by affluent investors who have business interests in the area.” Von Mayer says: “Sandton and Morningside may carry the location status, but many of the surrounding suburbs offer more property for the same amount of money and landlords and investors need to acknowledge this and act accordingly. “This is especially true for two-bedroom units where demand has dropped significantly, partly due to the fact that the corporate market has taken a knock with many companies decreasing accommodation budgets.”

According to Von Mayer, the sectional title market is generally more competitive in areas further from the CBD due to factors like affordable off-plan options and a broader target market that offer more resale options and, as a result, suburbs like Fourways, Douglasdale and and Rivonia continue to enjoy healthy demand, especially in tougher economic climates. “In areas closer to the Sandton CBD like Illovo, Sandhurst, Morningside, Sandown and Strathavon the sectional title off-plan developments are less affordable and more prestigious, aimed towards a different market segment and this has shrunk considerably over the past year.” Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, believes that although the market will continue to take pressure for some time, owners shouldn’t panic. “Sandton will always enjoy a high demand for residential property and it must be born in mind that a correction process is often better for the overall health of the market. “In times like these it is always better to sit tight and ride the storm and new investors should be prudent in their property selection and regard any purchases made now as long term investments rather than short-term flips.” He concludes that while the ongoing sectional title development may have temporarily subdued the market, the investor confidence bodes well for the area and large-scale office developments in Sandton which continue to attract new corporates to the node will benefit the residential market in the long term.

5 Highlights from the MTBPS

5 Highlights from the MTBPS By Angelique Ruzicka 26 Oct 2016 It’s no surprise that right from the start Finance Minister Pravin Gordhan would not be drawn in on any questions surrounding his long term battle with the Hawks on alleged fraud charges and setting up of a rogue unit at the South African Revenue Service (SARS). At the media conference earlier this morning some journalists tried to get him to comment, but he was having none of it. His focus, he says, is simply on the Medium Term Budget Policy Statement (MTBPS) and that we should direct our efforts and questions on that. Another thing that he wouldn’t offer further comment on was the issue of taxes and whether any new taxes would be introduced or if any of the current ones we are subject to would be increased. He reminded us: “We don’t discuss tax choices in the MTBPS. The MTBPS is not a budget. We don’t deliver money here but this gives us the opportunities in the next month or so to introduce the highly technical proposals.” But there were some things he was willing to expand on and we highlight these here: Eskom and other state-owned enterprises (SOEs) After refusing to comment on the Hawks, State capture and any other cloudy issues that he currently faces, journalist jumped at the chance to grill the Minister on Eskom. He made assurances that government is closely monitoring SOEs, saying: “South African Airways (SAA), the South African Post Office (SAPO), SANRAL and Eskom, with the aim of stabilising these entities and mitigating any risks that materialise.” But there were still questions around how Eskom would fund the nuclear deal. Earlier this month energy expert, Chris Yelland, told

He reminded us: “We don’t discuss tax choices in the MTBPS. The MTBPS is not a budget. We don’t deliver money here but this gives us the opportunities in the next month or so to introduce the highly technical proposals.” But there were some things he was willing to expand on and we highlight these here: Eskom and other state-owned enterprises (SOEs) After refusing to comment on the Hawks, State capture and any other cloudy issues that he currently faces, journalist jumped at the chance to grill the Minister on Eskom. He made assurances that government is closely monitoring SOEs, saying: “South African Airways (SAA), the South African Post Office (SAPO), SANRAL and Eskom, with the aim of stabilising these entities and mitigating any risks that materialise.” But there were still questions around how Eskom would fund the nuclear deal. Earlier this month energy expert, Chris Yelland, told Justmoney that very few countries could foot the bill of nuclear projects on their own without some kind of appeal to the taxpayers to open their wallets. He reckoned South Africa would be no different. On SAA, Gordhan announced that advisors will be appointed to provide technical assistance as government considers the possible realignment of its airline shareholdings. Higher education Thanks to the #FeesMustFall movement Treasury and government have had to pay full attention to students and their concerns about financing their studies at university. While students are calling for free education there was no hint from government in providing this. Gordhan admitted that universities may not have been awarded a fair cut, pointing out that while allocations have increased from one percent of GDP in 2008 to 1.5% today, most of the increased benefits have been awarded to vocational colleges, SETAs and the National Skills Fund, rather than universities. However, Gordhan says that universities and students will receive an additional R17 billion over the medium term. Currently, university subsidies are increasing by 10.9% each year on average and NSFAS allocations are growing by 18.5%. Restoring confidence Confidence in the country has been crushed following low growth forecasts (growth is slower now at 0.5% than the predicted 0.9% back in February this year), threats of a downgrade of the country to junk status, the FeesMustFall movement, the state capture report and allegations of fraud and corruption by the Hawks on Pravin Gordhan. Government debt, which now exceeds R2 trillion, remains a concern too. Gordhan, however, remains resolute in the face of these allegations and economic uncertainties and called for a package of actions to restore confidence, including: – Finalising the regulatory framework for private-sector participation in infrastructure projects, including initiatives in partnership with state-owned companies. – Addressing legislative and regulatory uncertainties that hold back investment in mining, agriculture and other key technology sectors. – Rationalising, closing or selling off public assets that are no longer relevant to government’s development agenda, and strengthening those that are central to achieving the NDP objectives. – Concluding labour market reforms. Tax hikes? Tax increases were hinted at with Gordhan saying that there will tax measures to raise an additional R13 billion in 2017/18. In addition to this government will also propose measures to raise an additional revenue of R15 billion 2018/19. In his speech, Gordhan said: “In the current year, we now project R23 billion less revenue than the February estimate. Measures are likely to be needed in next year’s Budget to raise tax revenue by about R28 billion a year, while avoiding measures that would inhibit investment.” Slight increase in social grants Food prices have hiked up astronomically and Gordhan has made one mitigating move in his speech to help stave off the struggle. “Taking into account the rise in food prices this year, I am pleased to confirm that an additional increase of R10 a month has been made to social grants with effect from October,” he says. A difficult task in convincing the ratings agencies Commentators are acknowledging that Gordhan has a difficult task ahead of him.

Slight increase in social grants Food prices have hiked up astronomically and Gordhan has made one mitigating move in his speech to help stave off the struggle. “Taking into account the rise in food prices this year, I am pleased to confirm that an additional increase of R10 a month has been made to social grants with effect from October,” he says. A difficult task in convincing the ratings agencies Commentators are acknowledging that Gordhan has a difficult task ahead of him.

Earlier this month energy expert, Chris Yelland, told Justmoney that very few countries could foot the bill of nuclear projects on their own without some kind of appeal to the taxpayers to open their wallets. He reckoned South Africa would be no different. On SAA, Gordhan announced that advisors will be appointed to provide technical assistance as government considers the possible realignment of its airline shareholdings. Higher education Thanks to the #FeesMustFall movement Treasury and government have had to pay full attention to students and their concerns about financing their studies at university. While students are calling for free education there was no hint from government in providing this. Gordhan admitted that universities may not have been awarded a fair cut, pointing out that while allocations have increased from one percent of GDP in 2008 to 1.5% today, most of the increased benefits have been awarded to vocational colleges, SETAs and the National Skills Fund, rather than universities. However, Gordhan says that universities and students will receive an additional R17 billion over the medium term. Currently, university subsidies are increasing by 10.9% each year on average and NSFAS allocations are growing by 18.5%. Restoring confidence Confidence in the country has been crushed following low growth forecasts (growth is slower now at 0.5% than the predicted 0.9% back in February this year), threats of a downgrade of the country to junk status, the FeesMustFall movement, the state capture report and allegations of fraud and corruption by the Hawks on Pravin Gordhan.

Government debt, which now exceeds R2 trillion, remains a concern too. Gordhan, however, remains resolute in the face of these allegations and economic uncertainties and called for a package of actions to restore confidence, including: – Finalising the regulatory framework for private-sector participation in infrastructure projects, including initiatives in partnership with state-owned companies. – Addressing legislative and regulatory uncertainties that hold back investment in mining, agriculture and other key technology sectors. – Rationalising, closing or selling off public assets that are no longer relevant to government’s development agenda, and strengthening those that are central to achieving the NDP objectives. – Concluding labour market reforms. Tax hikes? Tax increases were hinted at with Gordhan saying that there will tax measures to raise an additional R13 billion in 2017/18. In addition to this government will also propose measures to raise an additional revenue of R15 billion 2018/19. In his speech, Gordhan said: “In the current year, we now project R23 billion less revenue than the February estimate. Measures are likely to be needed in next year’s Budget to raise tax revenue by about R28 billion a year, while avoiding measures that would inhibit investment.” Slight increase in social grants Food prices have hiked up astronomically and Gordhan has made one mitigating move in his speech to help stave off the struggle. “Taking into account the rise in food prices this year, I am pleased to confirm that an additional increase of R10 a month has been made to social grants with effect from October,” he says. A difficult task in convincing the ratings agencies Commentators are acknowledging that Gordhan has a difficult task ahead of him.

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says Gordhan has been handed the proverbial sow’s ear by government and told to turn it into a publicly palatable silk purse. “It’s unfortunate that the Finance Minister’s post doesn’t come with conjuring powers, because working as he is with one hand tied behind his back, it would have taken a magic wand for Gordhan to have been able to present anything other than a dismal economic outlook in his mini budget speech.” He adds: “South Africa needs to see a drastic streamlining of the very bloated public sector and sharp cuts in superfluous government spending before a greater burden is passed onto what is actually a very small tax-paying base compared to the overall population of the country. A medium-term economic turnaround isn’t possible until that happens.” The question remains whether this will all be enough to appease the ratings agencies and prevent them from downgrading South Africa to junk status: “Is it enough to keep S&P on hold in December 2016? It may just be. Rating agencies care about growth. The measured consolidation that Treasury has outlined shows a firm commitment to meeting the fiscal objectives they committed to in February 2016 without killing growth. A good portion of the Budget Review focuses on the structural and regulatory measures that are required to raise South Africa’s growth rate. Unless those are implemented, growth and revenues will continue to disappoint,” warns Nazmeera Moola, co-head of fixed income at Investec Asset Management. Medium term budget, MTBPS 2016, national Treasury About the author Angelique Ruzicka Angelique Ruzicka is an award-winning journalist and editor with 15 years’ experience in business and consumer press. She’s passionate about personal finance and consumer’s rights and a regular commentator on CNBC, eNCA, Radio 702/Cape Talk 567 and SAFM. She joined Justmoney as the editor in April 2012. Besides editing Justmoney, she’s also the editor of Moneybags (www.moneybags.co.za) which is the sister website of Justmoney. Before joining Justmoney, she worked for a number of print and online platforms, in Cape Town and London, including: insurance magazine RiskSA, Shape magazine (South Africa), Insurance Times, Moneywise, The Guardian, ThisIsMoney and What Investment. She has won a number of awards. In 2015, she won the Best Online Media Award category for her article ‘How to get a free ride after a night out’, which was initially published on Moneybags. While she was the editor of RiskSA, she secured the magazine a PICA award in the best B2B magazine of the year category in 2011. In 2006 she won a State Street Institutional Press Award as Journalist of the Year (investment services & technology category). In 2003, she was the runner up of the Bradford & Bingley Personal Finance Newcomer Journalist of the Year award. She was shortlisted for a Discovery Health Journalism award in 2012 (Best trade publication health journalism) and also nominated twice for PTC Specialist Newcomer Journalist of the Year (2002 & 2003) in London. She is married with two children and lives in Cape Town

Budget hemmed by slow growth

Budget hemmed by slow growth Gordhan’s options ‘limited’ — analysts SLOW growth, a poor economic outlook and a looming credit ratings decision left Finance Minister Pravin Gordhan with little choice but to hike taxes, according to analysts. However, the tax rise spells bad news for consumers and small businesses. Old Mutual Investment Group economist Johann Els said the impact of slower growth on tax revenues was substantial, but fortunately National Treasury had managed to keep spending under control. Els said it was a relatively solid MidTerm Budget Policy Statement, given the pressures facing Treasury. “A tighter stance might have been too damaging to the economy. It remains to be seen how this will influence the country’s ratings. Ratings agencies not only look at the budget, but also economic growth. S&P (Standard & Poor’s) are also waiting for announcements regarding a national minimum wage and a secret strike ballot.” Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, said Gordhan had been handed the proverbial “sow’s ear” by government and told to turn it into a publicly palatable silk purse. Geffen said it would have taken a magic wand for Gordhan to have been able to present anything other than a dismal economic outlook in his

Ratings agencies not only look at the budget, but also economic growth. S&P (Standard & Poor’s) are also waiting for announcements regarding a national minimum wage and a secret strike ballot.” Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, said Gordhan had been handed the proverbial “sow’s ear” by government and told to turn it into a publicly palatable silk purse. Geffen said it would have taken a magic wand for Gordhan to have been able to present anything other than a dismal economic outlook in his mini budget speech. “We cannot create investor confidence without, among other things, energy security, and cashstrapped South Africans can ill afford the greater tax burden they’ll be facing next year.”

Janine Myburgh, president of the Cape Chamber of Commerce and Industry, said South Africa would have to brace itself for tax increases next year. “The ideal method would be an increase in VAT (value added tax) but there would be strong objections from unions.” Myburgh said the chamber was pleased to see Gordhan recognised low confidence as an issue that was constraining private sector investment, but that he was still Joseph Booysen BUSINESS REPORTER joseph.booysen@inl.co.za keen for private sector partnerships in infrastructure developments. “We are encouraged that the government plans to address legislative and regulatory uncertainties that hold back investment in mining, agriculture and key technology sectors as well as essential labour market reforms. We have been disappointed before, but we hope the urgency of our debt credit rating problems will see fresh efforts to remove these impediments to economic growth.’ Damon Sivitilli, head of marketing at Cape Town debt counselling firm, DebtBusters, said South Africa was at a stage where economic growth was slow. He said the recent increases in fuel and food prices had harmed the economy at the micro and macro levels. Savitilli said South Africa’s continued slow economic growth would have an increasingly negative impact on the average consumer as their monthly living expenses and debt repayments continued to rise while their income levels remain unchanged.

David Crosoer, executive of research and investments at PPS Investments, said South Africa was facing tough choices even if economic growth lived up to National Treasury’s fairly optimistic assumptions. “Pravin Gordhan might have bought South Africa some time in his presidentialsounding medium term budget speech, but the jury is still out whether we will be able to make good use of it. Aptly, Gordhan appeared at times to be appealing as much to his colleagues as to his wider constituency of disgruntled citizens and nervous rating agencies: Pieter du Toit, chief executive of FNB Investments, said the projected half a percentage GDP growth.compelled the government to find alternative sources of income, meaning certain income brackets could see tax hikes in next year’s National Budget. “Household budgets are undeniably taking strain, but if consumers can take advantage of small windows of opportunities such as saving their annual bonus, they can develop sustainable momentum towards securing a better financial future. Consumers needed to move away from the culture of consumption.”

Interclub regatta attracts 44 boats

George Lakes Yacht Club hosted its annual interclub regatta at Island Lake last weekend. Competitors from Mossel Bay and Knysna took part. Two fleets were created: a fast fleet with ratings less than 1200 and a slow fleet with ratings greater than 1200. The Fast Fleet had twenty boats,.comprising Fireballs, Lasers, Dabchicks and a Sonnet, Mosquito and Hobie 14. The Slow Fleet had 24 boats.comprising Optimists, Teras, Picos, Toppers, Qbas, Gypsy and Topaz. Also at the event was the RSA Olympic sailor Asenathi Jim, to provide coaching to GLYC’s James Hellstrom, who will take part in the World Sailing Youth World Championships in New Zealand at the end of the year.

Two races were held on Sunday in a slight breeze with overcast conditions. On Sunday morning the breeze was still lacking but the two final races were held in ideal sailing conditions in the afternoon. In the light condition, the potentially fast boats did not perform well, particularly the catamarans. Also the Fireballs could not extend a lead over the rest of the fleet as much as they would have liked. Doing best in the series was Knysna’s Dudley Isaac on his Finn. Always up front with the Fireballs, he was the winner of all the races on handicap except the final one, where he got 2nd place. Doing the best of the three Fireballs sailing was the team of Georgou Divans and Ferdinand Holm, consistently up front to get second place overall. Malcolm Osborne was the leader amongst the Lasers to get third place overall. His main.competition from Lasers came from Mossel Bay’s James Marais, fourth overall. In the other fleet, up front on the water were the Tera

Malcolm Osborne was the leader amongst the Lasers to get third place overall. His main.competition from Lasers came from Mossel Bay’s James Marais, fourth overall. In the other fleet, up front on the water were the Tera Pro’s of Abigail Sweeney of Mossel Bay and Devaundrey Slinger of Knysna. However these two could not get far enough ahead of the Optimists to be able to convert this lead into a lead on corrected times. Consistently ahead on this basis was the Optimist of GLYC’s James Vonk, who got first place overall. Second place went to Sean Vonk, who was able to take a couple of race wins off his brother. In third place was Eurios Home ahead of Conrad Holm. Abigail Sweeney was first of the Tera Pro’s. She also got a prize as first girl in this fleet. In the Inter Club.competition, scored on the top three positions in the senior fleet, the winner was George Lakes Yacht Club. Similarly, in the junior fleet, scored on the top 5 boats per club, the winner was also George Lakes Yacht Club, with a narrow margin ahead of the Mossel Bay. George Lakes Yacht Club wishes to extend its grateful thanks to its sponsors: Raubenheimers Attorneys and Lew Geffen Sothebys International Realty (George), as well as to the many volunteers who ensured that the event went of smoothly. The scene on the starting line of the third race at the annual interclub regatta at Island Lake on Sunday. Photos: Michael Vonk The team of Anthony and Diane Parker, seen here on their Fireball, crossing behind the junior fleet winner, James Vonk, to finish in 6th place overall despite not being able sail on the first day.Interclub regatta attracts 44 boats Malcolm Osborne

comprising Optimists, Teras, Picos, Toppers, Qbas, Gypsy and Topaz. Also at the event was the RSA Olympic sailor Asenathi Jim, to provide coaching to GLYC’s James Hellstrom, who will take part in the World Sailing Youth World Championships in New Zealand at the end of the year. Two races were held on Sunday in a slight breeze with overcast conditions. On Sunday morning the breeze was still lacking but the two final races were held in ideal sailing conditions in the afternoon. In the light condition, the potentially fast boats did not perform well, particularly the catamarans. Also the Fireballs could not extend a lead over the rest of the fleet as much as they would have liked. Doing best in the series was Knysna’s Dudley Isaac on his Finn. Always up front with the Fireballs, he was the winner of all the races on handicap except the final one, where he got 2nd place. Doing the best of the three Fireballs sailing was the team of Georgou Divans and Ferdinand Holm, consistently up front to get second place overall. Malcolm Osborne was the leader amongst the Lasers to get third place overall. His main.competition from Lasers came from Mossel Bay’s James Marais, fourth overall. In the other fleet, up front on the water were the Tera Pro’s of Abigail Sweeney of Mossel Bay and Devaundrey Slinger of Knysna. However these two could not get far enough ahead of the Optimists to be able to convert this lead into a lead on corrected times. Consistently ahead on this basis was the Optimist of GLYC’s James Vonk, who got first place overall. Second place went to Sean Vonk, who was able to take a couple of race wins off his brother. In third place was Eurios Home ahead of Conrad Holm. Abigail Sweeney was first of the Tera Pro’s. She also got a prize as first girl in this fleet. In the Inter Club.competition, scored on the top three positions in the senior fleet, the winner was George Lakes Yacht Club. Similarly, in the junior fleet, scored on the top 5 boats per club, the winner was also George Lakes Yacht Club, with a narrow margin ahead of the Mossel Bay. George Lakes Yacht Club wishes to extend its grateful thanks to its sponsors: Raubenheimers Attorneys and Lew Geffen Sothebys International Realty (George), as well as to the many volunteers who ensured that the event went of smoothly. The scene on the starting line of the third race at the annual interclub regatta at Island Lake on Sunday. Photos: Michael Vonk The team of Anthony and Diane Parker, seen here on their Fireball, crossing behind the junior fleet winner, James Vonk, to finish in 6th place overall despite not being able sail on the first day.Interclub regatta attracts 44 boats Malcolm Osborne

Budget hemmed by slow growth

Budget hemmed by slow growth Gordhan’s options ‘limited’ — analysts SLOW growth, a poor economic outlook and a looming credit ratings decision left Finance Minister Pravin Gordhan with little choice but to hike taxes, according to analysts. However, the tax rise spells bad news for consumers and small businesses. Old Mutual Investment Group economist Johann Els said the impact of slower growth on tax revenues was substantial, but fortunately National Treasury had managed to keep spending under control. Els said it was a relatively solid MidTerm Budget Policy Statement, given the pressures facing Treasury. “A tighter stance might have been too damaging to the economy. It remains to be seen how this will influence the country’s ratings. Ratings agencies not only look at the budget, but also economic growth. S&P (Standard & Poor’s) are also waiting for announcements regarding a national minimum wage and a secret strike ballot.” Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, said Gordhan had been handed the proverbial “sow’s ear” by government and told to turn it into a publicly palatable silk purse. Geffen said it would have taken a magic wand for Gordhan to have been able to present anything other than a dismal economic outlook in his

Els said it was a relatively solid MidTerm Budget Policy Statement, given the pressures facing Treasury. “A tighter stance might have been too damaging to the economy. It remains to be seen how this will influence the country’s ratings. Ratings agencies not only look at the budget, but also economic growth. S&P (Standard & Poor’s) are also waiting for announcements regarding a national minimum wage and a secret strike ballot.” Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, said Gordhan had been handed the proverbial “sow’s ear” by government and told to turn it into a publicly palatable silk purse. Geffen said it would have taken a magic wand for Gordhan to have been able to present anything other than a dismal economic outlook in his mini budget speech. “We cannot create investor confidence without, among other things, energy security, and cashstrapped South Africans can ill afford the greater tax burden they’ll be facing next year.” Janine Myburgh, president of the Cape Chamber of Commerce and Industry, said South Africa would have to brace itself for tax increases next year. “The ideal method would be an increase in VAT (value added tax) but there would be strong objections from unions.” Myburgh said the chamber was pleased to see Gordhan recognised low confidence as an issue that was constraining private sector investment, but that he was still Joseph Booysen BUSINESS REPORTER joseph.booysen@inl.co.za keen for private sector partnerships in infrastructure developments. “We are encouraged that the government plans to address legislative and regulatory uncertainties that hold back investment in mining, agriculture and key technology sectors as well as essential labour market reforms. We have been disappointed before, but we hope the urgency of our debt credit rating problems will see fresh efforts to remove these impediments to economic growth.’ Damon Sivitilli, head of marketing at Cape Town debt counselling firm, DebtBusters, said South Africa was at a stage where economic growth was slow. He said the recent increases in fuel and food prices had harmed the economy at the micro and macro levels. Savitilli said South Africa’s continued slow economic growth would have an increasingly negative impact on the average consumer as their monthly living expenses and debt repayments continued to rise while their income levels remain unchanged. David Crosoer, executive of research and investments at PPS Investments, said South Africa was facing tough choices even if economic growth lived up to National Treasury’s fairly optimistic assumptions. “Pravin Gordhan might have bought South Africa some time in his presidentialsounding medium term budget speech, but the jury is still out whether we will be able to make good use of it. Aptly, Gordhan appeared at times to be appealing as much to his colleagues as to his wider constituency of disgruntled citizens and nervous rating agencies: Pieter du Toit, chief executive of FNB Investments, said the projected half a percentage GDP growth.compelled the government to find alternative sources of income, meaning certain income brackets could see tax hikes in next year’s National Budget. “Household budgets are undeniably taking strain, but if consumers can take advantage of small windows of opportunities such as saving their annual bonus, they can develop sustainable momentum towards securing a better financial future. Consumers needed to move away from the culture of consumption.”

“The ideal method would be an increase in VAT (value added tax) but there would be strong objections from unions.” Myburgh said the chamber was pleased to see Gordhan recognised low confidence as an issue that was constraining private sector investment, but that he was still Joseph Booysen BUSINESS REPORTER joseph.booysen@inl.co.za keen for private sector partnerships in infrastructure developments. “We are encouraged that the government plans to address legislative and regulatory uncertainties that hold back investment in mining, agriculture and key technology sectors as well as essential labour market reforms. We have been disappointed before, but we hope the urgency of our debt credit rating problems will see fresh efforts to remove these impediments to economic growth.’ Damon Sivitilli, head of marketing at Cape Town debt counselling firm, DebtBusters, said South Africa was at a stage where economic growth was slow. He said the recent increases in fuel and food prices had harmed the economy at the micro and macro levels. Savitilli said South Africa’s continued slow economic growth would have an increasingly negative impact on the average consumer as their monthly living expenses and debt repayments continued to rise while their income levels remain unchanged. David Crosoer, executive of research and investments at PPS Investments, said South Africa was facing tough choices even if economic growth lived up to National Treasury’s fairly optimistic assumptions. “Pravin Gordhan might have bought South Africa some time in his presidentialsounding medium term budget speech, but the jury is still out whether we will be able to make good use of it. Aptly, Gordhan appeared at times to be appealing as much to his colleagues as to his wider constituency of disgruntled citizens and nervous rating agencies: Pieter du Toit, chief executive of FNB Investments, said the projected half a percentage GDP growth.compelled the government to find alternative sources of income, meaning certain income brackets could see tax hikes in next year’s National Budget. “Household budgets are undeniably taking strain, but if consumers can take advantage of small windows of opportunities such as saving their annual bonus, they can develop sustainable momentum towards securing a better financial future. Consumers needed to move away from the culture of consumption.”

We are encouraged that the government plans to address legislative and regulatory uncertainties that hold back investment in mining, agriculture and key technology sectors as well as essential labour market reforms. We have been disappointed before, but we hope the urgency of our debt credit rating problems will see fresh efforts to remove these impediments to economic growth.’ Damon Sivitilli, head of marketing at Cape Town debt counselling firm, DebtBusters, said South Africa was at a stage where economic growth was slow. He said the recent increases in fuel and food prices had harmed the economy at the micro and macro levels. Savitilli said South Africa’s continued slow economic growth would have an increasingly negative impact on the average consumer as their monthly living expenses and debt repayments continued to rise while their income levels remain unchanged.

David Crosoer, executive of research and investments at PPS Investments, said South Africa was facing tough choices even if economic growth lived up to National Treasury’s fairly optimistic assumptions. “Pravin Gordhan might have bought South Africa some time in his presidentialsounding medium term budget speech, but the jury is still out whether we will be able to make good use of it. Aptly, Gordhan appeared at times to be appealing as much to his colleagues as to his wider constituency of disgruntled citizens and nervous rating agencies: Pieter du Toit, chief executive of FNB Investments, said the projected half a percentage GDP growth.compelled the government to find alternative sources of income, meaning certain income brackets could see tax hikes in next year’s National Budget. “Household budgets are undeniably taking strain, but if consumers can take advantage of small windows of opportunities such as saving their annual bonus, they can develop sustainable momentum towards securing a better financial future. Consumers needed to move away from the culture of consumption.”