Small portfolios of distressed properties offer huge potential.

Having worked in the affordable housing space for over a decade I have seen investors make huge returns. With a littler planning and careful application of the correct funding model a savvy investor could make decent returns. The trick is the correct mix of properties that will offer a market related rental yield over time. The additional benefit is the commensurate capital appreciation of the portfolio over the medium to long term.

The shortage of affordable housing in the bondable sector is around 800 000 units, however the figure is even higher in the gap market space, that is the space above the RDP and subsidised band but below the bondable band of around R250 000 to R280 000 range, this figure is reputed to be over 1 million units. This offers comfort to anyone who is interested in the market size and its future sustainability.

Another major benefit is that the initial purchase price can to negotiated to secure a sizable discount to market price, this immediately leaves adequate equity in the transaction to satisfy the conservative  investor. By sourcing the correct tenant a landlord could make the acquisition cash flow positive from the early stage and the lead time to real inflows are readily shortened.

In my opinion, this class of property asset is the ideal vehicle for individuals, investors clubs alike. I would gladly show interested parties how to get started.

Sport mad

Spingboks, Proteas, or Bafana Bafana? Rugby, cricket or soccer, we are all sport mad. We are the best fans, the best players and the best commentators. We gave the world Gary Player, Oscar Pistorius, Natalie du Toit, Steven Pienaar, Ernie Els, numerous runners, swimmers, and atletes. We have the Nedbank Golf Challenge, the Comrades, the Two Oceans and the 94.7. We have Soccer City, Loftus, and the Duzi. We are sport mad. We are South Africans. I love it!

The Arch

We are nation blessed with so many wise people. I am particularly enamoured with Arch Bishop Emeritus Desmond Tutu. A truly wise and God fearing man. Sage of the national, moral compass and humanitarian. It was he who said that we are a “Rainbow Nation”. Rise up South Africans and shine.

Young people making big plans

I spent yesterday afternoon with some young men talking about learnerships. They are studying at a nearby college and came to see me about vocational work. They were so inspiring in that they wanted to use their spare time in between lessons to get work experience. During the discussion I asked them to each explain their perfect day some time in the distant future and to share with me their really big dreams. One of the team shared this hugely inspiring dream of elevating his clan or tribe to prominence. He inferred that his clan was considered lowly in the eyes of others and he felt that through his success in society and his profession he would like to be remembered as having contributed towards improving that perception. It is this kind of high and lofty idealism that inspires me and reaffirms my fate in the youth of South Africa. The other men had equally high ideals and they are champions in my eyes. I have no doubt that they will achieve greatness in whatever they choose to do. It is because of people like them that I love my country even more.

The resilience of our people

South Africans can face a problem and turn it into an opportunity. I am told of a family who bought a lounge suite that could not fit into their home. What to do? The do what any other South African would do, they make plan, find a solution, think out of the box. They use what they can and rent the remaining pieces to the neighbour thus getting an income to assist with the monthly payments to the shop where the bought the lounge suite from. Now that’s why I love this place.

So many people doing good things

South Africans are just doing it for themselves. I know so many great people who have decided that they will stop complaining and start doing something. Whether it’s doing youth work in the townships like Alexander or Soweto. Teaching dance, music, helping out with home work classes, or showing whole communities how to grow vegetables in plastic tunnels so they feed themselves. South Africans are doing it for themselves or helping others do it. What about the Gift of the Givers, who send aid around the world, to Haiti, to Afghanistan or now to Libya. Or the South African mining company that sent the equipment and the personnel to Chile to free the miners who were trapped down a shaft, or the the rescue personnel who assist with search and rescue with specially trained dogs. I salute them all, because they are why I love South Africa.

Wine Route 62

I am an avid wine collector and love South African wines, reds in particular. I recently found out another reason to just love South African. We have the longest wine route in the world, Route 62, it meanders from Cape Town in the Western Cape through to Port Elizabeth in the Eastern Cape, with a whole lot of interesting places in between.

Route 62