rental property business plan in south africa

15 Property Business Ideas You Can Start in South Africa

In South Africa, the real estate sector stands as a beacon of opportunity for entrepreneurs and investors alike.

In an economy ripe with potential, tapping into the right real estate business idea can be the key to unlocking sustainable success and growth.

Of course, these real estate business ideas don’t matter whether you’re a seasoned investor or a budding entrepreneur, South Africa’s real estate industry presents a plethora of avenues to explore.

With urban development on the rise and tourism continually flourishing, the demand for innovative real estate services has never been higher.

This article will venture into some of the most promising real estate business ideas in South Africa , offering insights into how you can stake your claim in this lucrative market.

From property management to niche holiday rentals, we will unravel the tapestry of opportunities that await South Africa’s dynamic real estate landscape.

Real Estate Business Ideas in South Africa

In South Africa , the real estate sector thrives on diverse business ideas including property management, real estate investment, online property listings, and legal consultancy. Opportunities also extend to property flipping, development, vacation rentals, and real estate market analysis driven by tourism and urban development.

1. Online Property Listing

Starting an online property listing service in South Africa positions you in the growing trend of digital marketplaces and can be a strategic move given the high percentage of property searches that begin online.

The demand for convenient, accessible property browsing aligns with the increasing internet penetration in the country.

This venture offers potential for scalability and a broad reach, allowing for a diverse portfolio of listings that cater to various market segments.

The success of such a platform hinges on effective digital marketing strategies, user-friendly design, and robust database management.

Commitment to real-time updates and comprehensive property details will enhance the platform’s reliability, drawing both buyers and sellers.

2. Real Estate Photography Business

With a vibrant property market, visuals play a pivotal role in sales and rentals.

Real estate photographers are key to creating a strong first impression for listings, enabling potential buyers to explore homes through images that highlight each property’s best features.

The business thrives on skilful photographers who can tell a property’s story, showing off the luxurious expanses of a high-end estate or the cosy charm of a suburban home.

This niche requires a keen eye for detail and the ability to showcase spaces in a way that beckons viewers.

3. Property Management

Property management in South Africa stands out as a promising enterprise within the real estate sector.

The role involves overseeing residential or commercial properties to ensure they are well-maintained, financially viable, and attractively positioned in the market.

Managers serve as the vital link between property owners and tenants, handling the day-to-day operations that include leasing, maintenance, and sometimes renovation work.

This service is critical for owners who may not have the time or expertise to manage properties themselves.

Demand for this service grows with the expansion of the property sector, offering plentiful opportunities for meticulous, service-oriented entrepreneurs.

4. Online Rental Business

The online rental business is gaining traction in South Africa’s property market.

This business idea flourishes on a platform where property listings meet tenant inquiries, merging convenience with choice.

The digital platform serves as a marketplace, showcasing diverse rental options from city apartments to countryside homes.

Entrepreneurs profit from commissions on successful leases, ensuring the service remains lucrative.

The model appeals to the modern tenant seeking to browse options from the comfort of their location.

5. Real Estate Agency

A real estate agency in South Africa operates within a dynamic property market, facilitating transactions between buyers and sellers.

These agencies manage a portfolio of properties, offering expertise in valuation, marketing, and negotiation, crucial for smooth transactions.

They capitalize on a deep understanding of local markets, legal requirements, and financial considerations unique to South Africa .

Agencies craft tailored experiences for clients, often using robust online platforms to list properties and attract prospective buyers.

The business relies on skilled agents proficient in matching clients with their ideal homes or investment opportunities.

6. Real Estate Appraisal Service

The property market thrives on accurate valuations, which are essential for transactions, insurance, and taxation purposes.

With a growing real estate sector, the demand for skilled appraisal services is likely to rise, presenting an opportunity for sustainable business.

Securing the requisite credentials and understanding local market dynamics are crucial for credibility and operational success.

Offering such a service can leverage economic growth and urban development trends prevalent in the country.

Your focus on this area could fill a market gap, ensuring that property values align with real-time market conditions, and aiding in investment decisions and property development.

7. Home Staging Service

Starting a Home Staging Service in South Africa taps into a niche segment poised for growth.

This service enhances real estate value, making properties more attractive to potential buyers.

A keen eye for design and market trends can set your venture apart, catering to a clientele that seeks to maximize property appeal and sales price.

In an ever-evolving property market, offering such a service aligns with the current need for competitive selling strategies.

It’s essential to harness a thorough understanding of customer preferences and real estate market nuances in various South African locales.

8. Real Estate Blogging

This country’s property market has unique dynamics and rich diversity, offering plenty of topics to cover – from city apartments to beachfront villas.

Your blog could be the go-to resource for insights on local market trends, investment tips, and property reviews, meeting a clear need for information among buyers, sellers, and investors.

You’ll need to stay current with market data, legal changes, and regional development news to offer valuable content.

Ensure the blog stands out with a mix of rich media, including videos, infographics, and interactive maps.

Consistent quality content will attract and retain a dedicated readership, driving traffic and potential monetization opportunities through advertising or affiliate marketing.

9. Landscaping Business

Starting a landscaping business in South Africa will expose your business in a growing demand for aesthetic, functional outdoor spaces in both residential and commercial properties.

Your timing aligns with a heightened appreciation for outdoor living, spurred on by lifestyle shifts.

You’ll cater to a market that values garden beauty as part of its living experience, possibly increasing property values and providing serene environments.

It’s essential to understand local flora, sustainable practices, and clients’ diverse needs for outdoor spaces.

You should also foster relationships with suppliers and build a portfolio showcasing your work’s creativity and range.

10. Construction Project Management

The nation’s expanding infrastructure and urban development present abundant opportunities.

Equip yourself with a thorough understanding of local construction laws, labour resources, material sourcing, and project financing.

Your expertise could steer projects towards efficiency and profitability, ensuring clients’ visions turn into tangible outcomes within budget and on schedule.

Begin with a solid network of trustworthy contractors and suppliers, and maintain rigorous oversight on quality and deadlines.

Keep abreast of sustainable building practices and innovations in construction technology, as these areas can offer competitive advantages.

11. Real Estate Investment Trusts (REITs)

Starting a Real Estate Investment Trust (REIT) in South Africa can be a lucrative venture, considering the country’s emerging market status and potential for economic growth.

It offers investors a way to access property assets without direct ownership, providing income through dividends and the possibility of capital appreciation.

Ensure you understand the regulatory framework governing REITs in South Africa , and keep an eye on market conditions that affect property values and rental demand.

Developing solid analysis skills to select the right properties is crucial for your success.

Networking with finance professionals and potential investors will be key to raising capital for your trust.

12. Property Development

Urbanization and economic development are driving the need for new and upgraded properties.

You’ll want to start with a clear vision for types of development projects that align with market needs and growth areas.

Secure knowledge about zoning, construction, and environmental regulations, which will be pivotal.

Cultivate relationships with local authorities, financial institutions, and construction companies.

Focus on locations primed for growth or regeneration to maximize potential returns.

Also, consider the social impact of your developments, aiming for projects that not only profit but also enhance communities.

13. Real Estate Legal Consultancy

Kicking off a real estate legal consultancy in South Africa taps into a niche market with significant demand.

Legal expertise is crucial in property transactions, developments, and disputes.

Start with a robust qualification and practical experience in property law.

Networking with real estate professionals, property developers, and banks will be vital for establishing a client base.

Ensure you’re up to date on South African property law, changes in regulations, and implications for property ownership, especially in cross-border transactions.

A consultancy that offers precise, reliable advice will become indispensable.

14. Commercial Real Estate Brokerage

The market for commercial properties is robust, driven by businesses looking to expand or relocate.

Dive deep into the specific needs of the commercial sector—office spaces, retail locations, warehouses—and understand what drives demand in various regions.

Building a strong team that shares your dedication to understanding clients’ needs will be essential.

Equip your business with the latest market data and trends, so you can provide clients with insightful advice, helping them make informed decisions.

You must also focus on creating a robust digital presence to list properties and reach potential clients effectively.

15. Vacation Property Rental Agency

Starting a vacation property rental agency in South Africa is an excellent idea , given the country’s allure as a tourist destination.

Your success hinges on identifying prime locations that tourists favour and offering unique lodging experiences that stand out in the travel market.

Focus on properties that showcase South Africa’s diverse landscapes and cultural heritage. Forge alliances with travel agencies and tour operators to create attractive packages.

Use the latest technology like AirBnB to streamline bookings, manage properties efficiently, and provide stellar customer service.

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Rental Property Business Plan – Download

Unleash your inner property tycoon with SmatBiz’s ready-made Rental Property Business Plan. Conquer the SA market, secure funding, and maximize returns. Downloadable PDFs, Word & Excel files. Start building your property empire today!

• Description

Rental Property Business Plan: Build Brick-and-Mortar Success

Ready to transform bricks into boons with your dream rental property portfolio? SmatBiz’s comprehensive Rental Property Business Plan is your blueprint for success in the South African market. This roadmap empowers you to:

Captivate Investors & Funding:

• SEDA & SARS compliant:  Navigate regulations with ease and secure funding with confidence.
• Data-driven projections:  Showcase your potential with realistic 5-year financial forecasts.
• Targeted property analysis:  Identify profitable investment opportunities tailored to your budget.

Become a Landlord Mastermind:

• Expert tenant screening:  Secure reliable, long-term tenants with our proven strategies.
• Watertight maintenance plans:  Minimize costs and protect your investment with effective upkeep.
• Seamless rent collection:  Optimize rental processes and maximize monthly income.

Dominate the South African Rental Market:

• Market-savvy pricing strategies:  Attract ideal tenants and stay competitive in your locality.
• Effective marketing channels:  Reach the right renters through online and offline advertising.
• Build a trusted brand:  Cultivate a reputation for responsible landlord practices and quality rentals.

Leave the planning stress behind and focus on building your property empire. SmatBiz’s downloadable PDFs, Word documents, and Excel files make investing in rental properties a breeze. Plus, enjoy ongoing support from our experts to refine your plan and navigate any challenges.

Invest in your future and build a successful portfolio of profitable rental properties in South Africa. SmatBiz’s plan is your key to unlocking a secure income stream and long-term wealth creation.

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How to Start a Property Business in South Africa

By: Author Tony Martins Ajaero

The demand for businesses in the general real estate industry in South Africa is growing massively due to the hiking prices of properties in the country. Reports show that 60% of all construction is centered within the Gauteng region, and this number will continue to rise in the next few years.

Real estate is without doubt one of the most exciting and lucrative businesses to be involved in, and South Africa is a fertile ground to invest your money. A lot of investors buy properties and bank them, and then sell the properties off once they have either served their purpose or have gained value.

Property business is not a simple business and not for the faint of heart, but the adrenaline rush when a major deal comes together would truly be worth it. In this age, property buying or selling is huge, and those that are good value for money can really bring substantial profits.

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A lot of property business owners and investors buy run down shopping centers, commercial buildings and warehouses for the sole purpose of fixing them up and selling them off at a profit. These are some of the most sought-after real estate investments. Statistics has also shown that residential property is also big business if you are looking to start your own property business.

There are a handful of areas where you can buy houses in poor conditions but at excellent price, renovate them and then rent them out to tenants. This particular niche is lucrative, but can sometimes prove to be tricky if you are unfortunate to get poor tenants, but on the other hand, if the tenants are reliable and good payers, this can be a wonderful way to earn extra income.

When planning to start this business, you should first put an excellent business plan together. Buying properties at this point in time is a clever move if you have spare money to invest or if you want to get into the real estate business. A lot of property owners are willing sellers as the recession has taken its toll over the past couple of years.

With the real estate market climbing slowly back into recovery mode, it provides you a large opportunity to make more money. Read on as you are pointed towards the right direction on starting a successful property business.

17 Steps to Starting a Property Business in South Africa

1. understand the industry.

South Africa’s property market has since the year 2000 remained resilient, even with challenging macroeconomic conditions. Growing demand for affordable housing and a host of “new city” projects kicked off in the past year have kept the residential market steady, while A-grade commercial space which is  on the verge of oversupply in some areas, is expected to experience strong growth.

Note that all segments of the real estate market have struggled with rising electricity prices, the country’s burgeoning e-commerce, transport and logistics segments.

Reports have it that the rising interest in real estate investment trusts (REITs), a robust retail segment, steady population growth and plans for billions in new infrastructure outlay have brought about a positive mid- to long-term forecast, although the sector will need to face near-term challenges, as slow headline growth, rising inflation, labour unrest, and an expected interest rate hike continue to affect consumer confidence and spending.

Reports have it that South Africa’s residential stock stood at 6.07m properties worth a total of R4.27trn ($368.93bn) in the Q4 of 2014 and in Q2 2015 Housing Review, 2.11m properties worth R2.25trn ($194.4bn) were bonded and 3.96m houses worth R2.02trn ($174.53bn) were non-condensing.

We also believe that the average nominal price of a middle segment home, offering between 80 and 400 sq. metres of space, and priced at less than R4.2m ($362,880), stood at roughly R1.32m ($112,320) during Q1 2015, and went up to 7.3% year-on-year, but then real price inflation in middle-segment housing stood at 3% in the same period, compared to a headline rate of 4.2%.

The report notes that its sample size for luxury properties is smaller than other segments, home prices in this category rose by a nominal 10.6% year-on-year (y-o-y) during Q1 2015 to average R5.77m ($498,528). Residential building activity was subdued in late 2014, however, and contracted further in early 2015, with approved building plans falling by 6.1% y-o-y to 8444 units in January and February 2015.

Reports have also shown that the residential segment is likely to face a number of serious challenges, more especially against rising inflation, falling consumer confidence, labour unrest, electricity shortages and a period of currency depreciation which saw the rand lose 7% of its value against the US dollar between January and July 2015.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

In this business, your target market will cut across people of different classes and this is why we advise you develop a business concept that will allow you work with highly placed people and at the same lowly placed people who are only interested in putting a roof under their head at an affordable price. You’re target market will include;

• Foreign investors who are interested in owning properties in South Africa
• The government of South Africa (Government contracts)
• Managers of public facilities
• Families who are interested in acquiring a home
• Corporate organizations who are interested in acquiring their own property / properties
• Home Owners who are interested in selling off their home
• Properties Owners who are interested in selling off their properties

3. Decide Which Niche to Concentrate On

You need to understand that the property industry has different types of investment niches. Some of them might appeal to one type of person; some might appeal to another type of person. But you should know that each investment niche uses most of the same basic principles and fundamentals.

Here you simply buy or purchase property to rent it out to prospective clients with a view of generating rental income from the property.

• Renovate to Sell

Renovate as we know means to buy a decommissioned building or a dilapidated house in order to fix it (flip it), and then sell it off for a profit.

• Repossessed Property

If the owner of a property fails to make bond payments on the property, the issuer of the bond, usually a financial institution will then seize it. The sheriff of the High Court will then sell the property off at a sale price in order to recover losses from defaulting on the bond payment

• Letting Agency

This agency facilitates an agreement to rent out property to tenants on behalf of the property owner. The letting agency, in turn takes administration fee.

Level of Competition in the Business

The South African property sector is valued at R5.8 trillion. The report reveals the property sector’s size is at R5.3 trillion with a further R520 billion land officially zoned for commercial and residential development.

Commercial Property carries a value of around R1.3 trillion, up from some R780 billion, with almost R790 billion held by corporates, R300 billion held by REITs, R130 billion by unlisted funds, and R50 billion by life and pension funds. Note that the retail property has the highest value at R534 billion followed by office properties at R357 billion (R228 billion) and industrial properties at R281 billion (R187 billion).

Hotels and other property accounted for R94 billion in value (R25 billion). We also believe that that formal residential property still accounts for nearly three-quarters of property owned in South Africa, and grew from an estimated R3.0 trillion at the end of 2010 to R3.9 trillion.

Note that underdeveloped urban land zoned for development remained unchanged around R520 billion (1.1% of total land in SA). But then the public sector contributed a total of R237 billion, of which around R102 billion is estimated to be in the hands of the Department of Public Works, R66 billion held by SA’s 19 largest state-owned enterprises, and R69 billion owned by metros and selected local municipalities.

The research is part of a larger project by the council, which provides a point of departure against which various transformation charter imperatives can be assessed.

Experts estimate the property sector’s contribution to GDP at a significant R191.4 billion in 2012 in terms of annual income and expenditure flows generated by the sector and a R46.5 billion contribution. By the end of 2015, the naysayers and the sorry folks who have avoided listed property investing in the past said the sector would struggle in 2016.

Even though it didn’t exactly shine, it beat other equities and remained a tenacious sector. Statistics has it that from January to December 13, equities achieved a return of 3% and were completely battered by property which managed 8.4%. Cash only mustered 7% but bonds reigned supreme with a 14.8% total return. The property sector was hurt by political uncertainty and slow economic growth. The economy has barely grown this year.

Indeed the industrial sector continues to be resilient with landlords achieving above-inflation rental growth and tenant retention on warehouse and logistics properties while the office sector is the laggard with rising vacancies on properties and the oversupply of rental space.

Industry remains the top-performing property sector in South Africa, with a total return of 13.6% delivered in 2016. At a sector level, industrial property was the top performing sector last year with a total return of 13.6%, outperforming retail at 12.6%. The office sector continues to struggle on the back of subdued capital growth and was particularly hard hit in 2016 with a total return of 7.6%.

At a property segment level, Inner City and decentralized offices counted among the worst performing segments for the year with total returns of 7.5% and 7.7% respectively. The top performing segments for the year were High Tech industrial property and Neighbourhood shopping centres which produced total returns of 18.1% and 20.3% respectively. Neighbourhood Centre returns should be seen in a longer term context, which suggests a return to trend growth in 2018 rather than continued outperformance.

4. Know Your Major Competitors in the Industry

Industry experts have speculated that 2016 was the worst performing year for residential property since at least 2012. It is believed that the socio-political landscape and economic climate have also done little to alleviate the pressure.

South Africans are looking for safe investments, and property remains one of the safest ways to grow money. Even though there has been a general slowdown in the property market over the last financial year, a lot of property businesses have managed to stay lucrative.

Property businesses no longer simply depend on traditional selling methods such as hanging ‘for sale’ boards outside houses or advertising in the newspaper. They have had to find more innovative ways to attract new clients. Below are seven property businesses that overcame the economic challenges and managed to not only sell the most property, but also made it artful.

• Pam Golding
• Just Property
• Chas Everitt
• Jawitz Properties

Economic Analysis

Experts strongly believe that population growth will ensure the residential sector is resilient. It is believed that South Africa’s population will rise to 72.9m by 2050, while 62% of its 53m residents will live in urban areas, with urbanization growing by 1.21% annually. This is why with urbanization and population growth rising, affordable housing and new city developments stand as the most high-potential growth drivers within the residential segment.

Reports have it that the price of affordable housing which includes homes of 40-79 sq. metres, priced up to R575,000 ($49,680) grew by 8.3% during Q1 2015 to hit R390,000 ($33,696), equivalent to real price inflation of 4%, compared to 1.9% during Q4 2014.

Note that new master-planned projects are sustaining their popularity among middle and upper income segments, providing self-sustaining, greenfield, mixed-use developments with heightened security and amenities. We believe that these developments have been a prominent feature of South Africa’s real estate market for years, and more projects are in the pipeline.

Although local banks have been increasingly involved in property lending, the size and scope of new cities entails much higher levels of financing. AIH’s finance agreement with Nedbank Corporate Property Group for the Waterfall Business Estate project was the largest of such deal ever concluded by the bank.

With billions in fresh investment and sustained construction efforts needed to deliver new projects, some stakeholders have questioned developers’ ability to maintain momentum and fully deliver all planned features and amenities.

Note that new cities will need significant investment in infrastructure before moving forward. Reports have it that one of the most significant risks to economic growth is the country’s ongoing energy challenges, which began in 2008 and became increasingly problematic over the subsequent 18 months. New city developers, meanwhile, have moved to build their own infrastructure, despite these adding significant costs to the projects’ total price tags.

5. Decide Whether to Buy a Franchise or Start from Scratch

It might seem like the ideal path to start small and grow bigger in the real estate industry, but this may not always be the best option for a property business. We believe that single unit properties and small single family homes are the most attractive to newbie investors, as they usually cost less to buy and renovate.

But the profit from these properties is often swallowed up by the renovation budget, and maintenance on the properties. The more reason buying a franchise is a better option in this business, and you can also partner with a wealthier individual or get more financing in order to purchase a more profitable property.

Note that we are not suggesting you over-extend yourself, but you should know that properties requiring small initial investments often offer small profit potential. It’s advisable that you research very extensively before you dive into a franchise.

6. Know the Possible Threats and Challenges You Will Face

The property business is an intense business where almost everyone works to do their own deals. All these and more makes the industry very interesting and competitive. There are many intelligent entrepreneurs out there who are very ready to do their own deals, however starting your own property business is incredibly challenging. Possible threats you should have at the back of your mind may include:

• Low barrier to entry
• Industrial unrest
• High fatalities due to lack of health and safety compliance
• Tender risks
• Non-payment risks
• Compliance with laws and regulations.
• In the industry Investors have unlimited investment choices
• Unlikely to experience a near-term capital event
• Hard to be patient even though that may be the best course of action

7. Choose the Most Suitable Legal Entity

The first thing you need to consider when starting your own property business is the type of ownership to go with. In South Africa, a good option is to open a close corporation (CC). This we believe will make things easier to manage. In a CC, the owners of the company are referred to as members, and you need a minimum of one member and there’s a limit of ten members.

A CC is a legal entity in South Africa, which means the CC is responsible for paying taxes and not one individual. You then need to register your CC by completing a CK1 form (Close Corporation Founding Statement). You can complete this online or download a form to complete.

We suggest you have an accountant sorted out. You’ll need to include the details of your accountant and an original signed letter from him or her agreeing to act for your CC. You’ll also have to provide the letter you receive confirming the registration of your company name. This process takes about five days to complete and costs R100. Once your property business is registered, don’t forget to register with SARS.

8. Choose a Catchy Business Name

• Universal housing
• Wealth contractors
• Target reality
• Sheraton Ltd
• Dream Home Real Estate Service
• Castle Realty
• Apartment Grey
• Four Leaf Clover
• Exquisite housing
• Bumpy Housing services
• Destiny Realty Solutions
• Future estates
• Affinity Investment Group
• Winter suits
• Housing giants
• Integra estates
• Numeric estate services
• Liberty world
• Tower Magnet
• Pitch mantra

9. Discuss with an Agent to Know the Best Insurance Policies for You

You need to understand that the importance of insurance in all phase of our lives cannot be ignored. Even Long-term property investors will want to have iron-clad insurance policies in place that include stipulations about what’s covered by the insurance and what is the responsibility of the renter. Have it in mind that you cannot lock yourself down into a long-term contract if you’re going to offload the property very soon. Note that every type of insurance has its own exclusions.

• General business liability insurance
• Investment property insurance
• Real estate finance insurance
• Loss of rental money insurance
• Equipment breakdown
• Umbrella insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

Indeed no time or moment is too early to begin thinking of intellectual property protection. Have it in mind that keeping a vigilant eye on these assets is an important part of the success of your business. New entrants into the business world tend to face the issue of intellectual property protection while some entrepreneurs will mistakenly believe that a company name is synonymous with a trademark.

You need to understand that trade name is the legal name of a business entity, which appears on the articles of incorporation or bylaws. Also note that a clear search is not a guarantee that the desired name is available.

You also need to know how important it is to have a strong Internet presence to promote one’s business. It is advisable that you consider acquiring domain names with alternative extensions (.com, .NET, .biz, .us, etc.) as a defensive measure to prevent others from doing so.

Also depending on the budget, you should register hyphenated versions of the domain name, common typos or even “(insert business name).” It is called waste of energy when you have to invest time and resources developing your intellectual property and then fail to protect it. It’s important that you seek the help of an attorney who is versed in this field to help you out.

11. Get the Necessary Professional Certification

• IREM Certified Property Manager certification
• Certified Leasing Specialist
• Certified Development Design and Construction Professional
• Certified Retail Property Executive

12. Get the Necessary Legal Documents You Need to Operate

Starting a business in South Africa takes several steps, and it can take several weeks to get it formalized. Most requirements can be completed online, and they do take some time to process. Ensure you have enough time to go through all of the stages such as providing certified copies of the documents required to complete the registration with the CIPC.

Note there is a nominal minimum capital amount of ZAR 1 needed to open a business, but other fees for registration will also apply. You must provide certified copies of some documents which are used to prove the ID of directors, and expect to pay some legal fees too.

• Visit the Companies and Intellectual Properties Registration Office (CIPRO) website and register as a user.
• Register your company name. You’ll need to either download a CK7 (Application for Reservation of Name, or Translated Form, or Shortened Form) or complete it online. CIPRO will conduct checks to ensure the company name isn’t already in use. This process takes about seven days to complete once CIPRO receives the application and it costs R50.

13. Raise the Needed Startup Capital

Indeed the property business is a hub of wealth where large finance brings back large profits. Funding especially startup capital can be very hard to come by but what differentiates your business from others will be your ability to scale through hurdles like this. Note that there are various institution that provide funding to aspiring entrepreneurs in South Africa:

The NEF Imbewu Entrepreneurship Finance, which provides risk capital to new businesses in the property development space. Financial institutions also provide funding throughout the life span of a project, but then you have to provide a financing structure to potential financiers to give a clear and detailed picture of what you are proposing, and also provide reasons why they should take the risk of funding your business. When looking to finance your property business, you should look at the following attributes to boost your chances:

• You should have a sizable down payment
• Ask for owners financing
• Think outside the box
• You should be a strong borrower
• Always shy away from big banks

14. Choose a Suitable Location for your Business

One of the best things that can happen to you in this business is to buy properties where conditions are favourable for renting/selling/lease. It is advisable that you focus on buying properties in areas where rental demand is growing faster than supply. It’s also advisable that you look at the demographics of the neighbourhood.

It is well known that the 25-34 age groups will increase by 1.1 million over the next three years. Also since the home-ownership rate among young adults has recently increased from 35.3% to 39.2% just within two years, places with high concentrations of this age group are favourable places to own  properties.

You should also note that zoning regulations is very crucial in this business. In addition to zoning regulations, development is also controlled by conditions of title. These conditions are set out in the Title Deed of each property, and can restrict the way in which a property may be developed.

Note that any development of land that ignores this legislation can result in prosecution. Have it in mind that zoning regulations as well as the property description, and the size, orientation and other details can be obtained from the local municipally office and this department can also provide information regarding the National Building Regulations.

There are other costs to worry about as well. These include preparing the application, i.e. professional fees, the application fee charged by the council and the cost of drawing up plans.

Depending on the type of application, obtaining a decision may take as long as 12 months. After the application is submitted it is circulated to relevant Council departments and agencies for comment. Don’t also forget to find out who owns the land.

Every property in South Africa has to be registered with the Deeds Registries Office in South Africa. Note that the deed constitutes proof of who owns the property. The deeds office keeps a record of all property transactions. If a title deed is destroyed or lost, application can be made to the deeds office for a duplicate original of the deed.

15. Hire Employees for your Technical and Manpower Needs

It will indeed be tempting to reduce the number of processes or workforce so that you can be able to keep the lion’s share of the profits for yourself. We strongly advice you fall not into that temptation. No matter how much market research you do, you will not automatically become an expert the first time or two you purchase a property.

Also you have to know that realtors understand the market within a given geographic area better than you ever would, which is why you have to stage your vision towards finding the worst houses in the best neighbourhoods and pimp them up to reap the biggest rewards.

Also you will need to develop yourself as a business owner. You will need to equip yourself with the skills and knowledge needed to lead and manage this business in order to make it both sustainable and profitable. Note that this will need a substantial investment of time, effort and money from you. The more you commit to this journey of personal and professional development, the better your chances of success.

The Service Delivery Process of the Business

When trying or planning to invest in stocks and shares, a good financial advisor worth his salt would advise you to diversify your investment so that the risk is spread. This same theory or fact would be true for property investments. We strongly advice that you spread your property portfolio across different areas to minimize your risk.

You also need to have it in mind that there is little point in trying to spot a property bargain hundreds of kilometers away. You’re not an expert on the area and are not likely to be able to judge whether the location, price etc. are good or not. A bargain will be much easier to spot in your own backyard. It will also be much easier to keep an eye on your tenants if you live nearby.  There are several steps for you to follow in this business.

• Do your real estate research
• Pay the Lowest Down Payment Possible
• Move in and get busy
• Take Action To Maximize Your Investment
• Repeat the process
• Move Up To Larger Properties

16. Write a Marketing Plan Packed with ideas & Strategies

• marketing strategies for the Business

The world has been screaming marketing and the importance of business promotion. Marketing your business is very necessary to help attract customers and create a brand image and reputation. In a competitive environment, there are always several companies competing for the same business opportunities, which is why it is important to tell your potential clients why your service is better than that of your competitors.

• Digital marketing

Never you underestimate the power of the internet for marketing. Clients in this industry are often attracted to businesses that have a website, making them appear more trustworthy than businesses which haven’t set up an online presence. Note that the internet is much cheaper as a marketing strategy than traditional forms of marketing, like print and radio.

Social media is also a strong driver for word-of-mouth marketing. Your website should have a contact form for clients to contact you for quotes. You should also include your credentials and a photo gallery of your work, a list of your building services and testimonials from satisfied clients.

• Educational-based selling

We believe that customers look for information that will benefit them, which is why education-based selling can be quite effective. Instead of focusing on features and benefits, rather educate your customer about your specialized service and give them the information they need to be able to make better-informed decisions.

• Word of mouth

A lot of entrepreneurs may think word-of-mouth marketing is out of their hands, but nothing could be further from the truth. The property industry is well known for unreliable realtors and agents who promise the earth to secure a job and then disappoint through sub-par workmanship, missed deadlines and extra cost.

We believe that this issue presents a powerful opportunity to create a competitive advantage. By giving clients a professional and reliable service and high quality outcomes, you’ll be able to set yourself apart and leverage word-of-mouth marketing.

• Testimonials

Note that your reputation and track record in this business is the most important tool you have to get more business. This is why you have to do all you can to make sure your client’s experiences are positive and impressive. Gather testimonials from previous clients and create contactable references to verify your workmanship. Use these stories on your website, in your promotional material and include stories and references with the quotes you send out.

We strongly advice that you join associations and forums to build up a referral system. Note that by networking you can make your business more visible and attract further business. Create a solid contact list and develop relationships as you network. The aim is to build a relationship that will make sure your business name is thought of first when there is a need for services that you offer.

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Brand awareness and corporate identity in this business simply means that your local home buyers and sellers know who you are. It shows that you are on top of their mind anytime anything property crosses their mind. You need to understand that people start their property search online, which is why building your brand awareness with digital advertising is the best bang for your property business.

Have it in mind that a lot of businesses have to spend serious time, money and effort creating a brand that speaks their language. Note that as a property business, you have a particular advantage with brand awareness. Here are five secret weapons you already have to help you build brand awareness for your business:

• Mould yourself into an expert
• Know where your customers are
• You are the face of your brand
• You need to be a unique storyteller
• Your business is a service

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How to Start a Real Estate Business in South Africa

Updated on 5 July 2024

Starting a real estate business in South Africa is an excellent idea for ambitious entrepreneurs. It’s one of the best ways to get into the property industry, and real estate businesses offer a lot of room for making money.

South Africa is a buyers’ market, and there are always opportunities for new real estate businesses. However, it’s also a competitive market, so you need to take the right steps to strategically set up your business.

In this guide, we cover the main steps and processes you need to follow to start a real estate business.

Qualify as a Real Estate Agent

Before you can start a real estate business in South Africa, you’ll need to qualify as a real estate agency principal. This is essential if you plan on selling property under your own company .

Here are the three main steps you’ll take to do this.

Complete Your Internship

All new estate agents need to obtain their Fidelity Fund Certificate (FFC), which can be obtained through 12 months of work experience with an existing real estate agency.

The main purpose of this internship is to build up a portfolio of evidence (PoE) which you will submit to the EAAB.

Not only is this a necessary step in qualifying as a real estate agent, but it also helps you to gain valuable industry experience and knowledge. This is essential if you want to start a successful real estate business .

Complete Your Studies

Once you receive your Fidelity Fund Certificate (FFC), you will need to complete the following within two years:

• National Qualification Forum Level 4 Real Estate (NQF4)
• EAAB Professional Designated Exam Level 4 (PDE4)

These qualifications let you work as a full-status real estate agent.

Qualify as an Estate Agency Principal

You need to be qualified as an estate agency principal if you want to run your own real estate business. To achieve this, you’ll need to gain at least two years of work experience in a management role, or running a real estate agency.

You will also need to complete your NQF 5 course, gain a certificate of competency from SSETA, and submit your PoE to the EAAB. Once you have qualified as a real estate agency principal, you can now start your own real estate business.

Create a Business Plan

As is the case with starting any kind of business, you’ll need to have a solid business plan in place before you get started. This should outline all the details of how you will establish and operate your business.

Importantly, this should cover:

• The area and market you plan to operate in
• The type of real estate business you plan to run

For example, you could specialise in a certain geographic location, focus on residential or commercial properties, specialise in leasing, focus on property development , and so on. Your business plan will also need to cover detailed market research, your financial plan , business goals, and any other relevant information that will help get your business up and running.

Register Your Company

When your business plan is ready, you’ll need to register your real estate company. You need to do this through the CIPC and gain your official registration documents. The type of company structure you choose should depend on how many people are involved in the business and how your business plans to operate.

Market Your Business and Develop Strategic Partnerships

Once you have established your real estate business, you’ll need to get clients. This is why having a good marketing plan is so important. Figure out how people will discover your business, how you will attract clients, and how your business will grow .

It’s also important for real estate businesses to develop the right strategic partnerships . This could include partnerships with law firms, property developers, and other types of property-related businesses. The right relationships and partnerships can play a big role in how much new business you generate.

Starting a real estate business can be done relatively easily. With the right commitment, anyone can become a registered estate agent. Compared to other business models, you can also start a real estate business with minimal upfront capital.

The opportunities are also enormous. As long as people are buying and selling property , there are great possibilities to make money. If you’re interested in working with property, then getting into real estate is one of the best ways to enter the industry.

SEE ALSO: HOW TO START A PROPERTY BUSINESS.

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How To Start Property Business In South Africa

In recent times where urbanization keeps increasing now and then, there’s the need to provide houses to accommodate residents. In this article, we will enlighten you with a piece of detailed information on how to start a property business in South Africa (SA).

So, we implore you to keep reading because the information you seek on how to start a property business in SA is discussed below in this article.

Property business is leasing a property for a profit, such as renting out part of your home, buy-to-sell, buy to let, property sourcing, and many other forms of a property business.

If you think you’re equipped with enough properties but cash poor, then leasing part of your property to earn a profit will be the best option to make a profit on your property.

Choose the buy to let property option if the location, cost, and the rental market of the property look lucrative to earn you more.

The buy to sell property option is a good venture for investors who are capital equipped to purchase a full property, add value to it and sell for a profit.

In property sourcing, you can make a profit from the property business without investing your money. The only thing you must do is to find a property that is ready for purchase and meets the conditions of a property business.

Also, partner with a company that can purchase, renovate and sell properties and present your findings to them, and receives your commission for your search done.

Table of Contents

What You Need To Start Property Business In SA

Below are some of the requirements to help establish a property business in SA:

1. Strategise a good business plan

2. Register your business with CIPC

3. Build a good brand

4. Advertisement is a key factor to your success

5. The location and situation of the property is important to find tenants with ease

6. Know your target market

7. Choose a place with a high property rental market

8. Buy properties from the right owners

How Much Does It Cost To Start Property Business In South Africa

The cost involved in establishing yourself in the property business in SA differs depending on the type of property business you wish to venture into.

Establishing yourself in the buy to let and buy to sell property business comes with a cost as low as R35,000 and over with extra capital for the property’s renovation.

Running a property sourcing business can be done with an R0.00 providing you partner with companies that are willing to purchase properties you’d discover.

So with property sourcing business, the first and vital step to make is to find a company or an investor who is willing to do business with you.

How Profitable Is The Property Business in South Africa

The property business is a long-term investment, so always be patient with the pace of the success of your business. Don’t rush to make mistakes that can make you lose every money you invested.

If you appreciate the pace of your property business with good managerial skills, you can gain more than expected when your business is at its peak.

What Are The Best Areas To Start Property Business In South Africa

Purchasing properties in fashionable areas are costly even though fashionable areas have good rental market demand. These areas should be chosen by investors who have the resources to buy and renovate properties to meet the rental conditions of tenants.

But choosing the unfashionable suburbs can also yield you a decent profit by saving enough on the cost of purchasing. Always choose close to business centers to help attract tenants as fast as you can think of.

How To Make A Property Business Successful In South Africa

Some key points are to be practiced to help establish a successful property business in SA, and they include:

1. Always remember to play the patience game

2. Diversify your business portfolio, avoid squeezing all your investment into one property

3. Learn how to spot good potential properties and locations

4. Partner with a new investor if there’s the need to seek assistance in managing your property

5. The cost of leasing out your property must always favor tenants to help attract more customers

6. Learn to be tax-efficient by consulting a tax advisor on how to save tax on your rental income

7. Add value to properties you intend to let or sell to help rebrand your product for a reasonable profit

8. Practice good customer relationship to help suggest your products and services to friends and families

9. Choose properties in locations you are familiar with to help know how to bargain with tenants and keep an eye on the situation of your property

10. Always have a plan for exiting, don’t hesitate to sell your property if you think it’s not fetching you enough income for a new one

What Are The Challenges In Running A Property Business In SA

Note that in every business, there are challenges. Some are caused by bad management of the business, and others are bound to happen, and they include:

1. Inexperienced management

2. The business long term pace of making a profit

3. The high cost of property management

4. Bad tenant behavior

Benefits Of Setting Up A Property Business In South Africa

The property business benefits the general population and the government in many ways, and some of these benefits include:

1. Provide financial benefit to investors

2. Create a wide variety of home for customers to choose from

3. Generates revenue to the government through paying of tax

That is the information we can provide on how to start a property business in South Africa.

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• Sample Business Plans
• Real Estate & Rentals

Rental Property Business Plan

A rental property business is a great way of earning a passive income. It can help you have great finances if you go about it in the right way.

The rental property market stood at a size of 174.2 bn dollars in the US in 2021. And with the subsiding pandemic isn’t about to shrink any time soon.

Now, if you are planning to become a landlord, you might need just one thing before you start your business. A business plan.

A business plan would become a guide in your business journey. It would also make your journey a less difficult and more successful one. So, if you are ready to start your rental property business , read on to find out all about a rental property business plan.

How can a rental property business plan help you?

A rental property business plan can help you have a clear goal, a well-defined business model, and strategies that work. It can also help you navigate smoothly through roadblocks in your journey and steer clear of costly business mistakes.

Also, putting your idea on paper makes it look more real and clear. Moreover, a business plan also comes in handy while you explain your ideas to your collaborators and investors.

All in all a business plan will help you figure out your way around obstacles through rigorous analysis and strategic planning. This brings us to our next section, how to write a business plan.

Rental Property Business Plan Outline

This is the standard rental property business plan outline which will cover all important sections that you should include in your business plan.

• Business Objectives
• Mission Statement
• Guiding Principles
• Keys to Success
• Start-Up Summary
• Location and Facilities
• Products/Services Descriptions
• Competitive Comparison
• Market Size
• Industry Participants
• Main Competitors
• Market Segments
• Market Tests
• Market Needs
• Market Trends
• Market Growth
• Positioning
• SWOT Analysis
• Strategy Pyramid
• Unique Selling Proposition (USP)
• Competitive Edge
• Positioning Statement
• Pricing Strategy
• Promotion and Advertising Strategy
• Marketing Programs
• Sales Forecast
• Sales Programs
• Exit Strategy
• Organizational Structure
• Steve Rogers
• Linda Rogers
• Management Team Gaps
• Personnel Plan
• Important Assumptions
• Start-Up Costs
• Source and Use of Funds
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet

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After getting started with Upmetrics , you can copy this rental property business plan example into your business plan and modify the required information and download your rental property business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

How to write a rental property business plan?

Before writing a business plan, it is always good to ask yourself a few questions. It would surely make the process shorter and easier.

You should think about the following questions:

• What do you wish to achieve with your business?
• Who is your target audience?
• How would your business model work?
• What are your sources of funding?
• What would be your marketing strategy and so on?

All these questions would help you understand what you are getting yourself into. After that, you can start writing a business plan that focuses on all the different aspects of your business.

You can easily write such a plan either by using a premade template on the internet or through an online business plan software that’ll help you write a flexible and ever-changing plan.

What to include in a rental property business plan?

This section would give you a brief overview of the segments you can include in your business plan to make it a well-rounded one. They are as follows:

1. Executive Summary

The executive summary section contains a precise summary of all that your business stands for. If written well, it can help your business in getting funded. As it is mostly the only page an investor would read.

Professionals frequently suggest that this section should be written at the very end while writing your business plan, even if it is the first page. This helps you in summing up your business ideas properly.

2. Company Description

This section would consist of all the information about your business including its location, the services you offer, and your team.

It would also have information about your company’s history and its current position in the market. You can also include information about the projects you have worked on in the past.

3. Market Analysis

This is one of the chief sections of any business plan. It helps you understand what you are getting yourself into.

In this section, write down everything you can find out about the market. Include your target market, ways of reaching out to them, your market position, etc. Also, it is a good practice to include competitive analysis and take note of what your direct and indirect competitors are doing.

4. Marketing Strategy

While market analysis helps you in understanding the market, a marketing strategy helps you while getting into the market.

While formulating a marketing strategy, the most important thing is to have your target audience and market position in mind. Besides, keep in mind that your branding campaign should resonate with the client base you plan on serving.

5. Organization and management

This section includes information about the functioning aspects of your firm as well as about your team.

Include the roles and responsibilities of your team members as well as the progress they are making in their work.

If you write this section clearly and precisely, you’ll be able to identify the gaps you have in your team and your management system. This helps you in resolving those issues on time.

6. Financial Plan

This is one of the most crucial aspects of your business plan. More so in the rental property business. Planning your finances early on saves you from having financial troubles later on.

A financial plan section includes everything from your financial history, funding options, and requirements to projected cash flow and profits.

Download a sample rental property business plan

Need help writing your business plan from scratch? Here you go;  download our free rental property business plan pdf  to start.

It’s a modern business plan template specifically designed for your rental property business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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Rental property business plan summary

In conclusion, a good business plan can help you have good finances, a proper marketing strategy, a well-managed company and team as well as clear business goals.

Especially, in the rental property business, planning the flow and structure of your business as well as your finances can take you a long way.

A rental property business depends highly upon well-managed finances and strategies. Planning your business is necessary to make it a good source of passive or primary income.

Moreover, it also makes the process of carrying out your business easier and smoother. So, if you are ready to start your rental property business, go ahead and start planning.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Property Business Plan

Need a Property   Business Plan for your  Property Business ? We write Professional  Property  Business Plans.

Our  Property  Business Plan is for Start-Ups looking to apply for basic Funding , Tenders and Industry Regulators .

Our Property  Business Plan is focused on the  Property  and Real Estate  Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

Business Plan Pro® Accreditations

Business Plan Pro® is a Subsidiary Brand of My SME™, and an IMCSA Accredited Business Coaching institute (My SME™ Accreditation Number: 073PIMC ).

We focus on Business Plan and Feasibility Study services to assist Businesses to grow through Funding . Business Plan Pro® is the first South African Business to create Custom Business Plan Software for South Africans.

Our Property Business Plan is focused on the Real Estate and Property Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

(7 Working Days)

Our  Property Business Plan  is focused on the  Real Estate  and  Property  Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

Service Includes: 

• 40 – 60 Pages.
• Professional Business Plan Layout.
• 5-Year Financial Projection.
• Basic Real Estate and Property Market Research.
• Basic Real Estate and Property Industry Research.

NOTE that  with the Property Business Plan the market and industry research is very basic . If you need in-depth market & industry research from the Business Plan Pro® team, please select either the  Comprehensive Business Plan  or  Specialised Business Plan .

Start-Up Business Package

(21 Working Days)

Our Start-Up Business Package is for Start-Up’s looking to start their Business on the right foot with a  Property Business Plan and a Professional Brand .

Package Includes: 

• Property Business Plan (Valued at R4,490).
• Entry Level Brand Package (Valued at R3,490).
• Entry Level 1-Pager Website (Valued at R3,990).

NOTE  that with this package you complete a  brand questionnaire  that tells us all we need to know about your business to create a professional logo. The logo concepts presented are  standard options  that you are required to choose from. No custom amendments are allowed, but  one basic amendment  is allowed.

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Louis Lubbe Managing Director of Lubbe Projects & Company (Pty) Ltd.

Business Plan Pro® will give you the best Business Plan, with that said I can stand on the edge of a cliff on a windy day for you to prove me wrong, I had a very close deadline when I gave them my information, in fact with my little knowledge on business planning I thought they would fumble so I panicked and gave them every single bit of information I had and I couldn’t sleep worrying about whether I won’t find them the next day 😂😭🤣, well they are legit & you can sleep peacefully, they truly exceeded my expectations. BEST BUSINESS PLAN IN SA so far. Braaaaaah The level of research I saw in that business plan I realized I didn’t know my business 😩🤣

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Career Advice

Apr 11, 2019

Starting your Own Property Development Business

The South African property market suffered a significant dip prior to mid-2017, however, it finally seems to be recovering. Since September 2017, property prices have gradually risen – reigniting the market after nearly a decade of weak performance, 1  providing opportunities for emerging developers in South Africa. But, as with the founding of any business, there are far more factors to consider than only the opportunity for growth. If you are thinking of starting a property development business, here are the necessary steps to implement to get you on your way.

1. Acquire the knowledge

It’s vital that educating yourself about the property market is your first step: read property development blogs , watch for property growth reports or past development statistics 2 and learn to identify investment opportunities .

Before embarking on the journey of beginning your own business, make sure you’re well equipped to manage and lead its development. Discover your local competition, understand legislation, property taxes, and your potential target markets. Without acquiring knowledge of the local property industry, its past and future, you will find it difficult to accurately build a business plan that is suitably aligned to your business objectives. 3

2. Build a business plan

Now that you understand your local market and industry, you are in a position to develop long-term goals. It’s important to consider the larger business outcomes when you create the initial foundation of the business plan. 4  Perhaps you want to introduce new affordable property investment options to lower-income brackets, or your business goals aim to create entirely “green” apartment blocks for the city. Whatever your long-term objectives, your business plan should be able to support you in reaching them. 5

Since September 2017, property prices have gradually risen – reigniting the market after nearly a decade of weak performance

Once you’ve settled on your position within the market, you can begin using market research (looking at competitors, and growth opportunities), financial projections (required budgets, cash flow projections, and available tenders) and knowledge of local property law to set your short-term goals. 6 The following steps will see you hiring a team to support the different roles required (property strategists, real estate agents, financial strategists, conveyancers, contractors, engineers, etc.), settling on the nature of your first projects, and giving yourself clear return-on-investments to reach. 7

Learn how to make intelligent investment decisions, conduct property management effectively, and navigate the landscape of property development and entrepreneurship with this online short course.

Entrepreneur Magazine aptly summarises it, “[w]ithout a sound business plan, you’ll be unable to find funding […] it’s also the blueprint of the business and the best way to test whether or not the business is feasible.” 8 Your business plan becomes that much more pertinent if you’re relying on investors to fund the capital growth for your business in its early stages.

The best way to learn is experience

Starting a business is exciting, but it is always going to require that you’re willing to learn and tweak your business’s goals/plan as you progress. As you look at your initial developments, keep the following in mind.

• Location and timing: Property prices are heavily influenced by social, economic, political, and geographic factors. 9 Being aware of trends like the increased rate of commercial property developments in South African city centres will help guide you in making the right investment decisions. 10
• Zoning and title deeds: Every property is zoned for a particular purpose, and being aware of such will help inform your investment and development decisions. 11  Property conditions differ depending on location and property type – these regulations are laid out in the title deed (which can be found in the Deed Registries Office in South Africa), 12 and decide whether or not the conditions fit in with your plans.
• Building regulations: Changes and updates to building regulations require property developers to keep an eye on new legislation and policies as they are introduced. 13 The penalties for not following regulation can be hefty enough to sink young businesses. 14
• Property management: You’ll need to continually reassess built environments according to new legislation, social issues (i.e. water restrictions are increasing the desire for water saving instalments in Western Cape dwellings), 15  and tenants’ needs. 16 However, property maintenance should be focused on longevity, rather than trends or frugality. 17
• Grading levels: There are nine grading levels in South Africa, which limit the value of government tender (a public request for contracted services or products) that companies can apply for. 18 If you plan on applying for private or government tenders, it is vital you know which grading level you fall into (which is decided on according to annual turnover, track record, capability, and capital). 19

Adrien Goslett, CEO of RE/MAX, has recently stated that he anticipates “reinvestment (both local and foreign) in the country post-election if the fight against corruption continues and tough decisions are made”, and went on to say with hope that “[g]reater stability should lead to consumer confidence, and with that a more buoyant real estate market”. 20 While our economy has been slow and volatile in past years, there is optimism for the future, which provides a good foundation of opportunity for emerging property development businesses in South Africa. 

Click here to view sources

• 1 (Feb, 2018). ‘South Africa’s housing market accelerates’. Retrieved from Global Property Guide .
• 2 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
• 3 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
• 4 Rampton, J. (Aug, 2016). ‘7 steps to a perfectly written business plan’. Retrieved from Entrepreneur .
• 5 (May, 2018). ‘How to start a property development business’. Retrieved from Entrepreneur Mag .
• 6 (May, 2018). ‘How to start a property development business’. Retrieved from Entrepreneur Mag .
• 7 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
• 8 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur Mag .
• 9 (Jan, 2018). ‘The outlook for South Africa’s property market in 2018’. Retrieved from Private Property .
• 10 Smith, C. (Oct, 2017). ‘Increase in rate of commercial property development’. Retrieved from fin24 .
• 11 (May, 2018). ‘How to start a property development business’. Retrieved from Entrepreneur Mag .
• 12 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur .
• 13 (Feb, 2018). ‘Building regulations and by-laws’. Retrieved from MBA North .
• 14 Talane, V. (June, 2013). ‘R1,5bn Construction fines’. Retrieved from Corruption Watch .
• 15 Stevens, P. (Jan, 2018). ‘The outlook for South Africa’s property market in 2018’. Retrieved from Private Property .
• 16 Yardney, M. (Aug, 2018). ‘How to get started in property development’. Retrieved from Property Update .
• 17 (Nd). ‘Regular property maintenance reduces long term costs’. Retrieved from Trafalgar . Accessed on 14 March 2019
• 18 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur .
• 19 (May, 2018). ‘How to start a property business’. Retrieved from Entrepreneur .
• 20 (Dec, 2018). ‘SA’s property marketing in 2019: predictions and expectations’. Retrieved from Property 24 .

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PRE-WRITTEN BUSINESS PLANS FOR SOUTH AFRICA (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

Posted by BizBolts | All Articles , Business Plans

We have several payment methods which you can use to buy the business plans.

Payment Method 1 (Visa card, Mastercard, Credit card, Debit Card) – R500

To purchase the business plans using Visa Card/Master Card click here: Business Plans Store . After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Click the button below to purchase business plans using Visa Card/ Mastercard.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

Payment Method  2 – (Instant EFT – FNB, Absa, Standard Bank, Nedbank, CapitecBank, Investec, TymeBank and African Bank. )

Other Payment Methods

• Cash deposit into our FNB Company Bank Account
• EFT Transfer to our FNB Company Bank Account

Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

About the Business Plans

We decided to introduce the South African business plans after noting that many South Africans were venturing into businesses without a full understanding of the industry, market, how to run the businesses, the risks involved, profitability of the businesses and the costs involved, leading to a high failure rate of the start-ups.

Our business plans will make it easier for you to launch and run a business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the business plans will lay out all the costs involved in setting up and running the business. They are designed uniquely for the South African market.

USES OF THE BUSINESS PLANS (PDF, WORD AND EXCEL)

These business plans can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your business
• As a project proposal
• Assessing profitability of the business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE SOUTH AFRICAN BUSINESS PLANS (PDF, WORD AND EXCEL)

All our pre-written plans include, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in that type of business fail, so that you can avoid their mistakes
• Ways to raise capital to start your business in South Africa

All our agriculture pre-written business plans include technical aspects of how to keep and rear the animals / farm the crops. They also include a mini-directory with contacts which will prove to be helpful in launching and running the business. E.g. for broiler poultry we will provide the contact details for South African suppliers of feeds, equipment, day old chicks, abattoirs, training companies etc)

The Business plan package consist of 4 files

• Business Plan – PDF file (Comprehensive – Between 70-105 pages)
• Business Plan – Editable Word File (Comprehensive – Between 70-105 pages)
• Business Plan Funding Version – Editable Word File (Short version for applying for a loan – between 35-50 pages)
• Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change an item eg unit price, and all the other financial statements will automatically adjust to reflect the change.

About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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• Education , Finance , IGrow Group Experts , Property Investment

How to build your property investment empire in South Africa

I have heard it all. People have said “investing in property is expensive” or “investing in property is only for an elite few.” But this isn’t true. You can build your property investment empire!

Yes, there are many property investors who are currently operating at a loss, but that is simply because they have not followed a strategic plan. Many people jump into property without doing proper research or learning from successful investors in the industry.

When I started investing in property I made the same mistakes. I have lost time and millions of rands in the process. If I could turn back time and change some of my decisions then I would. On reflection, I would employ ten core principles into my investment strategy. I strongly believe that if someone works each one of these principles into their investment strategy they can retire 10 or even 15 years ahead of schedule.

I have seen many unsuccessful investors employ some of these principles, but not all of them. This is significant. These components work together and each serves a specific function. An investor needs to understand and make use of all these steps in order to succeed.

Today, I wish to share these steps with you. I don’t want you to start your property portfolio making a loss or generating meagre returns.

In order to invest in property in South Africa successfully, you will need master the following steps:

CAPTION: The IGrow Group of Companies is built around these ten crucial steps. We can help you master each stage successfully when you invest with us. 

1. Step one – Acquire the skills                                                              

The first rule of property investment is to invest in your mind first before you invest in property. Please believe me if I tell you 80% of your success as an investor is psychology, the other 20% comes down to skills and execution.

Therefore, I am saying you don’t need to personally learn all the skills immediately. Rather leverage the skills, the qualifications, and the street-smart thinking of a highly qualified investment team.

There is a big learning curve, particularly when you are starting out. It is, therefore, best to not dissipate your efforts by trying to juggle a number of different asset classes. Instead, become a specialist in one particular area.

As Warren Buffet said, “Diversification is a protection against ignorance. It makes very little sense for those who know what they are doing.”

Studying an industry closely allows you to really entrench yourself in its environment. Consequently,  it allows you to become an expert in it.

CAPTION: Listen to our podcasts which are available on SoundCloud and Stitcher. In this episode, we explain how you can acquire the right skills in more detail.  

Such results are clear. You will make better informed decisions that will lead to more profitable returns rather than hedging your bets across a range of sectors.

Spending time analysing deals and making offers through your investment team is all about learning the skills and putting the investment principles into practice. Great deals are everywhere, you just need to see the opportunities and the many great bargains. Once you find the right bargains, it will become easier to build your property investment empire!

In addition, attending educational seminars, watching online webinars, and understanding your property investment wealth plan are key to your investment success.

Mastering the skills contained in these ten crucial steps will make you a more strategic and intelligent investor. It will allow you to play the property investment game at a whole new level.

However, the great news is that top investment teams already possess the skills and attributes you want to acquire. You need to find the right team members and leverage their knowledge and immediately take action for your personal financial gain. This brings me to my second principle.

2. Step two – Assemble a Team

One of my deepest philosophies is that I shouldn’t be the smartest in my team, but I need to have the smartest team around me. Surround yourself with a good team – if you’re the smartest person in your team then you need to get a new team.

Having a good team reduces your risk, increases your knowledge and gives you access to ideas, opportunities and money you would never have on your own.

I have found that collective knowledge and experience lowers my risk, increases my returns, and motivates me to become better all the time.

So, the property investment entrepreneur doesn’t hand control of his property portfolio over to others. Instead he retains control whilst employing a proficient team who have great systems that achieve repeated and consistent results.

The biggest reason why property investors fail is because they try to do everything by themselves. Never be cheap always pay for your professional investment team, because you don’t just pay them for a service but you pay them for knowledge as well.

The second reason why most investors fail is because they have the wrong team. They think that because their father or friend is an attorney or accountant that they will understand the strategies of investing in property.

People are inherently looking to save money but in the end, it costs them their financial freedom.

Through lots of trial and error, paying the price, and making mistakes I have come to realise that your team is like your family. Like a family, they will help you achieve your dream.

I started without a team and it’s cost me many years, millions of rands in mistakes and lost opportunities. Without them it’s impossible. Without a team, it is impossible to build your property investment empire.

Luckily for you, we have all the specialists you need in your team at the IGrow group of companies. To find out what services we provide, click here .

3. Step three – Devise a Plan

People spend a lot of time planning their holiday. In fact, people spend more time planning a single vacation than planning their financial future.

The importance of creating a blueprint for building your property investment empire cannot be understated.

Do you have an investment plan? A roadmap or blueprint for financial freedom?

If I had to parachute into your life right now, would you be able to show me your plan and tell me the exact amount of net asset value and income stream you have set as a goal for your early retirement?

Would you be able to show me the date at where you will retire?

Most of you would have said no to many of these questions.

CAPTION: When building wealth through property, you need to consider these four steps.

Let me ask you another question. If I were to offer you an investment, promising to give you a 12% return every year would you take it? Would you take 24%? Or 36%?

If you don’t know and can’t say exactly why you don’t have a plan for your money. You don’t know how hard your money should work for you to achieve a certain outcome.

Unless you have a document that clearly states your financial objective you cannot really answer these questions.

This is why IGrow, led by Sean Johnson our General manager of property portfolio planning, have created what we believe is arguably the country’s most best plan to ensure you retire financially free. For more information on this plan click here .

You cannot measure your wealth if you cannot control your wealth. That is why I have built my company around a direct ownership model of investing in buy-to-let property. Therefore, I want you to be in full control of your wealth. I want you to manage the growth and risk.

4. Step four – Provide Structures

Running any business, especially your real estate investment business, is all about wealth creation and wealth protection.

If you want to run a proper property investment business, you have to create the necessary corporate structures to set up a sound and solid foundation for your investment.

If you have a correctly structured buy-to-let business you will effectively separate your assets from your liabilities. So they are never kept in the same entity.

We don’t want paid up and indebted assets all in the same entity.  You need to have different compartments for your specific assets. Depending on the risk of the underlying assets which determine how far you need to go to compartmentalise your assets. Different trusts or compartments, as I call them, diversify your risks and assets.

CAPTION: Watch this video to find out how you can make a trust work for you in South Africa. 

By creating the correct corporate structures for your property investment business, you immediately alter the rules of the real estate investment game.

We will show you will not own any assets or money with the correct structures in place, because to own nothing means you have nothing to lose. You want to minimise risks while maximising your returns.

From an asset protection point of view, this is advantageous. Most importantly it protects you from the banks, the South African Revenue Services (SARS), and creditors.

As I have said before, a property investment trust is by far the safest and most tax efficient vehicle available.

For example, with the correct corporate structures, you will be able to avoid paying estate duty, capital gains tax, executors’ fees, transfer and registration costs, and many more taxes. This will save approximately 35% of your net wealth upon your death.

By placing the correct structures into your portfolio, you are going to avoid this calamity completely. Play the property investment game with your own set of rules and leave a legacy to your loved ones.

5. Step five – Create leverage

Leverage is the financial tool the wealthy used to build their property investment empire. There is nothing stopping the ordinary person from becoming rich through the same means.

The wealthy use debt and other people’s money to become financially free. The financially illiterate stay in debt and in the rat race by buying depreciating assets with unproductive debt like cars. Be someone who knows how to leverage debt to acquire assets has financial leverage over the investor who does not understand how to make other people’s money and debt work for them.

To be able to apply these principles though, investors need to take the time to financially educate themselves. They need to learn the secrets of how to use debt and other people’s money to become as wealthy as they want to be. Ordinary salary earners can become very wealthy if they commit to learning the different forms of leverage and how to apply it to their lives.

Leverage is a universal principle, it works for everyone, and is available to anyone who wants to tap into its power.

When investing in property this is particularly important when it comes to home loan financing.

The banks have lots of money and would love to give it to you. Their whole business model relies on people using their money.

This is why residential real estate is such a great investment. The banks will allow you to borrow up to 100% of the purchase price from them for you to buy the property.

Banks will not lend you this amount of money to invest in equities, bonds, or cryptocurrencies. But they will lend you money to invest in property.

R100 000 can be leveraged to buy a R1 million property at 90% gearing, which is when you have used 90% of the bank’s money or other people’s money to pay for the property. Therefore you have only covered 10% of the property price yourself, in the form of a deposit.

CAPTION: Follow us on Facebook to stay up to date with all the investment benefits on offer. 

Property investing is a financing game. And this is where an investment bond originator, who understands financial institutions and dealing with property investors’ portfolios, is invaluable.

The ordinary salary earner can build a wealthy asset base by choosing to use the bank’s money instead of their own.

Many first-time investors are getting 100% financing from the banks, negating the need to pay deposits, Meanwhile experienced investors are using existing properties to fund deposits to buy other investment properties. These are geared at 90% or 80% financing.

Leveraging other people’s money allows you to achieve growth rates of return that are high enough to build a major property portfolio.

You may assume that you can achieve these kinds of returns through alternative investment vehicles. It’s all about how hard your money is working for you in the respective investment and in relation to your money invested.

The real kicker here is that the ability to finance or leverage is much more important than its return in either growth or yield.

By strategically leveraging other people’s money, you dramatically improve your return on investment.

The more of the banks’ money you are using in your property, the higher you are geared. This means the lower your invested capital in relation to your borrowings the higher your potential return.

Property investment is a financing game, by using other people’s money. As a result, it’s possible to achieve rates of return that no financial institution can offer you.

Plus, you own your investment properties directly and exert complete control over your assets, instead of relying on a financial advisor to invest your money wisely for you.

The more you can borrow, the more assets you can leverage for capital growth, rental income and tax advantages. The more you build your asset base, the more your assets compound, the more equity you create to roll over, tax-free, to be able to buy the next investment properties. Through this process you can start successfully building your property investment empire in South Africa.

6. Step six – Buy the right type of property

On average, property doubles in value every seven to 10 years. That’s why correct property selection is so critical.

To choose where to buy property, you need to consider the province, town, suburb and location. These factors are all indications for providing a proven track record for outperforming market averages in term of capital growth and rental income.

Demographics play a major role in the sustainable capital growth of an area. And remember, it’s the capital growth that will make you wealthy as a real estate investor, not the rental income. I talk about this in depth in some of my other videos and at our live seminars.

Demographics underpin a sustainable rental income stream. But, more importantly, they will ensure high demand, and high demand for the right type of properties equals capital growth.

CAPTION: There are four considerations you need to make before you decide to invest in a particular property. 

Buy properties in high demand from both tenants and owner occupiers – this is indicative of a good, solid growth area.

People underpin the housing demand – lifestyle dictates housing demands and preferences. If you want to predict the housing trend you have to have an understanding of the lifestyle of your prospective tenants. Where do they want to live, play and work?

Different types of properties attract different demographics, or to put it another way, different demographic groups have different ways of living and different housing needs. Locations, where wage growth outperforms the average, are where you will find capital growth in properties.

People in the area must have sufficient disposable income to afford the rent and want to live there because of the lifestyle and leisure the area offers. There must be shopping malls, sports fields, hospitals and other recreational facilities. There must be a high level of security but also be relatively easy to commute to work.

In some suburbs, you will find capital growth equaling 50% to 100 % or more per year, while others have very low, almost no capital growth. That is why it is critical to do your research into an area’s growth history before deciding to purchase there.

Buy in areas that have a strong history of capital growth that will outperform the average area or location. These areas will help you build your property investment empire.

7. Step seven – Other People’s Systems

Any successful business must have systems in place and your real estate investment business is no different. What I mean by “Other people’s systems” is to make use of the systems put in place by people who have already done what you’re just starting out to do.

CAPTION: Before investing in property, it is best to ask yourself the following questions.

One example of a system is a software programme. By purchasing an IGrow Wealth Plan you can make use of our own software programme which is designed to work for property investors. This software calculates your predicted return on investment over a set number of years, capital appreciation, and rental income.

Why do you need this system? Simply, if you can’t control your numbers, then you can’t control the business. If you can’t measure it, you can’t manage it. With 27 different variables in property, each one of these will have an effect on your bottom line return on investment.

The central question is, how do you know which property to buy if you have five properties to choose from, each with different capital growth rates, inflation rates, rental incomes, vacancy rates, interest rates, not to mention different purchase prices and deposits? All these variables have a direct impact on your financial outcome for the specific investment.

8. Step eight – Make SARS Your Partner

Have you ever wondered how some investors are becoming wealthier through tax incentives?

In terms of Section 13sex of the Income Tax Act was created as the government realised they needed to provide more affordable new housing, as per their mandate, however, they were falling short of their targets. There is a massive backlog and shortage of affordable housing that needs to be taken care of.

They also recognised the needs of the group of the population who qualify for a housing subsidy, and those who are earning enough to be able to afford a bond. This group in the middle cannot afford a bond. However, they need affordable housing to rent.

To encourage investors to help create affordable housing, they offer investors an incentive to invest in property. Investors can claim a deduction against their personal income tax up to 55% of the total cost (acquisition price) of the unit, over a 20-year period.

CAPTION: Subscribe to our YouTube channel and keep up to date with all other advice we offer. In this video we explain the Section13 sex income tax act in more detail. VIDEO: YouTube/IGrow Wealth Investments.

This is how the rich real estate investors become rich. They legally leverage the tax act in their favour to get the receiver to pay them millions back into their buy-to-let property portfolios.

If you are willing to make SARS an active role player and partner within your real estate investment business you can get them to pay you money back over your real estate career.

Tax incentives by the government act as an economic stimulus to keep the wheels of the economy aligned, to create more opportunities where there is a huge demand, a shortage of infrastructure and economic activity. The receiver is encouraging certain activities that benefit the economy and promote social policy. In that case, it’s our job to take advantage of these tax laws.

So, what I am saying to you is that the receiver is actually on your side – the side of the buy-to-let investor. They really want us to pay less in taxes and build our property investment empire.

By applying what I call the ‘stackable tax effect’ – using the allowable SARS deductions, rebates, concessions, and incentives as a strategic way to reduce your tax – you will create a compounding tax effect within your portfolio and build substantial wealth at the same time.

SARS is there to make you rich in real estate, especially if you follow the rules of the rich. If you would like to find out more about this income tax act, read my other article here .

9. Step nine – Rental Management

Step nine is to appoint top managers to run your real estate investment business. You need to get a brilliant rental management company to take care of the day-to-day running of the properties in your portfolio, to free up your time to focus on the bigger picture – namely strategically building your portfolio and with it, your future financial freedom.

You will always be the CEO of your portfolio. Your rental managers will report to you and your tenants will report to your rental managers. Therefore, you need never meet your tenants – it’s just not part of your job. Rather, build a good relationship with your rental manager and make sure they do their job.

CAPTION: Your rental manager has seven key responsibilities.

These are the core functions of a comprehensive end-to-end rental management service. The rental manager’s role is to ensure that you don’t get involved in the admin side of things but rather focus on the strategy and expansion of your portfolio. Wouldn’t you prefer to spend the time planning that next deal rather than dealing with tenant admin?

At the IGrow group of companies, I have ensured we have one company to manage your rental portfolio. To find out how you can use their services, click here .

10. Step ten – Scaling Your Business

Once you have implemented the previous nine steps as discussed, you will have built up equity within your portfolio.

You will be able to prove that the company, or trust structure holding and owning the properties, is self-sustainable and will not require you to stand surety anymore.

When this is proven to the banks by your accountants the portfolio can stand surety for itself. This means the sureties in your personal capacity will be cancelled and waived.

This opens up an opportunity to duplicate the process in your own name. Consequently, you will grow so much faster than the average investor who bought all his properties in his personal name. And so the process repeats itself, it will create unbelievable wealth for you and your loved ones.

There you have it – the 10 steps you need to take to build your property investment empire.

Furthermore, this is all based upon practical, real-life experience, and demonstrates how anyone can become a highly successful investor by:

• Acquiring the necessary skills;
• Assembling a team of experts;
• Creating a property investor’s blueprint plan;
• Setting up structures in which to invest;
• Leveraging other people’s time, money effort, experience and systems;
• Selecting the right types of properties;
• Leveraging tax laws in their favour;
• Employing the services of a great rental manager; and
• Scaling their business to allow them to acquire more properties, thereby growing their portfolio exponentially.

While this all may sound a bit daunting, I have some good news for you. The IGrow Group of Companies has all the services you need, under one roof. We can offer you a team of experts:

• Our portfolio planning division to create your unique IGrow Wealth Plan – your blueprint and roadmap to financial freedom.
• IGrow Trusts will set up and register your trust and company structures, and act as the independent trustee you need.
• Property investment strategists to help source your ideal buy-to-let investment properties.
• IGrow Chartered Accountants to ensure your balance sheets and tax affairs are in order.
• IGrow Rentals to manage your tenants for you in your growing portfolio.

It all starts with a consultation. That’s how you can invest in property in South Africa successfully. Speak to one of our advisors today to help guide you through the process by clicking here .

Clearwater Village

priced from   R799 000

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Business Plan

A joburg that works is a south africa that works.

The Joburg Property Company was established to support the Council’s economic and social objectives as outlined in the Growth and Development Strategy (GDS) as well as Mayoral strategic priorities aimed at achieving the City vision of “A Joburg that works is a South Africa that works”. JPC’s primary goal in supporting the vision and mission of the 2040 Growth and Development Strategy (GDS) is to recognize the emphasize its role as an economic and social property agency to achieve positive developmental outcomes.

• 2023/2024 Business Plan
• 2022/2023 Business Plan

2019/2020 Business Plan

2018 – 2019 Business Plan

2017 – 2018 Business Plan

2016 – 2017 Business Plan

2015 – 2016 Business Plan

2014 – 2015 Business Plan

2013 – 2014 Business Plan

2012 – 2013 Business Plan

2011 – 2012 Business Plan

• How to formally register a business
• Types of Businesses
• Business Idea, Plan & Model
• Entrepreneurship & Innovation
• Intellectual Property
• Employing Staff
• Tax Education
• Obtaining Funding
• Imports & Exports
• Company Maintenance
• Managing Finances
• Business Rescue
• Business Insurance
• Buying & Selling Property
• Transferring a business
• Closing a business
• Business Toolkits & Resources
• Investing in South Africa
• Inspiring Stories
• She-ra platform
• Sub-National Doing Business
• Doing Business Indicators

Table of Contents

1. overview:.

Start Up businesses may face challenges with funds and also for businesses that may have been operating for a while. Nonetheless, it’s important for you to evaluate your whether you would like to rent or buy property.

Buying property can be satisfying knowing that you have an asset and it can grow in value over time. You can also borrow against the property. Renting property will give you flexibility if you need to scale up or even move to another location.

2. What are your options?

As a start up business, you would probably want to manage your costs tightly and even work from home. As your business grows then you may want to lease or buy a property for your business.

For the more established businesses, it may also want to invest in property rather in various locations supporting its operations.

Either way, it’s a big decision for leasing or buying property. Make sure that you understand the contractual arrangements and that you are able to de-risk your business.  You have to make your business work so work hard on a contract that is favourable for you!

3. Buying Property

Buying property is suited to businesses that have:

• enough capital to invest (strong balance sheet)
• a good sales pipeline
• good long-term contracts
• a good market penetration
• a good market presence and is well established.

3.1 Pros and Cons

4. Draft Purchase & Agreement

If you are considering buying property, then you may want to download the draft Purchase and Sale Agreement.

4.1 Leasing Property Pros & Cons

• Paying Taxes
• Starting a Business
• Dealing with Construction Permits
• Getting Electricity
• Enforcing Contracts
• Trading across borders
• Getting Credit
• Protecting Minority Rights
• Registering Property
• Resolving Insolvency
• Inspiring Videos

Important Notice: Visit  www.sacoronavirus.co.za for up to date information on the pandemic.

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KRA unlocks Sh3.87bn after netting 10,425 new landlords

Clients seeking services at KRA headquarters, Times Tower, Nairobi on February 23, 2024.

By  Constant Munda

Business Reporter

Nation Media Group

The Kenya Revenue Authority (KRA) netted more than 10,000 landlords into its database in the year ended June 2024, after rolling out mapping technology and enhanced use of data from third-party sources such as Kenya Power and banks to catch cheats.

Internal documents seen by Business Daily said that the taxman recruited 10,425 rental income taxpayers in the review period. The document, however, does not disclose the comparative number of landlords netted in the previous year.

The development followed the implementation of Block Management Strategy (BMS), which uses a geographic information system (GIS) to map out buildings in various residences.

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The system classifies various estates into blocks of flats, where KRA will identify landlords who are tax-compliant and those who are not in the tax net and detect new buildings springing up.

The recruitment of new real estate owners helped Times Towers add 46,126 monthly rental income tax obligations into its system, according to the document, realising nearly Sh3.87 billion in revenue.

The taxman did not reveal the total rental income taxes it collected in the review year, which also saw it rely on property agents to enhance compliance amongst property owners.

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During the year, the KRA “simplified” the compliance process by requiring residential property owners generating an average of between Sh24,000 and Sh1.25 million every month to pay tax at the rate of 7.5 percent of gross income.

The current tax rate for landlords took effect in January 2024 after lawmakers amended Section 6A of the Income Tax Act through the Finance Act 2023. The changes lowered the tax rate for property owners with annual rental income of between Sh288,000 and Sh15 million to 7.5 percent from 10 percent previously.

They are required to file a monthly tax return to the KRA declaring the gross earnings from which tax payable is computed at the rate of 7.5 percent.

“The simplification was introduced to enhance compliance. Though it has increased the number of taxpayers, it has not achieved the envisaged compliance [in remitting rental income tax],” Treasury wrote in the 2024 Budget Policy Statement.

“To address compliance challenges in rental income taxation, the government will enhance the registration of property agents, mapping of properties, and leveraging on technology. In this regard, and to ensure fairness and equity, the government will review taxation of residential rental income,” it added.

Past data showed KRA had 76,025 real estate owners in its register in June 2021, a 29 percent growth over 58,934 property owners in June 2018.

The Treasury cited analysis of residential rental income tax covering the year 2022 which showed that collections underperformed targets by Sh27 billion.

Amidst a bid by the taxman to catch tax-evading landlords, the Estate Agents Registration Board (EARB) in March warned property owners against employing unregistered real estate agents.

“In order for the EARB to continue protecting the interest of the public and enhance professionalism in the real estate sector, consumers are advised to deal with registered estate agents only,” Hellen Abuya, the board’s registrar, said in a notice.

Read:  Unregistered agents face arrest in war on tax-evading landlords

The Estate Agents Act requires practitioners to register with the board and be issued with an annual practicing certificate.

Registration of estate agents is open to full members of the Institution of Surveyors of Kenya practising in valuation and estate management, building and land management, or a holder of a degree, diploma, or licence from a university or college recognised by the board.

The board can also register a member who does not have the aforementioned qualifications if it is satisfied that he or she is of good character and has not been convicted of fraud or dishonesty, amongst other qualifications.

A person practising as an estate agent without requisite registrations faces a fine of Sh20,000 or two-year jail or both upon conviction.

The KRA also relies on provisions of the Tax Procedures Act 2015, which allows it to access electronic data on taxpayers from third parties without seeking a court order, thanks to changes through the Finance Act 2016.

The records include Kenya Power metering records, bank statements, import records, motor vehicle registration details, water bills, and data from the Kenya Civil Aviation Authority.

KRA has identified real estate (landlords), high net-worth individuals , small traders in informal settings, and businesses operating online as sectors with high potential for growing revenue.

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