Focus on long-term success

Welcome 2022!

South African’s are known for many things but high on this list is our dogged resilience!

Before we look ahead, it is always wise to take stock of what is now behind us. What can we learn? What can we change? What challenges do we foresee?

Finally, after assessing the past and our predictions of the future, what will our response be as we move into 2022? Whether you are a property owner, tenant or investor, we have all faced an extremely challenging two years, in the midst of many changes.

So, let’s start off by assessing these challenges. 

Firstly, the Covid pandemic has had both social and economic effects.

In terms of properties, it has left many vacant residential and commercial units, as work from home has become common practise. People have recognised the need for quality of life and with the flexibility the work from home culture has created it has meant people can move from more central developed areas, which are close to the office, to more remote ones which offer a slower more relaxed lifestyle.

However, there are signs that this culture which has caused a dramatic change, especially in the commercial property space, might be changing yet again, as corporates either call staff back to the office, realising the benefits of an office culture, or choose to operate with a new hybrid version of the two.

It will take time for this space to find its new balance but as things seem to slowly settle from the pandemic a new reality in property is emerging.

Another challenge we face is rising inflation and the SARB’s requirement to keep this within the 3% to 6% band, we can expect interest hikes during 2022, with the first repo rate increase of 0.25% having been confirmed on 27 January.

The unfortunate reality of this is those owners who have their properties bonded will incur further pressure. 

Then there is load shedding and poor service delivery that continues to put pressure on not only individuals but on commercial and industrial space.

Lastly, there are wider concerns such as the fear of the unpredictable riots of last year or the environmental pressures, changes and concerns that effect agricultural property.

So, what will your response be to these challenges?

Here at WPM, over our eighty years of working in property we have seen many challenges overcome and the basic principle of overcoming these challenges has been people making one good decision after another, consistently over a period of time.

Although this approach doesn’t create instant gratification it has resulted in long term success. Our advice, when it comes to the above challenges, is to value what is working well in your property, such as a good tenant, and ensure that you protect this value.

To do this, always ensure that your rental is market related, and set aside a monthly budget so that you can promptly attend to repairs which may be required. In addition, a fresh coat of paint, WiFi capabilities, options to use gas over electricity and other alternative energy sources all go a long way.

Remember that maintenance is not only important for maintaining the value of your investment, but improvements are critical to ensure that you stay ahead of the competition. 

The same can be said for a trustee and their responsibilities to the body corporate; is your maintenance plan in place? How is the security of the scheme? Are you getting the best advice when it comes to budgetary plans?

Always remember to take care of not just your unit but that of the common property which will have a direct result on your unit’s value. 

Another important aspect that must be considered is the incredible value that is now placed on “quality of life”.

As things like security, community living, speed of services all become standard requirements, service providers that facilitate these are critical and so too are their technological capabilities. Are you receiving the best service on your property be it for maintenance, improvements, or legal advice?

At WPM we have a quality list of service providers that are continually scrutinised to be of the highest standards. As a trustee or landlord for a building we manage, we have state of the art online capabilities to review the financials such as a buildings cash flow, tenant payments or even approval of service providers invoices. All of these making the property owner, trustee or tenants life that much more efficient and therefore creating time and space for the rest of life!

Finally, as you navigate the year ahead, we want to wish you all the very best and remind you of your resilience! As communities if we come together and use our strengths, we are optimistic for what lies ahead in 2022! 

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