Caveman not paying rent

Now the once exclusive Kaaiman's Grotto is a squatter camp and home to a Christian mystic who believes God appointed him as its caretaker.

Transnet, the rail parastatal, says the cave is state property and is no place for trespassers.

The site is earmarked for redevelopment and features on a Western Cape government list of potentially lucrative tourist attractions.

But the self-proclaimed Kaaiman's Caveman, also known as Clifford, says God will not allow anyone else to move in: "I know this is the house that God has got me," he told the Sunday Times during a tour of the cave.

"When I asked (God) why, he said, 'I brought you here to sit at my feet.' This is his house. I am like his child. I can't just bring anybody in," said Clifford, who spent four years in Bible school before moving into the cave.

The 49-year-old former Capetonian moved in four-and-a-half years ago, shortly after a landslide closed the only access to the restaurant - the famous Outeniqua Choo-Tjoe railway line between George and Wilderness.

After nearly starving to death - "for days all that went down my throat was water" - he attracted sympathy from passers-by, some of whom left food and money.

His eccentric renovations and artwork inside the cave soon elevated the site to a local tourist attraction and place of pilgrimage. He featured in a German documentary, prompting a German tourist to make a trip to meet him after seeing him on TV.

Clifford also had visits from his family, including his ageing mother, who had previously disowned him. "I carried her down here on my shoulders. She had a look around and said, 'Now you are really living like a bergie,' " said Clifford. "Before she died she stayed here for three days. She was mesmerised by the place," he said.

In its heyday, the restaurant once featured chefs from the nearby upscale Fancourt golf estate and hosted corporate clients. It is now divided into a restaurant deck with tables and chairs, and a maze of small rooms decorated with shells, driftwood, and bric-a-brac.

There is a fully equipped kitchen, a "honeymoon suite", and a study and library area, where Clifford does daily Bible study.

The soft-spoken caveman, who wore Tintin pants when we visited, has adopted three friends to help maintain the cave, and to fish at the river mouth.

One of them, an unemployed waiter from Johannesburg, said the cave was a refuge from hard times. "Things didn't work out for us. Here we can get back on our feet," he said.

The cave dwellers have earned the blessing of the current cave lease-holder, businessman Johan Coetzee and his two partners, who still hope to develop the site.

Coetzee said Clifford contacted him when he first moved in.

"We had a very good conversation. He wanted to go and live there and felt that God had guided him to do that. I told him, 'I have no problem with you staying there.'"

Transnet has yet to decide on the future of the railway line, which many say is now beyond repair. Large sections of the track are still covered by rubble and soil from the landslide five years ago.

The Western Cape government has renewed its claim to the historic site. Tammy Evans, spokesman for provincial Tourism Minister Alan Winde, said: "We strongly believe that the Choo-Tjoe must (stay) running as it is one of our precious few heritage items."

Transnet spokesman Mboniso Sigonyela said: "Transnet has not granted permission for the tenancy of this property. Occupation of any Transnet property without a lease is deemed illegal and would constitute trespassing."

 

Billing crisis not over

Some of the key factors which contributed to the City of Johannesburg’s billing problems included:
- The previous thirteen councils had different IT systems which necessitated the procurement of a new Integrated IT system
- Lack of billing of some customers
- Incorrect cut-offs, in some cases due to incorrect referencing by consumers; and
- Increase in number of complaints that exceeded the capacity of the Call Centre.

The problems affected 65 000 of the 1.2 million account holders in the city.

At a joint press briefing yesterday in Joburg, Gauteng housing MEC Humphrey Mmemezi said he was satisfied with the progress made in trying to resolve the issue. The conference was called after repeated complaints were sent to the office of the Public Protector from angry residents who were overcharged on their monthly electricity bills.

Mmemezi acknowledged that the city had not done enough to communicate with customers. “We realised that part of the problem was that the city communicates with the customer once the case has been resolved when the process should be ongoing,” said Mmemezi.

The City has undertaken to:
- Develop a customer service charter which will highlight standards of service and the expected turnaround times for customer queries
- Hold bi-monthly meetings with the Public Protector’s office to give feedback on progress
- Regularly engage with customers to update them on the progress made with regard to resolving the challenges; and
- Continue to address challenges identified and improve the revenue management value chain.

Mmemezi added that the City may also need to do a skills gap analysis and implement a skills development programme which would ensure the delivery of efficient services to customers.

Madonsela said the City would implement a moratorium on cut-offs for customers whose queries have not been resolved within 90 days.

This City Press article by Mokgaetji Shadung was found on 15 April

 

Bank are loaning again

Johannesburg - Banks declined fewer home loans in April 2011 compared to the same month in 2010, a bond originator said on Monday.

"The ability to obtain financing is one of the biggest drivers in the property market, so the consistent improvements are positive for the market," said ooba CEO Saul Geffen.

The bank initial decline ratio was 8.7% lower year-on-year (y/y), at 45.4%.

The bank effective approval ratio for home loans increased significantly from 57.3% in April last year to 64.4%, ooba found.

Geffen said the strong April approval rates followed record numbers in March, when the approval figure was the highest value of approved home loans since October 2008.

The average deposit size as a percentage of the purchase price decreased y/y by 39.6% to 13.1%, or R108 164.

At the same time, the average approved bond size increased by 3.7% to R715 319 in April 2011 from R689 742 in April 2010.

"The average deposit for April was only 13% of purchase price, which is significantly improved from the levels seen in 2009, and this opens up a considerably broader homebuyer base who can now afford the lower deposit requirements," said Geffen.

The oobarometer price index showed a y/y decline in the average purchase price of 6.5% to R823 483 in April 2011 from R881 044 a year earlier.

The average purchase price by a first-time buyer fell by a more moderate 0.2% y/y to R625 252.

Geffen said the decline in house prices in April pointed to a further period of declining prices, after strong growth in the first half of 2010.

"We anticipate the negative growth trend will reverse shortly after mid-year and show moderate positive price growth for the second half of the year," he said.

New way to end illegal occupations

A local company has developed a new security and access control system that will make it doubly difficult for hijackers to gain access to buildings.

"Crime in South Africa has led to security solutions for residential and corporate environments – not as a choice any more, but an absolute necessity. Residents and corporates are willing to pay a premium to be safe and secure in their homes and offices," says Derrick Tereblanche of the Dex Group.

The good news, however, is that South Africa has the answers, locally developed and produced. "In fact, it would be irresponsible not to implement measures while they are available and cost-effective," says Tereblanche.

According to a financial magazine, criminals in Johannesburg's inner city have realised that it's lucrative to hijack entire buildings and take over the monthly rental stream, leaving landlords and tenants watching helplessly, as they build up a very nice portfolio of rental properties and a healthy flow of income.

Owners can't even get into the buildings, because the hijackers station their own security teams at the entrances. To compound their misery, owners are still held responsible for the municipal arrears. It seems that the best steps landlords can take to prevent their buildings from falling prey to urban hijackers, is to develop a good relationship with their tenants and to maintain physical control of their buildings.

Solutions are available for the security needs of apartments and residential buildings in the form of security and access control systems. In addition to effectively keeping criminals and unwelcome visitors from entering the premises or building, these systems are easy to use, providing residents with a convenient and user-friendly answer to their security needs.

The systems also offer effective and convenient management of visitors, while keeping exact records of the people entering and leaving the building. This improved access control enables the management of the premises to clamp down on vandalism and theft.

The DexID access control solutions use fingerprint technology to ensure that access is only granted to those registered on the system, and removes the need to carry and use keys. The DexID systems have been implemented to provide access control solutions for more than twenty buildings in Hillbrow, one of the most notoriously crime-riddled areas. This has resulted in more than 10 000 Hillbrow residents now enjoying a safer environment.

In addition, the DexID solutions have proven to be both cost effective and efficient as both a security system and an access control system for apartment buildings.

This solution has been installed in buildings owned by Ithemba, AFCO and Solarsh Properties, among others.

Landlords ignore CPA at their peril

"According to the definitions of the (CPA Consumer Protection Act), landlords, rental agents and buy-to-let investors can be seen as suppliers and tenants as consumers, both subject to the provisions of the CPA," says Danelle Corbett, a director of Werksmans Attorneys.

She explains: "The CPA relates specifically to a landlord that lets premises as part of his or her ordinary business as opposed to a lease arrangement in a once-off private situation".

While the CPA will have limited application to agreements retrospectively, standard lease contracts must be reviewed and adjusted to comply with the provisions of the CPA, as there will be no mercy for any landlord whose house in not in order after the inception date.

The protection offered to consumers by the CPA does not apply to all consumers - for example the provisions of the CPA will not apply to any transaction in terms of which the consumer is a juristic person (an entity other than a natural person such as a company) whose asset value or annual turnover, at the time of the transaction, equals or exceeds R2 million.

However, in terms of property rentals, a "consumer" as defined in the CPA includes not only individuals in respect of residential leases, but also tenants of commercial properties such as small or medium business enterprises.  In this regard, the CPA has onerous implications. 

"One of the most serious challenges to the security of tenancy normally created by long term leases is the fact that according to the CPA, tenants may now provide 20 days' notice of cancellation, despite any provision in the lease to the contrary," adds Corbett.  

However, this provision is not applicable to leases involving juristic persons, regardless of their annual turnover or asset value.

"While the tenant will remain liable to the landlord for amounts owed in terms of the lease up to the date of cancellation and the landlord will be entitled to impose a reasonable cancellation penalty, the uncertainty caused by this could negatively impact landlords wishing to use rental agreements as security" says Corbett.

Furthermore, the conduct or failure of a rental agent to comply with the provisions of the CPA during the process of concluding a lease agreement on behalf of a landlord may result in the landlord incurring indirect liability on a joint and several basis.

"Landlords will need to ensure that tenants fully understand the terms and provisions of lease agreements.  The potential for abuse by tenants is real in that a tenant may claim that he or she did not understand the extent of the agreement or was influenced to sign, and the onus will be on the landlord to prove otherwise," warns Corbett.  

The tenant must also be advised of any provision that limits the landlord's risk or constitutes an assumption of risk by the tenant, an indemnity by the tenant or an acknowledgement of fact by the tenant. Any provision which purports to limit or exempt the landlord from liability for any loss attributable to the gross negligence of the landlord or requires the tenant to assume liability for this is, not allowed.

The regulations in terms of the CPA prescribe a maximum period of two years for the duration of fixed-term agreements, except to the extent that the landlord can show a "demonstrable financial benefit" to the tenant if a longer lease is concluded. It is uncertain how a landlord will be able to show such benefit.

Landlords should also take note that they are obliged to provide a notice of termination of the lease when it is nearing the end, even if the period is clearly outlined in the lease agreement.

"Another practice that will be curtailed is the inclusion of minimum warranties and exclusion of warranties relating to the purpose for which the premises are intended to be used.  This will no longer be possible except to the extent that the tenant has been expressly informed that the premises are offered in a specific condition. 

"For instance, where a tenant intends to use the premises as a restaurant and this is clearly conveyed to the landlord, the tenant will have the right to receive the premises in a condition that is reasonably suitable for this purpose. It could thus be argued that this will include being in a condition to obtain a liquor licence," explains Corbett. 

Ignoring the provisions of the CPA as it pertains to leases can result in the entire lease agreement being declared void and unenforceable. 

Furthermore, failure to comply with a compliance notice directing that prohibited conduct be rectified may result in a fine or imprisonment for up to one year, or both a fine and imprisonment.  Fines could be substantial and may range up to the greater of 10% of annual turnover or R1 million.

 

Residential Property - a premier asset class?

So maintains Elwyn Schenk, Pam Golding Properties.

“Interestingly, the residential market is increasingly beginning to be considered as a mainstream asset class to the extent that in the UK for the first time it has been included in the IPD all property index, and recognised as a relatively low risk sector.

“The debate about equities vs property as an investment medium is ongoing - and to a large extent academic as all balanced portfolios will include a variety of asset classes, depending on the investor’s own appetite for risk. Both equities and property are real assets and so over time should rise in line with nominal GDP.  History has shown, however that equities have been less stable with a higher degree of volatility.”

Schenk points out that with property, people always need houses in which to live, whether owned or rented, and generally a property downturn is more likely to be absorbed than a stock market plunge.   Often, however, equities and property are non-correlated, hence the added case for investors to have a balanced portfolio across asset classes.  What does set property apart from equities is that it is a finite resource, which gives it a propensity to increase in value over time, almost irrespective of extraneous factors.

He says an added advantage for the investor is that property can be geared, up to 100 percent in some instances, which, even in a modestly escalating market, can make for excellent returns. This also means that the investor can enter the market with a proportionally low deposit (NCA - National Credit Act - guidelines permitting).

“For the average investor seeking to augment his/her pension with a relatively inflation-proof income, residential property makes a great deal of sense. Take the example of a one-bedroom apartment purchased in Braamfontein for R450 000, generating a gross rental of R4 000 per month - this would produce an ungeared yield, after rates and levies, of around eight and a half percent.  While this may appear low at first sight, one needs to add to this the capital appreciation of the property, which over time should comfortably outpace inflation. A comparable example is the dividend yield on equities, which is currently averaging 2.3 percent (reference JSE ALSI) - again in expectation of earnings and capital growth.

“From our experience informed investors are re-entering the market, given that in certain areas property values are at a discount to replacement costs, and the shortage of rental stock is exerting upward pressure on rentals. Couple this with a low interest rate regime and you have a formula for an excellent investment environment, especially after taking into account the tax deductibility of costs incurred relative to the rented property e.g. bond interest, levies and repair costs.”

Schenk says many wise long-term investors have accumulated several properties over time through re-gearing of an already owned property to purchase another. With the process being repeated the property investor - on retirement - will benefit from an inflation proof income from several fully paid up properties. Experience has shown that the optimal investments are one and two bedroom apartments in good positions where demand is strong, normally among singles or young families.

He adds: “As always position is key; always buy your investment property in a relatively sought after area and avoid the trap of ‘cheap’. It is also good practice to use the services of a reputable estate agent to source a suitable property and find and manage a reliable tenant.
 
“While no asset class is risk free, property over the decades has proven to be a safe haven for the cautious investor, especially relative to other assets which can have a much greater degree of volatility. A good component of residential property should be part of every serious investor’s portfolio,” says Schenk