Latest news with #TUHF
The Citizen
4 days ago
- Business
- The Citizen
Joburg's housing backlog needs R60bn and less red tape
Mayor commits to cutting bureaucracy as private sector urges action on service delivery and rising costs. Johannesburg Mayor Dada Morero delivered the keynote address at the 2025 Reside Summit. Picture: Supplied Johannesburg faces a housing backlog of more than 300 000 units. The city's approved housing budget for 2025/26 is R8.9 billion – far short of what is needed. According to mayor Dada Morero, at least R60 billion is required to make a meaningful dent in the shortfall. Speaking at the third annual Reside Summit, which opened on 9 July in Sandton, Morero acknowledged the city's failure to act swiftly on housing delivery and called for urgent partnerships to accelerate development. Delivering the keynote address at the Sandton Convention Centre, Morero pledged to reduce red tape to encourage private sector investment, admitting that the city's approach has been insufficient. 'We have made bold statements on housing interventions, but we have also acknowledged that we have been slow, fragmented, and overly bureaucratic,' he said. 'This summit is a critical platform to reset our approach and build the partnerships needed to deliver homes faster.' To attract investment and drive what he describes as a 'housing revolution,' Morero said the city is committed to streamlining its approval processes. This, he believes, will allow developers to proceed more efficiently with housing projects that could help close the housing gap. ALSO READ: Gauteng's housing crisis: 150 years to clear the backlog Developers welcome initiative but raise concerns Private sector representatives at the summit welcomed the mayor's commitment to cutting through bureaucracy. However, they flagged unresolved challenges that continue to hold back development. Rob Wesselo, group managing director of International Housing Solutions, and Paul Jackson, co-founder of the Trust for Urban Housing Finance (TUHF), noted that consistent access to services such as water, electricity and sewage is critical. They warn that unreliable service delivery poses a major threat to investor confidence and long-term project viability. They also raised concerns about the financial pressures developers face. Johannesburg's property tax rates have reportedly increased by over 45% since 2010. Utility charges on rental units often amount to R2 000 a month for a R4 000 rental property. These rising costs continue to squeeze both landlords and tenants, making affordable housing harder to achieve. ALSO READ: Joburg plans to ease housing crisis with mega projects and acquisitions Economic outlook adds pressure Providing broader economic context, Investec chief economist Annabel Bishop predicts GDP growth of just 0.9% for 2025. Inflation is expected to ease to around 3.5%, but she cautioned that interest rate cuts would be gradual, meaning borrowing will remain expensive for longer. While moderating inflation offers some relief for input costs, slow economic growth and high borrowing costs could limit developers' ability to finance large-scale housing developments. ALSO READ: Joburg housing MMC says Fleurhof residents unhappy over housing are 'disgruntled' A platform for progress Debbie Tagg, chair of the Reside Summit, said the event aims to move beyond discussion and drive real action. 'This summit is more than a conversation, it's a catalyst. Solving South Africa's housing crisis demands shared expertise, shared risk, and shared opportunity – it's the only path to scale, sustainability, and speed. 'We appreciate every leader, partner and practitioner, and the many engaged and interested delegates, who have showed up with purpose and made the Reside Summit a true platform for progress.' This article was republished from Moneyweb. Read the original here.
IOL News
04-07-2025
- Business
- IOL News
Key ingredients to building a successful property portfolio
From new builds to refurbishments, learn how to navigate the complexities of property development for long-term success. Building a successful property portfolio, like launching any entrepreneurial venture, is a bold and complex undertaking. It's not a shortcut to instant wealth, but with the right approach, sound planning, and patience, it can be rewarding and lead to long-term success. Two property development strategies yield the most consistent success: new builds and refurbishments. New builds offer fresh potential but are intricate by nature and involve land acquisition, managing construction timelines and costs, and navigating regulatory requirements. Refurbishment projects, on the other hand, are becoming increasingly common - not just in inner cities but also across broader metropolitan areas, where offices are being repurposed into residential housing. Regardless of strategy, success starts with due diligence. Whether it is new (Greenfield) developments, or refurbishment (Brownfield) projects, property entrepreneurs must understand the market, client demographics, and property specifics. Understanding your target market is absolutely crucial. Who are your tenants? Who lives nearby - retirees, professionals, or families? These questions play a central role in shaping your investment strategy. The demographics and lifestyle needs of the surrounding community should directly influence what you develop - ensuring it meets real demand and stands a better chance of long-term success. There's no point in pursuing an ambitions property development if it doesn't suit the area or lacks long-term viability. Due diligence also includes thorough property inspections, a clear understanding of legal responsibilities and compliance, identifying risks or liabilities, and evaluating market trends and growth potential. Financing is another pillar of successful development. Property is capital-intensive, and securing the right financial backing is essential. Whether working with TUHF or a bank, entrepreneurs must understand their loan terms and ensure the structure supports their goals. Acting swiftly to close deals is vital - delays can lead to lost opportunities or expiring terms. At TUHF, we support long-term investors through fifteen-year loans. We partner with developers who prioritise sustainability over short-term profits - and who have the property management skills to back it. Beyond finances and due diligence, success also hinges on the entrepreneur's skills. A balanced mix of hard and soft capabilities is vital. Hard skills include financial literacy - the ability to analyse financing structures and assess financial feasibility - along with the business savvy to evaluate property market trends, negotiate favourable contracts, and manage operational logistics efficiently. To support this, TUHF offers the TUHF Programme for Property Entrepreneurship (TPPE): a comprehensive training programme in partnership with the University of Cape Town. It empowers entrepreneurs - clients and non-clients alike - with the tools to succeed in property. Equally important are soft skills - especially patience, meticulous attention to detail, and adaptability. Patience enables strategic decision-making, rather than reactive ones. A major red flag is rushing into a deal without proper preparation. Attention to detail is non-negotiable. Every aspect - financing structures, inspections, feasibility studies, and contractual terms - must be examined carefully. A meticulous approach prevents unwelcome surprises and ensures a sound investment. Adaptability rounds out the skillset. Entrepreneurs who ask questions, seek clarity, and embrace ongoing learning are best positioned to navigate industry complexities and shifts. Continuous learning and adaptability in the face of market shifts are key drivers of resilience and ultimately success. It's also essential to anticipate pitfalls. Acting too fast, missing warning signs, or poor financial management can unravel even a promising deal. Overcapitalising or mismanaging cash flow remain common causes of failure. Ultimately, success lies in combining discipline, diligence, adaptability, and continuous learning. With the right partners and a clear plan, entrepreneurs can confidently build a sustainable and thriving property portfolio. To find out more about how TUHF can assist you in your property investment venture, click here.
