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P R E S I D E N T ’ S L E T T E R
NATIONAL EXECUTIVE
OFFICE BEARERS 2008/2009
PRESIDENT: Melanie Vallun
VICE PRESIDENT: Kit Carson
MANAGEMENT & FINANCE: Jerry Margolius
CONSTITUTION: Derrick Griffiths
LEGISLATION: Kit Carson
EDUCATION, BURSARIES & PRIZES:
Anton Swanepoel, Patrick Boonzaaier, Ken Jones
CONTINUED EDUCATION & TRAINING:
Mark Bakker
MEMBERSHIP: Trevor Richardson, Janet
Channing
MARKETING & PUBLICATIONS:
Jenny Falck, Mark Bakker
WEBSITE & DATABASE: Jenny Falck, Trevor
Richardson
PROFESSIONAL LIAISON: Janet Channing,
Jerry Margolius
VALUATION FOR RATING: Ben Espach
CONFERENCE & FUNCTIONS: Anton Swanepoel
STATUTORY COUNCIL LIAISON: Melanie Vallun
GENERAL SECRETARY
Mrs Celia van Staden
PO Box 28060, Malvern 4055
t: 086 100SAIV / 031 464 6932
f: 031 464 6933
www.saiv.org.za
BRANCHES
Southern
PO Box 18041, Wynberg 7824
t: 021 762 3313 f: 021 797 2235
13 Piers Road, Wynberg 7800
Eastern Cape
PO Box 34758, Newton Park 6055
t: 041 396 1400 f: 086 683 7249
85 Cape Road, Mill Park, Port Elizabeth 6001
Central
PO Box 300, Bloemfontein 9300
t: 051 448 9431 f: 051 430 8815
22 Elizabeth Road, Bloemfontein 9300
Northern
PO Box 14331, Hatfield 0028
t: 012 342 9056 f: 012 342 7574
1019 Schoeman Street, Hatfield, Pretoria 0001
KwaZulu-Natal
PO Box 28060, Malvern 4055
t: 031 464 6932 f: 031 464 6933
13 TL Samuel Centre, 410 Main Road
Escombe 4093
THE SOUTH AFRICANINSTITUTE OF VALUERS
P R E S I D E N T ’ S L E T T E R
THE SOUTH AFRICAN
VALUER 1JULY 2009, NO.98
continued on page 4
D e a r M e m b e r s
As you know the National Executive holds a mini-Natex meeting in February every year and another meeting during June when our National Annual General Meeting takes place. These meetings are conducted on a round robin basis among the five branches and this year the hosting branch was KwaZulu-Natal. Thank you, KZN for a well organ-ised two days.
During the past meeting, the National Executive reviewed all comments received from the branch-es and individual members around the restructur-ing of the Institute. It would seem that the pro-posed structure of having board members would place an extra burden on the few people who are already serving the Institute and its members; these board members all have limited time on their hands. We have therefore decided to keep the current structure as it is; for the time being this will include the different branch secretaries.
What Natex did acknowledge, however, is that the administration of the Institute has be-come enormous and we are actively looking at ways to streamline the administration. The possible appointment of a general manager has been postponed until such time as we have a better understanding of the total administration workload and a method of improv-ing the existing processes.
Our Centenary Celebration is slowly but surely creeping up on us and it is amazing to think that 100 years ago there were also people working for our profession.
The founders of the SAIV cast the foundations for the future of the valuers’ profession and subsequent members built on these to achieve the Institution of today. We should be grateful to our founder members and must work to take our Institute forward into the next 100 years.
But who are we really? We know the SAIV was born in 1909, with these objectives:
1. To raise the status and define the qualifications of those engaged in the profession of sworn appraisers and valuers.2. To provide facilities for the dissemination of professional knowledge and the inculca-tion of the principles of sound practice, and generally to promote the best interests of the profession.3. To establish the science of valuing property, and to teach the same in both theory and practice.4. To increase the confidence of the community in qualified valuers by admitting to the membership of the Institute such persons only as shall possess the necessary qualifications.5. To secure for the members of the Institute such definite professional standing as may assist them in the discharge of their duties.6. To take measures to promote necessary legislation for the betterment and advancement of the profession.
Melanie Vallun
E
SA Valuer Editorial Panel:
Melanie Vallun (Chair)
083 264.2826
Kit Carson (Central Branch)
051 448.9431 / 082 821.1214
Mark Bakker (Eastern Cape Branch)
041 363.4422 / 083 227.3496
Janet Channing (KwaZulu-Natal
Branch)
033 343.3903 / 082 570.5834
Lientjie Ackerman (Northern
Branch)
012 346.2207 / 082 371.0908
Henré Hablutzel (Southern Branch)
021 762.3313 / 083 675.7008
Editor:
Patricia Leitich
Advertising and marketing:
Tony Korsten
Design studio:
Ample Ideas cc
Publisher:
Patricia Leitich BA LLB
Publishers:
Pangram Publishing (Pty) Ltd
PO Box 48219
Roosevelt Park 2129
tel: 011 442.2260 or 011 442.1869
fax: 011 442.1852
Printers and mailing house:
Remata iNathi Communications
and Printers (Pty) Ltd
The editorial panel welcomes contri-
butions (by way of letters or articles)
that are appropriate and that ad-
dress an issue that is topical or of
strategic concern to the sector as
a whole. These should be submit-
ted to the editor at patricia@pan-
gram.co.za for possible publication.
Please, use the SA Valuer as your
platform to promote dialogue be-
tween SAIV members.
The information and data presented
in the SA Valuer are recorded in
good faith, using sources believed
to be reliable.
The views and opinions expressed
in the SA Valuer are not necessarily
those of the SAIV, notwithstanding
the fact the SA Valuer is the official
publication of the SAIV. Neither are
they representative of the opinions of
the publisher or the editor. Copyright
applies to all material contained in
this issue and reproduction in what-
ever form is not permitted without
the written authorisation of the editor.
JULY
200
9, N
O.
98C O N T E N T S1T H E P R E S I D E N T ’ S L E T T E R
I M PA C T O F 2 0 1 0 S TA D I U M S O N S A P R O P E R T Y 17
5P R E S I D E N T ’ S R E P O R T : J U N E 2 0 0 9
10T H E H I S T O R Y O F T H E S O U T H A F R I C A N VA L U E R
C E N T E N A R Y E V E N T S 20
THE SOUTH AFRICAN
VALUER2JULY 2009, NO.98
23R I S K A N D R E T U R N
28I V S C N E W S
E Y E B A L L S T O A N A L Y T I C S 16
A P P R A I S A L I N S T I T U T E T O U N 25
P R O F E S S I O N A L D I R E C T O R Y 36
S A I V A T H O M E : B R A N C H A G M s P A S T P R E S I D E N T S S O U T H E R N B R A N C H W O R K S C H O O L
32
V I E W S O N D I S C O U N T R A T E S
COVER PICTURE: The SAIV National Executive meeting in JuneJerry Margolius, Dirk Coetzee (standing in for Derrick Griffiths), Patrick Boonzaaier, Anton Swanepoel, Janet Channing, Melanie Vallun, Celia van Staden, Kit Carson, Ben Espach, Ken Jones, Patrick O’Connell (standing in for Trevor Richardson).Inset: Derrick Griffiths, Jenny Falck, Mark Bakker, Trevor Richardson
24
THE SOUTH AFRICAN
VALUER 5THE SOUTH AFRICAN
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7. To take such action as may be necessary to provide the follow-ing rights for qualified valuers: (a) that none but fully qualified and competent valuers may be appointed by municipalities and Di-visional Councils as valuers of properties for rating purposes; (b) that valuations for all legal purposes such as probate, insolvency, assignment of estates, division of estates, transfer of property, ante-nuptial contracts, arbitration sale of government property, flotation of public companies, etc may be recognised as legal only when made by qualified appraisers.8. To take all measures necessary to establish the status of the profession on such a sound foundation as that none but men holding the proper qualifications in science and practice may be recognised as public appraisers.9. To promote friendly intercourse between the members of the profession, to decide upon questions of professional usage and etiquette, and to unite all the members of the profession in South Africa into one general body.10. To secure a uniform method for valuation work throughout South Africa by means of lectures, the reading of papers, the distribution of literature, and the teaching of the science of valu-ing property.As you can see,the original objectives are still carried through in our actions and objectives today. In other words, the past is still very much part of our future.
Celebrating a 100th birthday may also indicate that is time for a change. Natex has considered a logo change; not to throw the
continued from page 4
Dear Editor
The letter to the editor from Peter Meakin in the April 2009 issue of The South African Valuer makes a couple of interesting points, some of which appear to be insufficiently grounded in evidence. Clearly, one may take issue with some of Peter Meakin’s claims but I wish for now to raise a more general issue, that of the merits of a ‘single land tax’, something that lies behind the views expressed in that letter. The argument for a ‘single land tax’ has raged with varying intensity since Henry George raised the issue in his influ-ential book, Progress and Poverty, first published in 1879. His argument was seductive, if not con-troversial. He proposed a single land tax on land rent, with all other taxes to be abolished. George promoted the single land tax as a means of end-ing poverty by ensuring prosperity for all (based on the single principle that land rents should re-turn to the society at large). It is not surprising therefore that this idea quickly gathered adher-ents, whose zealotry however has not actually been matched by the success of their project.
What then are the problems with the single land tax and why has the idea fared relatively poorly?
The idea has been called utopian by some, but I will restrict myself, briefly, to three of the more temperate criticisms. First, on matters of prog-ress and poverty, lessons of history tell us that there can be no single magic bullet. Poverty is such a complex, multi-dimensional phenomenon whose cure cannot possibly lie in a single ‘nos-trum’, whether it be in land taxes (or indeed in legal titles à la Hernando de Soto). Some causes of poverty are structural (ie a whole gamut of socio-economic variables), yet others lie in the individuals themselves in terms of fundamental dispositions and work ethic.
The second criticism of the idea of a single land tax arises from the fundamental premise that land is unique and different from the other fac-tors of production (ie capital and labour, leaving entrepreneurship aside for now). The argument is that, unlike the other two factors, land is a ‘free gift’ of nature and therefore any income accru-ing to it is ‘unearned’ and should therefore be returned to society at large. This may have been a powerful argument at the beginning of human colonisation of land, particular in frontier or set-tler societies, but is less so for large parts of the world nowadays. In addition, there are persuasive
arguments which say that there is no difference between the way in which land, labour, and capi-tal are brought into economic use. As one critic put it, if land may be acquired unimproved, so too may labour or capital.
The final, but by no means least important, criti-cism arises from measurement problems and is one which will perhaps be of immediate interest to your readers. Classical economic theory holds that the total income accruing to property (ie the sale price) can be decomposed into rent, interest and wages (being payment for land, capital and labour, respectively). The apparently theoretical soundness of that view, however, belies the con-siderable practical difficulties involved in working out the quantum of land rent. Valuers who have attempted to estimate the pure land value in fully built up urban areas can attest to this problem. The task is not impossible, but requires the mak-ing of so many assumptions as to call into ques-tion the credibility of the final value estimates. Ultimately, it may be this difficulty which renders the entire ‘single land tax’ project impractical.
Manya M Mooya, PhDSenior Lecturer in Property Studies, University of Cape Town
old away and forget about it, but to move forward and keep up with modern trends. An analysis of the existing coat of arms indi-cated eight main components which include references to hon-our, nobility, generosity and elevation of mind, to mention but a few. We have therefore employed the services of professionals who have consulted with Natex in order to understand what the Institute stands for and the road forward. They have presented us with ideas on branding and a new logo.
We would like to consider the views of our members on the choice of a possible logo. Members will shortly be able to view a presentation on the website giving the detailed background and description of a logo and branding. Thereafter you will be able to voice your opinion in a snap survey. You will be shown four new logos as well as the existing coat of arms from which you can make your choice.
Please participate in this survey.
Until our Celebrations
Melanie Vallun
L E T T E R T O T H E E D I T O R
P R E S I D E N T ’ S R E P O R T J U N E 2 0 0 9
The National Annual General Meeting of the South African Institute
of Valuers was held on 23 and 24 June at Khayalembali Conference
Centre in Durban. The following President’s Report was presented.
The financial statements are available from the General Secretary.
Ladies and gentleman, fellow institute members. It is with pleasure that I now present my president’s report to you.
NATIONAL EXECUTIVE The National Executive was represented by the following members during the past year:Central Branch: Kit Carson, our Vice-presidentEastern Cape Branch: Mark BakkerKwaZulu-Natal Branch: Trevor Richardson, Janet Channing, Ken JonesNorthern Branch: Ben Espach (our past president), Derrick Griffiths, Anton Swanepoel and Melanie VallunSouthern Branch: Patrick Boonzaaier, Jenny Falck, Jerry Margolius.
Thank you to each of our Natex members for your support, but most of all for your unselfish dedication in serving the Institute throughout the year. I know the Institute takes up a lot of your time but be assured that it is appreciated.
We might not always agree around the table – but that is part of our duties in serving the Institute and its members. It is our duty to represent our branch members on a national level.
BRANCH AND GENERAL SECRETARIATTo Celia, Lynne, Kit, Mark and Henré, our secretaries - thank you for all your hard work. I trust that we will all work together as a unit in the forthcoming year to assist our members and to give them the service they deserve.
MEMBERSHIPDuring the year 16 of our members passed away.Northern Branch: E Goldblum, TB Ebersohn, DJ Wentzel, P Dlamini, JH van Rooyen, P Stathoulis, SC Williams-PalmerSouthern Branch: BL Nolte, PAM James, HW Denny, GE Wallace, JLJ JordaanEastern Cape: J Bosch, RE HeppleKwaZulu-Natal: R Chelin, S Cotterall.
Please stand to observe a few moments of silence for these members. I would also like to make special mention of one of the deceased members, namely PAM James. Ms James was the only lady Fellow of the SAIV.
Melanie Vallun
JULY 2009, NO.98JULY 2009, NO.98
THE SOUTH AFRICAN
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MEMBERSMembersFellowsNon-res membersLife/Fellow members (active)Active members totalResident affiliateRetired FellowsLife/Fellow members (retired)Retired membersNon-res retired membersNon-practising membersHonorary membersInactive members totalMembers totalStudent membersInstitute total
NORTH37316013900116700776466245711
SOUTH1761502193061380124824179320
KZN1267001330403903147180110290
EAST59100600001501016762197
CENTRAL284003200060006382361
NON-RES 19 190 7 726 26
TOTAL 2009762431938270112165751020010274781505
The above table gives the membership numbers at 1 April 2009. If we look at the following table we are have a better picture of the SAIV’s membership.
MEMBERSMembersFellowsNon-res membersLife/Fellow members (active)Active members totalResident affiliateRetired FellowsLife/Fellow members (retired)Retired membersNon-resident retired membersNon-practising membersHonorary membersInactive members totalMembers totalStudent membersInstitute total
TOTAL 2008796451838621131154741019010525711623
TOTAL 2009762431938270112165751020010274781505
% CHANGE-4.27%-4.44%5.56%0.00%
-4.06%-100.00%-15.38%100.00%7.14%0.00%25.00%0.00%5.26%
-2.38%-16.29%-7.27%
SACPVP
1297
13082605
SAIV % OF SACPVP
63.76%
36.54%57.77%
It is alarming to see the percentage drop in student membership, being only 16%. With active members decreasing by 4%, the overall decrease in member-ship stands at 7%. If we further compare Institute membership with the number of persons registered at the SACPVP, approximately 64% of registered valuers are members of the SAIV and 37% of candidate valuers are student members of the SAIV. A total of, say, 58% of registered persons are members of the SAIV.
FINANCESThe financial statements were prepared by our newly appointed auditors, Hen-nie Uys. The presentation of the report for this year has been changed to ensure compliance with General Accepted Accounting Practice (GAAP). The gross in-come for the year was R2 740 291 and after deduction of what is now referred to as “Cost of Sales”, being the costs associated directly to the revenue, the total net income was R1 389 201, marginally up from 2008. After deduction of the operating income of R985 220, and adding the interest earned, our net profit was R641 740 compared with a net profit of R596 792 in 2008.
JULY 2009, NO.98
THE SOUTH AFRICAN
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lishers, and the editorial panel under the chairmanship of Lientjie Ackerman of the Northern Branch.
It is, however, sad that in economic climates such as South Africa is experienc-ing at the moment advertising budgets and expenses are cut to rock bottom. This is unfortunately also the case with advertisers in The SA Valuer. Please try to support The SA Valuer in any possible manner - whether it is in the form of an article or letter to the editor or an advertisement, even a listing in the professional directory will be a great contribution.
WebsiteThe SAIV has obtained the services of professionals in order to create a website that is user friendly, exciting and with members only pages. We are also in-corporating the membership database. This will surely ease the administration around the upkeep of the database if the member can update his information directly. Needless to say, it will be password protected and that it will only be possible to change certain fields.
CentenaryBehind the scenes of the Centenary is a well-oiled machine consisting of Jerry Margolius, David Hoffmann, Jenny Falck, Debbie Wall-Smith and Lientjie Ack-erman. I also want to extend the Institute’s appreciation to this team who are ensuring that everything is running smoothly.
Please encourage your fellow valuers to attend this auspicious occasion.
CLOSUREBefore I close may I wish the Institute a successful forthcoming year. Finally I would like to thank all of you for the confidence you had in me by entrusting me with the position of your President.
It is an honour and privilege to be your President. Be assured that I am doing it with pride and with a deep love for my profession, our Institute and for you as Members of the South African Institute of Valuers.
Thank you.
Melanie N Vallun
Within the profit, an amount of R200 000 still needs to be transferred to the Centenary Account. In addition, the SAIV has received a generous sponsorship of R250 000 from Nedbank.
SUBSCRIPTIONSThe National Executive has once again given serious thought and consideration to subscriptions and has decided to increase these by approximately 7%. Sub-scriptions for members will therefore be increased from R1 150 to R1 230 (an increase of R6.67 per month) and for student members from R410 to R440 (a mere R2.50 per month).
Whilst on the subject of subscriptions and financials, I need to extend the In-stitute’s appreciation to Jerry Margolius, our national portfolio bearer of man-agement and finance. With any business one should never lose sight of sound financial and budget principals - principals that Jerry has been able to apply successfully over the past few years. I don’t think that any Institute member will ever really understand what Jerry has accomplished for the SAIV. Thank you for all the time you put into our financials.
EDUCATIONEducation is one of the most important functions of the SAIV and will become even more important in future. The Institute’s branches have all contributed during the past year by presenting workshops, seminars and workschools of outstanding quality.
There were five one day seminars, a one and a half day seminar, 19 one hour workshops, three two hour workshops and a three hour workshop presented. This excludes the IPTI mass appraisal conference and the two workschools presented by the Northern and Southern Branches.
All of these Continued Education and Training events assist our members in obtaining the necessary mandatory hours as laid down by the Council. We should not view these events with “I have to attend because I need the hours”, but see them as networking opportunities where questions can be asked and answered, knowledge acquired and a chance to keep up with the non-stagnant environment in which we conduct our work.
The Institute, as a service to our members, keeps a record of attendance at the seminars and has also recently sent out CET certified letters to our members for submission to the SACPVP. With this first attempt we were able to identify problems and will rectify them in our future process.
The main problem experienced here was with incorrect e-mail addresses. This is a serious problem as the Institute, on occasion, sends out mass e-mails relat-ing to various matters. I therefore urge every member of the SAIV to ensure that the SAIV has his or her correct e-mail address.
SACPVPThe Institute has always enjoyed a good relationship with the SACPVP, a rela-tionship, I am sure, that will continue. It is unfortunate that the President of the SACPVP, Mr. Mokweni, was unable to attend our Natex meeting this year but I will discuss a few burning issues with the Council in due course.
At this stage I would like to comment on the guideline professional fees. The SAIV has provided the Council with our comments and the new guideline pro-fessional fees should be promulgated in the near future.
MARKETING & PUBLICATIONSThe South African ValuerThe SA Valuer – need I say more? It has become a great, professional publica-tion and our appreciation needs to be expressed towards Pangram, the pub-
JULY 2009, NO.98JULY 2009, NO.98
Patrick O’Connell, Ben Espach, Patrick Boonzaaier, Trevor Richardson, Jerry Margolius, Janet Channing, Mark Bakker, David Hoffmann
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After resuscitation of the Institute in 1941 it was hoped to arrange for the issue of a regular pe-riodical (monthly or quarterly) in collaboration with the Institute of Estate Agents & Auctioneers of South Africa. Paper shortage through war conditions, and uncertainty regarding the cost to members of such a periodical, resulted in postponement of the project as a joint venture. No record exists of any further publications until 1943 when a booklet containing the Presidential Address – subject Appraisers and Appraisement – delivered at the Annual General Meeting on 29 November 1943 by Mr CC Silberbauer, was printed. This was marked ‘for private circula-tion only’ and ran to eleven pages.
A tantalising small window to the past is contained in two letters found amongst Mr Henry Hermann’s papers. These are dated 5 April 1944 from Dr E Landsberg of Cape Town and 5 May 1944 from Mr HS Clark (as Secretary of the Institute), both addressed to Mr Hermann and relate to the proposed publication of a monthly magazine – apparently to be issued by the Institute of Estate Agents and Auctioneers of South Africa and the SAIV. Dr Landsberg quoted, for editing and producing 650 to 700 copies – to be sent, post free, to the members of both Institutes – the sum of £28 per monthly edition. This worked out at a mere ten shillings and six pence for twelve copies and the magazine would (at the outset) consist of four foolscap pages, without advertisements. Regrettably, we have no record as to why it did not get off the ground.
Over the next 33 years, information was given to members by way of the presidential and branch annual reports, occasional newsletters from the same sources and at branch and gen-eral meetings.
The 1947 Journal and Year Book (edited by the General Secretary, Mr HS Clark) was next on the list and consisted of 53 pages including advertisements. Item 6 of the Council’s published report for the year ended 31 March 1947 states: “In accordance with resolution (the) Annual General Meeting on 22/5/1946 states, this first issue is being made, which it is hoped will be the forerunner of regular annual publications, although it is probable that subsequent issues may be somewhat shorter.”
There were never regular annual publications. The next was a 24 page brochure simply entitled ‘The South African Institute of Valuers’ and containing basic Institute information – council members and branch executives 1949-50, objects, president’s report, training scheme, list of members and tariff. The membership was given as 366 at 31 March 1949, when the Institute celebrated its 40th anniversary.
A similar brochure was issued for 1951-2 and this one was semi-bilingual.
The 1957 Journal was completely bilingual, containing 15 pages of tables, measurements and formulae in addition to the tariff, a few articles on aspects of valuation and arbitration and
T H E H I S T O R Y O F THE SOUTH AFRICAN VALUER
The first known publication by the newly established South African Institute of Valuers was its ‘Of-
ficial Year Book and Diary 1912-13’. The earliest available report, presented at the Second Annual
General Meeting of members of the Institute on 12 October 1911 reads: Tentative negotiations have,
in the past, taken place with the S.A. Accountant and Auditor, of which it was suggested that one
page in each issue should deal with Institute matters. No arrangement was, however, concluded
although some members agreed to subscribe for the publication.
CC Silberbauer
Henry Hermann
HS Clark
JULY 2009, NO.98
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court proceedings and the usual Institute information. This issue is distinguished by the use of the wrong crest – obviously not having been spotted by the proof reader! As a result it was an Institute of Estate Agents and Auctioneers of SA crest which appeared (four times).
In 1963 the Journal (fully bilingual and with the correct crest), apart from articles entitled ‘Leaseback’ and ‘The Valuer as an Expert Witness’ and some definitions of value, was more or less restricted to Institute affairs. Numerous papers were obtained by the editor but these were circularised separately piecemeal over a period of about a year. They covered a wide range of valuation types and related subjects, most were prepared by members, but in the case of specialised, unusual subjects such as surface mines, plantations and even livestock, by non-members.
The 1963 issue was the last of that style of brochure/journal and in 1968 an information book-let entitled ‘National Diploma in Valuations’ appeared. This contained the syllabus, general instructions and useful general information regarding ‘The Valuer, what he does and what he earns’. Copies of each Brochure/Journal were always sent to banks, trust and insurance companies, other financial institutions, as well as provincial and government departments – all potential clilent groups.
The Council was concerned about this general communications gap and, at its meeting in June 1970, ‘a standing committee, to deal with all publications, was formed. It was felt that this matter could take the form of papers to be sent to members for which they could be charged a fee, together with their subscription accounts each year’.
It was suggested that some of the best papers, submitted by applicants for membership should be considered for circularisation to all members and the matter was left for the new Publications Committee to consider. A year later, the council appointed a second standing committee ‘to examine court decisions and decide suitability thereof for distribution’. These had been distributed on odd occasions over the years but only on an irregular basis. This committee arranged for Prentice Hall Services to send regular monthly copies of their Local Government Legal Service to all members as from 1 January 1972, at a cost of R5 per annum per member – the Institute paid half and debited members with the balance. The service cov-ered other subjects as well as property and valuation cases.
In pursuance of the Council’s decision to check members’ opinions as to whether (or not) this service should continue, all members were canvassed in June 1972. As a result, the service was reduced from 1 January 1973, to cases dealing with valuations and property matters only, This, of course, meant that cases were selected, were sometimes few and far between and that issues were thus not received regularly each month.
In 1973 the Papers and Publication Committee (a new name) advised the Council that it had not implemented the 1970 decision to use applicants’ papers since, after study of all those submitted, it felt they were not suitable for the purpose. At the request of the General Secretary, the American Institute of Real Estate Appraisers had sent some 200 pages of photocopies of articles on condominiums (sectional titles). These were being studied by the Committee chair-man (Mr LJ Heller) and if thought worthwhile, a copy would be sent to each Branch Secretary.
In 1974, there was talk of issuing an Annual Journal but this did not come to anything The Council was told that there was a possibility of getting free copies (for all members) of the In-stitute of Estate Agents magazine to which the then President of the Institute, Mr JH Hermann, was invited to contribute an article on the aims and objects of the Institute to the Institute. The Institute of Estate Agents had also offered to publish regular articles about the Institute. The matter was pursued and the magazine (The Agent) was later sent, free of charge, to all mem-bers. In 1975, the Court Decisions and Papers and Publications Committees merged as the Publications and Service Committee. The Cape Branch reported that it had formed a Service Promotion Committee and appealed for a national effort to improve this essential avenue. De-tailed and comprehensive proposals had been submitted by a Councillor from the Cape and a long and fruitful debate resulted in the proposals being adopted.
In 1976 the Cape appealed for the proposals to be implemented and it was decided to ‘utilise the publication, The Agent, as a service to members and that a newsletter by periodically pre-pared by the Publication and Service Committee and circulated (sic) amongst members” – this was the seed from which the Institute’s quarterly journal grew.
SINE INCLINATIONEIn March 1977 Issue 1/77 of a ‘Quarterly Bulletin’, consisting of six pages was sent to all mem-bers of the SAIV. “The name ‘Sine Inclinatione’ is the Institute’s heraldic motto (which means ‘without bias’ and refers to the fact that that is the manner in which members approach their valuation). The editor Mr A.M. (Mike) Hyatt who was President for 1979-80, carried the burden singlehanded and the birth of this publication is somewhat nonchalantly reported in the 1977 Council Minutes, as the opening of the following extract shows:
A report and ‘Sine Inclinatione’ for the current quarter were tabled. Mr Hyatt advised the meet-ing that quarterly Bulletins would be issued and he stressed that the success of the Bulletin could only be through contributions made by Councillors and Members. One Councillor spoke about the tremendous effort made by Mr Hyatt, but that was all. As Mr Redhill said in his 1977 Presidential report: ‘Members will only get out of it what they put in’.
In the first issue Mr Redhill’s presidential message read: “Everything has to start somewhere and a regular Bulletin from your Institute may well be the forerunner of a local magazine or jour-
LJ Heller
AM Hyatt
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nal which our profession so badly needs. The Institute has issued journals from time to time, but they have invariably been ‘one-man’ publications and such a person is always hard to find.I would like to congratulate the Publication and Service committee on this first Bulletin and to hope sincerely that it progresses to the stage where the mail is eagerly sifted at each quarter by members in anticipation of the next issue. In order to keep such a publication alive there must be interaction between the editors and members. It is essential that members continually contribute to it. It may be a gripe, or it may be an article on some aspect of valuing. It may even be a cry for help with a valuation problem which is causing difficulty, but only communication will keep it alive and you, the member, can do this.” [The current editor echoes this sentiment.]
Mike Hyatt continued to do a superb job until June 1981, when pressure of work forced him to look for a successor. The Cape Branch offered to assume responsibility for the bulletin from July 1981 and it appeared ‘under new management’ from Issue No.2/81 of August 1981. The editors were Messrs. RS Marten, JH Hermann and DA Heel. February 1982 (No.2/82) has an editorial (redaksioneel) indicating that the Council had decided that Sine Inclinatione was to be produced by a sub-committee of the Cape Branch. Mr AJ Jonker was the member of that committee who took the editorial ‘chair’. He remained there until he too found that pressure of work forced him to resign in June 1990. His successors were Messrs CH Hablutzel (Jnr) and JH Hermann.
Under Mr Jonker’s guidance, the publication flourished and the last of what might be called ‘cyclostyled’ issues appeared in August 1983. Council authorised the editorial staff to use their discretion and the style, name and format were changed. The first issue of the newly named The South African Valuer appeared in January 1984 under the now familiar cover title, alongside the Institute’s crest and name. This was a printed publication and the title appeared in Afrikaans in alternate issues, Most of the material was in English as a result of the editor’s constant appeals for articles and material in Afrikaans having apparently fallen upon deaf ears. Advertisements have appeared, on occasions, but not regularly. The new editors had the Na-tional Executive’s authority to pursue a more active advertising policy. The South African Valuer became a respected publication. Mr Jonker’s views on some valuation matters were often controversial but he did a fine job and he can be proud of what he achieved. Initially articles were mainly sourced from overseas publications from bodies like the New Zealand Institute of Valuers, The Australian Institute of Valuers and Land Administrators, the American Institute of Real Estate Appraisers, etc.
In June 1990 Mr Jonker was succeeded by Messrs Henré Hablutzel and John Hermann as joint editors. The journal continued to grow, including more and more local articles as inter-est in the profession increased. Mr Hablutzel continued as editor until March 2005 when the volume of articles and the demand for the journal had grown to such an extent that it could no longer be managed “in house”.
Patricia Leitich of Pangram Publishing took over as editor from the June 2005 edition and has developed the magazine into the publication it is today.
This history was taken from The South African Institute of Valuers, The First Eighty Years 1909 - 1989, being the History
of the Institute and as a background, the development of the valuation profession since 1652 by JH Hermann. Copyright
vested in the South African Institute of Valuers 1992.
JULY 2009, NO.98
RS Marten
AJ Jonker
MH Hablutzel
Redhill
PRI Leitich
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We’re returning to basics where lending revolves around value. While the mainstream media focuses on the current downturn as an issue of credit problems, the issue of value is an over-looked linchpin for the market’s recovery.
When making a loan, the only way a lender can confidently lend money is to know how much the collateral being leveraged is actually worth. Loan too much, and a lender risks not being able to recover the principal in the event of a default. Loan too little, and the lender is throwing away potential revenue.
In today’s chaotic real estate market, property valuation be-comes especially important, not only because of the critical ele-ment it plays in underwriting, but also because of loan defaults and the volatility of property values. At the beginning of the de-cade, home prices appreciated rapidly, covering up valuation accuracy issues. As the current crisis deepened, though, prices experienced a wide scale decline for the first time in years and having an accurate value became much more important – both for accurately underwriting new originations and for servicing loans that may have lost value.
The name of the game is risk management; finding the balance between jettisoning those properties that will only cause loss, while not throwing out possible revenue or profit with the junk. For this reason, lenders and servicers are struggling to find the most effective valuation tools and balancing the costs involved. Understanding value includes understanding market and prop-erty characteristics. Every valuation alternative possesses unique characteristics, strengths and weaknesses. In the exer-cise of attempting to predict the future of valuation trends and technology, it is good to examine the strengths and weaknesses of valuation products as they are used today.
Traditional human evaluationsTraditional human evaluations present home or property values as a single number at a given point in time, for a given purpose. Some strengths of traditional products are local market knowl-edge, property condition, neighbourhood condition and the abil-ity to deliver a narrative commentary to support the valuation estimate.
These are, in reality, snapshots frozen in time. While they offer several ‘on site’ advantages, they do not deliver the dynamic valuation data that reflects the changing marketplace. Tradition-al products are also influenced by the preparer’s expertise and
By John Walsh, president of San Diego based MDA DataQuick, an MDA lending solu-
tions company and a provider of real estate information services: [email protected]
PROPERTY VALUATION TODAY AND WHERE IT IS HEADED TOMORROW
bias, whether cognisant of it or not, resulting in an ‘opinion’ of value. Some of the cons include human error and potential for fraud. There are established standards in the certified appraiser community, but not in the realtor community, which provides the more affordable BPOs. Human evaluations are also costly and require a significant amount of time to deliver. There is also a danger that in an effort to avoid overstating value, human ap-praisers will be overly conservative in today’s market. This can be just as damaging as over-valuing a property, since underval-ued properties will reduce income potential.
Automated productsAutomated products, on the other hand, are created based on calculating underlying data and statistical modeling. The prima-ry benefits of AVMs are their objective, statistical approach, An AVM is data centric and possesses the capability of including a large number of data points. AVMs are also cost effective and can be delivered quickly.
However, AVMs cannot include views of the property condition, and they are sometimes inconclusive due to incomplete data in some markets. AVMs also have limited ability to incorporate predictive indicators, such as current listings.
Future of valuationThe future of valuation will lie in refinements of present day ap-praisal models and a blending of the human and automated techniques. A critical element will be improved risk manage-ments through adoption of calculation technology by apprais-ers and realtors in preparing traditional products. Another will include broader applications of valuation technology in lender and investor quality control programmes.
Better decisions will be enabled by better data on which to base decisions. As many government entities and private data resources go online, refined technology will accumulate, blend and evaluate valuation elements to deliver better and quicker results. Also, technology will continue to improve with newer and more predictive valuation calculation models. This results in more accurate, local data. Where most AVMs are limited to city or country wide comparisons, new housing price indexes can provide date as narrow as the ZIP+6 level, enabling lenders and servicers to sort high and low performing assets within the same county or city. The ZIP+6 HPIs enable lenders to focus on indi-vidual neighbourhoods and obtain pricing trends that are more accurate and useful for individual property valuations.
At least two other important trends will significantly impact the fu-ture of valuation technology. The first is the need to improve as-sessments of markets and valuations volatility. This will enable users to more accurately review individual loans and make better informed decisions regarding default or acquisition strategy. Also, servicers will be able to quickly and accurately value collateral, so they can make informed decisions on which properties are best candidates for adjustments, modifications, work-out or short sales.
Another major trend in the future will be the transitioning from valuation to collateral risk assessment. The next wave of valu-ation software sorts properties and enables servicers easily to identify and focus on the more difficult appraisals. Using AVMs and detailed local real estate data, the latest valuation software can provide a range of values using multiple valuation models.
Once valuation software has done this, analytics can be applied to those values for decisioning. For properties with a consistent, small price range, lenders can use the automated values for un-
EYEBALLS TO ANALYTICS
JULY 2009, NO.98
derwriting. For some properties, the collateral valuation systems will present a larger range of results, In those cases, lenders can utlitise third party appraisers to provide a human BPO or ap-praisal to arrive at a more accurate price.
Property valuation is a tool that is useful in all stages of the loan process. Originators and underwriters should use the valuation process to ensure they are closing a loan that is suitable to the borrower’s payment ability. Secondary marketers can use valua-tion trends in updating the value of loans on the market, and ser-vicers can use valuation in making decisions on delinquent loans.
In many respects, the future is already here. Incremental im-provements are being made on an ongoing basis as valuation providers are partnering with clients in an effort to cope with monumental challenges of current and future values in today’s volatile marketplace.
This article was published in the January, February 2009 edition of AVM News.
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Five stadiums are being extensively upgraded: Soccer City in Johannesburg; Ellis Park in Johannesburg; Loftus Versfeld in Pretoria; Royal Bafokeng in Rustenburg; Vodacom Park in Bloemfontein. The estimat-ed cost is R9.8 billion (although most stadiums have a budget overrun). This is the national government's contribution to the building and upgrading of stadiums; any additional funds required will be raised by the cities from their own sources. Host cities and provinces are also making contributions to stadium construction and supporting infrastructure development. Obviously the idea is to keep costs to a mini-mum, and innovative construction is used in an effort to ensure stadiums are versatile and cost effective. While ticket sales appear to indicate that the worldwide recession will have little impact on spectators arriving on our shores, the ongoing sustainability of the stadiums has left many questions in the minds of economists and property investors.
The purpose of the analysis is to determine what impact proximity to the stadiums has had on adjacent property values: full title properties within a range of 0 to 2km, 2 to 5km, 5 to 10km and 10 to 15km; sec-tional title properties within a range of 0 to 2km, 2 to 5km, 5 to 10km and 10 to 15km; growth in median prices within the above mentioned radii over a three year period from 2005 to 2008.
Six of the ten stadiums showed relatively consistent growth in property values the closer the property was located to the stadiums. Anomalies were Polokwane and Nelspruit, as these two stadiums are situated outside the main urban area. Similarly, Royal Bafokeng in Rustenberg bucked the trend and no significant pattern could either be discerned in full or sectional title properties within 5km because it is situated relatively far from the centre of real estate transactions. During 2006, in the 0 to 2km radius, 75% of properties close to stadiums recorded growth rates higher than the rest of the province, in which they are situated. This changed significantly in 2008 as the real estate downturn bit deeper, with only 55% of these properties performing better than the provincial benchmark. The best performers are defined as those areas where proximity to a stadium appears to have benefited most.
Full title propertiesProperties within 0 to 2km of Ellis Park and Soccer City (both in Johannesburg) were the star performers. Properties within this radius from Ellis Park showed 111% increase between 2005 and 2008. Soccer City came in second with 85.5% growth over the same period. Distance from the stadium epicentre played a role in the proximity of Ellis Park. The 111% growth in the 0 to 2km range dropped sharply to 63% in the 2 to 5km radius and 47% in the outer 5 to10km ring.
Nelspruit’s stadium showed a 95.8% growth in the outer 10 to 15km range. Here many other factors will play a role and the increase must not be seen as indicative of growth solely as a result of stadium prox-imity. Royal Bafokeng stadium is situated away from the real estate hub of Rustenburg and showed the highest growth in the 5 to 15km radius, as this encompassed suburbs with higher transactional activity. Again, some increase can be attributed to the normal growth cycles and should not be solely credited to the stadium proximity.
Sectional title propertiesTop performers were Ellis Park, Johannesburg 90%; Loftus Versveld, Pretoria 89.7% and Nelson Man-dela, Port Elizabeth 79.7%. Properties within 0 to 2km of Bloemfontein’s Vodacom Park stadium showed
an overview by the South African Property Transfer Guide (SAPTG)
There are five new or rebuilt stadiums: Mbombela just outside Nelspruit; Nelson Mandela Bay Stadium in Port
Elizabeth; Peter Mokaba Stadium in Polokwane - rebuilt Moses Mabhida Stadium in Durban; Green Point
Stadium in Cape Town.
I M PA C T O F 2 0 1 0 S TA D I U M S O N S A P R O P E R T Y
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Green Point
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a 55.6% increase, dropping to 46.3% in the 2 to 5km radius and 20.6% in the outer 5 to 10km ring. Prop-erties within 2km of Polokwane’s Peter Mokaba Stadium showed a 57.3% growth, dropping to 51.8% in the 2 to 5km radius and 41.2% in the outer 5 to 10km ring.
The identification of property growth catalysts within a broad spectrum of suburbs spanning both full and sectional title, is not an exact science. It is almost impossible to isolate and identify stadium proximity as a growth catalyst for all growth in value and exclude other important cyclical or socio-economic fac-tors. Discernable patterns can, however, be identified. Since mid-2005 there has been an accelerating downturn in the real estate market across the country. Despite this, properties in close proximity to the stadiums appear to have shown higher than normal growth in value. The relatively close proximity of Ellis Park to Soccer City means that, to some extent, property growth is exponentially higher in a few suburbs because of the overlapping radii of these areas. Properties in these suburbs benefited doubly from the overall growth as well as from their proximity to both stadiums.
InvestmentWhen it was announced that South Africa’s bid for the World Cup had been successful, investors saw potential in properties within in the immediate vicinity of the stadiums and this helped drive demand (with the exception of Rustenberg, Polokwane and Nelspruit). Many of these investors have seen significant returns when selling during 2008. It must be noted, however, that these properties have not been im-mune to the slump in the real estate market.
This same analysis, to be done in three years’ time and looking back, will be likely to show lower growth. By then the FIFA Confederations in 2009 as well as the FIFA World Cup in 2010 will have come and gone. The full impact of recessive factors in the local and international economy will have been felt. Also the acid test, the commercial sustainability of these structures, will come into play and be watched keenly by investors. The stadiums that are being upgraded are either privately owned (such as Loftus Versfeld and Royal Bafokeng) or on long lease arrangements (Ellis Park and Free State Stadium).
Soccer City, previously owned and managed by the South African Football Association, has been re-turned to the state and will be managed by the City of Johannesburg. The five new stadiums will be built, owned, operated and maintained by their host city municipalities although opportunities remain for private sector involvement in operation and management. Some countries have been left with a number of “white elephants” after investing billions in renovating and building stadiums for large international sporting events. Whether South Africa’s stadiums will prove to be sustainable in the medium long term remains to be seen. Risk factors include• the ongoing effects of local and international economic turmoil • demand for advertising space at the venues• demand for sponsored VIP rooms and spectator suites• high maintenance costs • fiscal management issues at municipal level• frequency of use (demand for sporting events)• increased traffic in and around the stadiums• increased noise levels which may disturb people staying in the area• increase in crime given the broad spectrum demographic profile of spectators• sustainability of peripheral, supporting commerce (shops, food outlets etc) outside of ‘game time’.
The committees entrusted with the governance of the stadiums will have to be both inventive and in-novative to ensure sustained commercial interest and revenue through advertising and sports fixtures. Positive factors: in urban areas with their accompanying higher population density (Cape Town, Port Elizabeth, Durban, Bloemfontein, Johannesburg and Pretoria) sustainability may prove to be easier than in areas with a lower population (Nelspruit, Polokwane, and Rustenberg). Soccer City, Ellis Park and Lof-tus Versveld have the added benefit of being close to the soon-to-be-operational Gautrain. The proper-ties in proximity to this transportation, as well as other initiatives such as the BRT (Bus Rapid Transit) in these areas and in Cape Town and Port Elizabeth, will hopefully continue to drive demand by commuters wanting to enjoy the convenience of living close to these centres.
In conclusion, we believe that the stadiums have, so far, had a generally positive impact on the value of property within their proximity. Whether this will remain so, will be determined by the ongoing efforts of organising committees, municipalities, support by sports spectators, as well as the obvious (and risky) economic drivers.
Dieter Deppisch - National Manager: Data Analysis for SAPTG, 044 874 1229, [email protected], www.saptg.co.za
A fixed deposit for a year with one of our major banks can be considered a ‘blue chip’ investment with zero possibility of any capital loss (recent global events lead us to believe that we should adopt a more cynical approach). Fixed interest invest-ments, however, do not protect hard earned capital from the eroding effects of inflation, whereas an investment in an income earning property can provide an investor with income and the prospects of capital appreciation.
When assessing a property investment, the same criteria have to apply. Risk is related to return: this is one of the fundamentals that must be considered when assessing the return or capitali-sation rate that is used in arriving at a value for the investment.
If Standard & Poor, Moody’s or Fitch downgrade a country’s credit rating, every notch down the scale means the cost of that country’s borrowing increases. We must surely apply the same rule to property investment. In the case of a single tenant property, condition, location of the property, length of the lease, financial stability of the tenant and the cost of borrowing are risk elements that must be considered in arriving at an appropriate capitalisation rate. When assessing the value of a multi-tenanted property the same principles are usually applied – and an overall capitalisation rate is applied to the entire investment. We believe that this is wrong.
A shopping centre with a prime national anchor tenant occupy-ing, say, 34% of the lettable area, applying a low capitalisation may be justified; but applying the same rate to the remaining 66%, mom and pop tenant mix is inappropriate. For example if the net income on a property is R1 000 000, applying a 9% capi-talisation rate gives a value of approximately R11 100 000. If the national tenant contributed R340 000 to the net income at 9%, the value of that income would be approximately R3 800 000.
Applying a 10% capitalisation rate to the balance of R660 000, the value would be approximately R6 600 000, a total of R10 400 000. The correct application of the ‘risk is related
RISK AND RETURN WHEN WILL WE LEARN?The question that should be asked when making any sort of investment is: How safe is
my money? The risk in the investment must be related to the return or income from that
investment. Many people invested in companies which lost a lot of money. The higher
the return, the higher the risk. With prime overdraft rates at 11% and expectations of
further reductions, property investors are once again appreciating the long term benefits
of direct property investment.
to return’ test means a significant 6.31% drop in value. In multi-tenanted properties, the national tenant may occupy 34% of the lettable area at a lower rent per square metre, the other, perhaps more risky tenants contribute a bigger share of income as they pay a higher square metre rate.
In October 2003 prime was 12%, then declined marginally through 2004/2006 and reached 12% again in October 2006. Property values were driven upwards by two major fundamen-tals - lower interest rates and steadily increasing rentals. With rising interest rates in 2008, capitalisation rates increased and values dropped. The market in May 2009 was diametric. With prime down to 11%, capitalisation rates started to drop, but unlike in 2006/2007, rentals were under pressure and were de-clining. As a consequence, where value should have increased dramatically, it may not have changed at all; in fact, it may even have come down.
The perceived increase in value as a result of lower capitalisation rates is negated by lower market rentals, any lease renewals in the next 18 months may result in revenue actually dropping. When assessing value check lease expiry dates carefully, and make sure that renewals are projected at market rentals.
Wall & Smith Property Consultants, [email protected]: June 2009
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Discount ratesThe discount rate (DR) establishes a rate of return used to convert future net income flows into a present value and which can be the internal rate of return (IRR) required to invest/develop. Market discount rates can be obtained from the sum of long bond rates and the risk premium for property, or the sum of capitalisation rate and gross market rental growth expectations. In essence the discount or hurdle rate can reflect the total return required by the market from a particular category of property investment.
In most cases of retail investment, the Min DR has increased quite substantially on the levels experienced in 2008. That being said, the Min DR for super regional centres has actually come down slightly to be at exactly the same level experienced in 2007. On the Max DR, however, we see a fairly significant increase on 2008 levels across all the main retail centre segments approaching levels experienced in 2007.
Min Industrial DRs have climbed quite rapidly and in all segments are at levels above any of the previous years. On the maximum DR side we see that Industrial units enjoy the lowest levels with Low Grade Industrials at the highest level. Interestingly, High-Tech Industrials are currently at levels experienced in both 2006 and 2007.
In most instances, average office DRs are not at their highest levels, exceptions being Dur-ban's and Pretoria's CBDs and decentralised secondary markets.
Data as graphed is based on IPD surveys of valuers (May, annual) and published in SAPOA Property Review every six months.
Cap rateShort for capitalisation rate (CR), essentially this is a measure of value and risk (interalia the ageing process and/or future earning potential) of a building and is calculated by dividing the net returns on rental for one year by the purchase price or market value of a building. In valuation terms it is the rate at which the net income of a building is capitalised into perpetu-ity to derive its market value. Cap rates are the property equivalent of the forward earnings yield of listed shares.
Min Retail CRs have increased, albeit less so for the larger retail formats: the range being between 6.5 and 9.0%.
In the prime office markets, Min CRs have actually come down (strengthened): up to 150 basis points in the case of the Pretoria CBD and 100 basis points in the case of the Durban and PE CBDs. Markets experiencing increases (weakening or softening) of Min CR include the East London CBD (250 basis points) and the secondary non-CBD stock in most markets.Other than for Durban CBD (+ 200 basis points) there is not a lot of movement in Max CR, with the aggregate movement being + 25 basis points across the surveyed markets. It is interesting to observe that in the case of most CBD office markets, the cap rate average has strengthened (come down), implying higher valuations on the basis of relatively strong income (net rentals). Also the increases experienced in 2009 on 2008 are generally less than 100 basis points, averaging 29 basis points across all sectors/segments. The big question is perhaps how far do the cap and discount rates need to weaken in order correctly to price the market and related fundamentals and without influence by issues such as credit risk/appetite.
eProp Research, 25 June and 2 July 2009
VIEWS ON DISCOUNT RATES
Addressing the need for transparency and accountability in the worldwide valu-ation profession, the Appraisal Institute called for uniform valuation standards to advance professionalism at a gathering of the United Nations Economic Com-mission for Europe meeting in Rome, Italy. Primarily focusing on the topic “Rethink-ing Real Estate Markets,” Appraisal In-stitute President Jim Amorin, MAI, SRA,
detailed the evolution of professionalism and stressed the im-portance of adopting worldwide valuation standards in today’s global marketplace, especially as tough economic conditions strain international market activity.
“Advancement of professionalism provides greater assurance that the complexity of the interconnected world economy will be better understood and served with knowledgeable and account-able valuation experts,” said Amorin. “Whether it is appraising a palace in Rome, a home in Tokyo or a log cabin in Illinois, the fundamental principles of valuation should be recognized and universally applied.”
Themed: “Facing the Financial Crisis,” the UNECE forum was organised in co-ordination with its Real Estate Market Advisory Group with the support of Tecnoborsa, the organisation for the Development and Regulation of the Real Estate Economy of the Italian Chambers of Commerce. The goal of bringing together international appraisal leaders and government representatives was to contribute to the development of the "Real Estate Market Advisory Checklist", which is a series of principles and guidelines designed to assist a sound restructuring of the real estate sector.
“The Appraisal Institute applauds the excellent work in the ‘Checklist’ drafted by the Real Estate Market Advisory Group and we agree that real estate appraisal practice, methodologies and standards are critical components to a healthy global real estate market. The development of universally applicable valua-tion standards as well as increased professionalism should con-tinue to be the focus of the international valuation community moving forward,” said Amorin.
To learn more about the UNECE forum or to view a copy of the developing Real Es-
tate Markets Advisory Checklist, visit www.tecnoborsa.com/EN/page.aspx?tid=210.
Appraisal News Online, 17 June 2009
APPRAISAL INSTITUTE TO UN: WORLDWIDE VALUATION STANDARDS NEEDED
JULY 2009, NO.98
Ariya Project Managers is a fully empowered project and development management entity.
Ariya Project Managers is proud to be associated with major projects like the 2010 Green Point
Soccer Stadium, Cape Town International Airport, Cape Town Station, etc.
Our Services include, but are not limited to• Project Management • Development Management • Procurement Management • Tenant Coordination
Phone: 021 462 6047 Fax: 021 462 6048 Email: [email protected]: www.ariyaprojects.com
Jim Amorin
It was generally acknowledged that the global recession, and also harder times in South Africa, would be likely to last longer than many originally predicted – or perhaps hoped is more cor-rect. The most common view held among speakers and panel-lists was that we are most likely in for a slower upswing, and that recovery will probably take somewhere between 18 months and two years.
Having said that, South Africa’s property sector has been some-what shielded from the worst effects of the credit crunch and global financial fallout. The industry had an excellent bull run prior to the crash, and South African players tended to be less reckless than their US and European counterparts and the mar-ket was therefore less exposed to the worst effects. Fortunately, we have the 2010 Soccer World Cup to spur on development, at least from a public sector point of view, and this at least will mean continued employment for many people.
It was noted by more than one speaker that South Africans tend to be resilient, and that we are weathering the situation far better than many other countries. The overall feeling was that our prop-erty market is still robust and that the structure of our economy also favours us. It is expected that once there are signs of an upswing, SA will be able to recover quickly.
R A P I D C H A N G E
The 2009 International Valuation Congress will take place from 10 to 13 November at the Fiesta Americana Condesa Hotel, Cancún, Mexico, hosted by the Appraisal Institute (AI®) and Federation of Valuation Colleges, Institutes and Societies of the Mexican Republic, A.C. (FECISVAL).
If you are looking for the professional education and connections that will help you with your international valuation assignments, the International Valuation Congress in scenic Cancún, Mexico will enable you to• network with international clients and associates;• gain fresh perspectives on different cultures, laws and points of view that affect our global marketplace;• combine attendance at regional meetings, national programmes and international activities into one convenient package;• come away with the tools you need to be successful in today's global markets;• increase your knowledge of international practice, theories and business building; and• explore products and services in our exhibit hall and increase your productivity.
Two of the Appraisal Institute's newest seminars, An Introduction to Valuing Green Buildings and Appraising Distressed Commercial Real Estate: Here We Go Again, will be presented at the congress. More education offerings are being added.
INTERNATIONAL VALUATION CONGRESS
Explore international valuation perspectives
THE FOCUS OF SAPOA CONVENTIONTHE FOCUS OF SAPOA CONVENTIONSAPOA’s annual Convention and Exhibition, which was held in early June, addressed the rapidly
changing circumstances that the property industry – and indeed, the world – has found itself in
over the past 18 months. Aptly, the theme for the Convention was “(Fr)Agility” – and the presen-
tations and discussions were largely concerned with the speed with which things we take for
granted can change, as well as the need for agility, flexibility and adaptation in this changed world.
INTERNATIONAL VALUATION CONGRESS
The 2009 AfRES (African Real Estate Society) Conference is to be held in Lagos, Nigeria from
20 to 23 October.
A f R E S 2 0 0 9
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The theme for this year’s conference is Real Estate Markets in an Emerging Economy, with sub-themes Land Policy Administration, Real Estate Education and Developing Real Estate Markets Infra-structure. 30 technical papers have been received, straddling the entire theme and sub themes from all continents of the world.
Emerald Group Publishing Ltd is to sponsor awards for the best paper in the Property Management category and the best paper in the Housing category. La Campagne Tropicana has announced an award for the best paper in the Environment category. Further awards will be announced when confirmed. The convenor wel-comes papers for the conference and participation in the post-graduate colloquim. Undergraduate and master’s degree students will be able to attend the conference proceedings free of charge.
Please visit the conference website www.lagos2009.net for details.
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On 22 June the International Valuation Standards
Council (IVSC) launched a new expert group, which
will advise the IVSC Boards on the valuation of fi-
nancial assets and liabilities, and assist in develop-
ing relevant standards and guidance. The group, made up of 14 leading experts drawn from around the world, has been established to examine the types of guid-ance needed to avoid some of the difficulties that have been highlighted by the financial crisis. Chris Thorne, chairman of the IVSC Standards Board said: “The need for international standards in valuing illiquid and/or com-plex financial instruments has never been greater, as was high-
I V S C N E W SIVSC launches Expert Group to advise on valuation of fi-nancial instruments
lighted by the recent G20 Summit. The combination of inactive markets, with new FASB and IASB financial reporting require-ments, has created unprecedented levels of inconsistency and confusion throughout the financial industry. The IVSC seeks to pioneer the movement towards improved standards, which can only increase transparency, preserve the integrity of financial statements and contribute to reducing the financial sector’s vul-nerability.” The members of the new Expert Group are:• Mahdi Amri, Senior Manager, Deloitte, Canada• Ana Castaneda, General Manager, InterMoney Valora Con-sulting S.A, Spain• James Chang, Partner PricewaterhouseCoopers’ Financial Risk Management Advisory practice, New York• Tanguy Dehapiot, Head of Valuation, Market and Liquidity Risk, BNP Paribas
• Christopher J Dias, Principal, KPMG LLP, Financial Risk Man-agement, New York • Bernard Dumas, Swiss Finance Institute Professor of Finance, Université de Lausanne• Darryll Hendricks, Managing Director and Head of Risk Meth-odology for UBS Investment Bank, New York• Peter Jones, Standard and Poor’s - Global head of Valuation Scenario Services, Fixed Income Risk Management Services, UK• Dr. Cindy Ma, Managing Director, Houlihan Lokey, New York• Manish Saxena, Associate Vice President, American Apprais-al India Pvt. Ltd• Daniel Sommer, Partner Advisory Financial Risk Management KPMG, Germany• Li Xiaoqiang, Division Director, Chief Accountant’s Office, Chi-na Securities Regulatory Commission• Qingji Yang, Principal Financial Services Office, Ernst & Young, New York. Ian Blance will act as technical consultant to the group. Ian is principal of an independent consulting practice in the UK. A member of the staff of the International Accounting Standards Board will act as an observer to the group. The first meeting of the group was scheduled for London in late June and is sched-uled to report to the Board by the end of the third quarter. About the IVSCThe International Valuation Standards Council (IVSC) is charged
with developing robust and transparent procedures for perform-ing international valuations through a single set of globally recog-nised valuation standards, acceptable to the world’s capital mar-kets organisations market participants and regulators, which will meet the challenges of a fast changing global economy. The governance structure of the IVSC, a non-profit organisa-tion incorporated in the US, includes two independent techni-cal Boards – the International Valuation Standards Board and the International Valuation Professional Board – and a global Board of Trustees responsible for the overall strategic direction and funding of the IVSC. The IVSC works co-operatively with national professional valuation institutes, users and preparers of valuations, governments, regulators and academic bodies, all of whom can become members of the IVSC and have an important role to play in advising the Boards on agenda decisions and pri-orities in the work of the IVSC.
JULY 2009, NO.98
Also in June Michel Prada, Chairman of the Board
of Trustees of the IVSC, launched the IVSC’s City,
ahead of the Council’s upcoming move to its new
City headquarters in Moorgate, with a call for strong
cohesion between the world’s accounting and valu-
ation frameworks and professional communities. Michel Prada, who noted unprecedented Heads of Govern-ments interest in valuation and accounting topics at the G20, was joined by Patrick Gounelle, Vice-Chair of the IVSC Board of Trustees; Chris Thorne, Chair of the International Valuation Stan-dards Board; and Brad Wagar, Chair of the International Valua-tion Professional Board. Sir David Tweedie, International Accounting Standards Board Chairman, gave the keynote address, highlighting the critical role that the valuation of tangible and intangible assets has to play in resolving the current economic crisis. He welcomed the input of the IVSC in contributing to the standards set by the IASB, saying: “ We are delighted to look to the IVSC for guid-ance on valuation issues. In the past, we have looked at valua-tion on an ad hoc basis, but we feel there is room for develop-
IVSC city launch underscores links to International Accounting Standards Board
ment in this area and closer collaboration with the IVSC is the ultimate outcome.” In encouraging the launch of the IVSC’s Financial Instruments Ex-pert Group, Sir David said: “The valuation of financial instruments is not something that the IASB was designed to specialise in and as such, we welcome the opportunity to work closely with our IVSC counterparts and look forward to the advice they will offer us to ensure the accuracy of our guidance in this area is maintained.” Michel Prada said: “As recently highlighted by the G20 sum-mit, it is clear that market participants and supervisors need to refer to a complete set of internationally recognised standards for valuations of all assets and liabilities that result in valuations produced with objectivity and integrity to ensure the rigorous conduct of ethical principles in business. This is the challenge that the IVSC is determined to meet in a complementary role with other standard setters, such as the IASB and the Interna-tional Federation of Accountants.” The event was attended by a hundred global valuation industry leaders, from across the financial, accounting, real estate and con-sulting sectors, from as far afield as Africa, Japan, Canada and America ,and was supported by the City of London Corporation. For further information on the IVSC, please see the website: www.ivsc.org
THE SOUTH AFRICAN
VALUER 31
Mills Fitchet is one of the oldest valuation firms in the country and has a rich and interesting history. The firm was founded by Pat Mills, previously a director of the well known HL Hall & Sons in Nelspruit. In 1961 he launched a farm management and valu-ation company called Measured Farming. In 1976 he was joined by Geoff Fitchet, an agricultural consultant and valuer. Pat and Geoff had a vision to establish an organisation focusing primarily on property valuations and more specifically on agricultural valu-ations, and in 1983 they founded Mills Fitchet.
The organisation quickly spread its wings and Pat opened the Natal office based in Pietermaritzburg, primarily to be close to the Deeds Office, while Geoff opened the Johannesburg office. David White joined Pat in Pietermaritzburg for a short while be-fore moving to Cape Town in 1984 to open the Cape office. He was subsequently joined by Bobby and Mike Gibbons from the well known Magnus Penny group in a joint initiative to form Mills Fitchet Magnus Penny. Mike Gibbons continues to run the Cape Town office.
William Hewitt opened an office in Gauteng and was later joined by Phil Mitchell. They focused primarily on commercial and in-dustrial valuations, whilst Geoff focused exclusively on agricul-tural valuations, and has since retired. Mark de Klerk joined the group in 2009 to open up a further office in Gauteng.
Alan Stephenson took over Mills Fitchet (Natal) when Pat retired in 1995, and in 1997 Tom Bate relocated from the Cape to join Alan in the Natal Midlands. The practice focused mainly on agri-cultural valuations. However, Tom’s specialty is listed funds, and he subsequently set up an office in the Natal Midlands to fo-cus on this niche market. Scott Aldridge and Stephen de Klerk
MILLS FITCHET 48 YEARS OF VALUATION EXPERIENCE
The directors of Mills Fitchet have been
actively involved as members of the
South African Institute of Valuers for
the past 48 years and have assisted
the Institute with specialised training
courses. The directors and members
would like to take this opportunity to
congratulate the SAIV on reaching its
centenary and to thank the Institute for
the valuable support that it has given to
the valuation profession.
JULY 2009, NO.98
joined Alan in 2001 and 2003, respectively, and later became di-rectors of the Mills Fitchet (Natal) office. Stephen’s background is in property development and project management; this office offers these services and has grown considerably over the past six years to become the largest and most diversified office in the group.
Mills Fitchet South Coast was established by Alan Stephenson and Adri Keyser in 2007, while Greg Cowden, a municipal valuer with many years experience, joined the group in 2008 to estab-lish a Mills Fitchet office in Durban.
The Mills Fitchet Group has grown and diversified considerably and now specialises in all fields of valuation including listed funds, commercial and industrial properties, agriculture and forestry, land claims, development properties, and municipal valuation rolls. The Mills Fitchet Group brings together like minded profes-sionals with considerable experience who can tackle any form of valuation and with the capacity to undertake large commissions.
“We Value our Land”www.millsfitchet.com
THE SOUTH AFRICAN
VALUER30JULY 2009, NO.98
T H E S A VA L U E R A SELECTION OF PAST COVERS
S A I V A T H O M E
THE SOUTH AFRICAN
VALUER 33THE SOUTH AFRICAN
VALUER32
MembershipAll five branches of the SAIV held their 2009 annual general meetings during April, starting with the KwaZulu-Natal Branch’s 64th AGM on 14 April. Trevor Richardson, the chairman, report-ed that although membership had grown by 63 during the past three years, this was because of new student members as the numbers of ‘members’ had decreased.
Membership figures for the Southern Branch have remained unchanged over the past two years, according to Jenny Falck who presented her address on 16 April. Jenny expressed con-cern that that SAIV is not growing, particularly the fact that student membership had remained stagnant in the Southern Branch. This reflects either no newcomers to the profession or no upgrades into higher categories of registration. Because of this, the National Executive is currently looking at ways to at-tract registered persons to the SAIV, including a more inclusive, professional and ‘trendy’ character where all registered persons feel welcome.
In contrast, Anton Swanepoel, chairman of the Northern Branch reported that the branch had experienced increased member-ship for the past five years, with a total current 774 members. The Eastern Cape Branch had 102 members at the end of Feb-ruary 2009 and the Central Branch 38 members. Anton remind-ed student members, in particular, to upgrade their member-ship status. The Constitution of the SAIV stipulates that they cease to be student members on registration as a professional valuer or professional associated valuer in terms of the Act, at the Council.
Anton also spoke of the branch as home to a vast base of knowledge - people who are experts in several fields within the valuers profession. All the branches took time to remember and acknowledge their members who had passed away during the year under review.
The work of the sub-committees was recognised, for generously giving time and expertise to portfolio matters during the year. The student sub-committee of the KZN Branch was led by John-ny Pretorius and held a number of training/study days which assisted many students to pass their exam subjects. Student sub-committees have now been re-established in the Northern and Southern Branches. Jenny said that after numerous re-quests from student members the Southern Branch launched its sub-committee to give direction on the needs of students. Despite the fact that the response from the students member-ship was poor (with only ten persons responding to emails) five fully booked tours to the Deeds Office were hosted. It is planned
BRANCH ANNUAL GENERAL MEETINGS
to expand the activities of this sub-committee and she appealed to students to join these.
EducationAnton pointed out that education is one of the branch activi-ties that are of the utmost importance – this includes workshops, seminars and the practical workschool. He asked members to advise the branch executive of topics for future workshops and identify possible speakers. The Northern Branch workschool has grown over the years with a record 114 attending in 2008. The concern is that only 56% of the delegates who wrote the exam passed. A total of 32 students enrolled for the Southern Branch workschool in 2008, of which 20 passed the exam.
Three workshops/seminars were presented by the Southern Branch and were well attended. The Port Elizabeth Chapter of the Institute endeavoured to get together at least once a month over the year and valuers from Port Elizabeth, Uitenhage, Des-patch and Jeffreys Bay attended the luncheon workshops. In all, eight were held. The East London Chapter of the branch also had a number of workshops and networking functions dur-ing the year, in particular one of 2 April 2009 when the Kidds Beach Development was discussed. CET points were awarded for attendance at all these events. As Mark Bakker, chair of the Eastern Cape Branch says: “The importance of CET is that the profession and members are kept abreast of the market and the environment.”
Trevor reiterated the SACPVP CET criteria: the Council is pre-pared to accept certified letters from the SAIV indicating the number of CET credits (hours) a member has achieved over an annual period ending February. It is not the responsibility of the Institute to record non-SAIV CET related activities; members are personally responsible for submitting their CET activities to the Council. Jenny reminded members that DVDs of Institute activi-ties are for sale and could assist members to attain the required CET points.
Trevor said that the most significant challenge in the year ahead would be to source an alternate distance learning service pro-vider for students wishing to undertake part time property valua-tion studies. Full time degree courses are still available at certain universities. As Kit Carson, chair of the Central Branch pointed out, the ongoing problems with the Unisa diploma course have worsened to the extent that no new enrolments were allowed in 2009. Anton explained that because lecturing posts for the valu-ation courses have not been filled, the two remaining lecturers will continue on a contract basis until the Real Estate Diploma has been phased out. Unisa still wishes to provide a valuation
degree but requires guidance from the SACPVP and the Institute on what is required. There is a possibility that UCT will present a diploma course, with a further possibility of a part time course with contact sessions on two Saturdays per month.
MarketingJenny reported that the marketing committee of the Southern Branch had spent much energy promoting and preparing their first stand at the Property Expo in September 2008. Many que-ries about entrance requirements and career opportunities were received. The committee also addressed UCT honours students on the SAIV and attended an African Bureau for Educational Sci-ences (ABES) dinner at UCT where the SAIV was promoted. It is planned to make contact with third and fourth year students this year. An article from Career Times was placed on the Institute’s website to give would-be valuers information, and together with the Council, placed an advertisement with Independent News-papers.
Elevation to FellowshipAnton concluded his report with a few words regarding Fellow-ship, which is a category of membership of the Institute apart from the better known ‘members, student members, honorary members and life members’. Fellowship is a category where the SAIV wishes to recognise those valuers who have special quali-fications, competence and experience. Members may identify a valuer for elevation to fellowship if they feel that such a person qualifies.
All chairpersons thanked their members and committees for continued support throughout the year and unselfish dedication to the Institute. This is greatly appreciated. As Jenny said: “The future of our profession rests on how we present ourselves: if we act professionally, ie without bias, we will be deemed profes-sional. Only then will we obtain the recognition this profession has unfortunately lacked in the built environment in the past!”
JULY 2009, NO.98JULY 2009, NO.98
PAST PRESIDENTS OF THE SAIV
ER SYFRET 1909 - 1910AH REID 1910 - 1922CC SILBERBAUER 1922 - 1944RR CURRIE 1944 - 1945AE VOYSEY 1945 - 1946R SPENCER-KERNICK 1946 - 1948A EMANUEL 1948 - 1949DG BRINK 1949 - 1952PW THERON 1952 - 1953AE VOYSEY 1953 - 1954DG BRINK 1954 - 1961AL AUCAMP 1961 - 1962PW THERON 1962 - 1963TB ROOD 1963 - 1964B LEVINE 1964 - 1965KA MEIKLE 1965 - 1966JH HERMANN 1966 - 1968GS ADKINS 1968 - 1969GW McGIBBON 1969 - 1970EF HARRISON 1970 - 1971CI REDHILL 1971 - 1973JH HERMANN 1973 - 1974GS ADKINS 1974 - 1975LJ HELLER 1975 - 1976CI REDHILL 1976 - 1977JGC SMAL 1977 - 1979AM HYATT 1979 - 1980GS ADKINS 1980 - 1982RS MARTEN 1982 - 1983JQ HENWOOD 1983 - 1985WV VAN HEERDEN 1985 - 1987JLJ JORDAAN 1987 - 1989DT POYNTON 1989 - 1991TE WYBENGA 1991 - 1993N DE KLERK 1993 - 1995JW WALDECK 1995 - 1997CH HABLUTZEL 1997 - 1998JL MARGOLIUS 1998 - 2000DA SILVA 2000 - 2002GA NEL 2002 - 2004JF DU TOIT 2004 - 2006BJ ESPACH 2006 - 2008
THE SOUTH AFRICAN
VALUER34A P R I L 2 0 0 8 , N O . 9 3
THE SOUTH AFRICAN
VALUER 35JULY 2009, NO.98
SOUTHERN BRANCH PROPERTY VALUATION PRACTICAL WORK SCHOOL
Date Lecture Lecturer Time Topic
05 Oct 09 1 Saul Du Toit 09.00 - 10.30 Introduction
05 Oct 09 2 Saul Du Toit 10:30 - 12:30 Expropriations
05 Oct 09 3 Jerry Margolius 13:30 - 15:30 Sectional Title
12 Oct 09 4 Farrel October 09:00 - 13:00 Site inspection/Inspection of improvements
12 Oct 09 Farrel October 13:00 - 14:00 Lunch & physical site visit in the neighbourhood (Small groups – approx 15 min duration each)
12 Oct 09 5 Jenny Falck 14:15 - 17:00 Filling stations & Hotels
19 Oct 09 6 Farrel October 09:00 - 12:15 Report back on site inspection assignment
19 Oct 09 7 Debbie Wall-Smith 13:00 - 16:15 Report back on hypothetical report and discuss framework of full report
26 Oct 09 8 Jenny Falck 09:00 - 11:45 Market research/Sources of information
26 Oct 09 9 To be advised 13:00 - 17:00 Valuation methods, DCF’s, shopping centres
02 Nov 09 10 Saul Du Toit 09:00 - 11:00 Township land
02 Nov 09 11 Debbie Wall-Smith 11:00 - 17 :00 Group feedback on market research Allison Stober (lunch in-between) 09 Nov 09 12 Saul Du Toit 09:00 - 12:15 Farms
09 Nov 09 13 To be advised 13:00 - 15:45 Municipal Property Rates Act
09 Nov 09 14 - 15:45 - 16:30 Hand in valuation reports
16 Nov 09 14 - 09:00 - 12:30 Feedback on group projects
16 Nov 09 15 - 12:30 - 13:30 Finger lunch
16 Nov 09 16 - 13:30 - 17:00 Feedback on group projects
23 Nov 09 17 P Boonzaaier 09:00 - 11:30 Examination (results to be posted to candidates)
T H I S P R O G R A M M E I S S U B J E C T T O C H A N G E W I T H O U T N O T I C E
DVD ORDER FORMPLEASE PRINT CLEARLY. COMPLETE IN FULL AND FAX TO YOUR BRANCH SECRETARYSURNAME AND INITIALS _____________________________________________________ TELEPHONE __________________________________
SAIV MEMBER NO ___________________________________________________________ POSTAL ADDRESS ____________________________
____________________________________________________________________________
Name of seminar______________________________________________________________
I have paid the total amount of R____________________ into the SAIV’s bank account. Proof of payment is attached Bank details: Standard Bank, Musgrave Road, Account no. 051275937 (branch code 042626) Please use 2520/001 as reference for the deposit Prices Include postage and VAT
Continued Education and TrainingMany Institute members are not able to attend seminars on a regular basis because of work commitments and distance. The following seminars are available
on DVD from your branch secretary.
Northern Branch: Leriba Lodge seminar - November 2006
Irene Country Club seminar – February 2008
The Country Seminar at Dikhololo – August 2008
Indaba one day seminar – February 2009
The following prices include VAT and postage. They are now standard for all DVD orders.
ONE DAY SEMINAR:
Orders at seminar
Members R150
Non-members R350
All orders after seminar
Members R350
Non-members R700
COUNTRY SEMINAR / 1.5 OR 2 DAYS:
Orders at seminar
Members R450
Non-members R650
All orders after seminar
Members R650
Non-members R1 400
Southern Branch: One day seminar – September 2008
KwaZulu-Natal Branch: One day seminar – October 2008
Jorrie was known as “Oom Jorrie” by most of his fellow valuers.
Although many younger valuers and candidate valuers may not remember him, Jorrie was actively involved in the profession for many years. In the late 1970s he was elected to serve on the old Transvaal Branch of the Institute. He was chairman of the branch from 1979 to 1981 and served on the National Executive from 1981 to 1990.
In 1982 he was appointed to the first SA Council for Valuers where he dedicated many hours assisting Chris Smal and Gor-don Adkins in setting up the procedure for registering the first valuers as members of the Council. He served on the Council until 1988.
For many years he lectured to students at the annual Practical Workschool on farm valuations, which was his field of expertise.
I N M E M O R I A MJLJ (Jorrie) Jordaan passed away unexpectedly on 19
June 2009 after suffering a heart attack.
Jorrie will be remembered as a person who was passionate about his profession and always willing to share his knowledge of valuation with others.
In terms of the rules of the SA Council for the Property Valuers Profession, any Candidate Valuer must attend a practical work school, as part of his/her training before an application for re-registration purposes can be considered. A provisional programme for a seven full day practical work school will be held on Mondays between 5 Oc-tober 2009 and 16 November 2009, with an examination on 23 November 2009, to take place at The Institute of Estate Agents of South Africa, Suite 2, Howard Centre, Sheldon Way, Pinelands. As the presentation of this course is dependent upon the registration of at least 15 candidates, please contact the course leader by latest 28 August 2009 for application forms. Please inform your colleagues and fellow students accordingly. Note: Attendance of the course will be subject to the following:- It is compulsory for Candidate Valuers to attend ALL lectures- NB: The course is aimed at students who are at least at third year level- Candidate Valuers have to pass the practical examination and theoretical examination set during the course, to obtain a credit from the Council for successfully at-tending the work school
- Course fees will be about R2 100 (including VAT) per candidate, payable on first day of lectures.
Patrick Boonzaaier - Course Leader tel: 021 705 7396, fax: 021 706 672, email: [email protected], cell: 072 853 5761
SA INSTITUTE OF VALUERS MEMBERSHIP STATISTICS AS AT 30 JUNE 2009
NORTHERN
379
16
0
1
3960
1
1
67
0
0
776472251723
SOUTHERN
177
14
0
2
193
6
0
37
1
24623982321
KWAZULU-NATAL130
7
0
0
137
4
0
39
3
147184110294
EASTERN
59
1
0
0
60
0
0
16
1
017772299
CENTRAL
28
4
0
0
32
0
0
6
0
06382361
SA TOTAL
773
42
0
3
8180
11
1
165
0
5
1019210104881498
NON-RES
19
190
7
726
26
TOTAL
773
42
19
3
8370
11
1
165
7
5
1019910364881524
MEMBERS
Members
Fellows
Non-res members
Life/Fellow members (active)
Active members totalResident affiliate
Retired Fellows
Life/Fellow members (retired)
Retired members
Non-res retired members
Non-practising members
Honorary membersInactive members totalMembers totalStudent membersInstitute total
NORTHERNWELCOME TO THE FOLLOWING NEW MEMBERS:MEMBERSSTUDENTS
KG RamovhaMJ MaswagaTL DagadaN MbuksheJ Degenaar
THE SOUTH AFRICAN
VALUER 37JULY 2009, NO.98
MARSH RISK CONSULTING, a division of Marsh (Pty) Ltd (MRC) in South Africa is looking to add to its team of valua-tions professionals. Career opportunities for skilled individuals with experience and talent in the field of Land and Build-ings Valuing are available. Opportunities for both a Junior Valuer and Professional Valuer exist. Ideal candidates would be self motivated with the following skills and experience for each position:
JUNIOR VALUER • Minimum of two years Valuation experience.• Registration with the South African Council for the Property Valuers Profession (SACPVP), as a Candidate Valuer. • Must have at least a minimum of six credits towards the approved qualification, which must include Property • Valuations 1 and 2. Registration with tertiary institution for a recognised Degree/Diploma approved by the SACPVP.• Key outputs include: assisting with research, fieldwork, and valuation of properties.PROFESSIONAL VALUER• Minimum 7 years relevant post registration experience and unrestricted registration with the South African • Council for the Property Valuers Profession (SACPVP) as a Professional Valuer or as a Professional Associated Valuer.• Key outputs include: undertaking research, fieldwork, valuations and negotiations of all types of properties for insurance purposes, accounting and financial purposes as well as market valuations for sale, accounting, mergers and disposal purposes.
Potential candidates must have a valid motor vehicle licence and valid passport, and be computer literate preferably with Excel and Microsoft Word experience.
Marsh is an equal opportunity employer.
If you meet the requirements, and are a dynamic individual with drive and enthusiasm, please contact us with a detailed CV and covering letter in confidence.
All applications should be addressed to: Marion Oeschger: Marsh (Pty) Ltd Fax no/E-mail: 011 506 5243 / [email protected]
All short listed applications will be contacted within two weeks of their response to this advertisement. Should you not hear from us within 30 days, please consider your application unsuccessful.
Closing date for applications: 15 August 2009.
