A Dutch student, Erik van Egmond, who is studying for a Bachelor’s degree in property at Groengen in Holland and who has joined Greeff Properties for a three month internship, says that four aspects of the Cape Town property operation have impressed him.

The first is that, although they take it largely for granted, middle class Capetonians are fortunate to have larger homes and far larger gardens than the vast majority of Europeans – and, in particular, Hollanders.

“In my country,” said van Egmond, “some 40% of the people, especially the younger people, live in sectional title apartment blocks and these can be three to ten storeys high. Those who do upgrade to houses usually have homes and plots far smaller than most in Cape Town. Capetonians are fortunate to have such pleasant living conditions.”

Secondly, said van Egmond, although it would seem that Capetonians spend roughly the same percentage of their incomes as Hollanders on their homes, the value for money here is far greater.

“By Dutch standards, your homes are exceptionally inexpensive and it will be many years before the gap between the two price levels is closed.”

The third noticeable difference, said van Egmond, is that SA estate agents survive entirely on commission. In Holland, agents are salaried staff who, if they are lucky, are paid a 13th cheque or possibly an end of year bonus for a top performance. About 40% were made redundant in the current recession from which Holland has as yet shown little sign of emerging – residential prices there are still dropping.

“The commission system seems to put the agent on his toes and probably results in more effort. I was very impressed to find how many show houses you have each weekend: in Holland we have only the occasional show houses on a Saturday and never hold them on Sundays.”

A fourth point of which he has taken note is the emphasis that the estate agency affairs board now places on regulating the industry and on insisting that agents must be qualified.

“In Holland in 2001 they abolished the need for all qualifying criteria in the belief that this would encourage competition and that regulation was a form of discrimination.

“This,” said van Egmond, “led to agents losing the public’s respect and confidence. It would, therefore, appear that regulation has merit.”

The Dutch government, he added, is currently rethinking their decision.

SA home owners are fortunate not only because the market is now starting to turn but also because in general middle class home owners lead very comfortable lives at a lower cost than Europeans. The challenge, he said, will now be to extend some of those lifestyle enhancing conditions to the less affluent.

Article from: www.greeff.co.za