johan horak’s energy flow

Everybody jumped on the bandwagon! We all wanted to make a quick buck and the easiest and most popular way to cash in – we all thought – was renting your home. There was a real fear that there will be a shortage of accommodation during the Soccer World Cup.

During 2009 450 000 visitors were expected. I have seen figures of 300 000 and less. FIFA General Secretary Jerome Valke admitted that its original estimate of 450,000 foreign visitors to the tournament is unlikely to be achieved. South Africa is far from the rest of the soccer world and the fans are not willing to or cannot spend the high airfares and excurborant accommodation rates.  Surely there are other reasons as well but let’s stick to  the price of accommodation. “We’ve been recommending to the South Africans for months now that they will be making a mistake in regarding this as a four-week opportunity to cash in on visiting football fans,” Kevin Miles of the English Football Supporters’ Federation

Was it clever to inflate the accommodation rates, in some cases double or even triple the normal peak season rate? Why not charge your guests a fair price, why rip them off? The result! No bookings!

Cabinet is concerned that the inflated prices might have a negative impact on future tourism in South Africa and Minister Marthinus van Schalkwyk  commissioned a survey to look at the pricing structure in the accommodation sector ahead of the World Cup. According to Grant Thornton the overwhelming majority, 74%, of SA’s accommodation establishments are not hiking rates substantially for the Soccer World Cup.

“Substantially?”

Just because somebody in Camps Bay got R20 000 per day for his property does not mean every Tom, Dick and Simon’s-Town-Harry will get the same.  We are unfortunately not in the soccer hot spot AND we don’t even know if there will be a train running to and from Simon’s Town.

My suggestion is that we forget about the $$$ for the Soccer World Cup and concentrate on filling our holiday homes at the right price.

Enjoy the wonderful autumn weather.  

Let’s agree that Coffee News is not easy if you have to continuously chase your tail. To chase your tail you basically have no system and no plan. But if you have a plan it becomes fun to help your community businesses make a success.

How do ensure you have fun while making money with Coffee News? You need to break it down and do  the seemingly difficult stuff first:

1. You need to set a budget and a forecast. In other words you need to know how much you spend to get one advertisement and you need to decide how many advertisements you want every month. And at what rate you will grow your paying advertisers.
2. Keep graphs on the number of advertisers, the number of actual paying advertisers, the number of advertisers who renew, the number of 13, 26 and 52 week advertisers. 
3. Also keep a graph of the number of people reading your Coffee News and your blog newsletter. If you have not got a blog get one and integrate a newsletter like this one.
4. Let’s say you need about 10 ads to break-even. Then you have another 22 to make money with. In general you can have a net turnover of R19 000 after you have paid the printer and royalties.
5. If you have a system in place to ensure the money comes in then you don’t have to focus on collecting and begging for money. Get this system in place and ensure it’s automated.
6. Sell ads for long periods; 13 weeks, 26 weeks and 52 weeks. Never sell an ad for a month because the advertiser wants to check it out. If she wants to check it out you have not done a great selling job and the advertiser does not  have the guts to be in business.
7. Focus on advertisers who advertise already. There’s no sense in trying to convince the paint shop owner who is stuck in his hole. Don’t waste your time.
8. Go where the money is. People who advertise already have money and are sensible. That’s not all. When you walk into a business you will no if they are successful or not.
9. Decide who spends a lot of money on advertising. If you can find a guy who spends R2000 and more on advertising then go for them. Who are they? Real estate agents, motor car dealers, franchise businesses. Check out the businesses with fancy pick up trucks and delivery vans. 

Sit down every day and think what drives your business and drive the good stuff. And then measure.

Coffee News South Africa A Small Business Opportunity Publishing A Local Newspaper

Before I read the newspaper head line, "The Recession "Technically Over" - Keep The Belt Tight" my friendly Cafe owner friend, cracked a quick joke as I walked out with my newspaper this morning.

He said in his broken Afrikaans, "die ressie is oor..maar ons het f*k*l oor."

Both statements are true. The recession may be technically over but most people have nothing or very little left. This was also the message from the newspaper article that I will summarise below:

• The recession is technically over but it does not translate into financial prosperity for the average Joe.
• New economical growth is slowly turning up.
• South Africa recorded, at the end of last year, its first recession in 17 years.
• The recession lasted three quarters.
• It changed during the fourth quarter to a growth of 0.9%
• We should be happy because if this growth continue we can expect an annual growth rate of 3.5%
• Job creation show that we are still in a recession. This should continue until the first quarter 2010. South Africa lost nearky a million jobs since 2008.
• The average Joe will continue to pay back debt for a long time
• Approximately a million people are still filing for bankruptcy per year.
• Interest rates will probably increase from mid 2010
• Only three to five years will we see the real turnaround.
• Don't expect a sharp increase in house prices.
• House prices will increase at a rate less than inflation  

The fact that the recession is over ... is a technical issue only.
But you tell the average Joe, that the fact that he has nothing left, is technical!

This morning in Simon's Town, as usual, I went for a walk with Gino, my dog. Again a beautiful morning past.... Water's Edge, then to Boulders and back to Water's Edge.

If there's on place on the Simon's Town beach where I want have my own house then it's close to this lovely beach. [We have a beach plot for sale here]

   

Click here to download:

Where_I_will_build_my_Simons_T.zip (111 KB)

(download)

Click here to download:

Video0002.mp4 (1653 KB)

Property owners often complain that agents undervalue their property for a quick sale, but overpricing a property can be a bigger mistake. If you want to attract a fair offer for your property, price it right, especially during tough times.

"Too often people want to pay their kids' college tuition and retire on the proceeds of their property," says RealNet Silver Estates owner Yolanda Pelser. She is joking, but only just. She stresses that people tend to overprice property when they first offer it to the market and exacerbate the problem by signing lengthy sole mandates with agents. 

"By signing a year mandate with an agent, you are not raising the price of your property, you are driving the market down." She explains that "during a sole mandate owners are excluding other offers on their properties, so there will be few if any bids from different potential buyers." This raises the chances of a property becoming stigmatized and a "non-seller".

Yolanda believes sole mandates should be no more than three months. She offers a controversial alternative: "By pricing a property at the bottom range of your expectations you are more likely to sell quickly and for a higher-than-expected price [price to negotiate]."  I pointed out that this is exactly what creates the perception that agents pressure clients to lower prices so they can make a quick buck. Read the rest of the story on how to correctly price your home to sell.

The owner asks two different real estate agencies to propose an asking price. Because all agents know that the one that suggest the highest asking price win the Jack Russell war. Therefore some will be in the good books with the seller as his ego is polished. As time runs out this agent puts pressure on the seller to reduce the price. And it's to late. The Jack Russell is the only one that wins this real estate war.

Some people like whales, while others "complain about what whales do - close to our beaches - in front of our children".

It's a great time because real estate agents can also afford to eat out - R29 for a three course meal at The Southern Right! Yes. And we enjoyed it.

More good news is that a few chiefs have been fired or fired themselves.

If you consider selling your Simon's Town house then it's getting better even though it feels like a large boat making a U-turn.

Well, it should be good news if your real estate agent does not create expectations - it will take time and you need a strategy.

The good news is that there are buyers who want to buy as long as you price-to-sell and not price-to-negotiate.

(Yes. I know some buyers will make ridiculous offers, but you don't have to accept).

In other words if you don't tease serious buyers your home should sell in reasonable time (up to 4 months) .

Let me repeat:

The good news is that

• there are buyers (not many),
• they have money,
• they are clever and
• are not making emotional decisions.

The real good news is that most real estate agents in Simon's Town want to sell your home.

The good news is that you can blame the real estate agents if your house did not sell.

Yes. You can also blame the real estate market.

Well there's some more good news - if you think it could be worse - the house prices are not less than 2 years ago and it will - may be - increase by 1 or 2% during the later part of 2010.

Everyone, will tell you that the market is turning. (No one will, however, tell you that it's turning as slowly as a 1000 ton boat turns in a narrow river).

And the real good news?

The winter-summer will eventually become proper summer and the whales will continue to have fun

May you also have lots of fun

Johan Horak

http://simonstownrealty.info

021 786 4028

Stop Selling If You don't Know What To Ask

• A few days ago we listed a Simonstown property for sale that's an idea guest house property. Many years ago this Simon's Town property was used as a tea room. Although it needs a lot of work, I believe this is the Simon's Town property with the best view ever. It's on a 2000 square meter property and on the scenic route.

• Our local builder is building property in Simon's Town that really surprise many people. I will not even tell you what he will ask you to build per square meter. Yesterday evening while sitting in a fancy new Simon's Town home, the owner could not believe that this Simon's Town builder can make money and build for such a competitive rate.

• This builder have a really nice property in the market. I have mentioned it before; if you can show me another Simon's Town home for sale at less than R10 000 per square meter with similar finishes then I will buy you a bottle of BoekenHoutsKooof's Chocalote block.

• Many people are escaping from Gauteng to the safest Cape. Well, Cape Town is a great place but Simon's Town is even greater. If you want a really nice 2 plus 1/2 bedroom home for only R2 495 000 then you need not look any further. Not only does this Simon's Town home has a great view it's ideal for those than want to stop wasting money on excess and live according to their needs rather than what they can afford.

 
Johan Horak