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RE/MAX GEARED TO OPERATE IN NEW MARKETSTwo new RE/MAX offices, named RE/MAX Gold, have opened in Rustenburg and Pretoria North. These offices will specifically be servicing the affordable housing sector of the property market. Douglas Ravenscroft, who was crowned as Broker/Owner of the Year 2009 for a single office at the RE/MAX awards breakfast earlier this year, is behind the helm of these offices as Broker/Owner. His RE/MAX Platinum franchise, which enjoys a large market share, will continue to service the traditional home buyers and sellers in the Rustenburg area. Ravenscroft believes that the affordable housing market segment needs a dedicated and specialised real estate presence, hence the opening of the two RE/MAX Gold offices. "Agencies operating in this real estate environment need to work on a very different model to the traditional market," says Ravenscroft. "This," he says, "is because the affordable housing sector requires a different business model and skills set compared to the traditional market. A large percentage of these buyers and sellers have not previously been exposed to property ownership and therefore don't know where to start. The whole process has to be explained in detail and so client education forms the basis of our service offering." Aside from a lack of property trading knowledge, mortgage finance is one of the biggest restricting factors in this market. Many who fall within the affordable housing category have not managed their finances well and therefore find it difficult, if not impossible, to successfully apply for a home loan. Ravenscroft notes that around 50% of potential home buyers in the affordable housing sector are listed on ITC and, at the end of the day, he estimates that only 40% of potential buyers on average will be approved for finance. In addition, they will mostly only qualify for 80% home loans and don't have the means to pay the required 20% deposit. Ravenscroft says the affordable housing sector is a very specialised market with a unique set of challenges, with the large fallout of potential buyers due to affordability issues being one of the biggest obstacles. Despite this, the RE/MAX Gold offices are aiming to achieve 100 property transactions per month. Says Adrian Goslett, CEO of RE/MAX of Southern Africa: "Providing adequate housing to the lower income areas of South Africa is one of the biggest challenges the country is currently facing. Specialised agents with specific knowledge and the ability to provide education to these first-time buyers is a key part of tackling this challenge. RE/MAX of Southern Africa is proud to be part of the solution." Looking at the affordable housing market as a whole, Ravenscroft says that there is not a big variation in house size. On average, he says, buyers in the affordable market will pay around R500 000 for a house of approximately 100m2 under roof. For example, RE/MAX Gold currently has on-site agents who are marketing developments in Marble Hall and Witbank. Ravenscroft says that properties in these affordable developments start from R250 000 for a 40m2 home, and can range up to between R400 000 and R500 000 for homes measuring around 108m2. For Ravenscroft the business of real estate is about more than just selling a house; it's about helping to create a community where residents are proud to live. In line with this thinking, the RE/MAX Platinum office has been involved in numerous community clean-up projects in Rustenburg. RE/MAX Gold has also committed to the community involvement philosophy and will provide each one of its new homeowners a tree to plant in their garden.
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