Following an 18 month review of the Umhlanga real estate
market,
Orange Olive now offers a full spectrum of services
Orange Olive is able to provide services under
the banner of a “Buyer’s Consultant”
Orange Olive’s value proposition is being able to secure the right property for the Buyer at a better price...
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The real estate industry has evolved in numerous ways over the last decade. With the internet and mobile devices taking the market by storm, consumers now have unprecedented access to property information, without depending on a real estate agent.
As a result there is a strong focus on online efforts as a means to sell property. In fact, property searches and sourcing of real estate in accordance with a Buyer’s specific needs,have generally been abandoned altogether by real estate agents. It goes further with some agents even assuming that since the majority of consumers search for homes online, it has now somehow become the Buyer’s responsibility to canvas what’s online and then for the Buyer to make contact with the agent.
In South Africa the real estate agent will act only for the Seller, being the party who pays the estate agent’s commission. As such, estate agents understandably tend to be more biased towards the Seller, than towards a potential buyer. This can result in the Buyer’s needs either being overlooked or not met in an attempt to secure a sale for the Seller.
Generally for the Buyer to get to the point where they actually meet with the estate agent, the Buyer would have had to first trawl through the various online platforms, identify something suitable (which may or may no longer be available), and then contact the relevant agent to arrange an appointment to view the property.
That begs the question. If the estate agent is looking after the interests of the Seller, who is looking after the interests of the Buyer? In short, no one.
Orange Olive’s rationale behind establishing the Buyer’s Consultant model is to provide assistance to those investors looking to build on their investment portfolios by including a property asset such as a high-end luxury apartment (or home) in the sought after area of Umhlanga. The investor profile is generally the more affluent businessman living in Gauteng and Cape Town who does not have the time to fully acquaint themselves with the local Umhlanga market before making their investment decision to acquire property in Umhlanga
This approach was undertaken by Orange Olive on an informal basis in Cape Town where the majority of investors were offshore businessmen looking to acquire higher end property in Cape Town. The owners of Orange Olive relocated to Umhlanga and over the past 18 months have witnessed an increase in interest in high end luxury apartments in Umhlanga by Gauteng-based businessmen. Orange Olive through its group of companies operating across South Africa, has access to prominent business people and will firstly seek to cater to the needs of these clients looking to buy apartments in Umhlanga.
The proximity to Gauteng and the high-end luxury lifestyle offering makes Umhlanga the ideal weekend getaway destination for the Gauteng businessman. The acquisition of a luxury upmarket apartment in Umhlanga has also become a status symbol to today’s wealthy businessmen akin to wealthy families 10 to 20 years ago buying a holiday home on the coast. The high end sectional title apartment in the secure Umhlanga node is a contained more manageable “lock up and go” investment, whereas the higher maintenance costs and security risks associated with owning a 5 bedroom holiday home somewhere on the coast has contributed to the apartment route being considered a safer investment.
Orange Olive’s value proposition is being able to secure the right property for the Buyer at a better price and at better contract terms than the Buyer could have done in acting alone.
Orange Olive is able to provide this service under the banner of a “Buyer’s Consultant”
The differences between a Buyer’s Consultant and a traditional estate agent are as follows:
Orange Olive provides a niche focused service to a handful of select pre-qualified Buyers. Some of the essential tasks handled by Orange Olive in the buying process will include:
Buyer’s Agents in the US and Australia generally charge the Buyer an upfront retainer. Upon a successful sale the commission payable by the Seller is then split between the estate agent and the Buyer’s Agent.
Orange Olive chooses to operate differently to avoid any potential for a conflict of interest and believes that in order to ensure that the Buyer’s Agent is working exclusively for the Buyer, the Buyer’s Agent must be paid directly by the Buyer. Orange Olive will only generate income on a successful sale (i.e. the fee is a success-fee).
Orange Olive will however require that the Buyer enters into an exclusivity agreement for a period of 3 – 6 months for the specified area (Umhlanga) which agreement can be terminated by either party on a 14 day notice period. Orange Olive will negotiate fees on a deal-by-deal basis and the fee can be a fixed fee or a variable fee (percentage of the final selling price) depending on the level of services required by the Buyer.
Buyers can also structure the Orange Olive fee as a percentage of the “saving” where the “saving” is defined as the difference between the original list price / asking price and the final price negotiated by Orange Olive which then acts as a further incentive to negotiate the best price for the buyer.
In all instances the Seller pays Estate Agent commission as per agreement between Seller / Estate Agent and the arrangement between the Buyer and Orange Olive is not reflected in the Deed of Sale.
The Buyer pays Orange Olive directly on lodgement of transfer of the property where the fee is to be paid to Orange Olive’s attorneys trust account, payable to Orange Olive on transfer.
Orange Olive’s value proposition is being able to secure the right property for the Buyer at a better price and at better contract terms than the Buyer could have done in acting alone.
The name Umhlanga means 'place of reeds' in the Zulu language
Umhlanga has become the go to place on the North Coast following the massive growth seen in recent years north of Durban towards Ballito and further north.
Umhlanga remains a vibrant, energetic part of the growing Durban metropolitan with a fast growing corporate community, and is regarded as the playground for people living in KZN.
Visitors from around the world flock to the holiday resort village of Umhlanga Rocks to relax and have fun on one of the most beautiful coastlines in the world. Situated on the east coast of South Africa, Umhlanga faces the warm waters of the Indian Ocean and enjoys year round exceptional weather.
Whilst being regarded as “the village”, Umhlanga also has up-market Office Parks and is the headquarters of several multi-national corporates as well as having first world Shopping Centres. The golden sandy beaches stretch northwards for more than 200 kilometres, all the way to the spectacular Isimangaliso Wetland Park, a world heritage site. Inland from Umhlanga, endless fields of sugarcane give way to the undulating landscape of the Valley of 1000 Hills, the massive Inanda Dam and the mystical hidden valleys of Zululand.
Umhlanga offers a wealth of entertainment, restaurants and nature trails, all in a secure environment. The spectacular Gateway shopping centre and Sibaya Casino are some of the key attractions that Umhlanga Rocks has to offer. Ocean enthusiasts and outdoor adventurers will be in their element ; surfing, deep-sea fishing, whale watching and dolphin viewing, scuba diving, kite boarding and microlight flips being just some of the many activities available on this wonderful stretch of coastline. For the serious golfers there are many superb golf courses all within a 15 minute drive of Umhlanga. Umhlanga is also a paradise for the romantically inclined and many people either tie the knot here or spend their honeymoon here.
Founded in 1895 by Sir Marshall Campbell, the first hotel was built in the area in 1920, followed by a shop and then a lighthouse. Development in Umhlanga has continued at a gradual but steady pace and today the town has transformed from a small coastal village into a bustling commercial hub, whilst still retaining its unique “village” feel and ambience. The iconic lighthouse in front of the Oyster Box Hotel is often photographed and is an historic landmark in the area. The famous “Pearls” development has taken Umhlanga Rocks into the next century.
Much like the commercial decentralisation and migration from the Johannesburg city centre to Sandton, many businesses have relocated their offices from central Durban to Umhlanga.
In 2010, the Durban International Airport was also relocated to La Mercy, which is close to Umhlanga, and was re-opened as King Shaka International Airport. This international airport is a 15 minute drive from Umhlanga.
Whilst holding onto its appeal as a village, Umhlanga boasts a large variety of top class amenities such as the Umhlanga Hospital, schools, restaurants, entertainment facilities and the Gateway Theatre of Shopping - the largest shopping mall in the Southern Hemisphere.
In addition the commercial development on Umhlanga Ridge over the past 10 years has been phenomenal and has had a positive contribution towards the residential property market in the area where property prices have performed extremely well over the last ten years.
In terms of property sales volume, Umhlanga experienced a steady decline in the number of transactions from 2004 until 2010, however sales turned in 2011 and have been on an upward trend ever since. In 2013 sales volumes were higher than those seen during 2007, which is widely regarded as the peak of the boom.
Umhlanga is popular among buyers from all age groups with approximately 33.46 percent of recent buyers in Umhlanga aged between 50 and 64 years old, 26.54 percent were between 36 and 49 years old and around 21.15 percent were aged from 18 to 35 years old.
Investing in an apartment in Umhlanga allows one to benefit from the highly favourable demand / supply dynamics seen in Umhlanga. Supply is limited due to the geographical constraints which limit further development / supply of stock (i.e. coastline to the east, M4 Highway to the west, Umhlanga lagoon to the north, and existing houses to the south). Demand is driven by Umhlanga’s natural attraction, village-like atmosphere and proximity to Gauteng and the high-end luxury lifestyle offering which makes Umhlanga the ideal weekend getaway destination for the Gauteng businessman.
The Umhlanga area is enjoying a massive growth in large National and smaller local commercial businesses relocating to the area. The business park is part of the sky line on the Umhlanga Ridge and new developments have placed the Umhlanga area as a major growth point in KZN.
“Gateway” being the largest shopping complex in the Southern hemisphere, is a highly successful and integrated centre which attracts shoppers from afar. The entertainment options offered for visitors, tourists and locals alike, is plentiful, ranging from restaurants, a movie complex, sports facilities, outdoor activities and promotional areas.
The restaurants, bars and shops found in the Umhlanga Rocks precinct also add to the many varied activities visitors and locals enjoy in Umhlanga. The Umhlanga Improvement Precinct organization, is doing excellent work, in maintaining and upgrading the area, arranging events and supplying security to visitors and residents in the area. The Promenade or boardwalk is enjoyed and used by all, to gain access to the many beaches as well as exercise and pleasure strolls along the seaside.
The local medical facilities include the Umhlanga hospital, with outstanding casualty and trauma units together with top specialists catering for every medical emergency.
Umhlanga offers excellent schools as well as private schools, being pre-primary, primary schools and high schools. The young families rest assured that in choosing the schools available, their children will be well educated, which is a prime motivation for choosing the Umhlanga area.
