A property business plan is vital when starting a new, expanding your current or buying an existing property management business.
Elections signal uncertainty which sees some reluctance by buyers to commit; uncertainty evokes unease. Purchasing property is a big decision that one has to take which must be coupled with confidence. Another political concern is the question of land expropriation, which means that buyers are very cautious while some sellers are very eager. While certain categories of land could be expropriated, the government has not stated that it will expropriate residential property.
More buyers are searching for new homes online. The use of technology within the property sector enables sellers and buyers to save time and money. Various property online tools and platforms provide information. analysis, insights costs and comparisons. Technology allows transparency and some competitiveness within the property sector.
Estate living is set to rise because of the safety and security offered by many estates. Many consumers are searching for ways to cut down on costs, especially on household and water electricity bills.
Sellers emigrating is a notable trend. Over 7.5 % of property owners are packing up and leaving South Africa. This trend is set to continue into the decade.
Consumer confidence has not yet resulted in the demand for residential property buyers. Hence there is an oversupply of residential property. The main buying criteria is value of the property and features which include the size, place and condition.
The rental prices and market are also expected to stay subdued. In the sectional title market, there is oversupply of rental stock because of the high number of recently completed high-rise apartment blocks last year.
Access to mortgage bonds is expected to be more favourable throughout 2020 as banks compete for business. Rate concessions to buyers. approval rates and loan to value criteria offered by different banks offer buyers options to get access to finance.
Property price growth across most provinces is expected to remain subdued throughout the first half of 2020.
Most business strategists agree that planning is one of the most important parts of running a business. There’s the common known saying that “if you fail to plan, you plan to fail” and no matter whether it is a large multinational corporation trying to plan an expansion or a small business launching an exciting new product, the importance of a well-executed business plan is of the utmost importance. We’ve seen numerous clients whose businesses shortcomings could have very well been avoided. Our developments are used regularly to create a vision, secure funding, secure non-repayable business grants, attract team members and/or manage the Company.
The essential elements for a well-structured Property Business Plan include:
- Executive summary: This is a profile of the company’s ownership, a summary of the current state of the business, and 1-, 3-, and 5-year goals of the business.
- Company summary: Outline the type of ownership, business model and SWOT analysis.
- Operations: This section provides information on the organisation chart, base and value-added services offered to clients/owners/tenants, partnering and subcontracting, fee structure, equipment inventory and maintenance plan.
- Marketing plan: Specify the market segment you’ll be targeting, competition, market positioning, and your unique selling proposition. This section should include a budget and prospecting plan. Consider developing a website, social media plan, network and advertising plan, as well as email marketing.
- Financial projections: Eight documents comprising of the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortization schedule and fixed asset schedule with all necessary ratios, graphs and calculations.
- Annexes: Statutory information needed by funders in an application (contact us for the complete list).
At DTC we understand the complexities of the various requirements and the unique criteria for a customized and accurate business plan. If using the document to raise funding and/or non-repayable business grants, we guide you forward through the process and provide you access to our vast network of venture capital companies, private equity companies, angel investors, banks, Government BBBEE initiatives, Silicon Cape investment organisations, rent to own asset funding companies, crowd funds and more for you to seamlessly meet your objectives.
Contact us for more information & an affordable quotation for your Property Business Plan.
Business Plan to meet your desired objectives