Whatshot
Property Talk
Property Talk
It's now all about deal flow
Is this 2008 all over again I have been in real estate for three decades now and have seen several major cycles come and go over that period.
The global financial crisis from 2007-2009 was a time of great uncertainty and sparked fear amongst many people. Nevertheless, we survived and learnt some great lessons through the turmoil.
I concede that what we are facing today is unprecedented, and it feels like unchartered territory, but the uncertainty and fear is the same. Within a week we have learnt not to shake hands, use hand sanitizers for every visitor to our office and rethink how we showcase properties to potential buyers.
A recent article was written by Trent Wiltshire and published by Domain Research House in Australia exploring the question of how coronavirus will affect the Australian property industry is equally relevant to us in South Africa.
They refer to the coronavirus as the biggest threat to the Australian economy since the global financial crisis. The impact depends on how long and how bad the effects of this pandemic turn out to be. At this stage, it is hard to say and we are faced with a low road versus a high road scenario.
For South Africans, we are already somewhat battle-hardened as we have been dealing with corruption and state capture, the Eskom melt-down, SAA plunging out of the skies, political uncertainty, an actual recession with the last two quarters of negative GDP growth and now a virus that shuts down our travel and tourism industry, our schools and fundamentally change how we engage with the world and people daily.
So for us South Africans it feels like just another crazy challenge to overcome. At the same time, it is to be taken seriously given how vulnerable so many in our communities are to a sweeping pandemic. We will beat this thing and we will come out of it and thrive.
There are some essential lessons learnt and expounded on by leaders in our industry that we would be wise to heed and apply. The following four important aspects are recommended to business owners across the real estate industry:
1) Take quick and decisive action. Avoid being like a Zimbali Bushbuck caught in the headlights. This is no time for inertia and lethargic change. Take note that it is not business as usual and it requires for us to pivot and respond to the changes imposed on us. This is where leadership counts.
2) Cut expenses. Interrogate every line item and determine where and by how much to trim the sails. We have to get more from less. This will also apply to personal expenses and not just business. This is often a hard exercise but essential for financial fitness.
3) Focus on prospecting. This means finding leads for your business - whatever that may be. Have a sense of urgency about this and dedicate a large portion of your daily activity to it. It's now all about deal flow. If it is not an income-generating activity, delay it until 2021 or beyond.
4) Focus on those areas within your business that do have a ready market and are relatively responsive. This could be defined by product, price, type of buyer or seller or some unique combination. Follow the money.
Above all, stay positive and keep your sense of humour.