Streaming issues? Report here
Aubrey Masango 1500 x 1500 2020 Aubrey Masango 1500 x 1500 2020
The Aubrey Masango Show
20:00 - 00:00
volume_up
volume_mute

The Aubrey Masango Show
20:00 - 00:00
Home
arrow_forward
Business
fiber_manual_record
Lifestyle

New specialist property financier, ZDFin to bridge the gap for community schemes

14 September 2020 7:30 AM
Tags:
home owners
body corporates
sectional title
bridging finance
ZDFin
Michael Schaefer
community schemes

Looking for bridging finance and smart financial solutions for community schemes? Keep reading.

In a space where few specialists play, one would need loads of passion, purpose and guts to not only launch a new business in the current conditions, but also in a sector... created in part, by recently enacted legislation that is well-intentioned, but complicated.

Michael Schaefer, founder and CEO of ZDFin, a specialist property finance business, has done just this.

A former director and shareholder of the country’s biggest residential property administration company, Trafalgar, Schaefer recently left the business his father started over 50 years ago, to set up ZDFin.

Aimed at an area he considers grossly underserviced - residential juristic entities, mainly sectional title bodies corporate, homeowners associations and share block companies - he saw a gap in the market to cater for schemes that need bridging finance and smart financial solutions, that could in the long-term, lead to financial savings, whilst ensuring maximum value and enjoyment of one’s property.

It is estimated there are 65 000 sectional title schemes in South Africa with the minority of these being serviced by recognised property management companies.

Michael Schaefer, founder and CEO — ZDFin

When the Sectional Titles Schemes Management Act was signed into law in October 2016, it turned the lives of body corporate members upside down. Regulations in the new legislation make it mandatory for every scheme to have a 10-year maintenance plan. It must be approved by the owners at the annual general meeting (AGM), must detail projected works and provide the computation for levies. The challenge is that definitive plans are often not practically affordable.

The upshot of the Act is that sectional title schemes have to reassess levy contributions and critically, build up separate funds for reserve spend - on top of day-to-day expenses. This has created a nightmare for many trustees who have little or no experience in 10-year maintenance plans and how to finance them.

Schaefer estimates the body corporate business, currently a fragmented market, to be a R1 trillion industry in South Africa. With the combined specialist knowledge and experience of property law, finance and building engineering, the team at ZDFin are able to bridge the gap for community schemes, providing finance, expert guidance and action plans, to address maintenance challenges whilst meeting legal obligations.

It’s not guaranteed that trustees, many of whom are well-meaning volunteers, will either have the skill or get the support and advice to make the best financial decisions for the property.

Schaefer says there is seldom any argument among trustees (now more accountable as a result of the legislation), that money has to be spent on long-term maintenance, but the burning question is what to prioritise and how to fund this.

He adds, “the legislation is good. Sound-building management is at the bedrock of our democracy. If buildings aren’t managed properly they can deteriorate very quickly. Sectional title owners have to be guided through the legislation and separate short-term and long-term expenditure priorities, but often they struggle to accurately assess these and aren’t able to finance the budgets sustainably. The financing of long-term maintenance will increasingly impact property prices.”

From my years in property management, I believe that members deserve effective management, including professional maintenance, not driven by penny-wise and pound-foolish decision-making. This is the space where ZDFin hopes to make its mark.

Michael Schaefer, founder and CEO — ZDFin

If you're interested in smart solutions for Sectional Title Bodies Corporate, Home Owners’ Associations and Share Block companies, visit www.zdfin.co.za for more information.


14 September 2020 7:30 AM
Tags:
home owners
body corporates
sectional title
bridging finance
ZDFin
Michael Schaefer
community schemes

More from Business

South African Airways SAA 123rf 123rfbusiness

SAA bailout in the balance? BRPs put airline operations on hold

29 September 2020 7:49 PM

SAA's business rescue practitioners decide to suspend airline operations. Bruce Whitfield gets comment from the experts.

Share this:
Read More arrow_forward

9baae9ab-c2ed-4d4c-bd5c-844a058f571d.jpg

How did economy shed 2.2m jobs in Q2, but unemployment rate still fell sharply?

29 September 2020 6:46 PM

'It's an abnormal report in abnormal times'. Paul Berkowitz (CEO, Hlaziya Solutions) makes sense of Stats SA unemployment figures.

Share this:
Read More arrow_forward

Young woman holds smart phone and credit card banking 123rf 123rfbusiness

Bank fees are too high. It’s unfair! – Bettr (new app-powered 'bank')

29 September 2020 11:11 AM

"We aim to do banking differently," says Bettr cofounder Tobie van Zyl. "The traditional banking model is going to evaporate."

Share this:
Read More arrow_forward

kevin-lings-croppedjpg

I love economics. It’s part of me - Kevin Lings (Chief Economist, Stanlib)

28 September 2020 8:12 PM

Kevin Lings (Chief Economist, Stanlib) opens up about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward

Funky hipster retired older mature couple 123rf 123rfbusiness retirement

How to secure your retirement - Bruce Cameron (retired editor, Personal Finance)

28 September 2020 7:24 PM

Bruce Cameron discusses with Bruce Whitfield his new book on securing your retirement, despite corruption and the smashed economy.

Share this:
Read More arrow_forward

Small grey house wooden 123rf 123rfbusiness 123rflifestyle

All houses in South Africa can and should be built with wood – study

28 September 2020 6:49 PM

SA needs homes. Plenty of them. They can and should be constructed with wood, says Phillip Crafford (Stellenbosch University).

Share this:
Read More arrow_forward

Nomvula Mokonyane

300 days of Zondo: 'We’ve learned it’s cheap to bribe a politician'

28 September 2020 6:25 PM

For 300 days, punch-drunk South Africans have been learning just how bad corruption is in the country, says Ferial Haffajee.

Share this:
Read More arrow_forward

Sorry we closed small business 123rfbusiness 123rf

'Foreigners create work for South Africans,' says immigration lawyer

28 September 2020 1:28 PM

Lester Kiewit finds out from Stefanie de Saude-Darbandi what the proposed new law means for foreign business Gauteng townships.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Money lessons Covid-19 taught – heed them for a brighter, wealthier future

25 September 2020 10:44 AM

Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.

Share this:
Read More arrow_forward

cashless-paymentjpg

'SA cash economy about 60% of GDP, moving that to digital would be huge saving'

24 September 2020 8:39 PM

The Covid-19 pandemic's moving us towards a cashless society. Arabile Gumede interviews Ukheshe co-founder, Clayton Hayward.

Share this:
Read More arrow_forward

More from Lifestyle

Fruit and vegetables fresh produce nutrition cooking food 123rflifestyle 123rf

People urged to cook at home as much as possible to reduce salt consumption

29 September 2020 5:23 PM

Pharma Dynamics spokesperson Nicole Jennings says there is a lot of hidden salt in the food we consume.

Share this:
Read More arrow_forward

Young woman holds smart phone and credit card banking 123rf 123rfbusiness

Bank fees are too high. It’s unfair! – Bettr (new app-powered 'bank')

29 September 2020 11:11 AM

"We aim to do banking differently," says Bettr cofounder Tobie van Zyl. "The traditional banking model is going to evaporate."

Share this:
Read More arrow_forward

kevin-lings-croppedjpg

I love economics. It’s part of me - Kevin Lings (Chief Economist, Stanlib)

28 September 2020 8:12 PM

Kevin Lings (Chief Economist, Stanlib) opens up about his attitude to money (hopes and fears, successes and failures, etc.).

Share this:
Read More arrow_forward

Funky hipster retired older mature couple 123rf 123rfbusiness retirement

How to secure your retirement - Bruce Cameron (retired editor, Personal Finance)

28 September 2020 7:24 PM

Bruce Cameron discusses with Bruce Whitfield his new book on securing your retirement, despite corruption and the smashed economy.

Share this:
Read More arrow_forward

Small grey house wooden 123rf 123rfbusiness 123rflifestyle

All houses in South Africa can and should be built with wood – study

28 September 2020 6:49 PM

SA needs homes. Plenty of them. They can and should be constructed with wood, says Phillip Crafford (Stellenbosch University).

Share this:
Read More arrow_forward

White sneakers on colourful floor

Design a sneaker and stand to win a bursary from AAA School of Advertising

25 September 2020 11:11 AM

The best time to plan your child's future is right now... Here's how to win full academic bursary from AAA School of Advertising!

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Money lessons Covid-19 taught – heed them for a brighter, wealthier future

25 September 2020 10:44 AM

Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.

Share this:
Read More arrow_forward

cashless-paymentjpg

'SA cash economy about 60% of GDP, moving that to digital would be huge saving'

24 September 2020 8:39 PM

The Covid-19 pandemic's moving us towards a cashless society. Arabile Gumede interviews Ukheshe co-founder, Clayton Hayward.

Share this:
Read More arrow_forward

Skyscrapers CBD Johannesburg 123rf 123rfbusiness

Long-term investment case for property in Africa remains intact

24 September 2020 1:38 PM

There’ll be many opportunities for frontier investors in the coming years, says Absa's Somaya Joshua.

Share this:
Read More arrow_forward

wedding-mask-couple-Covid-19-123rf

Planning a wedding? Remember booking a bigger space for fewer people, costs more

23 September 2020 7:42 PM

Level 1 rules helping but also hindering the wedding industry. Get cost-saving tips from Precious Thamaga (Precious the Planner).

Share this:
Read More arrow_forward