Streaming issues? Report here
Temp 702 logo 1000 x 1000 2020 Temp 702 logo 1000 x 1000 2020
Best of 702
00:00 - 04:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of 702
00:00 - 04:00
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

Chad's President Idriss Déby dies on battlefield after clashes with rebels

20 April 2021 9:02 PM

Provisional election results show 68-year-old President Idriss Déby had been on track to win a sixth term in office.

Share this:
Read More arrow_forward

Cell C is clawing back subscribers - 'We're evolving the business now'

20 April 2021 8:14 PM

Has Cell C finally achieved a turnaround? Bruce Whitfield interviews CEO Douglas Craigie Stevenson about its full-year results.

Share this:
Read More arrow_forward

'Uncaptured': Whistle-blower on Trillian's role in underbelly of state capture

20 April 2021 7:49 PM

Those SOEs are now at Treasury with begging bowls because all the money is in Dubai! - Mosilo Mothepu discusses her tell-all book.

Share this:
Read More arrow_forward

Daniel Mminele to step down as Absa CEO after just 15 months

20 April 2021 6:51 PM

Bruce Whitfield grills the Absa chair on how the board got CEO appt. so wrong - Mminele 'not aligned' with them on strategy.

Share this:
Read More arrow_forward

Outbreak of 'highly pathogenic' bird flu threatens SA poultry industry

19 April 2021 7:42 PM

"It’s easily transmissible," says Colin Steenhuisen. "This is an outbreak of highly pathogenic avian influenza."

Share this:
Read More arrow_forward

Oracle pulls the plug on Eskom: 'No big impact on operations'

19 April 2021 7:07 PM

Oracle has ended IT support to Eskom, claiming non-payment. Bruce Whitfield interviewed Eskom spokesperson Sikonathi Mantshantsha.

Share this:
Read More arrow_forward

National Treasury suggests Tokyo Sexwale fell for a huge scam

19 April 2021 6:30 PM

"Sadly, we can’t find any evidence of such funds," says Ismail Momoniat, Deputy Director General at National Treasury.

Share this:
Read More arrow_forward

Sub-Saharan Africa will have the slowest growing economies in the world in 2021

16 April 2021 2:44 PM

The poorest region in the world is projected to grow at 3.4%, kneecapped by the slow pace of Covid-19 vaccine rollouts.

Share this:
Read More arrow_forward

Give your child the best education you can afford – here’s how to invest

16 April 2021 11:03 AM

Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.

Share this:
Read More arrow_forward

Meet this week's VodaPay Max winner – vintage toy craftsman, Anthony Davids

16 April 2021 10:36 AM

Congratulations to this week's winner, Anthony Davids whose just won Vodacom's latest VodaPay Max POS system and R10,000 in cash.

Share this:
Read More arrow_forward

More from Lifestyle

Show your liver some love this World Liver Day!

19 April 2021 6:00 AM

This #WorldLiverDay, celebrated annually on 19 April, Essentiale® Extreme wants you to show your liver some love!

Share this:
Read More arrow_forward

We carry marks of failure instead of showing our excellence - Karyn Maughan

16 April 2021 2:53 PM

The legal journalist was starstruck during an interview with internationally acclaimed South African comedian Trevor Noah.

Share this:
Read More arrow_forward

Give your child the best education you can afford – here’s how to invest

16 April 2021 11:03 AM

Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.

Share this:
Read More arrow_forward

'Seven in ten South Africans spend all their income or more every single month'

15 April 2021 8:10 PM

The latest Deloitte consumer survey shows we are more worried about our finances than Covid, says Mike Vincent (senior partner).

Share this:
Read More arrow_forward

Savanna plays on SA's 'buddy' bar culture to tackle the #MyFriendZone

14 April 2021 7:36 PM

'We don't need a name to be friends.' Savanna's use of humour is not just advertising, it's entertainment says Andy Rice.

Share this:
Read More arrow_forward

About 60%-80% of men with diabetes will have erectile dysfunction - Expert

14 April 2021 12:19 PM

Urologist Dr Shingai Mutambirwa says If you have erectile dysfunction consistently for three months, that is a serious problem.

Share this:
Read More arrow_forward

Why Paarl-based Cape Brewing Company brews its pale ale in Sweden

14 April 2021 10:05 AM

Bruce Whitfield picked up a can of CBC pale ale and was shocked to see it is brewed in Sweden. He phoned the company to learn why.

Share this:
Read More arrow_forward

'I had to pinch myself, I had so much money! It was ridiculous!'

13 April 2021 12:49 PM

Springbok Legend-of-Legends Tendai "Beast" Mtawarira opens up about his money and his beliefs about it.

Share this:
Read More arrow_forward

How to think like a billionaire - it's how you too can be wealthy

12 April 2021 7:44 PM

Bruce Whitfield interviews Daniel Strauss, author of The Billionaire Mindset: Secrets of a Successful South African Entrepreneur.

Share this:
Read More arrow_forward

Should you keep working from home after the pandemic?

12 April 2021 6:48 PM

Will doing so affect you negatively in the long term? Bruce Whitfield interviews Linda Trim, Director at Giant Leap.

Share this:
Read More arrow_forward