New specialist property financier, ZDFin to bridge the gap for community schemes
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.
More from Business

Chad's President Idriss Déby dies on battlefield after clashes with rebels
Provisional election results show 68-year-old President Idriss Déby had been on track to win a sixth term in office.
Read More
Cell C is clawing back subscribers - 'We're evolving the business now'
Has Cell C finally achieved a turnaround? Bruce Whitfield interviews CEO Douglas Craigie Stevenson about its full-year results.
Read More
'Uncaptured': Whistle-blower on Trillian's role in underbelly of state capture
Those SOEs are now at Treasury with begging bowls because all the money is in Dubai! - Mosilo Mothepu discusses her tell-all book.
Read More
Daniel Mminele to step down as Absa CEO after just 15 months
Bruce Whitfield grills the Absa chair on how the board got CEO appt. so wrong - Mminele 'not aligned' with them on strategy.
Read More
Outbreak of 'highly pathogenic' bird flu threatens SA poultry industry
"It’s easily transmissible," says Colin Steenhuisen. "This is an outbreak of highly pathogenic avian influenza."
Read More
Oracle pulls the plug on Eskom: 'No big impact on operations'
Oracle has ended IT support to Eskom, claiming non-payment. Bruce Whitfield interviewed Eskom spokesperson Sikonathi Mantshantsha.
Read More
National Treasury suggests Tokyo Sexwale fell for a huge scam
"Sadly, we can’t find any evidence of such funds," says Ismail Momoniat, Deputy Director General at National Treasury.
Read More
Sub-Saharan Africa will have the slowest growing economies in the world in 2021
The poorest region in the world is projected to grow at 3.4%, kneecapped by the slow pace of Covid-19 vaccine rollouts.
Read More
Give your child the best education you can afford – here’s how to invest
Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.
Read More
Meet this week's VodaPay Max winner – vintage toy craftsman, Anthony Davids
Congratulations to this week's winner, Anthony Davids whose just won Vodacom's latest VodaPay Max POS system and R10,000 in cash.
Read MoreMore from Lifestyle

Show your liver some love this World Liver Day!
This #WorldLiverDay, celebrated annually on 19 April, Essentiale® Extreme wants you to show your liver some love!
Read More
We carry marks of failure instead of showing our excellence - Karyn Maughan
The legal journalist was starstruck during an interview with internationally acclaimed South African comedian Trevor Noah.
Read More
Give your child the best education you can afford – here’s how to invest
Personal finance advisor Warren Ingram on how to save and invest for your child’s future education.
Read More
'Seven in ten South Africans spend all their income or more every single month'
The latest Deloitte consumer survey shows we are more worried about our finances than Covid, says Mike Vincent (senior partner).
Read More
Savanna plays on SA's 'buddy' bar culture to tackle the #MyFriendZone
'We don't need a name to be friends.' Savanna's use of humour is not just advertising, it's entertainment says Andy Rice.
Read More
About 60%-80% of men with diabetes will have erectile dysfunction - Expert
Urologist Dr Shingai Mutambirwa says If you have erectile dysfunction consistently for three months, that is a serious problem.
Read More
Why Paarl-based Cape Brewing Company brews its pale ale in Sweden
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.
Read More
'I had to pinch myself, I had so much money! It was ridiculous!'
Springbok Legend-of-Legends Tendai "Beast" Mtawarira opens up about his money and his beliefs about it.
Read More
How to think like a billionaire - it's how you too can be wealthy
Bruce Whitfield interviews Daniel Strauss, author of The Billionaire Mindset: Secrets of a Successful South African Entrepreneur.
Read More
Should you keep working from home after the pandemic?
Will doing so affect you negatively in the long term? Bruce Whitfield interviews Linda Trim, Director at Giant Leap.
Read More