CEO Masterclass: Regan Harris

In 2003, Regan identified the need for an exclusive, boutique Real Estate Agency. Today Hamilton's Property Portfolio has a national and international footprint. Little is known about Regan's real estate journey. We get the inside scoop with our exclusive interview:

Q&A

"What inspired you to join the property business?"

I have indirectly been dealing in property for the past 30 years. From the age of 12 I recall riding my bicycle to view a variety of properties "on show" in the greater Sandton area. I would jot down the comparative features of the various homes, note the prices and compare these to what they eventually sold for. By the age of 14, I was relatively knowledgeable and had a good grasp on values and what was deemed realistic in terms of initial asking price. I started investing in property from the age of 16, taking a long-term view of property investment. Initially, I acquired sectional title units, which I rented out, fully furnished and equipped. The returns far exceeded the usual ratios of unfurnished apartments. From there, I acquired cluster units on the same basis and a property portfolio was born.

"Did your law degree contribute to your success?"

Absolutely. My law degree enabled me to fully grasp the complexity of contractual law and the impact this has when acquiring and renting properties. I use stringent procedural methods when running the property portfolio business, which has allowed us to attain sustainable growth within a structured environment.

"How should you structure your property portfolio to yield a return on investment?"

A structured property portfolio needs to take into consideration several factors: the present yield; the potential asset value growth of investment properties; structuring one's portfolio over a variety of property types. Be it sectional title, free-hold, commercial (industrial or retail), any property investment portfolio needs to have a spread across sectors to mitigate any changing market conditions. Many factors could hamper any one segment at a given point in time; you need to be conscious of these. Research the two return models, namely yield return and capital return, when calculating the return on your investment in your property portfolio.

"What should you know about tax?"

Do your homework and know what the varying tax rates are, what you can and cannot claim as an expense, as well as the capital gains tax on future potential sales. This will determine the viability of the investment.

"How should you calculate the return on your investment?"

Take the net proceeds (selling price less cost price) and divide it by the cost of the investment. This is multiplied by 100 to provide a percentage return amount.

"What advice would you give South Africans regarding the current economic and financial markets?"

Don't make assumptions, use accurate figures and make sure you find the right property, in the right area at the correct price. Do your homework and get advice before you take the plunge.

"What advice do you have when it comes to fluctuating repo rates?"

When taking out a mortgage it is best to cap the interest rate over the repayment terms. A fluctuating interest rate can work in your favour when the repo rate decreases. However, it can be disastrous in the long term should the reverse occur. Fixed rates are typically higher, usually from 150 to 200 basis points, but are less risky in the long term. With the increased protection that tenants are provided with the Consumer Protection Act, as well as the provisions in the Rental Housing Tribunal Act, it is strongly urged that professional realtors are employed to source and thoroughly vet any potential tenants. If you do not have the time or the necessary skills to manage the portfolio, hire a skilled realtor to take care of it on a managed basis for you; this is money well spent. Protecting your investment should be your first priority.

If you are looking for an experienced property partner to function as a professional medium, be it for buying, selling or renting, contact Hamilton's Property Portfolio on 011 463 0155 or mail to reception@hamiltons.co.za

Read our previous article here: https://www.hamiltons.co.za/news/top-5-watches-to-collect-as-investment-timepieces/

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