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And The Ritual Slaughter Continues...

CeesB — Thu, 29 Jul 2010 19:11:00 GMT

The Quarterly Labour Force Survey for 2Q2010 makes for very grim reading indeed, nearly like those daily WW1 casualty lists from the Western Front.

During the 2Q2010 another 129 000 FORMAL jobs (the ones that really, really matter) were lost, taking the grand total since late 2008 to 650 000 jobs lost. On a 9.5 million strong formal labour force in late 2008 then at its cyclical peak, estimated to produce 90% of GDP, the attrition in real employment so far has been 7%. That’s worse, far worse, than experienced in the US these past two years. And our recession wasn’t close to theirs, never mind others.

For the remainder of the survey, it is gratifying to know

that informal employment rose by 115 000 (an interesting number, suggesting begging is now considered an informal activity)
unemployment rose by a mere 2000 (or 0.05%, itself a fascinating number, yet statistically insignificant and in times like these far less even than the alleged increase in informal employment)
more people were added to the non-economically activity category this past year than what the population rose in two years (by what magic one doesn’t know).
The participation rate keeps plunging and now stands at 40% (while the Harvard Group of yore, not at all unrealistically, feels it should be nearer 60%, but with all flummoxed as to how to achieve this).

Real wages rose substantially during the quarter for those continuing in employment.

Words fail to fully capture what is being reported here. So the data has to tell its own story. Hope this isn’t too difficult.

June mortgage and household credit numbers

JohnL — Thu, 29 Jul 2010 19:04:00 GMT

Please see attached for the latest mortgage and household credit growth numbers. Outstanding mortgage advances growth has been very stable in recent months, due mostly to significant growth in new loans granted on the residential side, which has in turn returned new loan payouts to positive growth territory earlier in 2010 after sharp decline in 2009.

Household sector credit growth ticked up to 4.3% year-on-year in July. This should still be slow enough to allow the household debt-to-disposable income ratio to decline further from its 78.4% level of the 1^st quarter, and a decline in the debt-to-disposable income ratio to more comfortable levels is important prior to the next interest rate hiking cycle.

(Please visit the site to view this media)

Should You Accept That Counter Offer? The Answer is Easy...

How can we help you — Thu, 29 Jul 2010 12:26:00 GMT

As a rule, once you've made a decision to leave your company, you should stick to it. Be gracious in the face of a counter offer but be on your way. Here are 8 reasons why you shouldn't look back:

•1. Beware of stall tactics

By accepting a counter offer, you're moving the ball back into your employer's court. Your attempted resignation may mean you are no longer in the inner circle and, by placating you; the company has just bought some time to replace /sideline you at its leisure.

•2. The trust issue

By making your boss aware of your dissatisfaction, you've placed a big question mark over your loyalty. Going forward, you may be regarded with suspicion, perceived as a flight risk, or worse, viewed as an extortionist! This can have repercussions at your next performance review. Another raise? Promotion? Don't hold your breath - they've made their investment. Also, should the company experience difficult times, you may be first on the chopping block.

•3. Not good for company morale

You may well lose respect amongst your co-workers. You've held the company to ransom and proved you can be bought. The situation can promote jealousy and create a bad vibe, especially if others try to copy your behavior.

•4. Money doesn't change everything

Most often, the reasons you were looking to move are more than just the money. A financially generous offer won't change the dysfunctional culture, the lack of opportunity, the ridiculous deadlines,etc that got you job-hunting in the first place. More than likely, those same circumstances will be back to haunt you within a year.

•5. Keep emotions out of it

Yes, a counter offer may be flattering but consider why it took a resignation to make them appreciate your value. Don't let a guilt trip get to you either. Your boss may ask how you could leave after all the company has done for you. Keep your reasons top of mind.

•6. Your credibility is as stake

If you've accepted a new position and then turn it down in the face of a counter offer, you have wasted the time of the recruiter and the potential employer. Your integrity is at risk and could damage any future prospects with that company; even the recruitment agency may not take you seriously next time around.

•7. Let the stats do the talking

Research proves that those candidates who accept a counter offer are very rarely at the same company six months later. It is very important to decide whether the counter offer is a real solution or merely a quick fix.

•8. Refuse with respect

You never want to burn bridges. Thank your boss for the offer and how important the work experience has been for your career. Leave with your reputation and relationships in tact. You never know when you may return. These days it's not uncommon and with the additional skills and experience you have gained elsewhere, you can come back more valuable and in a stronger negotiating position.

If it's only more money you are after, rather motivate the reasons you deserve a raise before you start looking for another job. Counter offers are almost always counter productive.

Ugh! Is there any value in all those meetings!?

How can we help you — Tue, 13 Jul 2010 06:46:00 GMT

Meetings can be the bane of corporate life - there are too many of them, attended by the wrong people for the wrong reasons. People are too worried about what they are going to say next than to listen to what's really being said. Many find it easier to set up meeting after meeting than to do ground work or detailed proposals first. The bottom line is a whole lot of unproductive time and having to actually book meetings in your diary just to get any work done!

Nancy Kline, author of the book Time to Think and head of an international leadership development organisation active in SA, believes that the human mind works best given the space and time to think. A productive meeting must draw out the best thinking from its attendees. More often than not, our ideas are impacted by the way we are treated by others when we are thinking. If we are interrupted, undermined or ignored, we may not support an initiative or, worse; just not bother to contribute the next time. Kline has coined what she calls a Thinking Environment^TM to underline the importance of meaningful communication in a meeting forum. If a team leader can create an environment conducive to good thinking, it figures that you will make the best use of people's time together and the spin-off is an improved result.

Here are some of Kline's tips to consider when next you're leading a meeting:

1. Is the meeting necessary? Make sure the time is really required and that you will benefit from the brainpower of all the invited participants.

2. No electronics allowed. Texting disrupts thought process and meeting flow. Cell phones off, one person to take minutes.

3. Put the outcomes on the table. Make sure everybody knows what needs to be achieved and the thinking that is required to achieve this. What are the next actionable steps to be taken and by when?

4. Everyone matters. This is key to a positive outcome. It's about fostering equality. If people feel valued for their opinion, they will apply more creativity to their ideas. Create an environment of ease. Make sure everyone has a designated opportunity to speak uninterrupted and police it. Keep the room clear of side commentaries during this time. Allowing people the time to present their own ideas can inspire additional thought from others. Remember eye contact is a must.

5. Stay on track. If some kind of clarification is necessary after someone's contribution, keep it quick so it does not interrupt the process. An agenda before the meeting is often a good idea

6. Keep things positive. Even in a difficult meeting, try to include a mention of what is going well.

7. Deal with assumptions. Sometimes a presumption can limit thinking. Also, assuming a slightly more positive scenario can stimulate fresh ideas and new insight.

8. Welcome diversity. Be open to new ideas, even if they seem offbeat. Many actions have been spurred by out-of -the-box thinking.

9. Flag burning issues. Towards the end of the meeting, highlight any unresolved issues to be addressed at another time. This shows everyone they have not been ignored and adds to positive closure.

10. Show appreciation. It's human nature that people remember criticism before they remember praise. To counter this, Kline believes it is good practice to work on a 5:1 ratio of appreciation to criticism. Be sincere when giving it.

The overriding message in the workplace is that if you value your colleague for their presence and their ability, you will get the best out of them.

How To Play The Game of Office Politics

How can we help you — Sat, 10 Jul 2010 06:54:00 GMT

Office politics is alive and well and thriving in an office near you. There is no escaping it - it's basically human nature at work - so most experts advise that the best way forward is to embrace the situation. This is not to say you have to stoop to down and dirty levels. Never compromise your core values but don't shy away. Office politics is all about communication. It's common knowledge that people who make their presence felt are more likely to get promoted. The guy who works hard but keeps his head down comes across as disinterested. Knowing the games people play can be critical to getting things done or getting ahead.

Life coach, Gillian Beeton from the company Real Self suggests seven habits worth adopting to help you navigate the maze that is office politics.

Habit 1: Develop relationships - Being good at politics really means you are good at building relationships. Listening to your colleague's opinion even if you disagree shows respect. Helping someone out almost guarantees they will return the favour another time. Establish yourself as a team player. If you don't delegate, or prefer to keep to yourself, you may find yourself excluded. It's important to be able to call on a wide range of people when you need their support, whether it is a speedier office stationery delivery or motivation for a promotion.

Habit 2: Practice empathy - Basically, be nice. Make time for your co-workers. Show an interest. Empathy builds trust and will help you make genuine connections with people. By seeking to understand your colleagues, you will develop a deeper insight into why they behave the way they do. This will automatically make you less defensive to situations and help you to keep a long-term view.

Habit 3: Don't make assumptions - It's far better to clarify by asking the person directly. Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstanding. It's a simple habit that can transform office politics.

Habit 4: Avoid cliques - Form allies across departments and management levels, age groups and interests. This way you can avoid being trapped in someone else's game.

Habit 5: Exert your influence - This means taking charge of the situation. Instead of complaining about something over which you have no control - like losing out to a colleague on a promotion - rather respond from a position of strength. Offer your congratulations and ways in which you are equipped to provide assistance. Not only is this empowering but the whole office will see you as someone who can handle disappointment. This leaves people with a positive impression which bodes well in the career stakes.

Habit 6: Handle the grapevine - Every company has tea trolley gossip. Listen up but don't participate in trashy talk - it is bad for your reputation. It can, however, help you understand the power structures and influences in your office. Not all gossip is bad and if you act on it rather than spreading it, the effect can be positive. If, for instance, you hear that your co-worker's husband has moved out, you can cover for her if she flounders at your next meeting. You can also use the bush telegraph to your own advantage. If you've had a particular success on a project, whisper it in the right ear and you never know where it may reach.

Habit 7: Don't get personal - If you are annoyed with a colleague, whether it is for say, withholding information or badmouthing you, do address the problem but handle it professionally and privately. Keep your temper and never resort to a slinging match. People will remember the insults long after the issue is resolved. It could come back to bite you. Also in any office conflict, try not to take sides. This allows you to build trust with both parties. Always keep business objectives upfront.

When there are opposing goals, different personalities and careers at stake, there is always going to be politics. Play the game but with a positive attitude. It will pave the way for an upwardly mobile career.

Mind over Money

How can we help you — Thu, 08 Jul 2010 10:56:00 GMT

I can't stop thinking about Grigory Perelman, the Russian mathematical genius who recently solved an intricate mathematical equation called the Poincare Conjecture. An American institute wants to give him $1 million for solving the problem. Perelman, something of a tortured soul, doesn't want the money, спасибо , nyet spasibo, he prefers to continue living with his mom, in their small apartment, reportedly saturated with rising damp and infested with all manner of crawling insect. Maybe he just really, really likes his matuschka's borscht?

Here we are, trying to find ways to pay our spiraling Eskom bills, and stretch that packet of lean beef mince as far as possible, and someone else simply turns down R7.6 million. Does Grigory simply feel compelled to keep his wants to a minimum? Or is he a nutter? Should we assume that anyone who doesn't want that much money is crazy? There's no doubt that his local post office is being inundated with bags of letters addressed to Grigory, probably from people like me... saying "Hey, if you don't want it, Comrade Perelman, I'll find a use for it!"

To me, such indifference to what most other people would regard as the best gift they've ever received underscores the point, firstly, that there simply aint no justice in the universe, and secondly, that if you don't have a serious attitude towards money, it will, as sure as lasting happiness in a Chekhov short story, simply melt and disappear. Da?

Eric Tyson, author of Mind Over Money, your Path to Wealth and Happiness, offers the following great tips to developing a serious attitude towards money and ensuring your long-term financial freedom:

The budget is not necessarily the Alpha and Omega of everything: Telling people to reduce their spending is like telling an overweight person to just lose weight. Easier said than done. "The fundamental problem is that following a budget or a diet is simply unpleasant and often doesn't attack the root causes of the problem," says Tyson.

Tracking your spending will get you better results: Get out your credit card statements and anything else that will help you detail where you spend your money in a typical month. Track these cash purchases for a week or two in a small notebook that you carry with you. Determining where your money has been going should help you to identify some fat to cut. "This approach works because you're not planning all of your spending in advance - an utterly joyless task," says Tyson. What you are doing is examining your general spending and then making focused cuts.

Swap credit cards for debit cards: "If you've had a tendency to carry debt balances month-to-month on credit cards, cut those up and instead get a VISA or MasterCard debit card, which are accepted by all merchants who take credit cards," Tyson says. "The difference is that a debit card is connected to your cheque account, which prevents you from spending money that you don't have and carrying costly debt balances month-to-month."

Deal with your consumer debt before you start saving: Don't begin a saving program until you've paid off your consumer debt. You're very unlikely to earn an investment return, after taxes, that exceeds the high interest costs on credit cards and other consumer debt. "When you can afford to set some money aside in savings, make your saving automatic by setting up a direct-deposit payroll deduction with your employer (or using automatic cheque account transfers to an investment account if you're self-employed)," he writes. "That way, you're free to spend what's left over, and you don't need to drive yourself and other family members crazy tracking every expenditure."

Change your purchasing habits: To change your consumption habits, you must first change your mindset about shopping. "To get a better handle on how you should make consumption decisions, observe friends and relatives who are thrifty and try learning some of their better spending habits," Tyson writes. "Don't shop with people who share your spending problems or who've often accompanied you on shopping sprees in the past."

Financial envy is very destructive: Sure, there will always be people who have more than you, who drive a better car and live in a fancier house, but for the most part, many of those people are workaholics, who don't really lead a balanced life. Live a little. Your daughter will remember and value you being at her nursery school concert, and you're not going to lie on your death bed one day, wishing you'd spent more time at the office.

Choose your gurus carefully: Don't make emotional decisions. As with everything in life, recognize what you can and cannot control. Don't waste your time or energy by closely following things that you have no control over. And be wary of faddish investment opportunities, or so-called finance experts who make wild claims about being able to make you a quick buck.

So.... what salary are you looking for?

How can we help you — Sun, 04 Jul 2010 06:41:00 GMT

They've leaned in closer and the pressure is on you. That all important question, the one you know you're not supposed to answer, has been asked. What now? An understanding of basic salary negotiation tactics when interviewing is key to securing the job offer you deserve.

•1. Do your homework

You know the interviewer is going to ask the salary question so go in prepared. Have a general figure in mind. Research industry salary standards so you can prove what is market-related for your level of expertise and experience. Knowledge is a good bargaining tool. Know too what your priorities are. Is money everything or is responsibility more important, maybe flexibility is the clincher? A clear idea of what's most important will help you to know when to compromise.

•2. Sell yourself first

Yes, most of us are working for the bottom line but you don't want to give the impression that money is your only motivation. Most experts agree that you should wait for the interviewer to bring up the salary question. You first need to market yourself as the best person for the job in terms of qualification and experience. In other words, establish value upfront before you name a price. This step is critical so try stalling tactics if the money question comes up too early. You could say something about money not being your only priority and you'd like the opportunity to first outline the contributions you believe you could make.

•3. Let the interviewer make the first move

There is more room for negotiation if the interviewer puts a figure forward. It's much easier to bargain if you know the company wants you. Also you may suggest a figure that is too low at the outset and then you can't go back, or alternatively an amount that's so out the ballpark you price yourself out of the process. The best time to talk money is when there is an offer on the table.

•4. Value vs greed

Always negotiate a salary based on what expertise you bring rather than what you need to earn. An employer is not interested in your three kids with private education fees; it's your worth to the company that counts.

•5. So how much do you earn now?

It's hard to avoid the question but if you're looking to make a significant jump from a low salary history, it pays to attempt a few evasive techniques. Rather say what you'd like to be earning, or the salary range you're interested in, or ask what salary has been budgeted for the position in question.

•6. How low will you go?

Know beforehand what absolute minimum salary you would be happy to settle for. You don't want to get caught in an unprofessional haggling process because you didn't do the math.

•7. Be open to alternative solutions

Don't be dogmatic about a specific figure. There are other perks like share options, performance raises, extra vacation days, year-end bonuses, etc. that can make up for cash compensation.

•8. Accept that negotiation is part of the process

It can be scary but most companies expect to bargain a bit and they will respect you for it. Don't simply settle on the first offer you receive, particularly if you know it's low. It will have consequences down the line like smaller increases because you are starting on a lower base. It's when you have the offer in hand that you have the most power. Show appreciation but ask for some time to consider it. If you are the right person for the job, you'll find out very quickly if there is room for negotiation.

•9. Be friendly and professional

Keep negotiations amicable. The way you handle it will influence future negotiation down the line. Show the interviewer that you are eager to work together to finalise a package that works for both parties. If things don't work out, walk away graciously. The world is a small place and you never burn bridges.

•10. Get it in writing

If the job offer and salary package is acceptable, be sure to get it in writing. A verbal agreement may seem fine but you don't want to run into hassles on the first day you report for duty.

12 CV NO-NOs

How can we help you — Mon, 28 Jun 2010 11:12:00 GMT

Job hunting? When you send out your CV you want to make the recruiter's short list, not the shredder. If you're serious about getting the interview, avoid these common mistakes:

Read the instructions - If the job spec requires that you send a one-page profile in Word Format with two contactable references, follow that simple instruction. You can be sure your well-intended 5-page documentary will prove only one thing - that you can't pay attention.
Ever heard of spell check'? - It may not seem like rocket science but many CV's end up in File 13 because they are riddled with typos. It doesn't say much about your work ethic if you couldn't be bothered to check for spelling and grammatical errors. To be extra safe, get a friend to check it over for you before you send it off.
They want to read it, not frame it. - It's most important that your CV is easy to read, both in print and on screen so don't choose a really fancy font that is a) impossible to decipher and b) incompatible with the recruiter's operating system. Select one of the traditional typefaces that are universally recognised like Arial. Also keep type size between 9 - 12 pt; anything less is too small and any bigger is the stuff of school projects.
Leave the flowery stuff for the garden
If there is one time to go with simple black and white, this is it. Give decorative effects like borders, shadows and embossing a miss. Unless you're applying for a position in the creative arts, swirling backgrounds and colourful headings will not make a good impression.
Does size count? Yes. CV's should be kept to two pages, 3 at absolute most.
White space rules - Don't cram loads of information into long, rambling paragraphs of script. Use clear categories, short sentences, headings and bullet points. The key points should be readable at a glance.
Keep it real - Never lie about your qualifications, experience or otherwise. The truth will out and chances are the repercussions will be dire. Rather focus on your good points than create something that doesn't exist.
Information overload - Listing the Gold certificate you won in the Grade 10 Debate Challenge is not going to win you any interviews. Likewise your Saturday morning job in the video store (unless you are fresh out of college). Detailing every award and job you've ever had is unnecessary and tedious. Only include achievements and experience that are relevant to the job in question.
Mind the gap - Don't leave gaps in your career history thinking no one will notice. They will. Explain reasons for time between jobs (you took a six month sabbatical in Thailand) and if you've left a job, explain briefly why.
Job titles don't speak for themselves - It's almost meaningless to just state ‘Supervisor'. The person doing the hiring is keen to know what value you will bring to the position. Rather say ‘led a team of twenty call consultants responsible for achieving a Million Rand budget
Call me - Make sure you include full, correct contact details. Give a couple of options. No potential employer is going to spend time tracking down your number. Do include an email address - but make sure it's professional - badbrad@madhatter.co.za is not going to appeal and don't use your present company address either.
Ditch the photo - Unless you're applying for a position where looks count (a model, maybe) then leave off the pic. A recruiter is interested in your expertise not your physical attributes.

Buying a House on Auction - Part 2

How can we help you — Fri, 25 Jun 2010 06:33:00 GMT

Local auction houses report that the concept is catching on fast locally so the variety and volume of available stock is growing. If you're keen to raise your hand on the auction floor, make sure you're aware of the costs involved and the various pros and cons.

Counting the costs

* Refundable registration fee: According to Savile Row Auctions, to be eligible for bidding you must pay a registration fee - currently R10 000 for residential properties (but R25 000 for a commercial, industrial or retail-zoned property). This is payable either by online transfer or bank guaranteed cheque - strictly no cash allowed.
* Condition of sale - upfront payments: Should you be successful, the following funds are payable - the auctioneer's buyer's commission (around 10%) plus VAT and a deposit, which will depend on the purchase price of the property. The initial registration fee will be subtracted from the equation.
* Traditional transfer costs and duties apply: FNB's Quick Sell Manager, Ryno Mey says FNB is offering qualifying buyers 100% bonds with a 50% discount on the attorney fees - transferring costs and registrations fees - if the customer uses the nominated FNB attorney at an FNB Quick Sell auction.

Weighing up the pros and cons

Joff van Reenen, director and lead auctioneer at Savile Row Auctions outlines the benefits of buying on auction as well as the few negatives to be aware of:

The positives

Shorter sales period - lengthy negotiations are eliminated which has big appeal for buyer, seller and bank. Sellers have serious intentions and have given the auctioneers a mandate to sell on that specific day.
Speed and efficiency - it's a quick process. No waiting periods or cooling off clauses. The completion date is set in advance, usually around 28 days after the sale.
Certainty & control - As a buyer, you decide when to bid and how high or low you wish to go. This is a guaranteed clean offer - if your bid is successful, then the property is yours on completion. The vendor cannot withdraw.
Transparency - The process allows open and fair competition with other bidders. Buyers determine the purchase price. There's no chance anyone can sneak up on you with a better offer and change the seller's mind before you sign the contract. The sale is complete and binding on the fall of the hammer. Buyers may also peruse the auction conditions of sale about a month prior to the sale taking place.
Price - You purchase the property at fair market value and the market will dictate the price.
Time to form a plan of action - Auction days are advertised in advance, giving you time to inspect the property and arrange finance.
Convenience - multi-property auctions present an opportunity to see more than one offering on the same day.
Information - the bidder's info kit ensures buyers are totally educated on their property of interest.
Fun - As a method of sale, the auction is in itself very exciting and exhilarating.

The negatives:

Over-enthusiasm - Buyers can on occasion get caught up in the moment and overpay.
Timing - Sometimes there may not be enough time to conduct a due diligence.
Finality - There is no cooling off period; you cannot change your mind once bidding has been concluded.
‘Voetstoots' sale - you buy the property as is so it is advisable to do your homework.
Terms of sale - These are set by the seller and by bidding you agree to adhere to those conditions.
Upfront payment - the full deposit is payable immediately and quite often a buyer's commission is payable on auction in SA (between 70 - 80% of auction houses charge a buyer's commission with the remainder charging a seller's commission).

THE ‘BIG FIVE' WHEN RENTING OUT A HOME IN SA

How can we help you — Mon, 21 Jun 2010 10:13:00 GMT

Renting out a property can make good business sense and can generate considerable income, but only if handled correctly and professionally.

Rent control laws that favour tenants, bad tenant behaviour and the responsibility of looking after another property may put many people off the idea of renting out their home. However, Adrian Goslett, Assistant Regional Director of RE/MAX of Southern Africa, says that if landlords are well versed in all aspects of renting out a property, it can be a money-generating experience instead of a headache. In addition, he says, making use of a professional rental agent will ensure a hassle-free experience for the landlord, with only the benefits of the rental income.

Whichever way you decide to go when renting out your property, Goslett says landlords will have certain responsibilities and obligations to fulfil. These include providing a safe and well functioning home for your tenants such as making sure plumbing, wiring and appliances function and that outdoor areas and stairways are safe. "It also means quickly responding to a tenant's report of any malfunction or problem," he says.

Landlords will also need to advertise the rental, select suitable tenants and evict them if irresolvable problems arise. "The benefit when dealing with a rental agent instead of going it alone," says Goslett, "is that they take care of the good, the bad and the ugly when it comes to tenants and have the knowledge and professional expertise to handle potentially difficult situations correctly and in accordance with rental laws."

Goslett highlights five key elements landlords need to bear in mind before renting out a property:

1. Calculate your costs - Landlords need to carefully calculate the total cost of keeping the property functioning smoothly. This calculation should include bond repayments, utilities and maintenance, repairs and any professional services such as property management through a reputable rental agent, tax help and a legal consultant. Now you can estimate your rental price, but remember that it needs to be competitive, so just translating your ownership costs into a rental fee won't work. Goslett notes that a rental agent will assist you with determining a fair rental price. "Potential landlords can also check newspapers to ascertain the price range of rentals for similar properties within the area," he says. Before deciding whether it is worth it to rent out your property or not, Goslett advises that you compare the rent you think you can get with your costs. Casey Edwards, co-author of The Complete Idiot's Guide to Being a Smart Landlord and The Complete Idiot's Guide to Making Money with Rental Properties, suggests working up two profit-and-loss statements: a best-case list and a more conservative one that includes all the things that could go wrong. "But," Goslett says, "even if the figures don't show an immediate profit, there are many other good reasons to rent out a property including the long-term appreciation or holding out until you can get the asking price you want should you consider selling the property."

2. Tenant screening - "This is undoubtedly the landlord's most crucial task," says Goslett, "and should therefore be conducted thoroughly." Goslett says that once again, if a rental agent is used, they will endeavour to ensure that only suitable tenants are selected. Assessing a tenant's suitability includes checking their background and financial capabilities. "This includes gathering information about the prospective tenant's earnings to ensure they have enough to pay the rental charges regularly. A payslip can assist in assessing this, and references from the employer would also assist in checking the person's character," says Goslett. The rental application should include an applicant's full identity, rental history and credit picture. "If you are going to perform a credit check, this needs to be disclosed on the application and prospective tenants need to sign the form indicating they agree to this."

3. The legal stuff - A rental agent will provide all the necessary legal documentation when assisting you with a rental property. The rental contract should include the following clauses specifying what the rental charges are and what the consequences would be if the property is not vacated when the contract ends. "The rental contract should also specify that subletting is prohibited under any circumstance and clearly state the period of notice to be given when it comes to the termination of the rental agreement," says Goslett.

4. Money matters - Goslett advises that no matter who manages your rental property, you'll need to keep your rental records separate from your personal accounts. "This will allow you to see at a glance where your rental property stands financially," says Goslett. Other advice from Goslett around handling the rental income includes putting monthly contributions into a separate, high interest bearing account that can then be drawn upon for repairs, new appliances, maintenance and taxes if and when required.

5. Evicting errant tenants - If your tenants are screened properly, you should not have any problems. However if the need does arise to evict a tenant, it should be handled professionally. Goslett advises seeking the assistance of an attorney. "Landlords also need to ensure that they have followed all the correct procedures for issuing the appropriate warnings before they can proceed with an eviction," he says. Goslett's final word of advice is that even if you are renting out a property through an agent, you should pay your tenants an occasional visit to ensure your asset is being well looked after. "These visits however, should always be arranged with the tenants in advance.

Buying a House on Auction - Part 1

How can we help you — Sat, 19 Jun 2010 06:28:00 GMT

Buying homes on auction is increasing in popularity in South Africa. Traditionally the territory for investors looking to pick up a good deal, the sales mechanism is now attracting more first-time buyers and those in the market for second/holiday houses. An auction can present an easy, convenient way to purchase a home. Before you raise your bidder's paddle tho', it is important to familiarise yourself with the auction process.

The homework phase

The more you know about the property in question, the better.

Once you have identified an auction you wish to attend, go to the preview. You must visit the property as you would on a ‘show day'. Houses are sold ‘voetstoots' so you need to do some research and read the conditions of sale, which are made available.
It's essential to arrange finance prior to the auction. This will also give you an indication of your bidding parameters.
Have a reasonable idea of the market value of your chosen property as the reserve price will not be disclosed to you.
Read the Conditions of Sale and Terms of Sale so you understand the legalities and payment details involved.

The bidding phase

Arrive early so you can ask the auctioneer any questions you may have.
Register as a bidder and pay your refundable registration fee.
Remember to bring your ID book.
On registration you will receive your buyer's card which will allow you to bid.
Attend the pre-briefing, particularly if you are a novice.
Know which lot number you are bidding on as the sales move at quite a pace.
To bid, raise your hand or buyer's card and make sure you have made adequate eye contact with the auctioneer.
You may also bid by way of a proxy - when someone bids on your behalf. The required proxy form must be completed and the full registration fee paid prior to bidding.
If you are successful and the property is ‘knocked down' to you, on the fall of the hammer you will be taken to sign the Condition of Sale and make necessary upfront payments.
You are then free to leave and will be contacted by the seller's conveyancer to finalise proceedings.

--Sheriffs auction vs. Private auction house

Joff van Reenen, director and lead auctioneer at Savile Row Auctions describes the difference. ‘The Sherriff's auction is a result of legal action - where a court order demands the auctioning off of the asset to pay creditors. Here a buyer will also be paying all rates and taxes in arrears as well as the Sheriff's commission and others costs involved - so proceed with caution. A private auction house, on the other hand, is a straight forward property transaction where transfer costs and duties to SARS are payable but all arrear rates and taxes, if any, are payable by the seller prior to transfer taking place.'

6 CV MUST- DO'S

How can we help you — Thu, 17 Jun 2010 11:04:00 GMT

A CV is all about marketing and the product is you. Think of it as your shop window, enticing the buyer to come inside and take a look. These few tips will help you display your virtues to your best advantage:

1. Keep it covered: Every CV should include a well-thought out covering letter. It's your first chance to create a positive impression. Explain why you are applying for the job and highlight a couple of your skills /accomplishments relevant to the particular position. A good covering letter can help to differentiate you from other applicants and drive home a few strong points about yourself.

2. Promote your value: Start your CV with what's known as a ‘personal value proposition statement'. Companies have them, why shouldn't you? This is not about what you want out of a job but rather a few brief points on how your expertise and experience can benefit the company. It can also give the employer a sense of who you are.

3. Tweak the format: Make sure that the most important information about your work experience, skills and education stands out so that a potential employer can pick out your abilities at a glance. Keep it crisp and concise. Also, don't exercise the one-size-fits-all school of thought; rather tailor each CV slightly to suit the position.

4. Sell your skills: Quantify everything you say. Instead of just providing a list of duties you are capable of performing, explain how you used these skills to good effect in a previous position. For instance, rather than simply mentioning media liaison as a task, you would say ‘developed excellent rapport with several key members of the mainstream financial media'. Push tangible results and achievements.

5. Most recent first: When listing your career history, start with your latest position and work backwards. Be sure it is dated consecutively. You should only concern yourself with the last 5 - 10 years and the major roles performed. Here give specific, detailed information - include things like the number of people you managed, the value of the budgets you handled, etc A good tip for anything beyond this is to group it under the heading Early Career and only include a sentence on each.

6. Qualify yourself: When it comes to listing your education/training, most recent first is again the order. Be sure to include only the qualifications that are relevant to the particular job or if the recruiter has listed them as desirable. So if you're interviewing for a position as a Software Engineer, do list the BSc Computer Science but maybe leave off the course in Strategic Marketing Management.

You decide:

You like Pina Colada's? Information about hobbies is a tough one - for some recruiters they are a turn off but others like to learn a little more about you. If you do list your after-hours pursuits, make sure they are relevant to the job you are after. If you're applying for a managerial position at Cape Union Mart, for instance, no one cares that you're a keen knitter but they may be interested in avid mountaineer. Hobbies can also lend insight to your personality. If you've run the Comrades religiously for the past ten years it speaks of your dedication and tenacity.

Saving Money, Trolley for Trolley

How can we help you — Wed, 16 Jun 2010 06:58:00 GMT

New York times columnist and best-selling author of The Omnivore's Dilemma, Michael Pollan, has interesting things to say about Western culture's food abundance and the ease with which we toss things out. Many cultures, he says, have grappled with the problem of food abundance and come up with different ways of suggesting you should stop eating before you're completely full. The Japanese say "hara hachi bu" ("eat until you are four-fifths full"). Germans advise eaters to "tie off the sack before it's full." And the Prophet Muhammad recommended that a full belly should contain one-third food, one-third drink and one-third air. With the availability of avocados or figs at any time of the year, we've become quite complacent about waste, says Pollan. And he's right. We could be doing a lot more for the planet - and our pockets, by being a bit more aware.

Some incredible statistics from the UK's Food Waste Report - Every DAY the average Western country throws away...

7 million slices of bread
1 million slices of ham
4,4 million whole apples
440 thousand pre-prepared meals
5.1 million whole potatoes
660 000 eggs
260 000 unopened packs of cheese
2.8 million tomatoes
1.2 million whole sausages

UK author and chef Allegra McEvedy thinks that a lot of it is tragic by-product of progress: many people are spending less time in the kitchen and paying other people to do it for us (pre-prepared meals, prepped veggies etc.). "This has created a bit of distance between ourselves and the stuff in our fridge or cupboard, as we don't have the same understanding of them. We've lost confidence in knowing when food is still okay and when it's beyond redemption." Getting beautiful ingredients from all over the world whenever you want them is just begging for a throwaway culture, says McEvedy. "We no longer have to think about how long it took to grow a bean, or where it comes from, or how far it traveled to get to our plate. I think most people, somewhere inside, realize that this throwaway culture is not a sustainable one. We've become far too complacent about the world's resources." And yet, it's not impossible, through just becoming a bit more aware, to save hundreds of rands on groceries every month.

First and foremost - become a fridge prefect: know what's in there, how much you've got, and most importantly, if it's right on the edge, do something about it as soon as possible. Wilted, browning basil makes great pesto in minutes, squishy fruit becomes a smoothie in seconds.
Just like us, fruit and veg does not always grow picture-perfectly. A little bruise here and there, or a gnarled growth on your apple needn't mean it has to be chucked. Why the insistence on fairytale perfection? I was constantly amazed by the size and perfection of strawberries in Japan - they were the size of our SA apples. The smaller ones, like our standard size fruit in SA, were regarded as inferior, and usually dumped on a sale table near the supermarket exit, available for a pittance. (Then I found out that the poor Japanese strawberries were tortured into their perfect state - kept under hot lights 24 hours a day, with no natural growth cycle!)
By keeping a well-stocked dry store cupboard with sufficient amounts of dry legumes, rice, condiments and wholegrains, you only need to do small weekly shops of fresh produce. Buy only what you really need, and eat it fresh. By not overstuffing your fridge, you also make it easier to keep an eye on expiry dates.
There's definitely a lot of merit to cooking in bulk if you have the luxury of a chest freezer. As my kitchen-shy spouse likes to remind me: "you shouldn't have to cook every time you need to eat." Or drive to the shop every day to get fresh milk. Freeze it.
Try and buy less processed, pre-packaged food. It's expensive, it's loaded with sodium and other health nasties and, let's face it, home-cooked is better, even if more effort is involved.
You needn't eschew meat. Interestingly, Michael Pollan, who is, along with Al Gore, one of the world's most respected greenie activists, is a meat eater. Asked recently by Time magazine if he was vegetarian, he said; "I still eat meat, I'm a carnivore, but I eat a lot less meat. I've spent so much time on feedlots and confinement hog operations that I can't in good conscious, and with good appetite, eat industrial feedlot meat. So I eat meat from small farms, meat I get at the farmers market, grass fed beef. And when you eat meat that way, it's a little harder to find and it costs more money, so with the result that you don't end up eating meat everyday. To reduce your meat consumption by 20 percent is the equivalent of trading in your gas-guzzling sedan for a Prius."

The point I'm trying to make is that you don't have to go to extremes to make a difference to your pocket. Live a little - you can still enjoy your boerie roll. Making small, permanent changes to your lifestyle will ultimately add up to considerable savings to your grocery budget - with the bonus of some added health benefits.

Investing 101

How can we help you — Mon, 14 Jun 2010 06:25:00 GMT

INVESTING YOUR MONEY - top tips to keep in mind

Before you sign on the dotted line, make sure you know you're putting your money in the right place. John Eckstein, managing director of Analytics Consulting, a specialist investment consulting and product development business, offers a few general tips to consider before you make any investment.

Invest in a portfolio that is diversified across appropriate asset classes, irrespective of whether equities are running or bonds are hot or cash is king. It is always prudent to spread your financial interests as concentrating on one specific asset class could have detrimental results.
Make sure that the risk profile of your portfolio matches your individual risk profile and specific financial needs. For instance, the more risk you can handle, the greater the percentage of equities (companies listed on the stock exchange) you may choose to invest in. Whilst the reward may potentially be higher, this is not always the case and you need to be able to accept a potential loss of capital. As an investor you have to be in a position to deal with both scenarios.
Trying to time the market is tantamount to staring into a crystal ball. Conventional wisdom suggests that investors who attempt to predict market movements; and then switch in and out of the market with a view to taking advantage of peaks and troughs get it wrong as often as they get it right. It's more sensible to invest in a balanced, well diversified portfolio and then to take a long term investment view.
Each investment portfolio will have a specific time horizon. It is best to remain in the portfolio for at least the period of time that is linked to the fund manager's performance objective to give the fund manager the opportunity to meet his investment objective. For example, moving your money after two years in a property fund with a three-year investment horizon lacks foresight. The key to any wise investment is a solid investment philosophy with a view to extract value over time.
Always read the terms and conditions on the application form. You may, for instance, invest in a fund that has a five year lock-in period which has severe penalties should you need to get your money out earlier.
Understand the liquidity restraints of an investment. You may, as an example, be in a situation where you need cash. You put in an instruction to sell but find you have to wait three months before you can access your funds.
Be aware of all of the costs that will be levied against your investment. What looks like a relatively small annual fee can have a significant impact on your portfolio over the long term.
Consider the fact that reducing your debt may be a more sensible option before making large investments. In other words, rather use your surplus cash to first clear your bond before developing your investment portfolio.
Beware of products that offer unreasonably attractive guaranteed returns because often that's what they are - unreasonable. In the investment world (and with most things in life), if it sounds too good to be true, it probably is.
Before you put any money in any investment portfolio, it is essential that you seek the advice of a licensed and experienced financial advisor.

8 WAYS TO EARN MONEY FROM HOME

How can we help you — Sat, 12 Jun 2010 13:09:00 GMT

The trend for home-based businesses in South Africa is growing. The advantages are motivating - work your own hours (no more peak-hour traffic), increased flexibility and more time with your family. According to the South African Home Business Association, small business contributes around 40% of South Africa's GDP. They estimate that up to 80% of new jobs in world economies are being created by SMMEs, making small business a key player in growth. So if you'd like to be your own boss, think about your skills and qualities and do a bit of research on the kind of career you can run from home. The following list of home-based job opportunities could see you earning a salary in your slippers:

The rise of the web

The Internet is responsible for a host of viable work-from-hope options. Here are just a few:

1.Online content editor - These days every business has a website address (or should have one) that requires content. Internet journalism is a fast growing opportunity where you write text content or information articles for websites. You need a good command of the English language and a computer with email and internet connection. List your services in a few of the good business directories and set up a website that showcases your work.

2.Website designer - This is a competitive industry with the onslaught of all things electronic. If you have creative flair, some graphic training and good website design software, you could in business. So long as you keep up to speed on latest design trends, and have the ability to market yourself and your work, it's a profitable business to run from home.

3.Virtual assistant - A relatively new idea in South Africa but one that's exploding fast, the virtual assistant gives those with great admin skills a wonderful opportunity to work from home. Handling broad scope of office requirements for those keen to concentrate on their main source of revenue, a VA can do anything from general word processing to database management, billing, transcriptions, even event co-ordination or social media marketing. Search a few adverts on Google.co.za to get the idea.

4.Online retailer - If you have a product you want to sell without owning a shop, the Internet presents the ideal marketing and distribution channel. Try an online trading platform like bidorbuy.co.za to set up a viable ecommerce site.

Keen to freelance:

5.Bookkeeping - Many accountants work from home, servicing the books of small and medium-sized businesses. Qualifications are necessary and skills include payroll, tax submissions and returns, tax advice, and general accounting. It's a successful home career with excellent earn potential.

6.Graphic design - This skill is very easily adapted into a home run business. There is continuing need for design and a wide area for specialisation, from corporate communications like newsletters and brochureware to logo design and banner ads to invitations and animation.

Use your natural ability:

7.Translator - If you are fluent in a couple of languages, why not offer your translating services for brochures, pamphlets and the like. Contact the embassies and language schools or advertise online.

8.Direct Selling - If you're an outgoing personality, consider selling one of the many products on offer as a direct sales business opportunity. There are skincare products like Avon Justine, Avroy Schlain and Annique; jewellery and fashion accessories such as Honey and Miglio; nutritional supplements like Herbalife or Sportron and on the household front, Tupperware has been around for decades. Start-up costs are generally low with a reasonably priced sales kit all that is necessary to start selling. You've got to be motivated but the process is easy and most companies offer ongoing guidance to keep you focused.

Thinking more traditionally:

There are a multitude of options that draw on the more traditional skills like catering/baking; child care/after care, landscaping or alterations and sewing. All offer the ability to earn extra money, either part time or full time.

To Franchise or Not to Franchise - these are the questions:

How can we help you — Thu, 10 Jun 2010 06:15:00 GMT

Buying a franchise can be an excellent way to get into a proven business on your own but it's not for everyone. You need to exercise some self-evaluation to determine whether you personally have what it takes to be a franchisee. Brenda Macqueen, training consultant with a long association with leading franchise service provider, Franchize Directions, asks the questions you need to answer.

1. Are you a self-starter? To make a real go of a franchise you need to have initiative and drive. You have to get out there and really earn your keep. There is no longer any boss watching over your shoulder, it's up to you to make the business happen. If you do nothing, you will probably earn nothing. Successful franchisees are hands-on owner-operators. If the floor needs sweeping and there is nobody around, you have to be prepared to pick up the broom. If you're not a motivated person, franchising is not for you.

2. How much have you got to invest? The general rule is the bigger the franchise brand, the better the guarantee of success. The downside of these big brands, like your shopping centre retail-based franchises (e.g. Wimpy, Pick ‘n Pay, Mica hardware) is the premium cost. The hefty price tag does buy you an almost foolproof system with readymade customers (there are obviously exceptions) so if you are less of a marketing person, this would be the option for you. The smaller franchises, with a total investment of under R500k, require a lot more groundwork from you but come with more flexibility. Many of these are distribution-type franchises which are almost ‘work from home' businesses. There is no neon sign attracting feet to your store - you have to source the customer yourself. A better opportunity for someone with a flair for sales.

3. Are you in it for the money? Don't buy a franchise only on the pretext of making a heap of money. You've got to actually enjoy the business you choose to go into. It will show in your results.

4. Are you a risk-taker? You have to have entrepreneurial spirit. A franchise is no guarantee for success. It requires huge personal commitment and you need to be able to handle the outcome; a franchise is still subject to normal economic variables. Your appetite for risk will also aid your decision to try a new concept or stick with a tried-and-tested brand.

5. Do you like to make your own rules? With franchises, mavericks need not apply! Richard Branson would not have made a successful franchisee. You need to be willing to conform to the franchise framework and take instruction from head office. You must be interested in following a system, respecting its brand values and duplicating it in a specific location. It's a lot about check lists, policies & procedures and sticking to a plan. The ideal personality mix is someone who sits somewhere in between an entrepreneur and an employee.

6. Can you develop staff? Leadership skills are important. There is no HR department and you will have 5 -15 (or more) staff looking at you for direction, career guidance and daily motivation. It's the age-old cliché but in a franchise, you have to like working with people. You must be able to manage, nurture and inspire.

7. How charming are you? In a franchise business, you need great interpersonal skills - both to engage with your employees and develop a rapport with your customers. You've got to be willing to become a community hero - omnipresent, gracious and supportive - to grow a base of happy customers.

8. Are you prepared to share? You must be prepared to pay for expertise and hand over a percentage of your top line as a monthly royalty (can be around 12%). This can be tough when it's your hard work that's earned the money. It's why it is important to research your choice of franchise thoroughly. You need to know you can't do it without the talent at HQ and then you will be happier to hand over the cheque.

9. Are you financially disciplined? You must be able to plan your financial responsibilities and then manage them strictly. Proactive fiscal discipline is essential - if the system calls for monthly controls and stock counts, do it. Lack of systematic cash management is often where a business can go off the rails.

THE ‘BIG FIVE' WHEN SELLING PROPERTY

How can we help you — Mon, 07 Jun 2010 10:10:00 GMT

According to Adrian Goslett, Assistant Regional Director of RE/MAX of Southern Africa, there are a number of factors that sellers need to take into account in order to successfully close a deal. "Homes have been sitting on the market for longer in these challenging economic times. And while the predictions for 2010 paint a rosier picture of the property market, sellers and estate agents alike will need to ‘pull out all stops' when it comes to the marketing and selling of a property," he says. Goslett highlights five aspects that play an integral role in the selling process.

1. PRICE

"A home that is correctly priced will sell within reasonable time," notes Goslett. Says John Loos, FNB Home Loans Property Strategist in FNB's Residential Property Barometer Q3 2009: "For some time, there has been a widespread lack of realism in the residential market, with an overwhelming majority of sellers having to ultimately drop their asking price, while the average time of homes on the market was following a broad rising trend. Although we will have to wait for a few more data points to confirm a trend change, the average time of homes on the market declined from a high of 21 weeks and 1 day in the second quarter to 16 weeks and 4 days in the third quarter. The percentage of properties sold at less than the asking price declined slightly from 86% to 83% over the same two quarters. This may well be the start of a move towards greater pricing realism, accompanied by less sellers having to drop their price and a faster pace of sales." Goslett advises homeowners to first establish what the market is willing to pay for their home before they price their property "as a property is only worth what buyers are willing to pay at the end of the day," he says. Homeowners are able to access deeds office data which will assist them in comparing prices of properties recently sold in the area. This data is accessible through subscriptions to a company that compiles the trends in specific areas based on property transfers.

2. LOCATION, SIZE AND AMENITIES

Compare your property to the properties sold in your area by taking location, size and amenities into consideration. Also compare your property to other properties currently for sale in your area. But remember, the asking price published in advertising material is very often different from the actual price achieved. Goslett elaborates: "Location is the most important aspect to take into account when pricing your property as the address of the property will always remain the same! The size of your property will also play an integral role as buyers will use this to compare your home to other homes available in more or less the same price range. Amenities will also play a role, but seeing that tastes differ, you can expect each potential buyer to picture his/her future home differently."

3. MAINTENANCE IS KEY

Ensure that your swimming pool is in excellent condition and that your chlorinator and equipment are in working order. Repair items such as leaking taps and broken shower doors as small things like these can make a very bad impression. Fix all leaks, especially when it comes to the roof. If you are not in a financial position to do so, inform your estate agent and the buyers of any defects you're aware of to prevent legal action from being taken at a later stage.

4. ‘STAGING' YOUR HOME

"This has proven to be a very successful selling aid abroad," notes Goslett. The whole idea is to get rid of clutter and unwanted accessories and/or furniture that can possibly prevent buyers from visualising their own possessions and/or lifestyle in your home. "Not all people are animal lovers. Move your puppy's sleeping pillow out of the spare room. The same goes for pet food and water bowls in kitchens. "Rather welcome buyers with the aroma of freshly grounded coffee or the smell of freshly picked flowers in your home."

5. KNOW YOUR BUYER

Ask your estate agent to determine the ability of the buyer to obtain a bond and/or put down a deposit on your home. By doing so, you can speed up the purchasing process once an offer to purchase has been signed and avoid the frustration of having to wait for the buyer's bond to be approved. Also watch out for ‘subject-to' agreements where the buyer makes an offer to buy your property ‘subject-to' him/her selling his/her own home. "A good estate agent will be able to advise you on how long the buyer's property will be on the market for and what price the buyer can expect. Ensure that the agreement has an ‘out-clause' allowing you to consider other favourable offers while you wait for your ‘first buyer's' property to get sold," advises Goslett. He adds that sellers should be on the look-out for people pretending to be buyers or estate agents and that they should never let an unidentified person into their home. Goslett concludes: "A well-kept home that is correctly priced will always make a good impression. Fix-up your property now so that you can take advantage of the positive upswing from 2010 onwards."

8 steps to getting that property SOLD

How can we help you — Fri, 04 Jun 2010 06:21:00 GMT

According to a report by RMB Private Bank, the primary residential property sector has seen an increase in offers to purchase which is an early signal of recovery in the market. This is good news if you're looking to sell your house. However, despite interest rate cuts and the improving economy, South African households are still under financial pressure. This means there remains a current surplus of stock for sale and if you're keen to sell fast and at a good price; you'll need to make sure your home stands out from its competitors in your suburb.

Think of your property as a house, not a home . It's time to take the emotion out of the process and turn your house into a commodity. Forget about the memories, potential buyers aren't interested in those. They want a vision of a house they can make their own. Before you put out the For Sale sign, do some ‘homework' first:

Quick fix 1: Dejunk - Potential buyers want to see space, not be distracted by a table laden with paperwork, an overflowing toy box or shelves filled with more than books. Don't think you can just bundle everything into cupboards either. People will open them to check space availability and you don't want them to surmise that bulging cupboards equals storage problem. Tidy up - clutter reduces the size of a room.

Quick fix 2: Catch up on your DIY - It's a fact that buyers mentally reduce your price tag every time they see a maintenance problem. Make sure your house looks well-cared for by completing all those repair jobs you never quite got around to.

Quick fix 3: Get out the scrubbing brush - Give your home a top down spring clean before it goes on the market. Get rid of funny smells. If your carpets need professional cleaning, do it. Nothing offends a potential buyer more than dirt, especially when it's not their own.

Quick fix 4: Kerb Appeal - What does your property look like from the road? Is the verge tidy? How does your home compare to the others in the street? Does it look well-maintained and welcoming? If it doesn't, buyers may not give it a second glance.

Quick fix 5: Present a blank canvas - Many experts talk about de-personalising a home before letting the buyers in. They say people like to imagine themselves living in your house, with their paintings on the walls. A glut of personal mementos can detract from the picture. Keep it neutral. Remove too many family photographs, kid's artwork, personal collections, etc. Also consider toning down any bold décor statements, like your pumpkin-coloured dining room walls, for instance.

Quick fix 6: Each room, defined - If your third bedroom has always been your sewing room, now is the time to change it back. When your home is being marketed with three-bedrooms, it must be presented as such. Potential buyers need to see as clearly as possible what they are paying for.

Quick fix 7: Keep it fresh - A bowl of flowers in the entrance hall, fresh towels in the bathroom; these small accessories can make a surprising difference to the overall effect.

Quick fix 8: Consider home staging - If your budget allows, you may want to consider this new marketing technique to sell your home. Home Staging is a professional service that entails packaging your home to give it a competitive edge in the marketplace. A specialist will emphasise the good areas and downplay the negative ones to ensure a quick sale at the right price. They use what you have and add accessories to create a ‘wow factor' to impress prospective buyers. Google Home Staging SA to check out local resources.

Piggybanking for dummies

How can we help you — Wed, 02 Jun 2010 10:53:00 GMT

If I can't afford the R23 takeaway latte, why do I still want it and need it? I often feel like an irresponsible kid when it comes to financial issues. And worryingly, I have small kids of my own who need to learn the basics of money management. My son, 3, is already quite a second hand bookshop connoisseur, and he's very good at whining, eroding his mother's resistance. Most times, I give in and buy a book, grateful that he likes reading, but knowing that I'm not exactly a model of restraint. I do want him to learn about saving money though, so I got some expert advice from a few authors. Both books turned out to be informative and helpful, but Jeff Opdyke's book is perhaps more applicable to parents.

In Mind over Money: Overcoming the Money Disorders That Threaten Our Financial Health - Father and son duo Brad and Ted Klontz combine psychology, self-help, financial know-how and practical advice in a good study of how money affects us emotionally and psychologically. They focus on what they've termed "flashpoints" - defining, seminal incidents that build "money scripts" - core beliefs that shape the way we think about and interact with money as adults. Revealing exercises prompt readers to identify their personal money scripts and patterned behaviors-often provoking the discovery of money disorders - as well as a host of powerful memories and early experiences responsible for extravagance or financial irresponsibility. The process is complex but important; the authors reveal how powerfully emotions and childhood experiences influence our financial health and attitudes toward money. Like it or not, our kids do learn from watching us -how and what we buy, how we save or don't save. You might be a positive, responsible example, which is great. You might be the total opposite-and maybe that's not so bad either. Financial flashpoints, as described by the Klontzes, generally push your relationship with money in one of two directions: Consciously or not, you either use the example as a pattern you try to copycat, or you use the example as a demonstration of exactly what not to do.

In the second book, Piggybanking: Preparing your financial life for kids and your kids for financial life, Wall Street Journal personal finance writer Jeff Opdyke, himself a father of two, provides some fabulous, simple rules for teaching kids about money. He also deals with the essential problems every struggling young family must face, including how to prepare your budget for a child's arrival, how to choose between single- and dual-income lifestyles, and how to plan for funding a university education. A lot of Opdyke's rules are applicable to adults too. Here are some of my favourites:

Spending money happens only after you earn it.
When children start asking parents to buy them a plastic toy or any other thing, it's time to start financial management lessons.
A pocket money allowance shouldn't be so meagre that your child is a pauper among friends, or so generous that no financial planning is necessary.
A good school report is expected, and doing helping parents around the house is simply the price of family life.
Encourage kids from around the age of 13 to utilise their entrepreneurial skills to earn some income for themselves.
Guide and advise your children about money, but don't dictate.
Only 50% of what is in the piggy bank can be taken out at any time. The rest stays.
Children should have the right to mess up financially so that they learn from their mistakes.
You don't need to be wealthy to begin teaching your kids about the stock market.
You don't need to save and scrimp for every last cent your children might need for their tertiary education - only save as much as you comfortably can.
At some point the kids have to be told that the Bank of Mom and Dad is closed.
One of the greatest gifts you can give your children is your own financial independence when you're old. Don't be a burden.

Response to Finance Minister meeting with the Bank CEOs

How can we help you — Wed, 02 Jun 2010 07:31:00 GMT

- Johannesburg 1 June 2010

FirstRand Bank (FRB) and its Commercial Banking division, FNB, today acknowledged the constructive process, led by National Treasury, to implement the recommendations of the Banking Enquiry Panel.

"Our engagements with Government in this regard have been collaborative and positive, and we thank the National Treasury for the constructive manner in which the process of agreeing a response to the Enquiry Recommendations has been facilitated. We look forward to further supporting the implementation process," says Michael Jordaan, CEO of FNB.

FNB provides the below specific comment on the National Treasury press release of 1 June.

Debit Orders:

FNB has reduced debit order penalty fees significantly for Mainstream Market customers, with unpaid debit order penalty fee rates for products targeting this market segment currently varying between R5 and R20. As announced on 10 May, FNB will further decrease these rates to between R5 and R9.50 effective 1 July 2010.

Over 70% of FNB's personal customers using transactional accounts avail of the free inContact SMS notification service, which empowers them to avoid unnecessary bank fees by informing them of transactions taking place on their accounts.

Banks have already developed a practice in terms of which a debit is reversed immediately if a dispute is raised within 40 days of the action date of the debit order. If a dispute is raised later than 40 days, then the collecting party's bank (the sponsoring bank) is required to provide proof of mandate. If no such proof is provided, the debit is reversed.

In addition, today the FNB account holder already has the right to stop future collections/debit orders from a collecting party. FNB offers customers this facility via both FNB branches and the FNB call centre.

FNB is committed to supporting the National Treasury-led initiative to improve the debit order system

ATMs:

Although FNB made proposals to the Banking Enquiry for different ATM pricing models, it also supports any initiatives aimed at greater pricing transparency.

FNB already provides a per item breakdown of bank charges for "on-us" and "off-us" ATM fees on account statements and will continue to support the principle of complete transparency on all bank charges.

As of 1 July 2010, FNB will reduce the price of cash withdrawals (Cash@POS) at merchant tills to 90c per withdrawal, a strong indication of our support for the Cash@POS transaction.

Other Bank Charges:

FNB has implemented a number of initiatives to support our customers to pay lower bank charges. These include:

The FNB fee calculator which has been available on our website since mid 2007 enables customers to help themselves chose the best pricing option and product to suit their needs. This fee calculator is available to customers on internet terminals in FNB branches. In addition, he FNB pricing help line, which has been available on 0860 11 22 44 since mid 2005, has a team of highly trained consultants who offer advice to customers on various bank charge-related issues, including choosing the best pricing option. Customers can have their account moved onto the option of their choice in real time and can get advice on how to reduce their bank charges.

FNB offers a number of free transactions to customers, including:

inContact SMS notifications of transactions;
transactions using the cellphone banking channel;
self-service telephone banking;
prepaid purchases and
ATM envelope cash deposits.

In addition FNB does not charge subscription fees for access to internet, telephone and cellphone banking.

FNB recently launched an entirely new offering, which charges very low, flat fee "pay-as-you-use" rates and which is serviced through dedicated branches:

FNB has committed to opening 100 EasyPlan branches by the end of 2011.

The Banking industry, through the Banking Association, is updating the Banking Code of Practice to include a switching code for customers moving banks and standardised pricing terminology to support the comparison of banking fees between banks. FNB strongly supports all initiatives to increase pricing transparency and to make it easier for customers to switch banks. To this end, FNB has adopted the use of standardised terminology in our 2010/2011 pricing guide.

"FNB believes that it offers the best value for money banking, and therefore welcomes the proposal that independent third parties, funded by the banking industry, conduct regular studies into bank charges," concludes Jordaan.

Regulator for Market Conduct

FNB notes the NT comment that some functions of market conduct may need additional regulation and will continue to explore this matter with National Treasury.

ESSENTIAL HOME-BUYING TIPS

How can we help you — Mon, 31 May 2010 10:07:00 GMT

The Four Factors Buyers should be aware of

For most South Africans one of the most important long-term investments in their lifetime will be their homes; it therefore requires careful thought and consideration - a wrong decision can often be a costly one. It's not just about buying the house you've fallen head over heals in love with. "Potential buyers should be aware of four pivotal factors requiring thorough investigation prior to making an offer or signing on the dotted line. Price, budget, location and the property's condition are critical factors to be considered before making a decision," says Adrian Goslett, Assistant Regional Director - RE/MAX of Southern Africa. He added that real estate agents marketing the home will have the required information at hand.

CONDITION OF HOME
"Investigate the condition of the home when you visit the show house - be sure to inquire if the home has any structural issues. Ask about the age of the home - roofs have a life expectancy of between 15 - 50 years and further investigate whether plumbing and electrical infrastructure has been replaced or updated. "The exterior and interior appearance of the home will provide insight into whether sellers placed the home's maintenance on the agenda. If you plan to buy a newly constructed home these factors should not pose a problem - there will usually be a window period where the developer will allow for any repair work to be undertaken at no cost," he says.

LOCATION
Another important factor to consider is the location. "Good real estate investment is always about location. Look for a property with curb appeal in a good area." says Goslett.

BUDGET
"Financial lending institutions recommend that you budget one third of your monthly household income on your mortgage repayment. It's critical that you remain able to comfortably afford these repayments. "Banks, financial planners and bond originators can best advise you on your long-term investment and the different solutions available," he says.

PRICE
"The asking price of homes usually has little to do with the actual value of the home. It's important to evaluate and compare the prices of similar homes in the area to establish if the property is priced correctly. Also investigate the original price paid by the seller - this is a good indication of whether the neighbourhood is performing well as a prime investment area.

Ask these 9 Questions BEFORE You Get Financially Hitched

How can we help you — Mon, 31 May 2010 06:09:00 GMT

The big date's set and you and your partner have probably spent hours dreaming about your future together but have you had the money talk? It's amazing the number of couples who avoid the topic and yet financial disagreements can cause a huge rift in your relationship and are one of the leading causes of divorce. You need to have an honest chat about your respective financial situations and your views about money. These questions can help you develop a profile of your financial compatibility. There are no right or wrong answers, it's just important to understand each other's perspective to help you resolve issues later on.

How much do you earn? OK, you're not going to ask that on the first date but if you're making a commitment to each other it is appropriate that you find out each other's net worth. Talk salary, cheque or saving accounts, bonus potential, investment plans, retirement annuities, the works. There can be no financial secrets, you both need to know what you are dealing with to be able to plan the way forward.
What are your future career plans? It's easy to avoid this one if you are both working right now but it's important to know. Consider the income implications of starting a new business, doing an MBA, staying home with the kids, etc. You need to know how you would cover these costs.
What are your money habits? Do you wait to pay bills at the last minute or late? Do you like to account for every cent? Does a big bank balance make you sleep better at night? Understanding your partner's financial personality can avoid problems in the long run.
You owe how much? Your gorgeous doctor may have a six year student loan to pay off. That shouldn't make you love him less but at least you'll know how much of your combined future income will be spent paying off existing debt. Ask about the number of credit cards you each have and what the balances are. It's wise to agree upfront what approach you will take to clear debt.
What's your attitude to debt? What do you think is worth getting into debt for? Do you think nothing of maxing out your credit card to fund a Tuscan holiday whilst your partner thinks only a car or a house is worth financing? You need to find out so that you can develop parameters for managing debt that suits you both.
Are you a spender or saver? Are you a stickler for a budget or do you haul out the credit card for that designer top that catches your eye? The answer is a cause for possible conflict. Talk about a compromise that works both ways. Find out also what you both like to spend your money on and discuss any expenses that may cause problems.
Joint or Separate? You need to decide how you are going to structure your finances. Will you pool your resources? If so, do you have the freedom to spend or must you answer for every transaction? Maybe separate accounts are better, particularly if your spending styles are vastly different. A combination of both may be the solution? Whatever the decision, the plan must work for both of you.
Who pays for what? Discuss upfront how you will divide your various financial responsibilities. You may decide to split the bills, or maybe one covers expenses and the other builds up savings or concentrates on investments. It's a decision you need to take.
What are your long term goals? Do you want private education for your children? A house at the coast? A retirement spent travelling? You must talk about savings and how much you will need to put away to realise your goals. Reach a consensus so you can save appropriately.

These are just some of the questions you'll need to chat about. There will be others, especially as goals and situations change. Just make sure the lines of communication include money. That way you will be on your way to a more stable financial future.

GLOBAL TRENDS - BEST PAID JOBS AROUND THE WORLD

How can we help you — Sat, 29 May 2010 13:03:00 GMT

If you think you need to put money above job satisfaction, you've got it all wrong. However, you're not alone if your idea of a great job is one that makes you happy and funds life's little luxuries as well. If you're planning a career change, you may be interested to know what some of the top occupations for potential earnings are in the US and Britain.

A quick glance down the list of Forbes Magazine's 25 best-paying jobs in America for 2009 proves that an education is key to earning top dollar. Nine out of the top ten positions are all in the medical profession which means that only after 8 - 12 years of study will you actually start making money. It's a hard academic slog but one that appears to offer great returns on investment. Amazingly, an intern in the US makes it to 6^th position in the high earning stakes while in South Africa, the same role commands an average R277,000 pa and certainly wouldn't make it onto any best paid list.

It's interesting to note that the Corporate CEO only makes it to the No.10 spot in the US (however the survey only takes salary into consideration and there is probably a big annual bonus waiting in the wings). The situation is quite different in the UK where the person who runs the show actually takes home the most dough. According to a 2009 survey by Britain's Office for National Statistics, directors and chief executives of major organisations have the best paid job in Britain. Doctors are still not too far down the list, coming in third.

The aviation sector always features well on a high paying careers list. Air traffic controllers (US.25 & UK.7) are paid extremely well (and don't usually require a degree) but the job comes with a great deal of responsibility and stress. Pilots (US.19) too have great earn potential but it is expensive to study and train and the big bucks often only come after years of experience.

Forbes Magazine: America's 25 Best-Paying Jobs 2009 (Listed with average annual pay )

1. Surgeons: $206,770
2. Anesthesiologists: $197,570
3. Orthodontists: $194,930
4. Obstetrician and Gynecologists: $192,780
5. Oral and Maxillofacial Surgeons: $190,420
6. Internists: $176,740
7. Prosthodontists: $169,810
8. Physicians: $165,000
9. Family and General Practitioners: $161,490
10. CEOs: $160,440
11. Dentists: $154,270
12. Psychiatrists: $154,050
13. Pediatricians: $153,370
14. Specialist Dentists: $142,070
15. Podiatrists: $125,760
16. Lawyers: $124,750
17. Natural Sciences Managers: $123,140
18. Engineering Managers: $120,580
19. Pilots: $119,750
20. Petroleum Engineers: $119,140
21. Computer and Information Systems Managers: $118,710
22. Marketing Managers: $118,160
23. Financial Managers: $110,640
24. Sales Managers: $110,390
25. Air Traffic Controllers: $108,090

Britain's Office for National Statistics (ONS): Highest Paying Jobs in the UK (shows annual average wages for full-time employees)

1.Directors and chief executives £115,576

2.Corporate Managers and Senior Officials	85,943
3.Medical practitioners	78,366
4.Senior officials in national government	68,283
5.Brokers	61,117
6.Health professionals	60,866

7.Air traffic controllers	60,548
8.Financial managers and chartered secretaries	58,295
9.Senior officials in local government	55,921
10.Police officers (inspectors and above)	53,937
11.IT strategy and planning professionals	50,143

The UK's ONS survey also lists the worst paid jobs in Britain. From a South African context, it was interesting to note that a domestic worker is ranked at No. 9, earning an average salary of £13,807 pa. In South Africa, the minimum monthly wage for a domestic worker employed in an urban area is just under R1,500.

A salary is almost always dependent on the service you provide to the company and the education necessary to achieve this position, and it may take a few years before you pocket the big pay cheque.

To end with a bit of big-figure trivia, the three top earning sportsmen of 2009 were:
1. Tiger Woods - $64 million (although he may topple off this pedestal in 2010 after his recent escapades).
2. David Beckham - $18 million and
3. RogerFederer $16 million

Are you paid what you're worth [salary surveys]?

How can we help you — Thu, 27 May 2010 12:38:00 GMT

If you're making a career choice, changing jobs, employing someone or just want a general idea of your worth in your current position, a salary survey is a great tool to use as a benchmark. The information is used to determine average comparative salaries paid to employees in a particular job. The trick is to use these surveys purely as a guideline because there are so many different factors at play.

Seldom will you find a perfect match with the job you have. Different roles and responsibilities demand different pay packages. People bring varying sets of qualifications and years of experience to a particular position; geographical location is also a big influencer. Job titles can be misleading too. However, as a general indicator of who is earning what, the information can be very useful. Just remember that the data in a salary survey is time sensitive so be sure to look at the most up-to-date survey results available. Also, its good to look at how many participants were used in the survey, the more respondents the more accurate the results.

* Great across-the-board survey - The Career24.com 2009 annual salary survey results were taken from some 12 000 online respondents and help you compare yourself against others with similar job profiles. You can select a particular sector, say Engineering and then search for industry averages across gender, age groups, job levels, experience and qualifications. So the industry average for someone with an honours degree in this sector is R28.836, and so on. The survey also assesses factors like work environment. It's an interesting survey to read with some surprising results (Mpumalanga is hot on Gauteng's heels in the overall salary stakes) and others not so surprising (men are still earning substantially more than women).

* Industry specific - If you work in the advertising world, are in corporate communications, marketing or public relations, the annual survey produced by recruitment specialists Adtalent offers up some valuable statistics. Apart from the more traditional roles of creative director and brand manager, there is also an on line category where you can track the salary ratios of anything from a digital strategist to a flash developer. A senior web designer, for example, can expect to earn anything between R22k and R40k per month. It is interesting to note the salary differential between Cape Town and Johannesburg in this survey. If you're after some guidelines on the earning potential of main office support jobs, from bookkeepers and data processors to receptionists and executive secretaries, leading talent management specialist Kelly examines salary figures across the country on a bi-annual basis. The average monthly salary for an admin assistant, for example, ranges from just under R7000 in the Free State to R8150 in Pretoria. Another interesting survey for those working as Business Analysts, Project Managers, Process Engineers and Business Intelligence professionals in the South African market is produced by Mindworx: http://www.slideshare.net/Mindworx/mindworx-salary-survey-summary Mindworx

* Can an MBA earn you more money? MBA.co.za recently launched its first ever salary survey - MBA.co.za - MBA.co.za Salary Survey - to track the impact of an MBA degree on earnings and career prospects. From the results it appears the qualification is a valuable investment with the average respondent enjoying an increase in salary post-MBA. However, it is noted that the hike in salary is more to do with improved capability than the qualification itself.

TIPS TO IMPROVE PROPERTY MARKET INVESTMENT RETURNS

How can we help you — Thu, 27 May 2010 10:59:00 GMT

According to Jeffrey Solomon, Director of Solomon Brothers Property Holdings, the developers of Pepper Club - a R400 million five-star luxury hotel residence and spa set to open its doors in Cape Town in March 2010 - while the prospects for the local property market are improving, investors need to consider various options that are earning the best possible yields on their investments.

Buy straight from a developer - Transfer duties in South Africa rank amongst the highest in the world. Property between R500 000 to R1-million is subject to transfer duty of 5% of the purchase price while anybody spending above R1-million has to pay transfer duty of 8% of the purchase price plus an additional R25 000. "Investors can therefore save thousands of rands by purchasing property directly from a developer as this type of transaction does not attract any transfer duties," says Solomon.

Consider a rental pool - One of the inherent risks with investing in buy-to-let property is that it stands empty for a period of time, generating no income. Even when the property is let, owners still run the risk of tenants defaulting on the rent, particularly in the current economic climate. Solomon says one alternative is to invest in a development that operates a rental pool - whereby all units are leased out by way of a combined pool. "The income is then shared between all owners, thereby significantly reducing the risk of not earning a monthly income." He adds that owners of units in developments utilising rental pools generally have the benefit that interest payable on all funds borrowed to finance the investment is tax deductable. As an added incentive, some developers offer investors the option of earning a guaranteed return for a specific period of time. According to Solomon, investors in the Pepper Club, for example, can choose to receive the actual yield from the rental pool, or a guaranteed return of 8% p.a. for the first two years of ownership.

Take advantage of tax breaks - In 2003, the government introduced the urban development zone (UDZ) scheme with a view to improving the ability of South Africans to acquire homes. The scheme was conceived to promote urban development and regeneration in specified areas of certain South African cities, including Cape Town, Johannesburg and Durban. The UDZ scheme means that the first owner-purchaser of a building or part thereof in a new development is entitled to a tax break consisting of a tax incentive of 55% on the purchase price of a unit over a period of 20 years. Importantly this incentive can be used to reduce an investor's tax liability on income from all sources. The incentive is also not limited to the taxpayer's current year's taxable income, so if the full incentive is not absorbed in any tax year it can be carried forward as an accumulated tax loss until fully absorbed.

Negotiate with your developer - As a result of the difficult market conditions over the past few years, many developers have looked at innovative new ways to enhance the investment proposition for investors. Given the size of the investments being made and their relationships with the banks, property developers are often able to negotiate improved borrowing rates for purchasers. "It is worth approaching them to see if you can negotiate improved terms on purchase prices and deposits," says Solomon. "They can also sometimes help secure reduced furniture, appliances and renovation prices through their relationships with preferred suppliers."