Absa is deepening its support of the property investment market by recognising and acknowledging the increasingly important role that property investors play in the overall economy of the country.
“In fact,” says Miguel Martins, Investor Portfolio Manager, of Absa Home Loans “property investors receive little support yet they make a huge contribution in providing housing for the rental market while also maintaining and redeveloping properties and neighbourhoods across the country. They play a key role in addressing South Africa’s housing challenges and supporting growth of the entire industry, and we should all appreciate the impact they make to the overall economy.”
It is in this light that Absa partnered with The South African Property Investor Network (SAPIN), the leading education and networking organisation for property investors, and has supported its annual Investor of the Year Awards since 2019.
“This event celebrates property investors and entrepreneurs in the residential property market and shines a light on those individuals who are willing to be brave, bold, and tenacious in the face of an ever-changing property and economic environment,” says Martins. “Through this platform, property investors present and relate their stories, challenges and successes and we appreciate their endeavours as they aim to achieve their financial ambitions and leave a legacy for future generations.”
This speaks directly to what Absa aspires to, which is ‘to house the nation and shape the property industry in a meaningful way’. Martins makes the point that property investors, beyond the previously mentioned contributions, also puts in place a chain of economic flow. “By purchasing a property an investor is providing the means to the seller to utilise funds for other purchases, likely a new home, which in effect drives growth in the market.
This applies equally in reverse. When a property investor sells, their aim is to make a profit, which can then be applied to future investments, as well as making a tax contribution.
Property investors also motivate for employment of skilled and unskilled labour when doing renovations and upgrades, and also provide homes for those who require quality rental accommodation whilst they save to purchase their own home.
“Absa views property investors as an important link within the housing ecosystem that also comprises first-time buyers, repeat buyers, and tenants, because they ensure there are ongoing transactions through all market cycles. This ecosystem is also vastly supported by many secondary players in the property industry, be those maintenance professionals, tradesmen, etc.”
There is also evidence that the market is changing, exposed by entities like Absa and SAPIN. “Traditionally the property investment arena was considered to be dominated by mature males, and was one that previously disadvantaged individuals had limited access to. The Investor of the Year Awards demonstrates how far property investors have come in changing perceptions, that the future is bright, and with a cross-section and diverse range of investors successfully concluding all size of property deals, they are effectively changing their future and those of the communities in which they engage by virtue of their success,” says Martins.
Martins also describes today’s property investors as innovative, passionate and tenacious. “They still remain a complex customer, often with layered challenges and dynamics, but this is precisely why we partner with SAPIN so that investors gain access to networking platforms of like-minded citizens, are exposed to education through the more than 200 webinars and events that SAPIN hosts annually. These events allow Absa to get closer to investors, inviting their valued feedback on how to make our offering as a bank better.”
Absa is also not purely a partner, it contributes to the Investor of the Year Awards by helping to design categories that present the breadth of roles that investors are playing in the market.
In this year’s event there were 80 applications, and which Absa assisted with in reviewing. Absa was part of the final judging panel and Martins notes that all finalists highlighted that SAPIN was a key contributor to their successful property investment journey.
“In being able to leverage quality content and education through SAPIN, be that aspiring or experienced investors, we are seeing a new energy and enthusiasm that has enabled Absa to be a bank of choice for this category of investor, and as an important catalyst in their journey towards their financial goals,” says Martins. “As a result we can also confirm that property investment continues to remain an active and stable key to a growing economy.”