When one starts reading about the new National Credit Act (“NCA”) and the Banks’ policies on granting credit in the weekly family magazines and daily newspapers, it is probably a good time to try and understand what all the commotion is about. A complete “abbreviated version in layman’s terms” is not available due to the relatively complex concepts that deal with many important aspects.

As a matter of interest: The South African property industry has exceeded the R 486 Billion per annum mark, while most of these assets are funded by some financial institution taking a well calculated financial risk - a risk normally covered by the property as security and the buyer’s “I owe you”, also known as a mortgage bond. Imagine the exposure to the Banks (and its other clients) if all this credit were granted on “inaccurate” information.

Without trying to provide a crash course on the subjects mentioned above, we have been including comments on the NCA in our monthly newsletter, as well as the arrangement for informed people to share their knowledge and experience with members of our network at various forums. You will find that most reputable Bond Originators and Conveyancing Attorneys are also focussing on the subject matter, while there are unfortunately many role players who still over-expose clients and undermine the Banks’ policies – doing what ever is necessary for their own financial gain as opposed to what is in the consumer’s best interests.

The aim of the new legislation and the Bank policies are there to protect the consumer – not to restrain anybody unnecessarily. Consumers should beware of intermediaries and advisors who can introduce a little “black box magic” and those who have a “special contact” somewhere, especially if these added services come at additional costs to the consumer. Should a consumer be advised to omit or twist any information during a credit application, alarms should immediately go off.

As from 1 June 2007, there will be no room for estimating and no room for fancy footwork when it comes to a credit application. Full disclosure is what the Banks will require and one can be assured that these lenders will verify the correctness of all information very carefully against proper source documents i.e. the applicant’s bank statement. All debt repayments and household expenses will be scrutinised carefully, whilst some consumers might be surprised when they are requested to disclose their surety obligations. It is here where the “Buy-to-let” property in the Family Trust and the other one in the dormant Private Company might come back to bite an uninformed consumer who has been over-exposed through creative property investment structures.

As an established real estate group that is only 49 years young, we are not necessarily experts on all aspects of credit lending, but we pledge to serve all consumers in accordance with our official Value System: “We will conduct our business, and influence our business partners to conduct their businesses, with integrity, enthusiasm, confidence, responsibility, accountability, transparency, commitment, persistence, care, respect and empathy.” There is no reason for any consumer to take any uninformed decisions – to ask is free, even if the subject matter is not our primary business.

Property remains an excellent investment commodity and all indications are that the property market will go from strength to strength. FNB’s Chief Economist, Mr Cees Bruggemans, recently predicted strong economic growth, stating that consumer confidence is at a new record and further that there is sufficient reason for this confidence, while Mr John Loos, also of FNB, was recently quoted in the Business Day, stating that the housing demand will continue to grow steadily as the economy and the middle class continues to grow, despite the reported rise in household debt and debt servicing costs.

If you are of the opinion that it is difficult or impossible to establish a property portfolio under the current economical climate and the new legislation, allow me to quote Saint Francis of Assisi for you: “Start by doing what’s necessary; then do what is possible, and suddenly you are doing the impossible.”

A credit provider may not enter into a reckless agreement with the consumer and must before contracting, assess the consumer’s understanding and appreciation of the risks and costs of the credit, his rights and obligations involved, his debt repayment history as a consumer under credit agreements and his existing financial means, prospects and obligations. The credit provider’s evaluation must be fair and objective. The information of the consumer may be obtained from a credit bureau. The consumer is required to fully and truthfully provide the requested information. Failure by the consumer to do that, will serve as a complete defense against an allegation of reckless credit. A court may declare a credit agreement reckless in any proceedings concerning credit agreements. If a court declares a credit agreement reckless, the court must further consider whether the consumer is over indebted at the time of the court proceedings. The fact that a specific agreement is reckless, does not necessarily mean that the consumer is over-indebted overall. The reckless credit provisions do not apply to the following:

a school loan; a student loan; an emergency loan; a public interest credit agreement; a pawn transaction; an incidental credit agreement; a temporary increase in the credit limit under a credit facility; an agreement where the consumer is a juristic person.

On a magical evening at Emperor’s Palace, Johannesburg, in true 1920s fashion, our top achievers were recognized. These achievements are quite memorable, considering the level of competition in the AIDA network. We congratulate you and thank you for your hard work and determination.

In the words of Marilyn Monroe: “I used to think as I looked at the Hollywood night, there must be thousands of girls sitting alone like me, dreaming of becoming a movie star. But I'm not going to worry about them. I'm dreaming the hardest.”

In the AIDA family, we also dream the hardest, that’s why we are the best.

The stunning Le Meridien Pyramids resort, nestled between the city and the wilderness, boasts unparalled views of the majestic, ancient splendor of the Giza Pyramids.

The Top Achievers and their partners in the following categories will be spoiled at this picturesque destination, including a cruise on the Nile:

1. Top Rookie Agent Overall - Iris Thornhill (AIDA Tzaneen)
2. Top Agent Overall - Hannes van Niekerk (AIDA Pretoria East)
3. Top Franchise Overall - AIDA Pretoria East
(Johan van der Westhuizen & Piet Joubert)

We salute our Top Achievers! The famous Pyramids of Egypt awaits you!

From left: Leon Barnard - Director of Homeloans and Vehicle Finance, Standard Bank • Neville McIntyre - Executive Chairman, Jigsaw Holdings • Annelize & Johan van der Westhuizen (AIDA Pretoria East) • Iris Thornhill (AIDA Tzaneen) • Hannes van Niekerk (AIDA Pretoria East) • Carina & Piet Joubert (AIDA Pretoria East) • Jan Davel - CEO, AIDA National Franchises

On 1 February 2007, after spending approximately one year in the employ of Jigsaw Franchise Development Division, Andre Cloete was appointed as Franchise Sales Manager with a dedicated focus on the AÏDA Network.

Andre has extensive franchising experience as he worked for the Verimark Group as part of their support structure since the year 2000. During 2002, he was employed as Franchise Manager by the True North Commerce Group (which includes companies such as Multisave, Cash Converters and Postnet). During this time he gained extensive experience in market analyses and financial models.

AÏDA’s management team is focussed on providing a dedicated service and support structure to ensure that each franchisee has the necessary platform to work from. Andre’s dedicated focus on the continued growth of the AÏDA Network will ensure that the Group continuously expands into all worthwhile centres.

Our network, as is the case with a chain, is only as strong and effective as the weakest link. It is the Franchisor’s responsibility to see to it that each and every franchise remains a profitable, sustainable business unit and that newcomers do not dilute the brand equity. New Franchisees are therefore carefully screened and evaluated to ensure that they have the necessary experience, funds, capacity and the very important entrepreneurial spirit.

On 1 February 2007, after spending approximately one year in the employ of Jigsaw Franchise Development Division, Andre Cloete was appointed as Franchise Sales Manager with a dedicated focus on the AÏDA Network.

Andre has extensive franchising experience as he worked for the Verimark Group as part of their support structure since the year 2000. During 2002, he was employed as Franchise Manager by the True North Commerce Group (which includes companies such as Multisave, Cash Converters and Postnet). During this time he gained extensive experience in market analyses and financial models.

AÏDA’s management team is focussed on providing a dedicated service and support structure to ensure that each franchisee has the necessary platform to work from. Andre’s dedicated focus on the continued growth of the AÏDA Network will ensure that the Group continuously expands into all worthwhile centres.

Our network, as is the case with a chain, is only as strong and effective as the weakest link. It is the Franchisor’s responsibility to see to it that each and every franchise remains a profitable, sustainable business unit and that newcomers do not dilute the brand equity. New Franchisees are therefore carefully screened and evaluated to ensure that they have the necessary experience, funds, capacity and the very important entrepreneurial spirit.