Businesses which show the most potential will be chosen from the nominations and will then go through to the interview round. This is where the business is featured and interviewed on 567 CapeTalk on either the morning or afternoon drive show. The interview round starts on 15 August 2011 but listeners can continue nominating small businesses right through until 2 September 2011.

The top three finalists will be chosen by a panel of judges and the final results will be announced at an awards ceremony on 8 September 2011. The overall winner will receive a laptop with Softline Pastel software, a Pastel training course or seminar of their choice, as well as an airtime contract to the value of R100,000 on 567 CapeTalk. The two runners up will each receive a Pastel Small Business Starter Pack, a Pastel training course or seminar of their choice, as well as a R50,000 airtime contract from 567 CapeTalk.

The 567 CapeTalk Small Business Awards have grown significantly in the last three years, with thousands of nominations coming in from listeners. Finalists from previous competitions have said that being short-listed and interviewed on 567 CapeTalk has been fantastic for their business.

If you have a small business in mind, then get that nomination in. Who knows, they might just be the winner in 2011. For more information or to nominate a small business, please visit www.capetalk.co.za.

Nominees must comply with the definition of ‘small business’, as per the National Business Act, 102 of 1996. You can get in touch with 567 CapeTalk from 2 August 2010, with your nominations. You’ll start hearing about each successfully nominated business on radio from 16 August 2010. And the winner will be announced on 13 September 2010.

Good luck to all the nominees. I’m looking forward to seeing which business wins.

Here are some of the details:

• The new Amazon customer service centre is scheduled to open in Cape Town in October 2010.
• 600 new jobs will be created in the first two years, with another 400 seasonal jobs during the fourth quarter holiday season.
• The customer service centre will provide services in English and German.
• Keep a look out on www.amazon.com/careers for job opportunities at the new centre.

Well done to Amazon for going forward with this project in the Western Cape.

‘With the latest housing market indicators showing that South Africa’s property market is firmly back into positive price growth, now is the time for both homeowners and first time buyers to get back on the housing market ladder.

Assisting South Africans in this regard, the Western Cape Property Developers Exhibition event is being held at the Cape Town International Convention Centre (CTICC) between 12 – 14 February 2010.

Organised by Sophia Vorster of Nationwide Home Loans and Careen McKinon of mortgage originator ooba, the event is a must for anyone looking to buy property in the Western Cape – providing everything property-related all under one roof.

“The property market is finally showing signs of life again so this expo comes at the perfect time. Consumers will be given the opportunity to negotiate directly with property developers as well as the chance to explore a number of different purchase options,” says McKinon.

ooba will have experts on hand to dispense free advice to anybody requiring bond finance. Visitors are encouraged to bring all their relevant personal information along with them to the dedicated financial lounge in order to have a thorough consultation with a member of ooba.

Also on hand to help is Seeff Properties, who can assist consumers in selling their existing properties as well as providing advice on 2010 rental opportunities. Claremart will also be hosting a daily auction hour, while leading home furnishing retailers will be discussing the latest home decor trends.

Entrance is just R10 per person and can be paid at the door. Part of the proceeds will be donated to Habitat for Humanity.

For more information on the Western Cape Property Developers Exhibition contact Sophia on 082 372 8074.’

I know when getting started with investing you should work with a reputable and well established company. And in the case of gold coin investing, the SAGCE is the one to go to in South Africa. The SAGCE is a popular choice for both collectors and investors, offering a variety of gold coins, Krugerrands and Mandela Coins. The company’s retail division Scoin Shops are convenient and make buying gold coins easy for private investors and collectors.

The Krugerrand is by far the most popular and most well known of South African gold coins. It is recognised as one of the top 300 brands in the world and it remains a standard in the industry. There are many valuable gold coins that investors and collectors look for. Limited edition gold coins such as those found in the Protea Series, Natura Series and Nelson Mandela gold medallion sets, are all highly regarded and are sought after by collectors and investors. There have also been limited edition releases to mark sporting events – for example, the 2007 Rugby World Cup gold coins and 2010 FIFA World Cup gold coins.

If you get more into the subject of gold coins, then you’ll hear terms like gold bullion and gold alloy. I’ll try to explain these terms briefly.

Gold bullion basically refers to any form of gold where the composition is almost entirely made up of gold. Gold alloy refers to a composition of gold and another base metal, where more than 50% of the total composition is gold.

Gold coins are not made up of 100% pure gold. In its purest form, gold is too soft to use for coins and jewellery on its own. It first has to be alloyed with other base metals like silver, nickel, copper, zinc etc. What you then get is a harder substance called ‘gold alloy’, which can be used for coins, jewellery and other items which need to be durable and solid.

Here’s an example. A Krugerrand consists of 91.67% pure gold. Krugerrands are strengthened and alloyed with 8.33% copper. This gives the Krugerrand an orange look. Compare one to a silver alloyed gold coin and you’ll see the difference. Copper alloy coins are harder and therefore more resistant to damage from scratches and dents.

Since we’re on the subject of Krugerrands, here are some more facts about this globally recognised coin.

• The Krugerrand is rated as one of the Top 300 brands in the world.
• Krugerrands are available in 1 oz, ½ oz, ¼ oz and 1/10 oz coins.
• The coins are minted in 22 carat gold.
• Krugerrand prices are quoted in US Dollars.
• Looking at the Krugerrand coin, you’ll find Paul Kruger (president of the old ZAR – Zuid Afrika Republiek) on the one side and the famous prancing Springbok on the other side.
• A Krugerrand consists of 91.67% pure gold. The remaining 8.33% is copper.
• Proof Krugerrands are the most sought after Krugerrands. Only limited amounts of these coins have been minted which makes them more attractive to investors and collectors.
• Traditional Bullion Krugerrands have 160 serrations, while Proof Krugerrands have 220 serrations.
• Something which makes Krugerrands so popular, is the fact that they are available in 1 ounce coins – a preferred choice for private investors looking to buy.

Something else to consider is the ‘collectors value’ of gold coins. While the value is influenced by the gold price and the value of gold, the rarity of some gold coins brings into account the ‘collectors value’. Some collectors will pay more than the estimated market value if they’re looking for a specific coin. If you have a rare gold coin, it’s up to you and the collector to agree on a selling price – a price which could be very rewarding financially.

Be sure to buy your gold coins from a reputable dealer – like the South African Gold Coin Exchange (SAGCE) for example. Gold coins are an investment, so stick to authorised gold dealers and qualified gold brokers. Do your research, ask questions, check the coin gradings and check the coin values. An authorised gold dealer should be able to assist you with all your queries before you buy.

If you’re collecting gold coins or investing in them please feel free to post a comment.  How does it rate compared to other investments? It would be interesting to hear from you.

The winning business will be announced at the  Small Business Awards Gala Evening, which will take place at Hanover Street in Grand West Casino on 18 November 2009. The main prize is an advertising package on 567 Cape Talk, which consists of the production of a professional radio advert. This includes scripting, a voice over artist and studio time as well as online exposure on www.capetalk.co.za. The winning small business will also receive two World Cup Semi-final tickets and a Nedbank Small Business Credit Card courtesy of VISA.

If there’s a small business which you’d like to nominate or you’d like more information please visit www.capetalk.co.za. Well done to 567 Cape Talk and Nedbank for putting a great competition like this together.

In the current market it’s cheaper to rent the kind of place you really want to stay in, so I rent where I live. I’ve been looking at apartments, loft apartments and small townhouse/duplex units in the southern suburbs.

After renting for the last couple of years I find these are the things I now look for:

• Security – The block has to have secure fencing and gates. And a security guard is a bonus. Burglaries can happen anywhere but I find that a real positive of living in a secure ‘lock-up and go’ block is the security and peace of mind that comes with it.
• Secure parking for visitors – While it’s important to have a secure parking space of your own, I really appreciate an apartment block which has enough secure parking for visitors. A lot of places don’t cater well for visitors but when my girlfriend, family or friends are visiting, I want them to be able to park somewhere safe and secure.
• Fitted kitchen – Most newer units have a built-in oven and hob. It’s a big plus and one less thing to cart around when you move.
• Communal facilities – A laundry, braai area and pool are all good bonuses. I like an apartment block with communal facilities as it also adds to the vibe of the place.
• Additional nice-to-haves – In some newer apartment blocks I’ve seen extra’s like DSTV-ready connections and ADSL ready connections. Depending on what your needs are, these could come in very handy.

These are all things which I look for and would persuade me to pay an extra R500 – R1000 a month on the rent. What do you look for when renting? Feel free to post your comments.

Cheers, Adrian

Nedbank announced this week that clients would not have to put down a cash deposit of 10 to 20%. Instead, Nedbank is now accepting 0 to 10% cash deposits. That’s a big relief. Clive van Horen, head of Secured Lending, says: ‘In general, though, we continue to believe that putting down a 5 to 10% deposit is good practice for both the client and the bank, and therefore we will continue to encourage clients to do likewise.’

One hundred per-cent home loans will only be granted to lower risk clients. This applies to both existing Nedbank and new clients. I’d say that’s pretty good news. What do you think?

For first-time property buyers and anyone looking for good South African property books I recommend these two books:

• Making Money Out Of Property In South Africa by Jason Lee
• Fast-Forward Your Retirement Through Property by Jason Lee

There are lots of property books out there but few provide for the current South African property market which these do. Jason Lee provides valuable advice on finding and securing the best property deals and maximising your investment.

You can read more about Nedbank’s good news on home loans here.

Maybe you're saving for a deposit on a property.

I asked Gregg Sneddon of the Cape Town based financial planning company The Financial Coach a few questions. If you’re planning to save for a short-term goal, Gregg advises the following:

‘There really is only one option here, which not enough people know about, and that is the money market unit trust account. No capital risk, access to your funds at 48 hours notice and no fees to get in or out. Plus, it also offers the best short- term interest rates.’

But what exactly is a money market unit trust account? Basically, it’s a low-risk fund that invests in markets where banks lend and borrow large amounts of money, hence the term money market. Commercial banks, the Reserve Bank and large companies and institutions participate in these wholesale markets. Money market funds focus on investing in securities, for example bank deposits and wholesale call deposits with a maturity of less than 12 months.

The bottom line is that you’ll get a higher return on investment, as your money is being invested by a fund manager in a market, which you wouldn’t normally have access to. Gregg says you’re looking at a return of around 7 to 7.5% per annum in the current market. That’s pretty much on par with fixed deposit investments, which you can see in the fixed deposit interest table from ThinkMoney.co.za below. The difference is that with a money market unit trust account your money isn’t tied up and unavailable to you for a long period of time.

But don’t confuse a money market unit trust account with a money market bank account. The money you invest in a bank account is only invested in that bank’s securities. While in a unit trust account, your investment is diversified across different banks.

You’ll find money market unit trusts are available from most financial institutions and minimum investment amounts will differ from company to company. After a bit of research, I found that the lowest buying option is offered by Metropolitan Collective Investments. You can either invest a lump sum of R10 000 or choose a monthly investment where the minimum is only R200. Once the account is open, you can invest any additional amounts as and when you like. A good incentive if you receive a bonus one month – it’s a good place to save that additional, available income.

While we may be saving for the short term, the seasoned investors out there invest in money market unit trust funds during times of market volatility and when they need a place to hold money while deciding on future long-term investments. That way, they’re still earning good interest on their money. In other words, learn from the professionals and use their knowledge for your personal gain.

How about investing in unit trusts for a long term? Gregg had the following to say:

‘I think they are the ultimate investment vehicles – low minimum amounts, low or no initial fees, access to some brilliant fund managers, no contract (unlike endowments), access to the money if you need it, legislative protection… You can’t beat them. For R500 per month, you can buy into a fund of the Top 20 shares on the JSE or even into shares on the global markets. If you have the time, such as 10 years, then pick a general equity unit trust fund and put your money  there, either on a monthly basis via debit order and/or ad-hoc lump sums.’

Whether your goal is short term or long–term, it’s easy to invest in unit trusts. I personally invest with Old Mutual and have been pleased with the results. So look around, there are plenty of options available.

Gregg adds:

‘If you don’t have time, don’t take capital risk! You are an investor, not a gambler – the share market is not for the short term. So stick to cash and more specifically, to money market unit trust accounts.’

It’s good to know that you don’t have to settle for a low-interest bearing savings account. You can make your money work for you even when investing in the short term, plus it’s low risk. Ask around and see what’s available. You may be able to reach your short-term goal a little quicker than you had initially thought.

Gregg’s company The Financial Coach can assist you with planning your finances, investments, tax, education and retirement. For more information visit www.thefinancialcoach.co.za.

I'd like one of these please...

Perhaps you’ve read a few books like Rich Dad Poor Dad, you’ve looked at some properties, maybe even put in an offer or two or you’ve already bought something. There are a lot of terms thrown around out there like ‘investing with nothing down’, ‘positive cash flow from day one’ and ’100% bonds’. I thought I’d ask an expert in the field, someone who could paint a clearer picture of property investment and most importantly, someone who could give advice on the South African market.

Jason Lee, author of Making Money Out Of Property In South Africa (this is a great book to start with if you’re keen on investing in property in South Africa, check it out here), had the following advice for us newbies in the property market.

I asked Jason about the key Rich Dad Poor Dad-type concepts, such as investing with nothing down and receiving positive cash flow from rent income from day one. He had this to say:

‘Rich Dad Poor Dad was born in America where interest rates are traditionally low and most property investments are cash flow positive from the date of transfer. With our traditionally high interest rates in South Africa it is very difficult to find properties that are cash flow positive off the bat. It is for this reason that I outline my two prong approach to investing in property in SA in my new book Fast Forward your Retirement through Property.

The two prong approach involves doing both income deals (properties that you buy on a buy-to-let basis and hold for a medium to long time frame) and capital deals (properties that you buy and sell as quickly as possible for short term profit). The profits from the capital deals are then reinvested into the income deals to reduce the gearing and make the properties cash flow positive.

I highly recommend that investors read this book to understand the two prong approach and particularly issues regarding timing the market. 100% bonds are still available but these are the exception rather than the norm. The key is to find good properties at bargain prices and present yourself correctly to the bank in your finance application. My origination team can assist investors looking to procure bonds for property deals in the correct format.’

When keeping an eye on things, one will see a lot of new development out there (the CBD, Pinelands, Maitland and Muizenberg seem to be very popular areas). They are usually advertised with benefits such as a low deposit or rental income guarantee.  Jason explains:

‘New developments are a very good option provided you buy from reputable developers and you know exactly what you will be getting for your money. Developers are under pressure to get presales in current market so a number of them are offering attractive rental guarantees and discounted prices. My advice is to buy in small developments (less than 20 units) to make sure you are not competing with hundreds of other investors trying to sell or find tenants.’

This is more like it... (for now!)

When looking into new developments I noticed a UDZ tax allowance was sometimes mentioned. Being a tax allowance I decided to look into it. A UDZ is an Urban Development Zone and there are 2 such UDZ areas in Cape Town:

• Parts of the Cape Town CBD with integrated Corridors, and CBD, East City, Salt River, Woodstock, Observatory, Maitland up to the railway bridge, Mowbray, Athlone and Gatesville
• Bellville CBD in vicinity of Voortrekker Road

Now, how will you benefit if you buy a property in one of these areas? Essentially as a tax payer you can reduce your taxable income and pay less to SARS. The incentive is like a depreciation allowance – it’s calculated on a percentage of the purchase price and is spread over a number of years. I’m not going to get too technical on this but it will be of benefit to you, so keep your eyes and ears open and if you come across a development mentioning a UDZ tax allowance look into it, the numbers could be a pleasant surprise.

But what happens if you’re not earning enough to get a bond on your own? According to Jason it’s quite simple:

‘Better to own a smaller percentage of something than 100% of nothing. I own all my properties with partners and that is why I say that property is the greatest team sport ever invented.’

In conclusion and with regards to finding good property deals Jason sums it up succinctly:

‘There are bargains everywhere depending on your price range. I prefer not to stock pick but encourage investors to look at all areas thoroughly to gauge prices and value for money.’

If you want to get serious about property (and come on now, why shouldn’t you), get your hands on one of Jason Lee’s books below, they will give you that head start you’re looking for.

Jason's first book, recommended to get you started

The new book - I'm going to get my copy now

For more advice you can visit Jason’s website at www.jasonlee.co.za. There you have it. I hope this answers some of your questions and will help you get started if you haven’t already. Good luck out there, make it happen.