59097 FETC Real Estate Practice Level 4 Assignment

Assignment Task

Task 1: Marketing Strategy For a New Venture

Activity 1: Knowledge Assignment

Marketing Plan

• List the six most important features of a marketing plan.
• List the three marketing ideas of a new venture.
• Define the concepts of product, price, place and promotion; in terms of the marketing mix

Activity 2: Practical Assignment

Your own internet based Real Estate Agency Idea

• Select and name your own internet based Real Estate Business. Develop the main idea that will form the basis of the Marketing Plan.

Target Market Segmentation

• Develop a defined target market for your new business created in the above question. Conduct a Market Segmentation exercise for your agency and identify your target market by using the following indicators:

Product Attributes

In this activity, you will need to identify product attributes that may form the basis of your product marketing and advertising.

• Identify and list three benefits of your product, both rational and emotional.
• Identify which perceived benefit, if used as a marketing strategy, may be so misaligned that it will cause a decline in your market segments’ interest. Motivate your answer.

Sales Risks

• You now need to identify the potential sales risks that may be attached to your new Real Estate organization and/or product. The Scenario is as follows: In your allocated business, you have one property developer whose interest will account for 60% of all sales in your company. Analyze and note down the dangers or risks of such a situation.
• Identify strategies that should be explored in order to change such a situation.
• List the positive sales effects that would come as a result of you partnering with another Real Estate business.
• Explore the Real Estate market and identify two small Real Estate organizations that you could partner with, as well as the reasons why you would choose them.

Marketing Objectives

• Develop at least two marketing objectives for your new Real Estate Agency by using the SMART Goal Method.
• What is the difference between the sales objectives and the marketing objectives of your new Real Estate Agency?

Activity 3: Workplace Evidence

Advertising

• Find at least three types of advertising media that are used in your current workplace.
• Write down the advantages and disadvantages for each form of media.
• Provide an explanation as to what you consider to be the most effective advertising media tool for your own business.

Print and place this evidence in your PoE, clearly labelled as “Unit 3, 1.3.1.”.

Online Marketing

• How effective is your current workplace website, in terms of communication with potential buyers? Suggest how the website can be improved on and the reasons why you have made these suggestions.

Distribution

Conduct a study on the distribution strategy that is used at your current workplace to attract and communicate with new and existing clients. The following elements must be researched:

• Penetration, market coverage & shelf space
• Outlets and channel types
• Competition
• Geography
• Timing

Task 2: Sales & Marketing of Real Estate

Activity 1: Knowledge Assignment

Market a Property

• Describe the product and service elements in Real Estate in terms of material and services.
• Describe how to determine a profile of a buyer. What main questions should be asked?
• Describe the marketing process in the world of Real Estate.
• Describe what the term “Farming Area” means, in the context of Real Estate.

Selling a Property

• List at least five criteria that should be kept in mind when canvassing for saleable stock.
• Explain the procedure for making an offer to purchase.
• Describe the term “value-based approach,” in terms of the estimation of property market value.
• Describe the term “cost-based approach,” in terms of the estimation of property market value.
• List the circumstances that are relevant for the termination of the offer to purchase.

Leasing Properties

• What details must form part of a written lease agreement under the Rental Housing Act?
• What are the differences between the procurement and administration functions in letting and hiring properties?

Sectional Titles Act

• State how an owner’s Participation Quota – PQ – is calculated and what it determines.
• Discuss the aspects that a Property Practitioner should take into consideration when dealing with a Sectional Title property that is to be sold or let.
• List the duties of the purchaser of a unit in a Sectional Title Scheme.
• What is the definition of the word “Section” in terms of Real Estate terminology?
• What is the definition of the word “Unit” in terms of Real Estate terminology?
• What is the definition of the term “Exclusive Use Area” in terms of Real Estate terminology?

After Sale Service

• What documents and information would you have to give to the Conveyancing attorney on behalf of your clients?
• Explain the value of managing the communications between and with the different parties during the conveyancing process.

Activity 2: Practical Assignment

Market a Property

• Describe your local (geographical area) buyer behaviour and the typical profiles in the Real Estate market, with examples. (Refer to LU1)
• Draw up a short-term marketing and advertising plan for yourself to meet your monthly targets that were set by your Principal Agent. You may need to include a Activity sheet used in your company.
• Analyze the results of your sales and leasing of residential property during the past three months to determine where your future sales focus and opportunities will be focused.

Selling Properties

• Describe the different listing and multi-listing systems used by Real Estate Practitioners and Agencies and give examples of these that are active in your area.

Sectional Title Advice

• What are five key aspects that you should be discussing with a client who is buying into a Sectional Title Scheme?

Registering a Sectional Title Plan

• List the steps that a developer needs to take in order to register a Sectional Title plan for a residential property scheme. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 2.2.29”.

Activity 3: Workplace Evidence

Market Properties

• You have to select either a Rental OR a Selling property for this activity. List the clients details against the type of property.
• Draw up a simple marketing strategy for one of these properties (rental/selling).
• Do a Comparative Market Analysis for each property.
• List these properties on your workplace listing system, i.e. MLS.
• Compile your advertising plan for these properties.
• Advertise these properties by using any of the following media; newspaper classifieds, website listing, local Real Estate advertising brochure, fliers. If any other media is used, please specify.
• Include this evidence in your PoE, clearly labelled as “Unit 3, 2.3.1.”.

Selling Properties

• Explain how you would source saleable stock from the following sources:
• Multi Listing systems.
• Newspaper classifieds.
• Internet sellers
• Word-of-mouth clients (provide testimony).
• Existing clients.

Task 3: Business Principles in Real Estate Transactions

Activity 1: Knowledge Assignment

Budget Elements

• Provide a description and examples of direct cost in a Real Estate business.
• Provide a description and examples of indirect cost in a Real Estate business.
• Provide a description and examples of contingency in a Real Estate business.

Taxation

• Who pays Capital Gains Tax (CGT)?
• Describe how the CGT affects South African Citizens and non-residents.
• How is the Capital Gains Tax determined?
• Provide three examples of Base Cost in the Real Estate environment.
• In table format, as per the example provided below, write down the following in terms of Capital Gains Tax:
• The percentage of CGT that is payable.

Value Added Tax

• Discuss the principles of Value Added Tax (VAT), in the Real Estate context.
• Discuss the principles of Personal Tax in relation to own income structures within the Real Estate environment.
• Do the following calculations:
• Transfer Duty of a property valued at R1,870,000.
• Capital Gains Tax for legal persons selling primary property at R1,870,000, with a profit of R350,000.00.
• A Property Practitioners Personal Tax for commission earned of R60,000 with a Tax directive of 18%

Activity 2: Practical Assignment

Personal Finance

Use the Budget Worksheet to complete the following activity.

Applicable to the table above, you are required to do the following:

• Work out a Personal Budget against a monthly estimation of business income.
• Compare your work targets with your personal budget. Provide your work targets.
• Explain your planning to cover the following; Life, Medical & Motor Insurance and the importance thereof.
• You have to list all your current debts and expenses that are not necessary and your long term strategy to resolve these.

Real Estate Transactions

• List the main taxes relevant to the Real Estate environment.
• If a Property Agency earns R2.2 million a year in commissions, is that Property Agency obliged to register as a VAT Vendor? Why, or why not?
• How much income tax is payable on the sale of a primary property if it was purchased for R1 million and sold for R2.5 million?
• How much Capital Gains Tax is payable on the sale of an Investment Property if it was purchased for R1 million and sold for R2.5 million?
• Who is responsible for the payment of Municipal Rates and how is it calculated?
• How does a taxpayer get an assessment for SARS?

Activity 3: Workplace Evidence

Budget Expenditure

• In your workplace, draw up an expenditure budget for your organization of the next three months, and determine the profit, loss and breakeven points. Discuss the outcome with your Mentor/Principal, and present your suggestions on how to increase the profit of your organization. You can do this either in the form of a presentation, or a brief document. Print and place this evidence in your PoE, labelled as “Unit 3, 3.3.1.”

Task 4: Financial Advice in Real Estate

Activity 1: Knowledge Assignment

Financial Advice

• Explain the duties and obligations imposed by the National Credit Act on credit providers in Real Estate credit agreements, to sellers and lessors.
• Identify the elements constituting the total cost of ownership of immovable property. Give one example.
• Give examples of two sources of finance and the qualifying criteria for each.

Activity 2: Practical Assignment

Presentation: Financial Options

Prepare a presentation in which you explain the financing options to a potential seller/buyer/lessor/lessee. You must do the following:

• Research the financing Real Estate options offered by the various financial institutions.
• Design a checklist of the information that the banks would require of a purchaser and the obligations imposed by the National Credit Act on the financial institutions.
• Cost incurred as a seller/lessor.
• Cost to the purchaser/lessee.
• Illustrate by means of an example how to calculate bond repayments on an amount of R1,500,000.00.

Print and place this evidence in your PoE, clearly labelled as “Unit 3, 4.2.1.”.

Purchaser Financial Obligations

• Prepare a simple financial statement for the buyer on the Mortgage Bond amount of R1,500,000.00. Include the Purchase Cost and the Bond Cost. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 4.2.2.”.
• Prepare a separate financial statement for the buyer of possible monthly/annual costs involved in owning his or her own property. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 4.2.3.”.

Activity 3: Workplace Evidence

Assess Financial Viability of Buyers

This activity must be based on an existing buyer that is listed in your workplace. You have to assist in assessing and determining his/her financial viability. Obtain a testimony from the client/ your mentor stating that you have done the following:

• Conduct an assessment of a buyer’s financial position.
• What advice would you give to the buyer on the different financing options offered by different institutions.
• Explain the qualifying criteria for home loans.
• Explain the bond registration process.

Task 5: Office Administration

Activity 1: Knowledge Assignment

Confidential Information

• Give four examples of client confidential information that is stored or kept in the Real Estate office.
• Write down in your own words what the Code of Ethics determines in terms of confidentiality.
• Give examples of systems, procedures, various activities that a Real Estate office can use to deal with confidential information.

Stock Control

• List three possible outcomes that could occur where stationary is under-stocked in the Real Estate office.

Workplace Policies

• Why are workplace policies and procedures important in the workplace?
• List four common policies in the workplace that impact on Property Practitioners. State how they have had an impact on your activities.

Activity 2: Practical Assignment

Administration & Stock Control

• Create a plan to control stationary in the office. In your plan, include the following:
• List possible Real Estate stationary items and their suppliers. You can include a brochure or pamphlet from the different companies.
• Suggest times in your plan for when stationary will be distributed to Practitioners in the office.
• Design and include a stationary order form (request form, date of request, types and quantity, and include space for the manager to authorize the order).
• Include a basic stationary stock card of items that are used on a daily or monthly basis.

Include this evidence in your PoE, clearly labelled as “Unit 3, 5.2.1.”.

Activity 3: Workplace Evidence

Maintaining Registers & Records

In your workplace, do the following recording of the past two months using the data system available in the workplace:

• Number of telephone calls generated by classified and display advertisements.
• Number of showings required for each concluded sale or lease.
• Advertising costs as a percentage of sales commissions.
• Sales training costs in relation to make one sale.

Task 6: Development in Real Estate

Activity 1: Knowledge Assignment

Self-Management

• What does self-management mean, and why is it important and relevant to you?
• Discuss three constraints to self-management within Real Estate context.
• List five Time Management tools that you can use to ensure a productive use of your time.

Career Development

• Give a description of Organizational Career Management, and give an example of what this is.
• Give a description of ‘Boundary-less’ Careers, and give an example of what this is.
• Give a description of Personal Development, and give an example of what this is.
• Why should you set goals for yourself?

Educational Requirements

• Re-registration: what are the educational requirements for Non-Principal Practitioners and Principal Practitioners who were already registered with the PPRA as of July 15 ^th 2008?

Institutions & Structures

• Identify the role of the PPRA with regards to Real Estate Practitioners and professional development.
• Identify the role of Services SETA with regards to Real Estate Practitioners and professional development.
• Identify the role of a mentor with regards to Real Estate Candidate Practitioners and their professional development.
• Identify the role of Accredited Training Providers with regards to Real Estate Practitioners and professional development.

Activity 2: Practical Assignment

Self-Management & Goal Setting

Use the SMART guidelines as described in the example below and list your short and long term goals in line with each guideline.

Write down activities for yourself for the following goals, which could possibly be set in the Real Estate Environment:

• Career projections.
• Sole mandate projections.
• Income projections.
• Planned developments & anticipated demand given prevailing economic trends.
• Number of hours per day that you plan to work so that you can best utilize your available time.
• Your own resources and their outputs (this could be staff, your car, etc.).
• Your own personal plans for career, skills and educational development.

Career Development

• Source Real Estate Industry information on the different career pathways in the Real Estate Environment. You can include any sources, such as local educational institution career guidelines, road-show information booklets, job advertisements, website sources, or any other sources which you used or referenced. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 6.2.3.”.
• Using the example of a template below, map your own career path for the career opportunities you have identified. Select the area you would like to practice in, and draw up a personal action plan with activities you will do in order to achieve your career goals. List the educational interventions that you will have to take in order to achieve these career goals. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 6.2.4.”

Activity 3: Workplace Evidence

Self-Management in The Workplace

• Draw up an activities schedule and self-management action plan for your current work demands. List the targets which need to be achieved, and identify workplace and personal constraints. Suggest ways in which you can overcome these constraints. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 6.3.1.”.

Educational Requirements

• Find out what action plan and systems are in place at your current workplace to assist Non-Principal Practitioners in the achievement of the relevant Qualifications for registration purposes. If none exist, suggest to your Principal or Mentor to contact the relevant stakeholders for guidelines and assistance. Provide the contact details of the relevant stakeholders. Print and place this evidence in your PoE, clearly labelled as “Unit 3, 6.3.2.”.

Portfolio Activity: Reflective Journal

This reflective journal must be completed by you during your time in the workplace. You are required to note down, on a weekly basis, the activities that you engaged in, the lessons that you learned and the challenges that you faced. This activity supports the Critical Cross Field Outcomes (CCFO’s) of the Qualification, and must show your ability to do the following as stated in the Exit Level Outcomes and related assessment criteria:

Answer the below questions as part of your self reflection:

• What was your overall impression of this learning unit?
• Which component did you find the most challenging?
• Which component did you find the most useful?
• Do you feel you have gained anything on a personal level by working through these assignments?
• Journal your activities according to what you have practically covered during this Learning Unit:

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