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A correctly priced home will match the prices of similar homes in the area.
A guide on how to sell your home
Choosing to put your house on the market is the first of a series of decisions you will need to make during the process. Agents give sellers some tips BONNY FOURIE bronwyn.fourie@inl.co.za
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ECIDING to sell your home is a big step that almost always comes after some deep thinking but the decision is only the start of many choices you will need to make throughout the process. The first is the matter of using a professional agent. Should you use one? Which agency do you choose? And do you opt for only one? The experts offer some helpful advice: GETTING THAT FIRST VALUATION Roger Hoaten, managing director of Seeff Berea, suggests you start by seeing which agencies specialise in your area and how much of a footprint they have. “Choose an established brand with a track record in the area.” He adds it is “always a good idea” to get a few agents to come and view your property and give you a professional opinion on the value. Choose agents from well-known companies that are active in your area, agrees Berry Everitt, chief executive of Chas Everitt International. “Real estate companies with strong brands are generally also the ones with the most resources invested in supporting their agents with excellent training and business systems, providing their customers with superior marketing and referral systems to ensure the property receives maximum exposure to potential buyers.” CHOOSING BETWEEN THE AGENTS Everitt cautions against selecting an agent based solely on the estimated sale price they give you. Rather, you should consider the professionalism and honesty of each agent, whether you have a good rapport with them, the reputation of their company, their proposed marketing plans and, most of all, the basis for their estimated selling price. “This should be based on a thorough knowledge of current market trends in your area, buyer demand and a comprehensive market value report that will help you to set a market-related asking price.” The estate agent who presents the most comprehensive market analysis, and has a track record of similar sales in the area, should be the one you opt for, says Hoaten. “Guard against being swayed by charisma and the promise of a high price...” You should also ensure the agent you choose is properly qualified and in possession of a valid Fidelity Fund Certificate, Hoaten says. SOLE OR OPEN MANDATE? Many sellers believe if they let multiple agencies
market their home, they will increase their reach to potential buyers and sell more quickly. But this is not the case, says Adrian Goslett, chief executive of Re/Max of Southern Africa. “The truth is, it is often far more effective to sign a sole mandate and allow one agent the space to secure the best sale. While the threat of Covid-19 still exists, a sole mandate is also a safer option because sellers will have to liaise and deal with only one agent rather than several.” Hoaten agrees: “With a sole mandate, the seller avoids the risk of a cluttering of listings on the property portals often at varying prices. Buyers also usually overlook multiple listings.” Furthermore, working with one agent means the agent can focus all their energy and marketing on your property for a specified period. You can also avoid the risk of multiple agents trying to close the deal at any cost. “A sole mandate minimises the risk of double commission and confusion about who introduced the buyer.” Everitt says while sole mandates have many advantages over open mandates, the main one is it is more effective to have “one message” about your property going out to buyers from one agent. “Having a number of agents hawking the property can easily make it look as though you are desperate to sell and result in your receiving lower offers than you should. In fact, we believe that the more agents you have working on your property, the lower the eventual selling price will be.” Also, he says, agents working on an open mandate often end up inadvertently working for buyers rather than the seller, in that they might try to get the seller to lower the price so they can take that to prospective buyers and secure the deal, rather than getting buyers to try to increase their offers. LISTING FOR THE RIGHT PRICE A correctly priced home will match the prices of similar homes in the area, Everitt says, adding that while the pricing of the property is your decision, you should take into account that agents have put a price together using a variety of tools and area knowledge. “If you are unhappy with your first valuation, it’s a good idea to get a second opinion.” • How low should you go? If your property has been listed at a marketrelated price, Hoaten says it should be appropriate to accept 5% to 10% under this price, depending on how the purchase is to be financed. “Cash is worth a discount based on the certainty
involved,” he says. If you picked your agent correctly, and applied the science of setting an attractive asking price for the property, Everitt says you should not be getting offers that are much lower than that. “The FNB Property Barometer puts the average difference between asking and selling prices at around 10% but, in our experience, it is much lower than that where the seller has properly considered the ‘competition’ – that is, what similar homes are for sale in their area and their asking prices. You never want to be the most expensive offering.” NAVIGATING A BIDDING WAR On the other hand, if your asking price is right, he says, you may even get competing offers from more than one buyer, and actually end up getting more than your reasonable asking price. If you are fortunate enough to have a few buyers making offers to purchase and the offers are similar, Hoaten says you should determine how the sale will be financed. As general rule, cash is first prize. This is followed by the buyer with the highest deposit and bond and then pre-qualified buyers on a 100% bond. Everitt adds: “Your choice should come down to the offer that contains the best terms to suit your personal situation and relocation plans, and no other suspensive conditions, such as the buyer needing to sell their own property before they can finalise the purchase of your home.” COULD THE SALE STILL FALL THROUGH? Yes, this is possible in a number of scenarios, according to Hoaten. “The buyer could breach the agreement or their finance application could be unsuccessful. The buyer could also become ill or have an accident. Under certain circumstances, the bank could withdraw a bond that has been granted.” The chances of a sale falling through are around 14%, Everitt notes. Other reasons include: • The buyer failing to get a big enough bond. • The bank giving a lower property valuation than expected for a bond and the buyer being unable to pay cash to make up the difference. • The buyer getting retrenched after being pre-qualified for a home loan and the bank reconsidering its offer. • The buyer's own home sale falling through. • The sudden death of the buyer. However, he says, a good agent should be able to find a replacement buyer within a short time.
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Letter from the editor IT IS hard to predict things in an unpredictable climate. How often have we heard: “We could never have foreseen what happened in 2020”? Economists and indeed some real estate heads are telling us that the trajectory at the moment is reminiscent of the market in 2008, although the difference is that 13 years ago we didn’t have the low interest rates that have helped us remain buoyant. The low interest rates have certainly seen more first-time home buyers enter the market after they do their figures and work out it is cheaper at the moment to buy than to rent. However, TPN Credit Bureau reports that not all is rosy for tenants, and many can’t afford to buy. A recent TPN survey showed 75% of tenants reported loss of income during lockdown. Giving them some reprieve, TPN has recorded a negative rental escalation of -0.75%. This is, however, a further blow to landlords, many of whom have been stuck with tenants who are not paying their rents and who refuse to move out since lockdown rules have made eviction difficult. But whether you rent or own, the property market is a wave we are all having to surf. And there have been some wins: some estate agencies report higher sales last year – even with three months of shutdown -– than in 2019, when the market was already on a downward slide. I bumped into a real estate expert yesterday and his understanding is that things will remain pretty much the same as they are for the next eight months with sale prices probably dropping even further. But then, towards the end of the year, he predicts an upsurge in buying particularly at the higher end of the market which has suffered most from recent events. Others worry about another black swan event that could absolutely turn everything around. An expert I chatted to yesterday said what we all deeply know: “Property is vital, everyone needs a roof over their heads.” So no matter what unpredictable things may come, what laws may change, the fact remains whether you buy or rent, live in a commune or have a community of sorts, or whether you finally are able to access parts of real estate you’ve been kept out of – a home is one of the basic necessities. Innovations in all forms – from laws to construction – will no doubt form part of our future. Buy, sell, rent, share, whatever, we hope you will have a safe and beautiful place to call home.
Vivian Warby vivian.warby@inl.co.za
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Living in the office The trend towards converting work spaces into homes is growing and the pandemic, which has led to inreased working from home, has encouraged it BONNY FOURIE bronwyn.fourie@inl.co.za
The BlackBrick development in Sandton is a standout example of a successful office-to-residential conversion.
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OME SOUTH Africans living in luxury apartments are unaware that the spaces used to be offices. In coming years, more vacant offices in central nodes are likely to be converted into entry-level, or even upmarket, apartments. This growing conversion trend first hit in the late 1990s, and while Cape Town, Durban and Joburg were the main metros targeted for these redevelopments, more than 30 years later, many decentralised nodes are also involved. This is in line with densification policies in major urban areas and CBDs across the country, says David Green, president of the South African Property Owners Association. Frank Reardon of Strategic Property Solutions says the “huge increase” in these conversions is primarily driven by the “chronic oversupply” of offices in nodes that are well located for residential units. “In addition to the cyclical oversupply of offices is obsolescence driven by changing work patterns. These include flexible workspace and hours; the increase in working from home that was accelerated by Covid-related lockdowns and safety protocols; and longer-term trends that create more efficient use of office space, including hot desking.” He says there has also been a huge shift from the primary areas being targeted for conversions, which used to be older CBDs and non-prime office areas. Now, decentralised nodes are also the targets. “Locations closer to office nodes such as Sandton have become sought after for units targeting the middle-income market. The Cape Town CBD has historically catered for upper-end units and the Durban CBD continues to target primarily entry-level and student housing.” Paragon Lending Solutions chief executive Gary Palmer says the decline in interest in B-grade office space became evident at least two years ago and since then there have been a number of conversions from old offices to residential living spaces. “I think there is more investment opportunity in this space.” He notes there are many such redevelopments in the social housing space as
well as for the purposes of providing smaller residential units. The banks are willing to lend aggressively to end-user buyers in the affordable market as well as provide development finance for these conversions, agrees Joel Rosen, managing director of IHS DevCo – a division of International Housing Solutions. The ability to convert these spaces to a livework-play offering – which is a huge demand driver at present due to Covid – gives the enduser a perception of value in areas that were otherwise inaccessible. “Developers with access to capital are able now to get decent returns in an otherwise stagnant property market,” he says. REQUIREMENTS FOR SUCCESSFUL CONVERSIONS Nodes that offer economies of scale where developments can build communities with amenities over time provide for successful conversion nodes, Reardon says. The Bree Street and Braamfontein precincts in Joburg stand out as successes. Rosen says the BlackBrick project in Sandton, and some of the newer conversions in Sunninghill, are examples of successful office-toresidential conversions. “These have been well thought out, use the space to a good level of efficiency and give buyers lots of value for money at affordable prices.” Green cites ‘The Bolton’ in Rosebank as another example of a good conversion, saying that this space was previously occupied by Sasol before the conversion into quality apartments with rentals from R7 500 to R9 000 per month. The Bolton is within 400m of the Mall of Rosebank and the prime Rosebank office nodes, and also offers access to the Gautrain. Factors such as these are all important in enhancing the appeal to tenants and owners of well-located residential accommodation. “The appeal also relies on the facilities that are added to enhance the offering. Here we think of serviced office, gyms, swimming pools, access to retail, childcare, good security and so on.” The area also needs to be able to support the levels of sales and rental pricing to get these
feasibilities to work, says Rosen. Green points to The Argyle in Craighall, Joburg, which is also a conversion, but to luxury apartments. “Today, many of its residents are unaware that it once was an abandoned office block in a stellar location.” WHERE TO TREAD CAREFULLY Limiting factors include the architectural suitability of office space and whether it is financially feasible to convert it to residential use. “Not all buildings are suited to conversion from a structural, economic or locational point of view.” Palmer says it is worth noting that the floor plans of some conversions “don’t make sense” or are not customer-focused. “For example, they build units but the toilet is in the wrong place or there is not enough light. In some cases the conversions even become too expensive. People think it’s easy to do a conversion but it is not.” OTHER OPTIONS FOR CONVERSIONS Palmer says shared office spaces for co-working or even hotels can be created from office space, while Green adds that conversions to hotels, leisure facilities, medical suites or services and mixed-use developments might also be attractive prospects. “The lower interest rate on bank debt is also facilitating viable conversion of property, including retail property, to other uses.” When undertaking conversions, Green points out, the initial cost of the real estate for conversion needs to be affordable to enable feasible alteration for other uses. “This is not always the case as the seller’s asking price often renders the conversion unfeasible, although time has a way of changing mindsets as market conditions weaken and prospects of office leasing in lower-quality office spaces diminish.” Rosen agrees conversions from traditional offices to smaller, shared workspaces work well. “In addition, large industrial units and retail spaces that are vacant can lend themselves to residential conversions, provided they meet the criteria we’ve mentioned.”
DISCLAIMER: The publisher and editor of this magazine give no warranties, guarantees or assurances and make no representations regarding any goods or services advertised within this edition. Copyright ANA Publishing. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from ANA Publishing. The publishers are not responsible for any unsolicited material. Publisher Vasantha Angamuthu vasantha@africannewsagency Executive Editor Property Vivian Warby vivian.warby@inl.co.za Features Writer Property Bonny Fourie bronwyn.fourie@inl.co.za Design Kim Stone kim.stone@inl.co.za
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PICTURE: JEAN VAN DER MEULEN/PIXABAY
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HE PROPERTY industry was left somewhat disappointed by this week’s Budget speech which it had hoped would outline decisive plans to boost employment and stimulate economic growth. Both these issues hold powerful, although indirect, repercussions for the industry, and although some parts of the plans have been commended by property experts, others fall short. The increasing of the personal income tax threshold, for example, will help lower- to middle-income earners access greater disposable income – which could encourage property ownership – but Adrian Goslett, chief executive of Re/Max of Southern Africa says the lowering of the corporate tax rate to 27% is unlikely to stimulate reinvestment or employment. “It is not an aggressive enough stance. I would also have liked to have seen more creativity around possible support or tax breaks for entrepreneurs and/or small-tomedium-enterprise owners.” He is also unconvinced by the growth forecast predicted by Finance Minister Tito Mboweni in his speech. “In previous years, there have been promises of a 3.3% growth but we have not hit that target for years. “There is much ground to make up for the lack of growth over the previous years and, based on the lack of available revenue to invest, it seems unlikely that we will see that growth rate happening in the year ahead,” says Goslett. One of the “surprising upsides” to this year’s Budget was the above-inflationary increase in the personal income tax brackets, says Herschel Jawitz, chief executive of Jawitz Properties. This, in conjunction with a sustained low interest rate environment will provide
Too little, say property experts While some initiatives were welcomed many believe there was room in the Budget to offer transfer duty relief and other boosts for property BY BONNY FOURIE bronwyn.fourie@inl.co.za
additional relief to consumers and homeowners. “The financial impact may not directly impact on residential demand or prices but it may lift consumer confidence just a bit, which is a key driver for the residential market. Similarly, the proposed reduction in corporate taxes may help to stop the slide in business confidence, which is critical to get businesses to spend and the economy to grow.” Echoing Goslett, Jawitz says the numbers around economic growth are “concerning”. “Predicted GDP growths of 2.2% in 2022 and 1.6% in 2023 are simply not going to do the job. For property prices to grow in real terms, demand will have to exceed supply on a consistent basis. This will only be reflected when more people earn more money and that’s about economic growth.” From a real-estate perspective, Berry Everitt, chief executive of the Chas Everitt International Property Group says the most important single item in the Budget is the R10 billion allocation for the purchase and distribution of Covid-19 vaccines. These need to be administered as fast and efficiently as possible if the country hopes to achieve “any real measure of economic recovery” in the next 12 months. “Property and construction and all the downstream sectors are, of course, vital to the economy as significant job creators but we also need people to have jobs in order to keep purchasing and investing in real estate,” he says. “And that is not going to happen unless major private investors, foreign and local, have enough confidence in South Africa’s post-Covid economic stability to put their money into the major Public-
Private Partnership projects envisaged by the minister and the president in his recent State of the Nation Address.” For this reason, he feels that the government needs to “urgently” provide more clarity and detail on its plans for failing state-owned enterprises (SOEs), proposed expropriation of land without compensation legislation and the threeyear public sector wage agreement that is currently being negotiated. Yael Geffen, chief executive of Lew Geffen Sotheby’s International Realty, is not convinced the Budget offers any real economic solutions as, on one hand, the government is giving tax breaks to lowerincome households but, on the other, is heftily raising the fuel levy which will force increases in in the cost of living. Similarly, she says Mboweni expressed strong views on the need to cut the country’s massively bloated public wage bill but ploughed R12.6bn into the creation of short-term jobs that offer no long-term benefit to the economy. “In fact, all they do is temporarily skew the official unemployment statistics in the government’s favour, give foreign investors and ratings agencies a false picture of the economic stability of the country and offer no long-term benefit to the citizens on the ground who really need sustainable jobs.” From a real estate point of view, Gerhard Kotzé, managing director of the RealNet estate agency group says the country will only be able to sustain or grow the current level of activity in the market if there is significant economic recovery and job creation within the next 12 to 18 months – and that can only happen if South Africa rolls out vaccines and achieves “herd immunity” in tandem with its main trading partners around the world.
“Consequently, we are very pleased with the Budget commitment to spend at least R10.2bn on the purchase and distribution of vaccines over the next two years – although we remain concerned about the lack of detail from government as regards the actual roll out timetable.” He adds: “It was disappointing, though, that Treasury found no money to support homeownership by reducing property transfer duty – although it did make a R7bn allocation to bail out the Land Bank once again. Samuel Seeff, chairman of the Seeff Property Group, welcomes the focus on economic recovery, relief for households, vaccination and the various reforms proposed, including in corporate tax, the public sector wage bill and SOEs. However he says not increasing the transfer duty exemption on residential property is a “missed opportunity”. “Some relief here, especially at the higher end where transfer duty was increased three years ago, could have gone a long way in driving higher sales in the property market and, in turn, higher transfer duty revenue and economic contribution,” Seeff says. The significant focus on job creation, with an overall allocation of nearly R100bn, including an infrastructure budget and short-term job creation initiatives, is a “positive”, he says. “The increases in pensions and social grants are also welcome news for the economy.” Given that the latest inflation rate of 3.2% as at January is still well within the Reserve Bank’s target range, Seeff says the outlook for the interest rate remains positive and property buyers can still take advantage of the five-decade low borrowing costs.
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THE SA Institute of Black Property Practitioners (SAIBPP) is encouraged by some aspects of the 2021 Budget but says not all of it can be celebrated. Some of the positives include the reduction of the corporate income tax rate to 27%, the increase of the personal tax thresholds,and the two-year extension of tax breaks for property developers in city centres. “This will go a long way in building confidence for corporate sector to invest in the economy.” The SAIBPP is, however, disappointed by the decision to kill Section 12J tax breaks for venture capital companies, says chief executive Vuyiswa Mutshekwane. “The idea behind the Section 12J tax breaks was to encourage investments in small businesses and riskier ventures that would help to create jobs and drive economic growth. In a country struggling with jobs, and where support for small business is non-existent, this was one glimmer of hope for those small businesses that could not find support through financial institutions or found it difficult to break through the bureaucracy of government requirements for small business development. “A number of companies have benefited from this scheme, particularly the many companies that offered property investment opportunities which have grown emerging developers and real estate investors. We acknowledge and understand the shortcomings in the 12J scheme not achieving its full intent but believe it would have been preferable to restructure the design of the tax scheme instead of scrapping it altogether.” Furthermore, the Institute was expecting feedback on allocations made in the Budget speech. These include the R144 billion for Infrastructure and Industrialisation, more than R97bn for human settlement-related interventions and programmes, and R10bn for facilities management. “This expenditure, if allocated accordingly, was due to have significant impact on the property sector and, as a result, we were expectant that the minister would give feedback on how these allocations have been accounted for.” In terms of the Nedbank Capital Expenditure Project Listing – an annual report that tracks fixed investment spending on physical assets in the national economy – and the data from Stats SA which provides details of total gross fixed capital formation for SA, she says few new projects announcements, totalling less than R100bn, were observed and set aside in the government sector for infrastructure investments. “This is evidently way below the more than R200bn commitment made by the government.” Although the overall planned infrastructure spend has been increased for 2021, Mutshekwane says budget compromises have come at the expense of human settlements infrastructure expenditure. And, in the wake of the Covid-19 crisis, it became “glaringly obvious” that inadequate access to decent housing results in “both a public health crisis and an assault on basic human dignity”. It is therefore “unfortunate” that the expenditure to this area has been decreased. “It is disappointing that, over the years, the Budget speech by the minister of finance has been reduced to making a public announcement, without using this also as an opportunity to give account and feedback on how the monies have been spent. “In this speech, and the State of the Nation Address, very little attention was dedicated to updating the citizens how their taxes are being used by the government and on accounting to citizens about government performance and progress.”
Transfer duty d isappoints While some aspects of this year’s Budget were welcomed, experts agree that it did not go far enough when it comes to stimulating the property industry BONNY FOURIE bronwyn.fourie@inl.co.za
PICTURE: SIGMUND
Some good, some bad, says SAIBPP
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ROPERTY experts believe there was room in the 2021 Budget to offer across-the-board transfer duty relief on residential property, and that it is unfortunate this did not occur. And while they do commend the strides taken by Finance Minister Tito Mboweni to beat Covid-19 and stimulate the economy, they say more needed to be considered. In fact, through the initiatives outlined in his 2021 Budget speech this week, he “barely touched the surface” of the daily housing realities that many people battle daily, says Gugu Sithole-Ngobese, founding director and chairwoman of Women in Planning SA (WiPSA). From the efforts made to stimulate the economy through entrepreneurship and employment initiatives, to providing additional grants to South Africans who have been hit the hardest by the pandemic, the organisation acknowledges the efforts Mboweni is making. But it is still “acutely aware” that the pandemic has “greatly illustrated the devastating impact of the lack of housing and access to adequate basic services that plagues South Africa”. “We also note that with land currently being a contentious issue in our country, Minister Mboweni only touched on land restitution twice during his speech,” Sithole-Ngobese says. Tony Clarke, managing director of the Rawson Property Group, says it is a pity that transfer duty was left unchanged, especially in the higher bracket where it was increased about three years ago. “I think the transfer duty threshold should have been increased across the board.” He did not praise the 1% lowering of the corporate tax rate either, saying that the relief “falls far short” of meeting the objective of helping companies and entrepreneurs and stimulating the economy. “This corporate tax relief does not do much for business at all.” However, Clarke did acknowledge that Mboweni has a “very tough budget to balance”, especially as the country is recovering from years of corruption and overspend by the government and it also has a bloated public sector.
Echoing Clarke’s sentiments on the transfer duty, Brian Sango, sales manager at Property Inspect, was also hoping to hear that the threshold would be changed. “A change here could have encouraged more property sales in some market segments.” Herschel Jawitz, chief executive of Jawitz Properties, also believes there was room to offer increased transfer duty relief on residential properties. “Income from property taxes was expected to be flat from last year but it is expected to grow by R1.4 billion to R16.8bn in the 2021/22 year. The numbers relative to the overall budget are small and perhaps more residential transfer duty relief would be more than offset by increases in home ownership.” While the speech did not touch on anything that affects the property market directly, Sango says it goes without saying that the property market is indirectly impacted by the performance of the economy. And one “big take home” for him was the fact that job creation is still a task for the country. “Perhaps we, as the property sector, need to play our part fully in seeing how we could open up either employment or entrepreneurial opportunities.” As an example, he says: “In the past two years, we have certainly seen an increase in stand-alone inspection companies and I am sure that, like other countries across the globe, this will soon become a stand-alone industry. “Perhaps this presents the ideal opportunity for those looking to break into the property industry, without only focusing on either trying to be part of the selling or renting. All property associations and organisations should really work together to see how best to position this as we could open up some much needed opportunities in the real estate sector.” Sango adds it was “indeed an absolute relief” that, instead of tax hikes, the Treasury will be providing some form of tax relief on personal income tax. This will mean less of a pinch for low to middle-income earners. “In the past year, the affordable housing market below R1 million proved to be resilient, even throughout the pandemic, as some
agencies even experienced higher sales than in 2019... We also saw an increased interest from foreign buyers into this market. “The fact that we will not see immediate income tax hikes could, therefore, encourage even the local market to continue actively playing the field in this lower-end market and perhaps even the middle-end market.” Sithole-Ngobese reiterated WiPSA’s belief that there should have been a focus on establishing a “green economy”, as well as a “circular economy”, as this would both stimulate the economy and address the rising dangers of climate change. “We must remember that the consequences of climate change affect low-income communities the most, thus a green economy would benefit us all.” She hopes the border upgrades proposed by Mboweni lead to efficiencies in cross-border trade and investment with neighbouring countries “so that we may continue to grow and support the African cause”. Property players have also welcomed the establishment of a Tourism Equity Fund to help support the recovery of the tourism sector. This sector, says Andrew Golding, chief executive of the Pam Golding Property group, is a significant contributor to GDP and has, together with the hospitality industry in general, borne the brunt of the sustained Covid-19 lockdown. “We also look forward to seeing the stabilisation of government debt and acceleration in the implementation of longoverdue structural reforms aimed at boosting investment in the economy to lift growth and create jobs, which is essentially the only sustainable long-term solution.” Of particular importance is investment in infrastructural improvements – a factor which, in turn, has a direct impact on housing market sentiment, he says. It is therefore hoped that the R791.2bn allocated to infrastructure investment will be “swiftly put to good use, not only in terms of roads, bridges and dams but, in particular, the pressing need to get our country’s rail operation network repaired and fully up and running once more”.
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W O R L D GOING HOME TO MOM AND DAD
The pandemic has pushed many millennials into back home to their families in the suburbs.
Travel restrictions are hampering sales of properties in Cape Town to buyers from other countries.
AGENTS LOSING OUT ON FOREIGN SALES
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OREIGN investment into the South African real estate sector has been impacted by the international travel restrictions implemented in the response to the pandemic, report Re/Max Living agents in Cape Town. From March last year until January, the agency has made almost 40 sales to foreign buyers but this has not been easy. Under normal circumstances, many directors of American companies with offices in South Africa make regular visits to the country and while here they would hunt for holiday homes, says Marius Jordaan. However, this could not happen under the
travel restrictions. Some agents have also lost sales due to the pandemic. In one case, Melanie Stavropoulos explains that a couple from the US had been keen to purchase a property in Gardens as their daughter lived in the area. “They were in the process of making an offer on a home in the area when things started to worsen both here and in the US. “At the end of the day, owing to the uncertainty, they didn’t buy anything,” Stavropoulos says. Gunnar Hagelberg also lost out on a sale to a German buyer who came to the country in October to view properties in Bantry Bay
and Sea Point and returned in December to make a decision. “They arrived as planned and meant to stay for two weeks, but out of fear that airlines would stop flying out of South Africa due to the increased infection rate, they changed their tickets and left three days after their arrival without viewing the property.” Adrian Goslett, chief executive of Re/Max of Southern Africa says it is hoped that the distribution of the vaccine will soon minimise the threat of infection so that international borders can reopen, which should help stimulate foreign investment in the South African market.
MILLENNIALS are increasingly packing their city bags and heading home to live in the suburbs with their parents and other relations, says Berry Everitt, chief executive of the Chas Everitt International property group. This migration is not only about affordability but about having bigger living spaces and being in the company of people they love. “Millennials, now aged between about 26 and 40, are renowned for rejuvenating many city centres around the world as they fled from the suburbs a decade ago. They went in search of the liveplay-work lifestyle in trendy lofts and high-rise apartments located close to coffee shops and restaurants, galleries
and theatres, gyms, artisanal bakeries and handmade clothing and jewellery outlets, as well as their offices. “But with the advent of the Covid-19 pandemic almost a year ago, many found themselves stuck in small apartments and townhouses unable to enjoy their previous very social lives outside these spaces,” Everitt says. Cabin fever, when offices and businesses were mainly shut, and worry about their elderly relatives prompted many millennials to head back to the suburban environments of their youth. Everitt says they have either moved back with their parents or pooled resources with other family members and purchased multigenerational properties.
TOP-END RENTAL PROPERTIES BOOM IN CAPE TOWN
If a moving-in inspection of the property is not done, it is up to the landlord to prove that the tenant caused any damage done during the course of the lease.
Coping with rental defaults LANDLORDS are seeing an increase in late rents, reduced rents and non-payment. Antionette McClean, rental administrator for Seeff False Bay and South Eastern Suburbs, says landlords should take steps to mitigate these risks. SHE
ADVISES
LANDLORDS
TO:
Open a separate account for the monthly rent and not
Upmarket property rentals in the Mother City are in demand. HIGH-END and luxury rental properties are booming in Cape Town as many South Africans move from Gauteng and foreigners settle in the city for the lifestyle and value for money if offers. Alexa Horne, managing director of Dogon Group Properties, says semigrating professionals often have large monthly budgets to spend on rent while they look for family homes
in upmarket areas. “We also have foreigners moving to Cape Town in pursuit of the lifestyle and value for money, as well as South Africans returning after a stint overseas. They too are driving demand for upper-end property rentals,” she says. Another factor driving demand is that many people are looking to move into bigger properties, often in
the suburbs. “Houses that offer extra bedrooms or studies – space for home offices for professionals now working remotely due to Covid-19 – have been in huge demand. “Bigger homes also allow family members to move in together, something which we are seeing a lot of as lockdown takes its toll on many people’s livelihoods.”
operate debit or stop orders off it. This is because, if a tenant should pay late or default and the debit and stop orders are rejected, the bank charges the landlord a fee. Create a reserve fund to act as a financial buffer should the tenant default on the rent. Set aside at least one month’s rent to do annual maintenance on your property. As soon as a tenant breaches the lease in any way they must immediately be informed of the breach and the process required to remedy it. Get a professional to do a moving-in inspection instead of doing it yourself. Ensure all compliance certificates for the property are valid. Conduct regular interim inspections to ensure there are no surprises at the end of the lease term. Have personal liability insurance to cover any eventuality that might arise out of the tenancy.
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HOME LOANS
Now is the time to find out how much you qualify for as the repo rate is at a record low. Celestine is always available to take your call and guide you through the process from application through to registration. She will pre-qualify you for a home loan before you start house hunting. A pre-approval is very useful when house hunting as it helps the agent narrow down which properties to show you and not waste unnecessary time. Complete one application and she will apply to all 4 major banks and negotiate the best interest rate on your behalf. Call her for quick and efficient service Please feel free to contact Celestine at any time on 084 559 1786 | celestine@property360.co.za
www.property360.co.za
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What’s new in KwaZulu-Natal
PICTURE: MAGDA EHLERS
TO ADVERTISE HERE Anne Reddy
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Larissa Marks 0 7 6 2 3 1 1 0 8 9 advertising@property360.co.za
anne.reddy@inl.co.za larissa.marks@inl.co.za w w w. p ro p e r t y 3 6 0 . c o . z a
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UMDLOTI - PRIME BELLAMONT ROAD EXCLUSIVE NEW RESIDENTIAL DEVELOPMENT
“T he Bellamo nt” is p e rc he d o n Um d l o ti ’s s o ug h t a f t e r Be l l a m o n t Ro a d . Th e co ntempo r ar y arc hi te c tural d e s i g n d e l i ve rs t o t h e h i g h e s t s t a n d a r d s o f ae s the ti c s , e rg o no m i c s and s e c u r i t y . This bo u ti q ue d e ve l o p m e nt c o ns i s ts o f o n l y 6 u n i t s . No Tr ans f e r D uty. O c c up ati o n S e p t e m b e r 2021 • 166m2 of unit area (excludes garage & store area) • Each unit includes a store room, drying area & shared domestic quarters • Each unit has 1 x double garage • Lift & stair access to all floors • 180 degree uninterrupted sea views • 24/7 security • 100% Backup water & power supply • High speed internet connection
Last remaining unit available 3 Beds | 3 Baths | 2 Garages
R6 634 000
incl VAT
Colin Sher 083 251 0369 colin.sher@prop247.co.za
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PixieG Estates
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Tel: 031 764 7996 Cell: 083 562 3630 www.pixiegestates.co.za | lara@pixiegestates.co.za Friendly and professional
PixieG Estates
OUR MANDATE
HILLCREST R2 300 000
4 BEDROOMS |2 LOUNGES | PUB | TEEN PAD SPACIOUS 4 BEDROOM HOME - EXCELLENT LOCATION Well-established double-storey situated in ideal location with quick access to the M13, close to schools and central Hillcrest. This home offers 2 lounges with working wood fireplaces, beautiful wooden pub leading out to the entertainment area overlooking the sparkling blue pool and a view across the valley. Dining room, guest loo and large kitchen with a scullery, leading out to a private courtyard. 4 Spacious carpeted bedrooms, shared bathroom and main en-suite. Double garage and double carport, plenty of visitor parking. A large staff room with en-suite ideal for a teen pad, guest suite or room for the in-laws. Call LARA 083 562 3630 • Web: 551
OUR MANDATE
BOTHA’S HILL R2 975 000
5 BEDROOMS | 3 LOUNGES | FLATLET
CHARACTER SPACIOUS 5 BEDROOM HOME Character home! Don’t miss this opportunity to own a bit of history with excellent investment opportunity. This home offers 3 lounges, large entertainment area pancake level land and pool. Incredible views across the Valley of a Thousand Hills. Double tandem garage, flatlet, office and laundry or staff room, plenty of visitor parking. Bring your offers! Call LARA 083 562 3630
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PRIME ESTATES VIEW BY APPOINTMENT
OFFICE 031 767 1217 www.primeestates.co.za
NEW SOLE MANDATE
VIEW BY APPOINTMENT
GILLITTS R1 895 000
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SUE DINNIE 082 491 5822 www.capcubed.com
NEW SOLE MANDATE
CRESTVIEW R1 425 000
COMPLETELY RENOVATED SIMPLEX - ALL BRAND-NEW FINISHES!! Stunning in pastel grey & white - 3 beds, 3 baths, gorgeous Caesar-stone kitchen, large open plan living area & a double auto garage. End unit with corner garden & views. Medium dog, no cats. Close to new Checkers. Move in now! Call DEBBIE 082 903 2024 • Web: 108971396 VIEW BY APPOINTMENT
F E B R U A R Y
DUAL MANDATE
PERFECT STARTER - HANSEL & GRETEL STYLE COTTAGE Be the first to view this charming home on a level ½ acre. Set well back with room to build the home of your dreams later. Original thatch has been covered with tiles, but still retains lovely thatch character inside. 2 Beds with BIC’s, FULL bathroom, granite kitchen and a cosy fireplace in the living area. Upstairs is a spacious 3rd bedroom/ lounge/office. Freshly painted. To view, call ANN 072 425 9411 • Web: 100872177 VIEW BY APPOINTMENT
SOLE MANDATE
HILLCREST R1 850 000
BOTHA’S HILL R795 000
RETIRE IN STYLE - 2 BED APARTMENT Immaculate, wheelchair-friendly apartment (1 year old) in Green Meadow Country Estate. Beautifully appointed granite kitchen, spacious living area and a bathroom with shower & bath. Lock-up storeroom & 2 carports. Fabulous Clubhouse, heated pool, library & gym. Fibre & DSTV connections. Call DEBBIE 082 903 2024 • Web: 109284371
SECURE GATED ESTATE - APARTMENT WITH STUNNING VIEWS This spacious apartment has 1 bedroom(plenty bic’s), open-plan living and a fitted kitchen. The modern bathroom has a large shower, and is plumbed for washing machine and the living area has extensive views over the pool and across the valley. Beautiful lawns and grounds to enjoy. Very secure, 24-hr manned Estate. Regret no pets. Call DEBBIE 082 903 2024
VIEW BY APPOINTMENT
SOLE MANDATE
KLOOF R3 900 000
GOLF COURSE AREA - CLASSIC MANSION WITH ENDLESS POSSIBILITIES Main House: Upstairs has 4 /5 beds, 3 baths, huge games room/office with outside access. Downstairs - 2 lounges, dining room, kitchen, superb entertainment lounge + built-in braai & guest loo. Cottage: 2 beds, 1 bathroom & large workshop/ garage. This versatile home is set in a level garden, with pool, boma, carports for 5 cars, staff facilities & views to the sea! Call AMANDA 079 528 0942
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FEW T S LA HE T M FRO PER O L E DEV
Freestanding 3 bedroom homes from R3 450 000 You could own a modern Farm Style home in the heart of the economic stronghold Sunshine on your face and grass under your bare feet! This is how you’re supposed to live Your own garden, lock-up double garages and spacious rooms Communal Park and Pool
Call now 081 281 3960 to view by appointment! www.woodland.co.za | info@woodland.co.za 2 Woodlands Close, Prestondale, Umhlanga
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KLOOF / PADFIELD PARK LIVE THE LIFE YOU'VE IMAGINED
FROM R1 450 000 NO TRANSFER DUTY
BUSHWILLOW VALLEY IV
OVER 50s LEISURE LIFESTYLE ESTATE NOW SELLING OFF-PLAN 2 & 3 Bedroom Sectional Title Units Now selling off-plan, in a variety of different size and layout design options, Bushwillow Valley IV offers 16 two and three-bedroom sectional title units in the heart of Greenhaven Estate. Featuring contemporary country-style architecture, these spacious, single-level units come with an open-plan design and a selection of modern finishes.
LEISURE LIFESTYLE ESTATE FOR OVER 50s
BOOK AN ESTATE TOUR / CALL 079 046 1441 / GREENHAVENESTATE.CO.ZA
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ESTATE AGENTS A special offer to
Estate Agents during this Lockdown period FOR
ONLY R495PM Excl Vat.
THIS PACKAGE INCLUDES THE FOLLOWING: • Unlimited listings for sale and to let • Unlimited uploads of virtual tours with a Youtube URL • Unlimited access to our showhouse facility • Pay as you go month-to-month advertising • No charge for leads • Branding - your agency logo on each listing to promote your brand • 2 Featured listings each month • Access to the system backend to track your leads
Contact LEIGH to get your listings visible 074 991 3373 or leigh@property360.co.za www.property360.co.za
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What’s new in the
PICTURE: DV SAKHAROV
Western Cape TO ADVERTISE HERE
Margi Marsland 084 591 9122
margi.marsland@inl.co.za
Shevon Philander 078 422 4925
shevon.philander@inl.co.za
advertising@property360.co.za
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AUCTIONS There is a commonly held belief that property auctions are a good place to pick up a bargain because auctioneers often handle sales in execution / property reposessions / liquidations. Our dedicated auction section allows auctioneers to showcase their properties to buyers looking for these bargains. THE AUCTION SECTION OF THE PORTAL OFFERS: • Advice to buyers • Auction news • Recommended auctioneers to deal with • Diary of upcoming auctions Contact LEIGH to get your listings visible 074 991 3373 or leigh@property360.co.za
www.property360.co.za
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ADVERTISING PLATFORM We provide a complete advertising solution to reach subscribed property buyers Access the following advertising platforms under one account: • Property Portal Online Listings • Banner Slots • Featured Agent Slots • Digital Magazine • Newspapers • Cape Community Newspapers • Brand Editorial Content • Social Media Reach • Weekly Newsletter
We also do HOME LOANS A mortgage origination solution to assist your buyers, so send your clients our way and you can advertise your listings on our portal for… FREE Best interest rates from all major banks and speedy approvals Contact us to package the right deal for you help@property360.co.za
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