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PROPERTY OWNERS STILL LOOKING TO DOWNSIZE PA G E 3
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Tough times for land lords There are opportunities for those able to adjust to the changing circumstances
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ANDLORDS are at a crossroads. Not only are they dealing with financially strapped tenants but a weak demand for their properties as those tenants who are in strong financial positions look to buy their own homes. They are also facing new property demands from prospective tenants in the post-Covid world. While landlords are “fortunate” to operate in an industry that responds to the basic human need for shelter, the landscape is changing, notes Paul Stevens, chief executive of Just Property. “Thirty-five percent of tenants are risky, and property features like workspace and wi-fi access, security and room for inter-generational living, are in demand. “There is no doubt in my mind that opportunities exist for savvy landlords who are able to respond to this changing environment.” Those who can should find out what tenants in their areas are looking for and measure the extent to which they can adapt to meet those needs, he advises. “A short-term investment now may make your property more attractive in the long run. As in life, you need to stand out from the crowd; look for how you can add value for tenants without risking your own financial well-being.” HANG ON, IF YOU CAN As tough as the environment may be, landlords should just “vasbyt”and do as much as they can to attract and retain good tenants, Stevens says. He also advises them to ask their local property practitioners for specific market data to help them through these times. “They should be able to tell you what is happening with regards to vacancies, tenant default rates, comparable properties on the market, sales trends and more. Collect as much objective information as you can before making any decisions. “Beware of hearsay and opinions; they may be unreliable. Property, like all asset classes, moves in cycles and this is yet another cycle.” Duncan Balmer, co-principal of Jawitz Properties North Coast in KZN, agrees. “My advice in the current market would be to hang in there... Give your property some TLC, a little paint and make some improvements, if you have the budget... “If you have a good tenant who looks after your property like it’s their own, I’d definitely hang in there and wait for better times.” Even if you have to lower your rent, within reason, or accept the same rent, give serious consideration to
BONNY FOURIE bronwyn.fourie@inl.co.za
This cycle of rising vacancies and weak tenant demand will eventually end.
keeping a good tenant as opposed to having to look for a new one, advises Herschel Jawitz, chief executive of Jawitz Properties. “If you factor in a possible month or more of vacancy, and having to upgrade the unit if needed, it pays to hang on to a good tenant.” He also believes that investors should hold on to their properties in all situations, unless they “absolutely cannot” and are falling behind with their mortgage repayments and levies or rates. “If so, don’t wait. Sell and live to invest another day,” he says. Stevens notes that the current situation of rising vacancies and declining tenant pools is not new but has been exacerbated by the pandemic. KNOWING WHEN IT WOULD BE BETTER TO SELL Investment property owners should consider getting rid of their properties only when they have exhausted all other avenues to make ends meet, Jawitz says. “In the long run, property values usually appreciate but you need time to recover from the initial outlay of buying property and to reduce your mortgage loan (if you have one).” In the following situations, Stevens concedes that it might be worth selling: • When the rental market is genuinely flooded and your property simply cannot compete on price or features. • When you cannot afford to keep the property if you have had to drop the rent to keep it occupied. • If the area has started to decay and attract the wrong tenants. • When opportunities exist elsewhere and selling will give you the finances and freedom to invest there. Echoing this, Balmer says landlords might be wise to consider selling when the area their property is in deteriorates or if their property is in desperate need of maintenance and their finances do not allow it. “Some properties are maintenance nightmares and cost more on upkeep and repairs than they are worth in rental income. “Taking all these costs into consideration, if you’re not getting any capital growth, then it might be worth selling or looking for greener pastures.” TIMING YOUR DECISIONS Each investor will have their own circumstances and requirements in terms of the minimum rent they can accept but Jawitz says this is not a time to wait for a rent that might not be achievable for now. “Putting in a tenant is about cash flow and cash is king. If you find you absolutely have to sell, don’t wait until the bank is knocking at the door. The more time
you have to sell, the better the price. If you can, find other ways to reduce your monthly expenses, so you can keep the investment. In the short term, there may be some pain but you will get longer-term gains.” WHEN IS THE NEED TO SELL URGENT? This, Balmer says, all depends on landlords’ personal financial position. “A property will only sell for what the market is willing to pay for it, not necessarily what you want for it. Do you have the luxury of holding on until you get the price they want? Or should you consider selling it for reasonably less, considering the market?” An estate agent should be able to provide objective, data-driven insights into what a landlord could reasonably hope to achieve in terms of the selling price and time the property will stay on the market, Stevens says. “Time-on-market is hugely variable, so look for suburb-specific insights. Balance this with the views of data analysts who have offered market projections and assess whether you are in a position to hold out for the best price or if a quick sale is what you want.” Jawitz says: “Every seller has aspirations of what they want to sell for or what they may have to sell for to pay off the outstanding bond. The challenge is that buyers may see it differently. Sellers have to satisfy themselves that, at the time of accepting an offer, given their circumstances, this is the best price the market will pay. IS IT WISE TO INVEST IN BUY-TO-LET PROPERTIES NOW? Just because the rental market is struggling does not mean that investors should steer clear of it. Rather, they should know which segments of the rental market are performing well. “Upmarket rental properties (R1.5 million-plus) are not always the best investments as tenants are not readily available and your returns are normally not as good,” Stevens says. “Properties below R1m in sectional title complexes, though, are often the best investments as they are in demand and your levies take care of all exterior maintenance costs.” In addition, he says, there are still developers around the country building new units that can achieve a 10% return, “which has always been a good benchmark for investors”. When looking for a good investment property, Balmer advises landlords to consider security, which is “possibly the biggest factor” for tenants. “A property in a quality, well-run complex with good security is easier to let and seems to be more resilient,” he says.
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Letter from the editor ALAN Simmonds, the uber talented 80-year-old journalist who survived Covid-19 twice, said something to me last week that remained with me after our conversation. I can guarantee you, he said, the one thing that will still be here long after the pandemic is gone, will be property. And Alan, a man who has predicted many world events, is right. We all need a roof over our heads, places from where we can work and get an education, rooms to eat, sleep, celebrate, and at times to mourn. Much of the time these are bricks and mortar spaces and even though people have had a tough time all round – unemployment, a sluggish economy, growing debt, and a national Budget that failed to dazzle – the property industry continues to tick over. Depending on which agencies you are talking to, some are doing exceptionally well, others are crawling along, but still with their heads above water and sadly there are some who did not survive the three-month 2020 shut down. It has been a tough year globally on all fronts and yet reports such as Knight Frank’s forthcoming edition of The Wealth Report 2021, shows private capital was undeterred by the Covid-19 pandemic, with continued investment in commercial real estate around the world. The volume of private capital invested globally was circa US$232 billion – 9% above the 10-year average, albeit down on 2019 levels. All this bodes well on a real estate stage even though there are no absolute predictors of what the future will hold. However, future thinkers and astute industry heads know – no matter what Black Swan events may emerge (again perhaps) – there are ways to reinvent industries to make them more compassionate, successful and, well, as safe as houses. Good luck!
Vivian Warby vivian.warby@inl.co.za
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Financial pressure driving house sales Experts say the situation is similar to 2008, which could mean more homes coming on to the market later in the year BONNY FOURIE bronwyn.fourie@inl.co.za
Most South Africans selling their homes are looking to downscale or rent.
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ONG-TERM change is washing through the lives of South Africans and shifting the foundations of what we call home. People are downscaling, upscaling, relocating and retiring and the reasons behind their moves are many. Historically, most of those selling their homes downscale as a result of their life stage but, in these times, downscaling because of financial pressure is fast becoming the most prominent reason. Life-stage downscaling and financial pressure downscaling account for a total of 44% of property sales, says FNB senior economist Siphamandla Mkhwanazi, noting that the volume of sales because of financial pressure is the highest since 2011. “These are evident across all price buckets but more so in the affordable segments.” In the under -R750 000 price band, sales because of financial pressure are estimated to have risen to around 30% following relatively severe labour market pressures with rising unemployment for lower-income earners, says Mkhwanazi. He acknowledges, though, that many property disposals might also be because higher-income households are selling investment properties to alleviate financial pressure. “There are also rising incidents of corporates disposing of property to alleviate cash flow and balance sheet pressures.” Mkhwanazi adds: “Interestingly, the trend looks similar to the 2008 crisis, although at a noticeably lower level. If the trend continues to track 2008, we should expect more properties on the market because of downscaling and a peak between Q2 and Q3.” While financial pressure is a stress for many homeowners, increasing numbers of properties in the R1.6 million to R2.6m price bracket are being sold as the sellers of these properties look to upgrade. “We suspect that this is driven by the changing housing needs brought about by the pandemic and remote working and the less severe job losses among these higher-income earners.” In Bellville, Cape Town, those who are downscaling often move in with their adult children, into retirement homes or into smaller townhouse or sectional title properties, says Morné Veer, franchisee of Rawson Properties Bellville. Most of the downscaling is undertaken by older people while younger families are upgrading. Very few sellers are moving out of Cape Town. In the Durban’s City, Berea and Sherwood areas, it is a different story, says Bradley Bougardt, franchisee
of Rawson Properties in these areas. “Most people are selling because of financial pressures such as job losses or failing businesses. These factors are influencing all price ranges.” However, while some sellers are finding “great value” when buying new homes in their respective price ranges, more often than not they are entering the rental market or moving into shared accommodation with friends or their families. Most of those who move to renting are doing so temporarily as they recognise that property is a stable investment and they will buy again at some point. “There is a huge shortage of jobs and business is in a wait-and-see situation for the most part.” Of the sellers who are relocating, Bougardt says there is a growing trend towards moving to Gauteng for job opportunities or being transferred there. He adds: “Very few buyers are upscaling but, those who are, seem to be upscaling relatively close to where they currently live.” In Bryanston, Joburg, most sellers make the decision to sell for reasons of affordability and relocation, says Roberta Lee Dessington, sales and rental partner at Rawson Properties in the area. These reasons are seen throughout the various price brackets. Sellers who are upscaling are doing so for more space due to home schooling their children or working from home. “Those who are downscaling are moving into smaller homes close by – either rental properties to live in in the interim or moving in with their families... They are not buying locally unless they are moving provinces.” Some sellers are renting with a view to emigrating, while others are renting until there is more certainty about the future. “They have sold their biggest asset and are able to make quicker decisions if needed.” Mkhwanazi says total emigration sales continued to pull back from the recent peak of approximately 18% in Q4 2019 to 11% in Q4 2020. In the higherpriced segments though – particularly the R2.6m to R3.6m bands – these sales have started rising. This could also be a result of delayed decisions because of travel restrictions throughout the year. The Rawson agents say the buyers include middleaged people, young couples and families looking for bigger homes. “There are also quite a few speculative buyers around as tougher times will produce better value for the savvy buying market,” Veer adds.
MOST SELLERS ARE IN GAUTENG MORE THAN 116 000 properties were sold between August and December, reveals Lightstone data. Most of these – 59 943 – were freehold homes. This was followed by 36 319 sectional title properties and 20 095 estate homes. The provincial statistics show that the overwhelming majority of properties were sold in Gauteng. The figures by province are: GAUTENG
51 318
WESTERN CAPE
25 458
KZN
14 260
EASTERN CAPE
6 919
MPUMALANGA
4 851
FREE STATE
4 263
NORTH WEST
4 048
LIMPOPO
3 734
NORTHERN CAPE
1 506
Lightstone data also shows that most of the properties sold – 45 945 – were in the “mid-value” bracket (R250 000 to R700 000). This was followed by the “high-value” category (R700 000 to R1.5 million) with 43 781 sales and the “luxury” bracket (above R1.5m) with 15 207 properties sold.
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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P R O P E R T Y TOUGH DECISION CAN PAY OFF
Downsizing will be easier to accept if you focus on what you will gain instead of what you might have lost.
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HE DECISION to downsize is often not an easy one. Those who have faced retrenchment or ongoing salary cuts should consider whether their financial situations could become more manageable if they chose to downscale, says Adrian Goslett, chief executive of Re/Max of Southern Africa. “The process of adjusting to a smaller living space is filled with complicated emotions that are often easier to deal with when you have arrived at the decision willingly, rather than grudgingly as a result of the bank foreclosing on the property.” Understanding that this is not always an easy decision to make, he says, the true saving in downsizing is not necessarily the profit from the sale but what homeowners stand to save on their monthly home loan repayments. “Sellers might not get as much out of the sale as they had hoped after factoring in all the costs involved, such as the outstanding bond amount, agent commissions, and cancellation fees, but after moving to a smaller home, sellers will have more disposable income in their monthly budget to help them pay off debts or avoid debt in the first place.” Another important factor is the money homeowners will save on maintaining a smaller home, Goslett says. “Having a smaller space means that your electricity and water bills are likely to be much lower. “If you had a large garden, you will also save on the costs of garden maintenance.”
LUXURY SEGMENT DID WELL LAST YEAR HOUSE-price inflation for last year ended at 3.05% as at the end of December, according to Lightstone Property’s most recent residential index. The low, high and luxury value bands ended the year at about 2.5%, while the mid-value segment was 4.9%. Contrary to expectations, the index report noted that housing prices did not crash during the year. “On the contrary, the luxury segment that was trending closer to -0.5%
at the end of 2019 is now growing close to 2.5% per annum. The mid-value segment has also added some speed, going from 3.6% to 4.9%, while the high-value segment has remained fairly stable at about 2.5%. “However, It should be noted that the low-value segment has decreased from 10.2% to 2.5%,” the report says. “At this point, it is difficult to point to the exact reason for the increase in the luxury segment and the decrease of the low-value
segment.” It could be due to the fact that the luxury segment is dependent on the interest rate, whereas the low-value segment depends more on economic growth. House price inflation per province was recorded as follows: Mpumalanga 5.7% Eastern Cape 5% KZN 4% North West 3.9% Northern Cape 3.1% Limpopo 3.1% Western Cape 2.4% Free State 2.3% Gauteng 1.9%
House prices did not crash last year but, rather, remained stable or increased in some segments.
Sign a service guarantee deal with your agent
INTEREST RATE MAKES FOR A BUYERS’ MARKET
When awarding a sole mandate ensure there is a service agreement in place.
Tenants should do the maths to see whether it is cheaper to buy than to rent. AN ALL-time low prime interest rate of 7% continues driving tenants to become property owners. “This is evident in the average age of ooba home loan applicants for Q3 of 2020,” says ooba home loans chief executive Rhys Dyer. “On average, buyers are a year younger, down from 38 to 37 years, while the age of firsttime buyers has dropped from 35 to 34 years, compared to Q3 of 2019.” Monthly bond repayments
are at an unprecedented low and he anticipates that the current interest rate will remain in place for most of this year. He encourages tenants with leases coming up for renewal to seriously consider doing the maths and weighing up whether it is cheaper to buy than to rent. “Of course, we still urge potential buyers to factor in rising interest rates over the years to make sure that they are covered for every eventuality,” Dyer says. At the current interest rate,
the following bond amounts will result in these monthly repayments: R750 000 bond R5 815 monthly repayment. R1m bond R7 753 monthly repayment. R1.25m bond R9 691. R1.5m bond R11 629 monthly repayment. R2m bond R15 506 monthly repayment. R3m bond R23 259 monthly repayment. R4m bond R31 012 monthly repayment.
Selling your home via a sole mandate if often the best option for the quickest sale at the best price,but there is always the worry of an agent failing a seller. If you are concerned about this, says Berry Everitt, chief executive of the Chas Everitt International property group, you should ensure there is a service guarantee in place when you award the mandate that gives you the right to terminate if the agent doesn’t perform according to the agreed marketing plan. To get the most out of the relationship with your mandated agent, advises Adrian Goslett, chief executive of Re/Max of Southern Africa, first-time sellers should be as open and honest as possible. “Never feel embarrassed to ask if there is something that you do not quite understand. As experts in their industry, real estate advisers are there to guide sellers through the process but they might not always think to explain the jargon they use. “By being upfront with your agent and asking when you do not understand, you will be better informed and better equipped to navigate the process smoothly.”
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When buying a plot of land on which to build, size is not the only consideration.
The importance of a title deed Experts give advice to people entering the property market with questions about deeds, buying land to build on and setting appropriate rents for tenants BY BONNY FOURIE bronwyn.fourie@inl.co.za
Q: The property market was brought to a standstill with the Deeds Office closure last year but I am not completely sure why. What exactly is a title deed and why is it so important? A: A title deed is a document which proves legal ownership of a property in South Africa and the Deeds Office is where copies of these documents are held. When these offices close, no properties can be bought or sold as the title deeds cannot be transferred into the new owner’s name. Anyone who purchases a home will need to have the title deed transferred into their name as proof they own the property. The office closest to the property will keep a copy of the home’s title deed in the Deeds Registry. Usually, the original title deed will be held by the bank or financial institution from which the buyer has borrowed the funds to buy. The owner of the property will receive the original title deed once the home loan is repaid in full. In addition to declaring legal ownership, the document contains important information about the property, including a comprehensive description and exact size of the erf as well as the rules and restrictions surrounding the property, such as servitudes. The document also shares some insight into a property’s history, including the name of the registered owner and previous owners, and the purchase price paid by the current owner. – Adrian Goslett, chief executive of Re/Max of Southern Africa Q: I plan to build my own property and am looking for a plot of land to buy. Are there any
specific aspects I should look out for or bear in mind? A: Choose the site location carefully. Size is definitely not the only consideration. It is worth buying a somewhat smaller stand, for example, if it is already connected to the main water, electricity and waste networks in the area, as it is very costly to secure these connections yourself. If the stand already has a fibre or cable connection to the internet, so much the better. Then you also need to think about the location of the stand in relation to work, schools, shops, public transport hubs and sports or entertainment venues. Land on the outskirts of town may be much cheaper but living there will almost certainly mean high transport costs. – Gerhard Kotzé, managing director of RealNet Q: This year, for the first time, I will be letting my property. I have an idea of the rent I need to charge but how do I know that my asking price is fair? A: To set your rent realistically, it is important to understand how the different brackets were impacted economically during the past year. This will help you understand how cost-sensitive your tenants are. You need to understand your tenants’ spending habits so that when a crisis hits, you can prepare for and understand their distress. Tenants renting in the under-R3 000 bracket were the hardest hit last year, indicating little or no savings to tide them over in the hard lockdown. Similarly, those in the highest bracket (over R25 000) are also showing distress as they deal with
substantial pay cuts and larger overheads. The R7 000 and R12 000 bracket proved its stability last year and is set to remain relatively constant this year. – Shanaaz Trethewey, chief executive of RentMaster Q: I am planning to buy my first home. What other financial outlay can I expect, apart from the purchase price? A: There are a plethora of related expenses of which first-time buyers are often unaware. These expenses take the form of upfront, once-off fees, such as bond registration and transfer costs, as well as ongoing monthly expenses, such as life and disability cover, levies and municipal rates and taxes. Life cover is a mandatory monthly expense that most financial institutions require in order to grant buyers a home loan. All the other costs involved during the bond registration and transfer process are labelled as “post, petties, Fica, other fees”. These include things such as the cost of telephone calls, postage, couriers, administrative costs and bank charges. – Adrian Goslett, Re/Max of Southern Africa Q: My husband and I are planning to retire in an estate. What should we know or consider when making this move and choosing where to move to? A: First, choose an all-inclusive levy option. A retirement estate that offers an all-inclusive levy – covering aspects like security, insurance, home and garden maintenance, as well as a fibre-optic internet connection – gives you a realistic
idea of what is affordable and budgeting can be arranged accordingly. You should also consider a life-rights model as this allows for lower entry costs, meaning your retirement savings will continue growing while you benefit from quality of life now. It’s also beneficial in that the developer is invested in the maintenance of the estate, offsetting monthly costs for the retiree. More retirement estates are implementing a levy stabilisation fund, which is a once-off contribution paid upon disposal of the unit, as a way to ensure levies remain at a fixed rate and the increases are kept below the inflation rate. This is because most retirees will be living off a fixed income and a sudden special levy might push the budget. It is also important to factor in health care when considering retirement. Many retirement estates offer some form of health care, whether it’s an on-site frail-care centre, or the increasingly popular home-based care. This is where a specialist home-care provider will operate within the retirement estate, providing retirees with personalised health care in the comfort of their own homes. Home-based care also mitigates the need for maintenance costs related to a frail-care facility. A high rate of inflation can quickly diminish a retiree’s purchasing power over time, even if the inflation rate is relatively low, which it often is not. It is, therefore, important to consult financial experts who provide solid investment advice that will keep up with the rate of inflation, preferably across a diversified portfolio. – Phil Barker, Renishaw Property Developments
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The Ihlathi development in Parklands.
BU Y I NT O IHLAT HI W HI LE INTEREST RAT E S A R E LO W
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ANY TENANTS could be paying more monthly rent than they would be paying on a bond for their own property. With interest rates so low, some properties under R1.5 million are now 25% percent cheaper to buy than to rent. “They will also offer a 10% return on investment,” says global property expert, Toni Enderli. Enderli says the current rates – the lowest in 50 years – combined with transfer duty relief, higher loan rate approvals and attractive entry-level offerings mean selected entrylevel properties, where units start from under R700 000, will save them 25% on what they are paying for rent. “This is the best time in decades to buy into this affordable housing market. Tenants can now easily become owners with bond repayments at secure developments like Cape Town’s Ihlathi gated community starting from R5 500. This is compared to R7 500 a month to rent.” In addition, the development is located on a green belt in Parklands, one of the country’s fastest growing and best-positioned suburbs. Enderli, who heads up Realtor of Excellence and who studies property trends in South Africa and Europe, says 80% of all homes sold in 2020 were under R1.5m. Demand was so high that Ihlathi’s first phase (102 units) sold out within months and similar demand is expected for the next 98 units available in phase two. New owners can take occupation from June 2021. Units in this Green Building Council-certified, eco-friendly development start at R699 999 for a one-bedroom and R799 999 for a two-bedroom. A three-bedroom duplex is priced from R1 249 999. Enderli explains that Ihlathi, which means “forest”, was the ninth entry-level gated community in Parklands by International Housing Solutions (IHS), a global private equity fund focused on affordable housing. IHS’s SA managing director Rob Wesselo says demand in Parklands has soared because it is 20km from the CBD and close to amenities such as schools, a new international university, malls, MyCiTi bus routes, work opportunities and the extensive coastline. “In addition, Ihlathi offers attractive ‘green’ features, including solar PV geysers – up to 20% saving on energy and water, fibre-ready internet and 24-hour security.” Find out more now, visit http://ihlathiparklands.co.za
Toni Enderli
Rob Wesselo
ABOVE: Units in phase two of the Ihlathi development in Parklands will become available from the middle of the year. BELOW: Ihlathi offers green features, including solar PV geysers, fibre-ready internet and 24-hour security.
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DrEamiNG of BEiNG a SuccESSful ProPErty iNvEStor? Do thESE 5 thiNGS! Have you dreamed of owning a thriving property portfolio or flipping houses in your spare time for a tidy profit? If so, you’re not alone – property is a very popular and profitable investment in South Africa. Without the right skills, however, it can be a tough market to crack. “It’s not easy to leap into property and make a success of it without a plan,” says Tony Clarke, Managing Director of the Rawson Property Group. “Unless you have an instinct for it, a lot of capital,some capital, or a skilled network of industry professionals, it takes a bit of time and preparation to develop the skills, knowledge and foundation that you need.” Despite the work involved, Clarke firmly believes that anyone with the right drive and determination can make a success of property investment. Here are his top tips on how to do precisely that.
Do some property research “Like most things in life, the more you know about property, the better you’re likely to do in it,” says Clarke. “That means taking the time to understand what’s happening on the market, both locally and nationally. Getting a feel for trends and pricing will help you recognise opportunities down the line.” Clarke says a good way to get started is to set up alerts on online property portals that will notify you of new listings in your area of interest. “If you can, keep an eye on properties for rent as well as for sale,” he adds. “This way, you’ll start familiarising yourself with the balance between the purchase price and potential rental returns.”
Network, network, network Studying up on real estate trends is undoubtedly important, but you’re unlikely to surpass the expertise of someone who’s been actively engaged in the industry for many years. For that reason, Clarke highly recommends building a network of specialist contacts who can advise and assist you in your property investment journey. “A lot of people seem to think genuine advice on real estate investment is hard to come by,” says Clarke. “There’s a lot of residual distrust of estate agents that has its roots in the distant past. In reality, today’s agents are highly-trained professionals who tend to be well aware of the value of building lasting relationships with clients by providing sound support and advice.” As a bonus, real estate agents can often connect you with other industry professionals like attorneys, rental managers and even building contractors with whom they have had good personal experiences.
Ease into it Most of us learn to swim in the shallow end, and Clarke recommends the same strategy for starting a property portfolio. “Don’t overextend yourself to begin with,” he says. “It’s far better to ease into things with one or two smaller properties that can form a stable base on which to grow your investment.” As part of this strategy, Clarke also recommends choosing a well-defined target market to begin with, such as student housing or apartments for young professionals. “By limiting yourself to one area, one type of property, or one type of tenant at the outset, you can tailor your investment more effectively,” he says. “It’s a much simpler approach than trying to understand the driving forces behind several different markets at the same time.”
Gear up for maximum growth Gearing is one of the most significant advantages of property as an investment and is a valuable tool when it comes to growing your portfolio once you’ve established a stable investment base. “Gearing a property investment usually means using equity from one property to finance another,” says Clarke, “and can be a very effective way to minimise your finance costs and maximise your growth. It needs to be done mindfully, of course, to control your exposure and risk, but it is one of the most powerful tools in any investor’s toolbox.”
Know the good from the bad While property is generally considered a low-risk investment, there is a chance that a particular property won’t perform as well as expected. In this situation, Clarke says it’s important to learn the difference between a temporary performance slump and an endless downward spiral. “Holding on to an underperforming asset isn’t going to do you any favours, but neither is cutting the strings on a property that’s just having some growing pains,” he says. “Learning how to tell the difference between these situations is a vital investment skill and one that could save you more than a few headaches throughout your real estate journey.” An experienced real estate agent will be able to offer you support and guide you through this process. For more advice on property as an investment, or to investigate available opportunities, get in touch with your neighbourhood expert at a Rawson Property Group franchise near you. Visit www.rawson.co.za for more information or call 021 658 7100.
“It’s definitely worth your while to visit a few agencies and find a team that you feel understands your needs and is willing and able to help you do the legwork to launch a solid investment portfolio,” says Clarke.
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tanya: 082 411 9599
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Email: tanya.auctions@rawson.co.za
rESErvE PricE: R1,250,000
rESErvE PricE: R3,000,000 as one loT
oPEN viEWiNG Day SuNDay 7 march 2021 from 3-5Pm
souThField
web ReF: 1092237
commErcial officE SPacE. aDDrESS: Princess Vlei Road, Southfield. Erf SizE: 801m2 The property consists of four offices, a workshop, storage space, a kitchenette and a bathroom. It’s in a secure location with an electric fence, alarm system and enclosed parking for fifteen cars. This investment is ideal for development, office space or owner occupancy.
diana 083 260 2343 / maRc 064 938 1719 oFFice 079 980 3457
rESErvE PricE: R11,000,000
RiVeRsdale / FaRm
cenTuRy ciTy
web ReF: 1090473
commErcial/ SEctioNal titlE officE. aDDrESS: Quays, 4 Park Boulevard, Century City. Erf SizE: 41m2 Open-plan office space ideal for four people with a separate bathroom and small kitchenette. There is one secure basement parking, one exclusive secure open parking and ample visitors parking. ExPEctED oPENiNG BiD: R1,150,000. diana 083 260 2343 / maRc 064 938 1719 oFFice 079 980 3457
SEvEN SEParatE farmS SolD aS oNE lot & aS a GoiNG coNcErN. aDDrESS: Riversdale/Plaas Lamad. Erf SizE: 1113 Ha. 1113Ha Farm Between Riversdale and Ladysmith. The farm home is 165m2 with a workshop, garage and flatlet. The farm includes two workers cottages, outbuildings, sheds and 32 camps, ample water. ExPEctED oPENiNG BiD: R10,500,000. hans buys 082 964 6852 oFFice 079 980 3457
PhiliPPi / FaRm
rESErvE PricE: R2,795,000
web ReF: 1091928
huGE vEGEtaBlE farm oN 13.8 hEctarES. aDDrESS: Varkensvlei Road Philippi. Erf SizE: 13.8 Ha. This property is sold as-is with a three-bedroom farmhouse. The current fields are under irrigation, making this land ideal for vegetable farming. There are two dams and two boreholes. ExPEctED oPENiNG BiD: R8,000,000.
baRRy neFdT 083 610 0778 oFFice 079 980 3457
rESErvE PricE: R10,000,000
web ReF: 1090466
2 x thrEE-BEDroom SEmi-DEtachED houSES. currENtly zoNED commErcial officE. aDDrESS: Spencer Street, Maitland. Erf SizE: 137m2. Each property consists of an attractive three-bedroom semidetached house. Ablutions include one bathroom and a separate toilet. There is an open-plan lounge and dining area with a fitted kitchen. Off-street parking for two vehicles is always ideal. Need a break? This spot also has a braai area. The property is zoned as a commercial office and can be purchased as one lot or individually. Rental income is R10 000 per month per property.. ExPEctED oPENiNG BiD: R1 450 000 Individually. walTeR hansby 082 907 2333 / Judy buRRows 082 836 1055 oFFice 079 980 3457
rESErvE PricE: R8,400,000
web ReF: 1092131
maiTland
PhiliPPi / FaRm
web ReF: 1091934
GroENKloof farm oN 4.3 hEctarES iN PhiliPPi. aDDrESS: Varkensvlei Road Philippi. Erf SizE: 4.3 Ha. This farm is on 4.3 hectares and is home to two houses. The abundant land is ideal for vegetable farming, with fields under irrigation and two boreholes. There is loads of potential with this farming land. ExPEctED oPENiNG BiD: R2,500,000.
baRRy neFdT 083 610 0778 oFFice 079 980 3457
rESErvE PricE: R9,500,000
rESErvE PricE: R1,700,000
latE EStatE
salT RiVeR / commeRcial
web ReF: 1090094
commErcial ProPErty - GrEat DEvEloPmENt oPPortuNity. aDDrESS: Albert Road, Salt River. Erf SizE: 978m2 This lovely heritage property has seven units. Currently, all units are occupied with tenants running on month-to-month leases. This property is fit for any developer looking to utilise this space. ExPEctED oPENiNG BiD: R9,700,000
daniel Paulse 078 248 9701 oFFice 079 980 3457
sTeenbeRG GolF esTaTe
web ReF: 1092134
luxuriouS liviNG oN PrEStiGiouS 18 - holE Golf EStatE. aDDrESS: Blue Crane Way - Steenberg Golf Estate Tokai Erf SizE: 600m2. Luxury Home in Steenberg Golf Estate. This home has three en-suite bedrooms, with the possibility of converting the study into a fourth bedroom. The open-plan lounge, dining and kitchen space has a separate scullery. Additional features: Pool with enclosed patio and a double garage. Homeowners of this property will also have access to two golf memberships. Tanya JoVanoVski 082 411 9599 oFFice 079 980 3457
Goodwood esTaTe
web ReF: 1092038
SEcurE thrEE-BEDroom houSE. aDDrESS: Gertrude Street, Goodwood Estate. Erf SizE: 495m2. View this three-bedroom house in a good neighbourhood. The main room is en-suite, with additional rooms having access to one bathroom and a separate toilet. Relax in this spacious lounge by the fireplace. There is also a dining room and a kitchen with three BIC’s. Features: single garage, secure parking for one vehicle, well-maintained garden, and a metal garden shed/workshop. ExPEctED oPENiNG BiD: R1,600,000 walTeR hansby 082 907 2333 oFFice 079 980 3457
www.rawson.co.za
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Your Neighbourhood Experts
WE auctioN EvEry WEDNESDay Enquiries: Office 079 980 3457
rESErvE PricE: R945,000
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tanya: 082 411 9599
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Email: tanya.auctions@rawson.co.za
rESErvE PricE: R3,100,000
rESErvE PricE: R1,595,000
oPEN viEWiNG Day SuNDay 7 march 2021 from 3-5Pm
muizenbeRG
web ReF: 1092025
tWo-BEDroom GrouND floor aPartmENt. aDDrESS: Ocean Breeze, St Georges Street, Muizenberg. Erf SizE: 56m2. Take a look at this two-bedroom, ground floor apartment. The is one family bathroom, an open-plan lounge, a fully-fitted kitchen and sliding doors leading to the communal gardens. The complex offers one secure parking, a clubhouse and a communal pool area. ExPEctED oPENiNG BiD: R900,000. ilda 084 762 7195 / Jenni 067 165 3737 oFFice 079 980 3457
rESErvE PricE: R1,480,000
web ReF: 1090465
Six-BEDroom homE With coNtENtS aND thE oPPortuNity of oPENiNG a GuESthouSE. aDDrESS: Washington Street, Boston, Bellville Erf SizE: 496m2 Space is everything in this six-bedroom home with modern furnishings and all en-suite. There is a home-style kitchen, open-plan lounge and dining room. All rooms are surrounded by a well-maintained garden and a small pool. There is secure parking for six vehicles. ExPEctED oPENiNG BiD: R2,750,000. baRRy neFdT 083 610 0778 oFFice 079 980 3457
caPe Town ciTy cenTRe
web ReF: 1089810
oNE BEDroom uNit iN 66-oN-KEErom. aDDrESS: Senator Park, Keerom Street, Cape Town CBD. uNit SizE: 43m2. Head to the city centre and buy this beautifully styled apartment. Large windows offer scenic views of the city and mountain. It’s close to Long Street and Cape Town’s trendiest restaurants. The block is well maintained, with 24h concierge security. Perfect for lock-up-and-go living or Airbnb potential. (The furniture and electrical appliances can be purchased with the apartment for an extra R30 000). ExPEctED oPENiNG BiD: R1,400,000.
North faciNG tWo BEDroom aPartmENt. aDDrESS: Royal Palms, Sevenoaks Street, Plumstead. Erf SizE: 73m2. This home has it all with an open-plan lounge and fully fitted kitchen. The balcony overlooks the complex gardens, pool and braai area. Secure washing line area and an undercover parking bay. Complex security uses CCTV cameras. The home has a fibre and satellite dish installed. Only indoor pets are allowed. The complex is centrally located near transport, shopping centres and schools. ExPEctED oPENiNG BiD: R1,199,000. Janice 071 687 0956 / Jenni 067 165 3737 oFFice 079 980 3457
sybRand PaRk / house
Jenni James 067 165 3737 oFFice 079 980 3457
woodsTock / aPaRTmenT
web ReF: 1089745
oNE-BEDroom aPartmENt. aDDrESS: Woodstock Quarter, Victoria Road, Woodstock.uNit SizE: 35m2. This conveniently located modern one-bedroom apartment is available. There is one bathroom, an open-plan lounge, a fully-fitted kitchen and a small private balcony. The apartment block has a communal pool area, secure basement parking, a deck, braai area and gym facilities. What’s more, there are shops and restaurants in the building and 24hr security. ExPEctED oPENiNG BiD: R1,390,000.
rESErvE PricE: R625,000
web ReF: 1089456
WEll EStaBliShED thrEE-BEDroom houSE With aN ENtErtaiNmENt arEa. aDDrESS: Geluks Road, Sybrand Park, Rondebosch. Erf SizE: 659m2. View this spacious three-bedroom house in Sybrand Park. It has an open-plan lounge, dining area and kitchen. The home includes one garage and secure parking for six vehicles. Entertain in the spacious garden.
baRRy neFdT 083 610 0778 oFFice 079 980 3457
web ReF: 1089452
thrEE-BEDroom, toWNhouSE. aDDrESS: Greendale, Edgeware Road, Diep River. uNit SizE: 92m2. You’ll find everything you need in this threebedroom, multiple-level townhouse. The main room is en-suite and there is one family bathroom. Living spaces include a lounge area, dining room, and fully fitted kitchen with ample built-in cupboards. The home has a small, well-maintained garden and secure parking for two vehicles.
diana 083 260 2343 / chaRmaine 083 261 9080 oFFice 079 980 3457
rESErvE PricE: R2,400,000
web ReF: 1088985
dieP RiVeR
rESErvE PricE: R1,450,000
ilda 084 762 7195 / Jenni 067 165 3737 oFFice 079 980 3457
rESErvE PricE: R1,280,000
PlumsTead / aPaRTmenT
web ReF: 1092041
SEcurE thrEE-BEDroom houSE. aDDrESS: Cheltenham Street, Cheltenham Ridge, Royal Ascot, Milnerton. Erf SizE: 424m2 Two-bedroom ground floor apartment. One family bathroom. Open plan lounge. Fully fitted kitchen. Sliding doors leading to the communal gardens. One secure parking. The complex also offers a clubhouse & communal pool area. diana 083 260 2343 / chaRmaine 083 261 9080 oFFice 079 980 3457
rESErvE PricE: R2,800,000
bosTon / bellVille
Royal ascoT, milneRTon
Vasco esTaTe/aPaRTmenT
web ReF: 1092076
tWo-BEDroom aPartmENt iN vaSco EStatE, GooDWooD. aDDrESS: Wiener Square, Wiener Street, Vasco Estate. uNit SizE: 39m2. This two-bedroom apartment offers a spacious living area, fitted kitchen and double-sliding doors leading to the balcony. There is an exclusive parking bay and additional parking for visitors.
kuRT 078 832 0499 / kiRk 072 129 2882 oFFice 079 980 3457
www.rawson.co.za
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MANNY SANCHO YOUR AREA SPECIALIST IN UNIVERSITY ESTATE, WALMER ESTATE & WOODSTOCK If you are thinking of selling, buying or renting contact Olive Properties & let’s meet for a chat……. TO VIEW ANY OF THESE PROPERTIES PLEASE CONTACT MANNY ON THE DETAILS BELOW
Woodstock Upper – R 3 495 000 Charming Character Cottage! Garage!
Woodstock Upper – R 3 200 000 Charming Victorian Character Home!
Character home situated high up in Upper Woodstock with lovely sea views. This beautifully renovated Victorian home is the perfect fusion between original character with a touch of modern comfort. The freestanding corner home is north facing with lovely harbour views from a sun-filled balcony. 2 Bed * 2 Bath * Lounge * Dining room * Kitchen * Courtyard * Garage * Parking * Views
University Estate @ R 4 995 000 Generous Family Home - “Bayview”
Walmer Estate – R 2 695 000 Modern Home! Sea Views! Parking!
On Show Sunday 2-5pm
This lovely home situated high up in Walmer Estate & is the perfect lock up & go home in the City centre with uninterrupted Harbour views. 2 Bedrooms * Lounge/Dining room * Modern Fitted Kitchen * Full Bathroom Balcony * Secure Parking * Lovely Sea Views
Salt River – R 2 695 000 Residential Home or Office Space!
On Show 3-5pm on 7 March
This charming character cottage has been beautifully renovated with careful consideration given to the fusion of modern finishes with old world charm. 3 Bedrooms * Lounge * Dining room * Modern Fitted Kitchen *Full Bathroom * Garage * View Deck *
On Show Sunday This generous Double Storey family home 2-5pm offers you the perfect canvas to personalize your dream home. You have the living area downstairs that lead out to a private established garden & the sleeping quarters upstairs that open onto a balcony with lovely Sea & Mountain views 5 Bedrooms * Lounge * Dining room * Farm Style Kitchen * 2 Bathrooms * Lovely Garden * Balcony * Sea Views * Mountain Views * Garage
This 3 bed home is situated in the heart of Salt River which forms part of the UDZ zone (Urban Development Zone) which offers you tax incentives to major additional renovations. Zoning = Mixed Use 2 3 Bed * Lounge * Kitchen * Bathroom * Triple Garage * Courtyard
CONTACT: MANNY C: 083 457 0808 T: 021 447 7287 E: manny@oliveproperties.co.za
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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What’s new in KwaZulu-Natal
PICTURE: DAN GRINWIS
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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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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OFFICE 031 767 1217 www.primeestates.co.za
VIEW BY APPOINTMENT
SOLE MANDATE
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SUE DINNIE 082 491 5822 www.capcubed.com
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 VIEW BY APPOINTMENT
NEW SOLE MANDATE
NEW SOLE MANDATE
GILLITTS R1 895 000
CRESTVIEW R1 425 000
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
ON SHOW SUN 2 - 4:30PM
DUAL MANDATE
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! Boards from Gillitts Checkers to Regent Park. Call DEBBIE 082 903 2024 • Web: 108971396 VIEW BY APPOINTMENT
SOLE MANDATE
HILLCREST R1 850 000 NEGOTIABLE
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
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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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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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