PICTURE: ONLYYOUQJ
PROPERTY
360 TECH HUBS RESHAPING OUR FUTURE PA G E 3
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Should you buy a flat for your student child?
It can be a good investment but beware if it’s only for a couple of years as you might not recoup your money BY BONNY FOURIE bronwyn.fourie@inl.co.za
Location and security are the most important considerations when choosing a student property.
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HE NEW academic year has begun and university students around the country are settling into their accommodation ahead of this next chapter in their lives. Some students have been fortunate to secure places in residences provided by their institutions, and others will be staying in private, rented homes. There are also those who will live in properties specifically purchased by their parents for these university years. For parents who are still searching for student accommodation for their children, or preparing to do so for the 2022 academic year, here is some insight from investment property experts. TO RENT OR BUY? Parents with the financial means to buy a property for their student children might be weighing up the choice of buying or renting. Interestingly, Shaun Dubois of Just Property says many of today’s landlords started off buying a property for their children and then, when their children graduated, they kept it and let it to others. “Often this was the first of many properties they purchased using the equity in the initial property, and then some clever gearing, to buy multiple properties.” However, he emphasises that
purchasing would be for the more affluent as the cost of tuition is, on its own, beyond most people's means. John Birkett, franchisee of Rawson Properties Claremont and Rawson Rentals Cape Metro Classic, says the decision would also depend on how long the student will be studying. If the period of study is short, and the plan is to sell after graduation, then buying might be a risky investment and so it would be better to rent. “If the property is going to be used for a number of years by siblings or be let, then it is worth buying. In recent years, more parents of students have opted to rent, instead of buy, because of campus unrest and, more recently, Covid.” LOCATION CONSIDERATIONS Regardless of whether a student lives in a rental property or one owned by their parents, the same factors need to be considered when choosing a residential area. The location should offer easy access to campus and attract other students, Birkett says. Dubois agrees: “The area they where they buy or rent should have good transport routes or be close to the campus.” The area should also be safe and the property should have good security features.
TYPE OF PROPERTY While large houses that have been converted into communal student homes have become popular, Dubois reminds parents that this does carry the additional costs of maintaining them. “There are benefits but my advice would be a three-bedroom sectional title unit in a large estate. This is because larger estates often have a better economies of scale as they can pool the levy income better and often have superior security.” Birkett says communal student houses (digs) and flats are the most suitable. Cheaper options are for students renting rooms in shared properties. However, most students opt for studios or one-bedroom apartments. “Properties with modern facilities, such as new kitchens and bathrooms, and wi-fi, are most favoured.” Parents should bear in mind that, when buying, the selected property needs to offer good investment potential. Studios and one-bed apartments carry the least risk and are always sought after. SHOULD WE SELL ONCE THE PROPERTY IS NO LONGER NEEDED? This decision depends on the market, Birkett says.
“If there has been good growth over a short term it might be better to call in the investment, but if there has been no growth or a sale might mean a loss of capital, it might be worth renting out until the market improves, or keeping it as a long-term investment.” Dubois believes it is best to undertake an unemotional analysis of the property when considering selling or letting it. “There will be a need to consider the return on investment of the property, both in terms of the potential rental, and also the capital appreciation. “As a rule, property is better to keep as a long-term investment but once the true returns are calculated an informed decision can be made.” he says. Many courses, however, keep a child at university or college for only three to four years, and if there are no siblings to take over the flat, there could be concern about whether it is too soon to sell without losing money. However, Dubois says a “good purchase” initially of a property under R1 million, and therefore attracting no transfer duty, could still offer a profit. “Ideally, though, you would want to pick up a property with a below-market offer.”
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Letter from the editor
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Silicon cities reshape SA property markets Tech ecosystems are stimulating real estate demand BY BONNY FOURIE bronwyn.fourie@inl.co.za
AFRICAN tech hubs are on the rise and their purpose is often clear: to help entrepreneurs take their first steps towards launching a viable company and to support a growing ecosystem. I was lured to Cape Town many years ago by the glitter of it being a start-up heaven. Beginning my own business journey it was ideal: access to international tech experts sitting across from me in coffee shops... the supportive tech hub Silicon Cape was just taking off, and global start-ups relocating here too meant that it was a hub of creativity. Today, this has extended to other South African cities and Africa itself has over 600 tech hubs, ensuring that there is more than just one Silicon Valley in the world. While California might have companies such as Google and Apple making it synonymous with innovation, unicorns and high property prices, places such as Lisbon in Portugal, Addis Ababa in Ethiopia and Shenzhen in China, with their booming hi-tech sectors, have created other silicon centres. They have also shown how a tech boom can have an impact on property across the world, with a rise in new developments and the rejuvenation of rundown buildings to turn them into co-working spaces and hubs for tech-related businesses. We have certainly seen this in our own cities, where tech hubs have been shown to aid the economy and the property market. Bonny Fourie’s story alongside delves deeper into the subject. Enjoy the read! Warm regards
Vivian Warby vivian.warby@inl.co.za
The growth of tech hubs increases demand for homes in surrounding areas.
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NTREPRENEURIAL tech hubs and modern working trends are reshaping some residential property markets as developments mushroom to support the skilled workforces that live there. It is a cycle playing out in cities throughout the world and is starting to be seen in South Africa too. Skilled technical employees leave booming tech hubs for a remote life in quieter areas; companies follow the talent pool and establish new hubs for such employees and more people move to work at these companies. New properties are then developed to meet the demand for homes and, over time, these areas are transformed. To understand the impact that tech hubs have on local property markets, says Dr Sumarie Roodt, co-chairperson at Silicon Cape, one needs to understand that the primary purpose of a tech hub is to catalyse prosperity for tech entrepreneurs and businesses by creating an environment or ecosystem conducive to their growth and development. In doing so, she says tech hubs encourage socio-economic development by stimulating investment into the environment, which will “naturally result in greater interest, demand, and evaluations for the local property market”. “This comes as people begin to flock to the area, as they are attracted by the favourable working environment created by the tech hub. Tech workers will look for homes to own or rent, while businesses will do the same in a move to find new company headquarters.” Cape Town and Stellenbosch are thriving examples of tech hubs catalysing property development. The Western Cape government has made clear its aim to elevate Cape Town to become Africa’s tech capital. Cape Town is home to branches of multinational companies and brands such as Amazon, Microsoft, Harvard University, Thomson Reuters and Johnson & Johnson. Meanwhile, the university and tourist town of Stellenbosch has attracted the likes of Capitec, which has relocated its head office there.
Among the big names in these areas are a number of tech start-ups which specialise in software, data, internet and other computerrelated solutions. Louis van Rooyen, property broker for Rawson Properties Somerset West Commercial, says Stellenbosch’s property market has been boosted by the number of people working in the Technopark business park. Since Stellenbosch is an expensive area for residential property, he says, this boom has allowed for the creation of lifestyle estate developments like Sitari Country Estate, Acorn Creek, De Velde, and Paardevlei. “These developments are ideally situated, with easy access to Somerset West, Stellenbosch and Cape Town. “We've also seen the R44 being upgraded in the past few years as a result of many people travelling from far-flung areas of Cape Town to Technopark.” These developments give people the opportunity to buy property closer to Technopark and Somerset West’s business hub, and eliminate long commutes, Van Rooyen says. “People want to limit the time they spend on the road, so the closer they live to work, the better. That also has an impact on the demand for property in the area and explains why these new developments are sprouting up everywhere.” Also the creation of tech hubs – and the increased numbers of people moving to an area – makes it easier to provide public transport on shorter routes, he says. Local public transport systems “will help stimulate the local community”. “There will also be attention given to infrastructure development which should include the introduction of dedicated cycling lanes to help reduce carbon emissions. A quick cycle from home to the office is the healthier alternative.” Although not just a tech hub, the Dube TradePort Special Economic Zone on the north coast of Durban, and its continued development, is having a similar impact
on surrounding property markets as more residential development takes place to meet the demand. The past few years have seen the Umhlanga area transformed into a booming commercial hub and this is creating a growing need for homes nearby. Developers have been meeting this need with a number of new residential developments in and around the area. The 2019 launch of the Cisco Edge Incubation Centre within the Dube TradePort further signifies government and business commitment to technological advancement as it aims to develop SMMEs as well as speed up their entry into the digital marketplace. At the launch, Sihle Zikalala, then KZN MEC for economic development, tourism and environmental affairs, said the provincial government saw the centre playing an important role in developing people’s capabilities in the areas of technology and innovation and he hoped it would also assist with driving socio-economic development. In September, the Dube TradePort welcomed foreign investment of more than R3 billion, and Roodt says the arrival of international tech companies in the country will lead to more development in middle and higher-income housing. This is because these businesses bring with them foreign investment and well-paid people looking for quality living. “This is what we’re seeing in places like Tel Aviv, which has been dubbed the ‘Silicon Valley’ of the Middle East... “This growth in demand is great for revitalising poorer communities which quickly turn into up-and-coming areas, as their more affordable property becomes sought after by individuals and businesses alike. In doing so, tech hubs help put communities on the map and improve the wealth of those living there.” But she warns that developers and city planners need to be mindful of issues such as gentrification which could drive many long-time residents out of areas and homes that have been in their family for generations.
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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A bathroom that buyers can imagine themselves relaxing in will help sell your home.
Small differences mean big savings Shop around when seeking a home loan – and see how much you can profit over the lifetime of the bond BY BONNY FOURIE bronwyn.fourie@inl.co.za Q: I have heard that I need to shop around for a home loan in order to get the best interest rate. I have also been told that the higher my deposit, the better my interest rate offer will be. The rates seem to differ in many cases by less than a percent, so how much difference can this really make? A: By way of example, BetterBond was able to secure an average interest rate reduction of 0.61% (below the prime rate of 7%) for their clients in the last quarter of 2020. To put that into real terms, if your bond was R2 million, you would save R174 000 over the full 20-year term or R725 a month. Based on a R2m bond over 20 years, here is a breakdown of the monthly repayments and savings based on different interest rates: Interest rate
Monthly repayment
Total repayment
Saving
7% (prime) 6.83% 6.66% 6.49% 6.39%
R15 506 R15 302 R15 100 R14 840 R14 782
R3 721 434 R3 672 612 R3 624 108 R3 575 926R R3 547 734
N/A R48 822 R97 326 R145 508 R173 700
The good news story of lower interest rates and improved affordability is starting to spread and we believe that even more home buyers will apply for bonds before the repo rate starts its gradual increase towards the end of the year, or even next year. – Carl Coetzee, chief executive of BetterBond Q: We are not planning on living in our home forever and will probably sell it in about two or three years’ time. We want to start upgrading it slightly now in order to get the best price for it when we sell. What areas should we focus on improving? A: It is important to consider the risk of over capitalising on your property and to really consider the features that will increase your property’s value, should the time come that you want to, or need to, put it on the market.
Upgrades, refurbishment, and makeovers can be a valuable investment choice but beware of over-capitalising. That said, carefully considered improvements to increase your property’s value will win the hearts and hard-earned buying power of your future buyer. Here are some key features to consider: • Kitchen: Other than your bedroom, this is the place you will spend most of your time. When people can visualise themselves cooking and entertaining in a space, they fall in love with the property. • Bathroom: This is your retreat from the world – where you can get away from it all and relax. Like a kitchen, if your potential buyers can see themselves there, they’ll be more attracted to the house and willing to pay the asking price for it. • Patio and garden: South Africans love to drink coffee, braai and spend time outdoors. A well-kept garden and patio facilitates this lifestyle. • Pool: Investing in a pool is often a double-edged sword, because while a lot of people do like pools, many people do not. Most often, it is attractive to have a pool in areas/ suburbs that attract families. • Garage: Putting in a garage is an investment worth considering, as it’s a place that will protect cars from the weather and also provides storage space. • Security features: These, or the lack thereof, can make or break a sale. Decide on what alarm systems, motiondetector beams, security gates, outdoor lighting and/or surveillance cameras you have, or need, and make sure they work. – Marcél du Toit, chief executive of Leadhome Q: We have a holiday home we are thinking of selling. When is the best time to put it on the market or at least test the waters? A: South Africa’s moderate climate means that properties can be showcased throughout the year. That said, it is always a good idea to market your holiday home during holiday periods, such as the Easter, July or Christmas holidays when people take extended breaks and there is an
influx of people into your area. Coastal towns, like Margate and Struisbaai, are examples of towns where the holiday season brings significant numbers of visitors. – Paul Stevens, chief executive of Just Property Q: We have sold our home and will be moving in the next few weeks. How can we best prepare the children for this move? Already they are not happy about moving away from their school and friends. A: Moving house is a big upheaval for the entire family but it can be particularly stressful for youngsters. A good idea is to call a family meeting to explain the upcoming changes to their lives, which gives you the opportunity to address any questions or concerns well before the time in an environment where the children feel secure and supported. It’s essential to explain that all the key aspects of their lives will stay the same and that all the familiar contents of their current home, especially what’s in their bedrooms, will be moving with you. You should also, as far as possible: • Stick to normal routines: Try to maintain as many of your old routines as possible like family meal times, regular bedtimes and activities such as game nights. • Scout the new area before the move: If possible, take the family for a drive to visit the new home before the move. In addition to showing them their new home you can point out the positive elements of the new area and the exciting new opportunities that await them. • Involve the kids in the process: Make them responsible for their own rooms and allow them to pack their own things and decide where they want to put everything in their new rooms. • Plan a fun activity for the arrival: Once the move is over, and everyone has arrived at the new home, take the time to do something fun together like go to a restaurant for a meal or spend an hour in a nearby park with the dogs and a picnic. – Natalie Cooper, area specialist for Lew Geffen Sotheby’s International Realty in Kommetjie
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What’s new in the
Western Cape PICTURE: DEKEISTER LEOPOLD
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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What’s new in KwaZulu-Natal
PICTURE: JASON BRISCOE
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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PRIME ESTATES ON SHOW SUN 2 - 4:30PM
OFFICE 031 767 1217 www.primeestates.co.za
SOLE MANDATE
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SUE DINNIE 082 491 5822 www.capcubed.com
VIEW BY APPOINTMENT
NEW SOLE MANDATE
GILLITTS R1 895 000
HILLCREST CENTRAL R2 295 000
COMPLETELY RENOVATED - 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! Follow boards from new Gillitts Checkers to Regent Park.
HIGHBURY SCHOOL AREA - FREESTANDING - LOW LEVY! Super-secure Estate. This fully tiled home has just been freshly painted inside & out, and the large driveway newly tarred. 3 Beds, 2 baths (new en-suite), large open plan granite kitchen, double auto garage and a fully walled garden. 2 Small dogs allowed, no cats. Walk to all amenities.
Call DEBBIE 082 903 2024 • Web: 108971396
Call DEBBIE 082 903 2024 • Web: 109099251
ON SHOW SUN 2 - 4:30PM
WATERFALL AREA (CRESTVIEW)
NEW SOLE MANDATE
R1 395 000
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. Boards from Waterfall Centre to Crestholme Drive. To view, call ANN 072 425 9411 • Web: 100872177
VIEW BY APPOINTMENT
SOLE MANDATE
HILLCREST R1 895 000 2 BED GARDEN APARTMENT IN GORGEOUS, SECURE RETIREMENT ESTATE Retire in style! Beautiful & modern with loads of extras - this garden unit has 2 bedrooms (BIC’s & c/fans), bathroom with shower, dbl vanity, heated towel rails, & toilet, plus a separate 2nd toilet. The kitchen has Caesar-stone tops with plumbing for dishwasher. Spacious living area, with extra sun-lounge leading to the garden on 2 sides. 2 Carports + a lock-up storeroom. Clear-view burglar strips on all windows. Superb Clubhouse, heated pool, library, clinic sister & hairdresser. Fibre & DSTV connections. Small pet OK. Call DEBBIE 082 903 2024
VIEW BY APPOINTMENT
SOLE MANDATE
KLOOF (GOLF COURSE AREA) R4 250 000
UNBELIEVABLE VALUE... 4/5 BEDROOM FAMILY HOME ++ SEPARATE 2 BED COTTAGE Seeing in believing..... this is a large family winner!! MAIN HOUSE has 4/5 bedrooms, 2 bathrooms, 2 lounges, separate dining room, large gourmet kitchen, 2 covered entertainment patios overlooking level established garden with pool. Double garage & tandem carport. COTTAGE has large open plan lounge/granite kitchen, 2 bedrooms and 1 bathroom. Single auto garage & carport. Call AMANDA 079 528 0942
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FEW T S LA THE 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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AVA I L A B L E I M M E D I AT E LY AT C O M P E T I T I V E R AT E S ! AVA I L A B L E S T O R E S - O N LY 3 % L E F T O F T H E T O TA L G L A !
SHOP 18 - 19
SHOP 9B
(OPPOSITE GARMENT DIVISION)
(NEXT TO CHECKERS HYPER)
SIZE 81 M²
SIZE 48M²
SHOP 17
SHOP 44
(OPPOSITE GARMENT DIVISION)
(OPPOSITE CHECKERS HYPER)
SIZE 81 M²
SIZE 142 M²
SHOP 45
SHOP 20
(OPPOSITE CHECKERS HYPER)
(NEAR CHECKERS HYPER - PRIME AREA)
SIZE 85 M²
SIZE 33 M²
SHOP 15/16
SHOP 25
(OPPOSITE GARMENT DIVISION)
(NEAR ACKERMANS & CHECKERS HYPER)
SIZE 186 M²
SIZE 35 M²
The Ridge@Shallcross is a community shopping centre, owned and managed by Oasis Crescent Property Fund. Over the past 15 years it has provided a clean, safe and enjoyable shopping experience to the residents of Shallcross, Chatsworth and its neighbouring areas. ‘Spaces ideal for a coffee shop, halaal butchery, linen store, beauty salon, massage parlor, candy shop and florist.’ The centre is frequented by approximately 4.8 million people annually with an annual turnover of R453 million.
N AT I O N A L T E N A N T S
CONTACT US 90 SHALLCROSS ROAD TRADING HOURS: MONDAY TO SUNDAY RETAIL STORES: 10AM- 7PM l CHECKERS HYPER: 9AM - 8PM I FOOD OUTLETS: OPEN TILL LATE
IRSHAAD ABOO T: 021 413 7860 E: propertyleasing@oasiscrescent.com
FAARIA PAPIAH C: 060 991 1118 E: marketing@theridgemall.co.za
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