Real Estate February 2017 ( Issue 40 ) by REAL|life

ISSUE 40 • FEBRUARY 2017

SPECIAL SECTION IN THIS ISSUE

PROPERTY

INVESTMENT AND DEVELOPMENT

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BOLD DIRECTIONS Fresh ideas for outdoor living | Seaside showstopper | Local design stars | Residency and citizenship demystiﬁed

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Houghton on 12th, 53 Second Ave, Houghton OFFICE – 011 034 2201 || ALAN BECKER – 082 718 8100 || EMAIL – alan@thehoughton.com

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CREATIVE GROUP

HOUGHTON 2017

AN EXCITING

NEW RELEASE TEN RE-ENGINEERED

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Our last phase of penthouses and threeand four-bedroom apartments are ready for occupation. We are near final completion so donâ&#x20AC;&#x2122;t lose out on a great lifestyle opportunity

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A MUSEOLOGIST’S PIUS PAHL HOME

IN STELLENBOSCH

BRIGHT SPARK

RENOVATING WITH POPS OF COLOUR

•O

ESTATE

OBER 2013

FROM MABONENG TO MORNINGSIDE

WHY BUYING IN THE WINELANDS MAKES GOOD INVESTMENT SENSE

wonder walls

NEW DIMENSIONS IN BATHROOM DESIGN

Nottingham Road What’s not to love about rural living?

HOW TO INVEST IN WINE

RURAL MODERN

THE BEST OF BOTH WORLDS IN NOORDHOEK

A DREAM MAURITIUS HOLIDAY WORTH R60 000

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ESTATE

ESTATE ISSUE 15 • OCTOBER 2014

ISSUE 14 • SEPTEMBER 2014

ISSUE 13 • AUGUST 2014

• Perfectly packaged penthouse living • Modern Victorian in Tamboerskloof

BOUNDARIES

Architectural evolution in Wilderness Warehouse-chic of ces in Parktown North

ESTATE

ISSUE 12 • JULY 2014

HOT

ISSUE 16 • NOVEMBER 2014

BIRTHDAY

ISSUE!

SPOTS

9/19/13 10:07 AM

2013/08/23 10:08 AM

REAL

ESTATE

outdoor sanctuaries in the city

ROOM WITH A VIEW

BEYOND

Fro a Clifton apart ent to a chilled beach cottage in in wa i + easide holiday ho e revival

REAL

2013/07/18 4:07 PM

COASTAL MODERN

REAL

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a ah oro an ria

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th ning a

URBAN UTOPIA

hi tech design eets green genius in fresnaye

All you need to know if you’re dreaming of buying a Spanish finca

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N d to no o to bu in ritain

WHO TO BUY AND WHY

ISSUE

FROM POOL DECKS TO OUTDOOR KITCHENS… UP YOUR HOME’S VALUE WITH AN ALFRESCO ADD-ON

LIQUID ASSETS

REAL

Investing in art for your home

BREAK OUT

+ SA’s top 10 residential estates

MODERN SANCTUARY IN GRACIOUS WESTCLIFF

LAUNCH

HOW TAILOR-MADE TRAVEL IS TAKING OFF

Why estate living is par for the course

SPA STYLE

HOW TO BUY A HOME IN NEW ZEALAND

WIN

ISSUE 8 • MARCH 2014

PERSONAL AGENDA

o a om alta an bin hengen visa

KIWI CALLING CARD

INVESTING

HEAD OR HEART?

INSPIRATIONAL WALL TRENDS

Out of the box

u in our

THE OUTLOOK FOR SA’S RESIDENTIAL MARKET

WHY IT PAYS TO HIRE AN ARCHITECT

HOW TO BUY AN ISLAND PROPERTY

ESTATE

ISSUE 7 • FEBRUARY 2014

2014 PROPERTY FORECAST

DESIGN MATTERS

MAURITIUS LE MAGNIFIQUE!

APARTMENT LIVING

LIQUID ASSETS

LIME LIGHT

ESTATE

ISSUE 6 • DECEMBER 2013/JANUARY 2014

ROAD TO RICHES

ON HYDE PARK

TRADITION GETS A CONTEMPORARY TWIST

ESTATE

ISSUE 5 • NOVEMBER 2013

WHO’S DRIVING THE DEMAND FOR CLASSIC CARS?

SPOTLIGHT

CAPE TOWN’S HIDDEN INTERIORS REVEALED

CALL OF THE WILD LIVING ON SA’S BEST WILDLIFE ESTATES

ISSUE

MODERN MAKEOVERS

• FROM TIRED VICTORIAN TO FEISTY FAMILY HOME • NEW LEASE ON LIFE FOR A PARKHURST GOLDEN-OLDIE

REAL

ESTATE

EMBER 2013

EXPERT ADVICE ON BUYING HISTORIC HOMES

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ISSUE 3 • SE

HERITAGE SPECIAL FEATURE

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U US 2013

PENTHOUSE LIVING IN SANDHURST

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SKY-HIGH GLAMOUR

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ISSUE 1, JULY 2013

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F rom A f ric a’ s new m egac ities to the world’ s top res taurants

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INVESTMENT FOCUS

• WHERE ARE THE WEALTHY PUTTING THEIR MONEY? • WHY NEW YORK PROPERTY IS TOP DOLLAR • SPECIAL REPORT: BUYING IN THE SEYCHELLES

LUXURY

HOMES OF THE

WORLD

Celebrating wine, art and horses at Cavalli Futuristic vision in leafy Bishopscourt

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LIVING LARGE +

INSPIRED INTERIORS

HIGH

q ues trian es tates | S p a trends | B uy ing in London

IDEALS

NATURE’S HOME

20-PAGE SPECIAL SECTION

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GRAND DESIGNS

Living wild on the urban edge

T he p enthous e of the f uture

T he ris e and ris e of S A ’ s inner c ities

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From fresh flavours to Indian Ocean island living

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SUMMER LOVIN’

NESTING INSTINCT K itc hen glam our | ravel rede ned | G olf es tates

INVESTING IN ART: W here to go? W ho to buy ?

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- Join us in celebrating our -

40 ISSUE! th

For media kits and information, contact editor MICHELLE SNADDON on michelle.snaddon@thecreativegroup.info or Sales and Marketing Manager MICHELE JONES on michele.jones@thecreativegroup.info

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IN GOOD

HOT PROPERTY

LUXURY HOMES OF THE WORLD

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ISSUE 20 • APRIL 2015

NEW PROPERTY SECTION INCLUDING

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ISSUE 17 • DECEMBER 2014/JANUARY 2015

ESTATE

TASTE

T he ultim ate S andhurs t es tate | B uy ing better – lux ury goods with a c ons c ienc e | S p otlight on S tey n C ity

itchen con dent odern countr living in o urg lo al ealth trends Famil e els

BIRTHDAY

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ISSUE 26 • OCTOBER 2015

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ESTATE ISSUE 30 • MARCH 2016

ISSUE 29 • FEBRUARY 2016

ISSUE 28 • DECEMBER 2015/JANUARY 2016

T he p erf ec t P aris ian ap artm ent | S iblings tak e on S ea P oint | A rtis t in res idenc e | W alls f or all

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ISSUE 27 • NOVEMBER 2015

GRAND DESIGNS

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ISSUE 25 • SEPTEMBER 2015

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ent rst centur tech naturall understated ur an home rt for the discerning e e s to su ur s

T he art of lux ury travel | G reat es tates | T he ris e and ris e of S oweto | B oy s ’ c lub

REAL

R edef ining outdoor s p ac es | I nves ting in c oas tal p rop erty | B uy ing in S y dney

MOVE

S A c orp orates ’ vis ion f or a green f uture | S p otlight on F rans c hhoek | H ot look s for floors oc star sommeliers

A rc hitec ture f or a c hanging world | B athroom beautif ul | otlight on omerset est raa einet s revival

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THE BIG PICTURE

INSIDE OUT

SMART LIVING

ON THE

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MOVING

FORWARD

ISSUE 31 • APRIL 2016

ISSUE 32 • MAY 2016

DOWN TO EARTH

DESIGN

Love the Lowveld | S oc ial work s p ac es | E c o garden ideas | Living on the land

INSIDE

FRESH

APPROACH

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AND DEVELOPMENT

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ESTATE

REAL

ISSUE 34 • JULY 2016

INVESTMENT

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REAL

ISSUE 33 • JUNE 2016

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ISSUE 35 • AUGUST 2016

Houghton’s hottest office space | Girls on top | The future of city living | Luxury timepiece trends

Bright ideas | Flexible family living | New trends on the table | Clever coastal investing

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ESTATE

ISSUE 36 • SEPTEMBER 2016

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2015/09/10 4:36 PM

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SHEDDING

PROPERTY

SPECIAL SECTION IN THIS ISSUE

REAL

2015/08/17 5:23 PM

The ne face of ne art photo raphy | p to speed hot car ne s | elaxed a orcan illa li in | roperty trends

T he c ooles t p ools | igh fl ing ines ifts to give and get aid ac est oast living

Lux ury y ac hts | U rban c hange- m ak ers | A rtis an f ood, f as hion and des ign | C lever renovation ideas | I nves ting in M oz am biq ue, M auritius and the S ey c helles

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START

TIME TO

CELEBRATE

DESIGN FOR LIFE

Stylish alfresco entertaining | The skylines of the future | Joburg’s best address

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REAL

C utting- edge k itc hens | A renovated B auhaus beauty | F lower girls | H eritage buildings ’ new leas e of lif e

ISSUE 38 • NOVEMBER 2016

ISSUE 37 • OCTOBER 2016

ISSUE 40 • FEBRUARY 2017

ISSUE 39 • DECEMBER 2016/JANUARY 2017

KEEP

MAKING

SMART

Investing in the Winelands | Bathroom sanctuaries | Joburg’s up-and-coming urbanists | Chic colour in the Cape

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UP TO THE Our pick of private villas | Fresh ways with art | Urban property trends | Contemporary living in Green Point

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BUILDING

SPECIAL REPORT

SPECIAL SECTION IN THIS ISSUE

2016/07/21 1:51 PM

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SPECIAL SECTION IN THIS ISSUE

SPECIAL REPORT SEMIGRATING VERSUS EMIGRATING: THE

WHY THE V&A WATERFRONT

Painters to invest in now | Luxurious li in in erlin | old oorin ideas | New design talent does Val de Vie

Sustainably stylish Singita | Hardworking kitchens | Out-of-the-box retail

2016/05/19 10:31 AM

A Moroccan-style bush oasis | Smart gift ideas | New urban spa retreats

THE LOW STRENGTH TO STRENGTH

Iconic architecture | Nature-inspired decor | raft made modern | d y office space

2016/08/18 9:53 AM

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PROPERTY

INVESTMENT

INVESTMENT OPTIONS

PROPERTY

CONTINUES TO GROW FROM

INVESTMENT

SPECIAL REPORT

AND DEVELOPMENT

WHAT YOU NEED TO KNOW ABOUT BUYING A DEVELOPMENT OFF PLAN

2016/09/22 8:05 PM

AND DEVELOPMENT

Idyllic country architecture | The new neutrals | The investment power of antiques

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2016/11/25 10:03 AM

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BOLD DIRECTIONS Fresh ideas for outdoor living | Seaside showstopper | Local design stars | esidency and citi enship demysti ed

20/01/2017 10:17

20/01/2017 15:47

08 08 WORD ON THE STREET

27 MARKETPLACE

The property news, awards and investment advice you need to know now...

12 CAR REVIEW

SUVs: move over for the new BMW 5 series executive sedan (and it’s eco- and pocket-conscious)

14 ROOMS WITH A VIEW

Beach getaway merges with Cape architecture in Plett PUBLISHED BY THE CREATIVE GROUP FOR TIMES MEDIA PROPERTY PUBLISHING Old Castle Brewery, 6 Beach Road, Woodstock, Cape Town, 7925 www.realestatemagazine.co.za | 087 828 0423 | 021 447 7130

MANAGING DIRECTOR: THE CREATIVE GROUP Terence Hewitt | terence.hewitt@thecreativegroup.info

EDITORIAL TEAM Editor Michelle Snaddon | michelle.snaddon@thecreativegroup.info Creative director Leah de Jager Deputy editor Julia Freemantle Copy editor Kirsty Wilkins Group digital editor Lauren Joubert Accounts and finance Katrien Bezuidenhout Printing Paarl Media Contributors Patrick Cairns, Nicola Jenvey, Genevieve Putter, Anne Schauffer, Terence Steenkamp, David A Steynberg, Jocelyn Warrington

ADVERTISING BOOKINGS AND SUBMISSIONS Jackie Maritz | Advertising coordinator jackie.maritz@thecreativegroup.info | 078 133 5211 Love the environment! Please recycle this copy of REAL ESTATE after you have read it.

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21 OUTSIDE INTEREST

When planning an outdoor design space, the best ideas use interior elements as inspiration

Special section in this issue

SEE PAGE 39

COVER IMAGE Ardmore Collection wallpaper for Cole & Son PHOTOGRAPHS Lar Photography, Michael Le Grange, supplied

ith the memory of summer holidays still lingering, our show house this month (page 14) will take you right back to balmy days on the beach. Photographed in Plett in magical early morning light, I can literally smell the salty onshore breeze and hear the waves. Of course, if ‘location, location’ is your property mantra, then this historic home – now meticulously restored and converted to maximise expansive views – will certainly pique your interest. But if your 2017 investment planning is moving offshore, our biannual property investment supplement (page 39) carries our annual comparative analysis of 10 countries in which South Africans can secure residency and citizenship. Read it first before you make any decisions. In future issues, we’ll continue to update you as we follow global trends closely, with Brexit and the US keeping us on our toes. And, if the allure of sectional title is your focus, turn to page 50. For those who’d rather invest in art, it’s an exciting time: the Cape Town Art Fair is now in its fifth year and will be held at the Cape Town Convention Centre between 17 and 19 February (capetownartfair.co.za). It coincides this year with an exciting new event, SA’s first International Public Art Festival from 10 to 19 February (ipafest.co.za). And don’t miss the Art Africa Fair from 24 February to 5 March (artafricafair.com). They’re Michelle Snaddon sure to be inspirational! Editor, REAL ESTATE

DISCLAIMER The publisher of this magazine gives no warranties, guarantees or assurances and makes no representation regarding any goods or services advertised within this edition. © The Advertising Joint Venture. All rights reserved. No portion of this publication may be reproduced in any form without prior written consent from the publisher. The publishers are not responsible for any unsolicited material.

CONTENTS

20/01/2017 11:29

WORD ON THE STREET

THINGS TO SEE, TRENDS TO SPOT AND PLACES TO BE

Spiritual experience

DESIGN

Awe-inspiringly and creatively modernised with new additions to the fruit-, olive- and protea-producing property, Bosjesmans Valley Farm in Worcester has been reimagined as Bosjes, an exciting combination of heritage (the original Cape Dutch manor house was built in 1790) and progress. The centerpiece of this striking new incarnation is an incredible white chapel, designed by Coetzee Steyn from Steyn Studio and inspired by Psalm 36:7. Other new elements include the Bosjes Kombuis, also by Coetzee (whose exterior facade features a stunning blue tiled mural by Michael Chandler and Lucie de Moyencourt), a sleek but comfortable guesthouse designed by Liam Mooney and a childrenâ&#x20AC;&#x2122;s playground by Leanie van der Vyver. This convergence of different creative components and the coexistence of new and old make it an exciting event and lifestyle space, opening mid-March. bosjes.co.za

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FEBRUARY 2017

www.realestatemagazine.co.za

20/01/2017 10:22

WHERE THE WILD THINGS ARE

DESIGN

The vivacious new Zambezi Collection fabrics and wallpapers (far left) harness the creative talent of textile designer Nicole Levenberg, who has created a fun and vibrant range of fabrics for Halsted Design. Bright colours, tropical creatures and lush textures, they’re a natural evolution for Halsted. Another exciting development for the Halsted/Ardmore family is a range of wallpapers by Ardmore Ceramic Art for prestigious fabric house Cole & Son (left). These lush and whimsical patterns will bring the craft and culture of Ardmore to a whole new audience. Available through St Leger & Viney. halsteddesign.com; stleger.co.za

Design genius

Huge congratulations to Michele Throssell and Amy Kidger of Michele Throssell Interiors for winning the prestigious Caesarstone Kitchen of the Year award in the local category, and to Sam Edmeades and Paul Raymer from Inside Living for the international category. This is Michele and Amy’s kitchen – a triumph of clever design touches that make it inspirational and forward-thinking while creating a welcoming core to this Zimbali home. Balancing tactile textures with sleek surfaces is one of their many strengths, bringing depth to what is often a clinical space. caesarstone.co.za

Let there be light Euro Nouveau is the buzz word on the lighting scene right now. It’s a bespoke showroom (upstairs at Eurolux in Milnerton) showcasing no less than 12 hand-selected European Lighting designers, including FontanaArte, Slamp, Panzeri and Manooi. Carrol Boyes also showcases a new collection here. These polycarbonate gold and translucent lights are from Zaha Hadid’s Aria collection from Slamp. euronouveau.co.za

www.realestatemagazine.co.za

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FEBRUARY 2017

20/01/2017 10:22

WORD ON THE STREET

Worth its salt

What’s in a name?

Anyone who comes up with a name like Two Dogs, a Peacock and a Horse for a wine label deserves the time of day in our books. Not only are their label designs a notch above the rest, but they’re doing a great job of demystifying wines at the Black Elephant Vintners Tasting Studio at Ryan’s Kitchen in Franschhoek. Prepare to be surprised by their degustation menu, starting with the octopus and calamari ceviche served with green apple gel, a delicious sliver of peppered meringue and their MCC. Also try one of the music and wine pairings. bevintners.co.za

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FEBRUARY 2017

TEXT Julia Freemantle and Michelle Snaddon PHOTOGRAPHS Claire Gunn, Michael le Grange and supplied

Travellers should take a look at the Radisson Blu Waterfront’s new-look business suites. What’s to love? That carpets are out and polished wooden floors are in. Step inside and you could be forgiven for thinking you’re spending the night on the deck of a cruise ship with the sound of the waves below. But that’s not all: the city’s first Salt Therapy (or Halotherapy) room has opened at the new Amani Spa. Lined with salt wall tiles that create an allergen-free, hypo-bacterial environment that detoxifies and heals, it’s set to become a spa destination in itself. radissonblu.com; amanispas.co.za

www.realestatemagazine.co.za

20/01/2017 10:23

WORD ON THE STREET

ALL THE PRETTY HORSES

LIFESTYLE

Once again, Val de Vie Estate will host the annual Veuve Clicquot Masters polo tournament. One of the most anticipated social and sporting events of the year, this is the seventh event and promises to be as glamorous as ever. Inspired by the champagne house’s adventurous spirit, the theme this year will be Clicquot Journey with food and spaces inspired by iconic cities around the world. Rub shoulders with socialites and influencers on 4 March while you watch the sport of kings and enjoy the finest bubbly. vcmasterspolo.co.za

Raising the bar

The Taj Cape Town welcomes award-winning mixologist AJ Snetler at its Twankey Bar. Pop in to this historic landmark after a long day at the office for a signature cocktail reminiscent of the 1920s pre-Prohibition era. As part of First Thursdays, there’s also the launch of a new fine dining concept at the Taj. Celebrating the three art forms of winemaking, food and fine art, these intimate dinners are hosted by the artist of the month and the winemaker. Book via restaurants.capetown@tajhotels.com. tajcapetown.co.za

NOSE TO TAIL Meat has never been trendier as it is now and artisanal butchers are springing up wherever there are trendy eateries. Giles Edwards, with 10 years in London under his belt, has opened La Tête in Bree Street (where else?), a venue that celebrates the practice of nose-to-tail dining, a trend that adventurous diners and champions of reducing waste are diving into head first. Expect such items as pigs’ tails, duck’s gizzards and goat’s heart as some of the options on the menu. There are less intimidating options for the less intrepid diner, along with a good wine selection to wash it all down with. latete.co.za

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20/01/2017 10:23

CAR NEWS

7TH WONDER Now in its seventh generation, BMW’s 5 Series executive sedan provides the perfect foil to the SUV TEXT Terence Steenkamp PHOTOGRAPHS Supplied

hen you commute home after work, take a few minutes and count the number of BMW X5s you spot. Then compare that figure to how many 5 Series sedans you see. I’d bet the SUV outnumbers the sedan – and by a considerable margin. I attempted this experiment in Cape Town’s City Bowl and noticed nine X5s compared with a single 5 Series. This market shift to off-roaders took place in the not-too-distant past. And that’s somewhat odd, don’t you think? South Africans used to love their large family saloons. Kids were ferried to school in them and, come December, we filled the commodious boots with paraphernalia before departing on holidays to the coast. But then the Germans launched luxury SUVs two decades ago. Consumers couldn’t resist their elevated stance, along with the suggestion that the driver ventured off the beaten track in between surfing, kayaking and gardening. These days, the SUV is the de rigueur family solution for those with the means. And I find that peculiar. SUVs are more expensive than the four-door counterparts with which they share their main componentry; they are heavier and therefore heavier on fuel; employ expensive, drag-reducing four-wheel-drive systems that will never kick into gear on an off-road track; and are cumbersome to drive and park.

FEBRUARY 2017

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I pondered this while sitting behind the wheel of a 530d (one of four 5 Series models to hit South Africa this month) on a deserted coastal road south of Portugal’s capital, Lisbon. I had just driven the car with gusto, but the trip computer registered an average fuel consumption of just 8.1 litres per 100km. What’s more, earlier in the day while ascending a steep, sinewy mountain pass, the 530d accelerated harder than a Golf GTI and was nearly as entertaining. And yet the new 5 Series was also whisperquiet inside, rode beautifully, provided loads of space for five occupants (as well as their luggage in its massive 530-litre boot) and contained every piece of ground-breaking technology you’d find in the flagship 7 Series, including the ability to park itself without the driver ensconced behind the wheel. “Ah, but sedans aren’t as safe as large SUVs,” I hear you counter. According to Euro NCAP, which crash tests every new car in Europe before awarding them a rating out of five stars, there’s little difference between the protection offered by a four-door versus an off-roader. So, go on, give the venerable sedan a second chance. You’ll be doing your pocket, and the environment, a favour. And, if you make it a 5 Series, you’ll just happen to net the market’s best new executive saloon. bmw.co.za

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20/01/2017 10:25

SIEMENS:Laundry Q1:Print Ad 335:280.pdf

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11:35 AM

SHOW HOUSE

ROOMS -WITH A-

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FEBRUARY 2017

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20/01/2017 10:29

Historic architecture and an unparalleled setting create a sophisticated seaside escape TEXT Julia Freemantle PHOTOGRAPHS Daron Chatz STYLING Laura Jamieson Chatz

hen you think beach house, what often springs to mind is expanses of glass and a minimal rim-flow pool. Or, at the other end of the spectrum, a rustic clapboard cottage with a porch decked in ticking stripe. But you don’t often think classic Cape architecture. Yet here, overlooking Lookout Beach in Plettenberg Bay, it’s entirely fitting – gracious, commanding, elegant, befitting a view of this scale. One of only five seafront properties on this iconic beach, the house is tucked away down a quiet cul-de-sac but with easy access to Lookout Beach. The combination of privacy yet openness courtesy of the panoramic beach vista gives it the best of both worlds. An historic building (the original shed or gatehouse was built in 1870), the structure has been sensitively and respectfully renovated to keep its charm and uniqueness intact. The colonial farmhouse was once located on one of the original farms in Plett, The Residency, which was incorporated into the town in 1923. The current owners bought the property in 2003 after falling in love with the location and views: the house includes a breathtaking vista that encompasses Lookout Beach, Keurbooms lagoon, the bay and Tsitsikamma mountains. But while the owners love the house and its setting (one huge advantage is that no-one can build in front of it), it needed some modification to adapt it to their lifestyle. Architect and project manager Steve Westraadt has had extensive experience in alterations to Cape vernacular houses in Graaff-Reinet while retaining the style and integrity of the original architect. Under his strict guidance, the owners embarked on an exciting three-year journey to restore the old cottage completely, adding more living areas and accentuating the gorgeous views while retaining the intimacy and privacy of the property. The owners wanted to keep the soul and integrity of the house but upgrade the finishes and showcase the beautiful original stonework and architecture. The northeast-facing home, with its magnificent views and proximity to the blue-flag Lookout Beach, makes you feel like you are in the postcard. Part of the upgrade entailed adding a ‘Boys’ Room’ – a fully equipped self-contained entertaining space separate to the main house. Another addition is a partly covered veranda closed in with floor-to-ceiling stackable glass doors and informal dining and gas braai areas, extending the original finishes across these extensions. Painstaking work by craftsmen meant that the gables, mouldings, windowsills – every detail – fitted in with the Cape vernacular style. But in keeping with the uniqueness of the house (there are also some quirky details to set it apart), the huge teak Indian windows and original antique French doors are an unexpected but striking addition to the spaces, adding to its already extensive character. Although the house is an entertainer’s dream, it’s also ideal for the outdoor inclined. The owners had a walkway built to lead straight onto Lookout Beach, where they walk their dogs – soul food for the duo. It’s this luxury of proximity, plus the elevation and the views of the beach, lagoon and mountains, that provides an unbeatable combination. The showcase koi pond, three outdoor showers and the pool, with their views of the beach and mountains, make the most of every inch of the outdoor spaces. Vegetable planters have been placed on top of each terrace wall to make the property more ecofriendly and the owners regularly use the herbs and vegetables from the garden. In terms of the holiday-home trifecta – idyllic positioning, superlative amenities and architecture conducive to relaxed living – this is a true box ticker.

The view is best enjoyed from the pool and veranda, from which you can see Keurbooms lagoon, Lookout Beach and Tsitsikamma mountains

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SHOW HOUSE

THE OWNERS WANTED TO KEEP THE SOUL AND INTEGRITY OF THE HOUSE

FROM TOP The decor draws on elements of different styles and origins – French, English, colonial Indian – giving it an eclectic but elegant feel; a large light-filled bathroom leads onto a courtyard with an outdoor shower, the ideal way to cool off midsummer OPPOSITE The original architectural details of the house shine in the living room: the exposed hammer trusses, deep windowsills and packed stone walls give the space warmth and character hard to find in a new build

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SHOW HOUSE

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SHOW HOUSE

ABOVE The newly built veranda serves as a spacious area for lounging, its wraparound views of the beach below a major drawcard. The stacking glass doors allow for more shelter on a cold day without obstructing the view RIGHT FROM TOP Chandeliers and antique furniture strike the right note with the architecture and complement the combination of French oak floors, Oregon ceilings and stone walls; from a distance you can fully appreciate the grandeur of the house, which formed the entrance to an original Plett farm built in 1870; ornate details in the form of Indian and French antique doors add an element of quirkiness to what is overall a unique Cape vernacular house FOR SALE This Plett house is on the market through Acquire Africa for R65 million. For more information, phone Tara Whiting on 082 298 4544 or 021 685 9220, or visit acquireafrica.com

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THE COMBINATION OF PRIVACY YET OPENNESS COURTESY OF THE PANORAMIC BEACH VISTA GIVES IT THE BEST OF BOTH WORLDS

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OUTDOOR LIVING

OUTSIDE INTEREST The best outdoor design takes interior elements and adapts them to create spaces you really want to spend time in TEXT Julia Freemantle PHOTOGRAPHS Jason Busch Photography, Pedro Silmon Garden Photography, supplied

THE BIGGER PICTURE Cohesion is the key to this urban rooftopâ&#x20AC;&#x2122;s success. Instead of treating the different functions of outdoor living (eating, sitting, cooking) as disparate elements, William Dangar (williamdangar.com.au) has combined saving space with a sense of synergy. The dipped seating banquette built as a continuation of the cooking station is smart, simple design at its best

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GARDEN ROOMS

THE HARD URBAN SURFACE IN CONTRAST WITH AN ORGANIC LIVING WALL IS DYNAMIC AND MODERN

MATERIAL WORLD Designed by Singapore-based architecture firm WOHA (woha.net), this striking quad makes a strong case for combining materials. The hard urban surface in contrast with an organic living wall is dynamic and modern

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GARDEN ROOMS

OUTDOOR LIVING

HEDGE YOUR BETS 01 A clipped hedge forms an intimate garden room designed by Peter Fudge Gardens (peterfudgegardens.com.au). It maximises the greenery while still achieving privacy. Smaller shaped shrubs also extend the aesthetic and up the texture ante. At the same time, it keeps within the colour palette and simple planting scheme, echoing the organic shape of the pavers. It’s a cross between charming English country garden and quirky retro courtyard. The important element here? Having a thread running through pulls the look together LUSH RETREAT 02 Creating an outdoor oasis is all about evoking the feeling of escape. This Moroccan-inspired space appeals to the senses with a trickling fountain, graphic floor tiles and a jungle of pot plants. Symmetry works well for this type of look – doors and fountain are centred and add to the sense of calm. The taupecoloured walls are a smart but earthy alternative to stark white

03 04

GREEN LUNG 03 Don’t be afraid to use colour and pattern outside, even in the permanent elements of the design. It creates the feeling of an outside room and as a result acts as an extension of the home, rather than a mismatched add-on. If you choose something simple, such as this graphic floor tile in the courtyard at the Hotel 10 Cubik in Barcelona, it won’t date LEVEL WITH ME 04 Demarcating different zones is most effectively done by varying the levels rather than separating them with walls or screens – this keeps the visual field clear but maximises the footprint. This strategy is illustrated perfectly by UKbased Modular Garden (modulargarden.com) in this contemporary garden, where dining, lounging, planting areas are all divided neatly by decks but still feel like one space. A consistent colour palette in the finishings as well as the furniture further enhances the continuity. The soft grassy plants soften the sharp edges of the tiles, too

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OUTDOOR LIVING

06 07

08 TREAD SOFTLY 05 The Robertson Small Hotel (therobertsonsmallhotel.com) has used

GAME OF THRONES 07 Outdoor furniture often tends towards the unfussy. But introducing a sense

design ingeniously throughout its premises, nowhere more so than in its outside areas. Aesthetics meet in a happy marriage on this front patio, where a tropical Zores outdoor rug from Hertex (hertex.co.za) introduces a level of decorated-ness not often seen outside. The beautiful foliageprinted piece blends in with the surrounds, while at the same time serving as a statement piece

of romance with fanciful pieces can make the garden even more of an escape. The Cala chair by Doshi Levien for Kettal (kettal.com) is inspired by the iconic Emmanuelle, its elegant curves and high back striking a regal note, while the latticed framework is reminiscent of retro cane garden furniture, making it an unobtrusive yet elegant addition to a patio or shady corner. Kettelâ&#x20AC;&#x2122;s range is available locally from Casarredo (casarredo.co.za)

GREY MATTERS 06 Concrete has long been maligned for being a functional rather than beautiful

LONG AND SHORT OF IT 08 Outdoor seating should, wherever possible, be comfortable, versatile and

material. Itâ&#x20AC;&#x2122;s seeing a bit of a revival now, with designers reworking it in chic and stylish ways. These hanging planters from Weylandts (weylandts.co.za) are the perfect complement to a contemporary or industrial veranda

stylish. This sleek Siesta Outdoor sofa from Andreu World (andreuworld.com) is modular, meaning you can add sections and change its shape at will. We love the combination of clean lines and squishy cushions

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SHOW HOUSE

DOUBLE DUTY The difference between decent and excellent

ACCESSORIES

design is in the details: little things that elevate a space or a piece of furniture from perfunctory to life-improving. This Landscape Double Lounger from Kettal (kettal.com) allows for individual inclination while sunbathing with a partner

OUTDOOR SEATING SHOULD, WHEREVER POSSIBLE, BE COMFORTABLE, VERSATILE AND STYLISH

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MAY 2014

20/01/2017 11:41

P R O P E R T Y N E W S , AWA R D S A N D I N V E S T M E N T A D V I C E

FOR THE JET SET Conceived as a luxury, floating villa, the Unidentified Floating Object (UFO) 2.0 is – as its name suggests – a futuristic fibreglass and carbon floating structure. Designed by the group of Italian engineers behind the Jet Capsule, the UFO 2.0 has a surface area of 314m2 and measures 20m in diameter. The floating villa is comprised of three different levels: the main living area with kitchen, storage space and bathroom, a sublevel including a bedroom with a view of the seabed and a 50m2 terrace that works as an upper deck. The UFO 2.0, the first of which is expected to be completed by 2018, is equipped with two electric engines that give it a maximum speed of nine knots. jetcapsule.com

TEXT Genevieve Putter, Michelle Snaddon PHOTOGRAPHS iStock by Getty Images, supplied

OLD MEETS NEW At the recent World Architecture Festival in Berlin, architecture practice Tabanlioglu Architects was named top of the New and Old category. Its winning entry: the Beyazit State Library, located in the Turkish capital. The restoration project involved the thoughtful reorientation of the interior and careful restoration of the outer building and its multi-domed roof. Remains of a Byzantine church were revealed during construction, which have been beautifully preserved and can now be viewed through the glass roof. The design was commended for the glass boxes that house the rare books. There is also an attractive lighting scheme, which enhances the existing historic volumes and spaces without being overwhelming. tabanlioglu.com

ON THE WATER’S EDGE Who won the competition to build Amsterdam’s iconic Sluishuis, a 46 000m2 mixeduse development in IJburg Steigereiland? The answer: Bjarke Ingels Group. Together with Barcode Architects, the company will set a new standard in eco-sensitive architecture in this emerging urban district on the outskirts of the Dutch capital. The development will offer 380 zero-energy residences, about 4 000m2 of commercial and common areas, 240 underground parking spaces and a comprehensive water-quality programme with space for up to 30 houseboats. From every vantage point the build takes on a different shape and in its construction promises to be as carbon-neutral as possible. big.dk

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MARKETPLACE

SAFE SPACE What do you think is one of the most important factors contributing to your home’s energy efficiency? One-word summary: glass. Aside from creating a lighter, quieter space that is warmer in winter and cooler in summer (reducing air-con and heating bills, thank goodness), PG SmartGlass X2 – double glazing – also ups the safety ante. Essentially, an airtight pocket is sandwiched between two panes of spectrally selective glass, protecting your house from heat, cold and noise. It also doubles as a security measure. To maximise the strength of the glass, you can customise the PG SmartGlass X2 range with a safety laminate called polyvinyl butyral. If broken, it won’t splinter, reducing the risk of sharp shards of glass lying around, making it a feasible option for families with children. It also provides stronger protection against potential intruders, considering its ability to remain intact against repetitive blows. And PG SmartGlass is SANS 10400 XA compliant, meaning your architect can use more glass in your home’s design – maximising those fabulous views in the process. It also comes with a 10-year warranty. pgsmartglass.co.za

RIPE FOR THE PICKING Olivewood Private Estate and Golf Club is a newly launched lifestyle estate that stretches over about 1 000ha in the Eastern Cape’s Chintsa Valley. It includes 550 residential plots, the first 100 of which are now available to buyers. Stands are offered as plot-and-plan developments and buyers will be presented with design concepts from the Eastern Cape-based TCN Architects. Property offerings will include three- and four-bedroom homes from 490m2, two- to three-bedroom homes from 225m2 and smaller, 145m2 lock-up-and-go homes (right). Environmental sensitivity is of utmost importance, which is why solar energy, rainwater harvesting and water retention have all been incorporated into the design. In addition, the estate’s 18-hole championship golf course was created with unwavering respect for the indigenous flora and fauna – golfers can look forward to spotting nyala, impala, blesbok and waterbuck. olivewoodestate.co.za

TROPICAL HAVEN Collins Residential has officially launched the 140ha Zululami Luxury Coastal Estate in Sheffield Beach. In phase one alone, 107 of 137 stands were reserved to the value of R170 million. ‘In the last 12 months, R1.5 billion in transfers occurred within the gated estates around Ballito,’ says Murray Collins, director of Collins Residential. ‘There has been little new development opportunity of significance released, despite the growing demand. It is also no secret that investors within developments such as Simbithi have, in some cases, seen the value of their property appreciate by four times the purchase price during the launch phase.’ Translated as ‘my heaven’, the character of Zululami is defined by the rich heritage of the area and the natural attributes of wetlands, forest and sea. zululamiestate.co.za

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REal Estate magazine Dec.pdf

2017/01/11

9:09 PM

CMY

We always have time for you. Our agents may be the friendliest, most approachable people you could meet, but they’re also the most dedicated. Give us a call, we’re here to help: 0860 104 355

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MARKETPLACE

AREA SPOTLIGHT

BANTRY BAY This provides a current snapshot of the Bantry Bay residential property market.

DEMAND INDICATOR METRICS ■ Sale listings Properties listed for sale in Bantry Bay comprise approximately 9% of the total sale listings along the Atlantic Seaboard. Approximately 7% of the interest (views) in properties for sale along the Atlantic Seaboard is attributable to properties for sale in Bantry Bay. ■ Rental listings Properties listed for rent in Bantry Bay comprise approximately 7% of the total rental listings along the Atlantic Seaboard. Approximately 5% of the interest (views) in properties for rent along the Atlantic Seaboard is attributable to properties for rent in Bantry Bay.

PROPERTY TYPES ■ Sale listings A typical property for sale in Bantry Bay is a four-bedroom house, currently with a median asking price of R28 475 000. ■ Rental listing A typical property for rent in Bantry Bay is a two-bedroom apartment, currently with a monthly median asking price of R32 500.

MEDIAN ASKING PRICES ■ Sale listing The median asking price for residential property is R18.95 million for a complex, 7.83 million for a flat/apartment and R18.86 million for a house. ■ Rental listings The median asking price for residential property is R22 000 for a complex, R27 760 for flat/apartment and R59 330 for a house. ■ Sales R1 921 052 000 ■ Rental R2 062 000

BUYING VS RENTING The monthly bond repayment to purchase a typical property in Bantry Bay, namely a fourbedroom house, with the median asking price of R28 475 000 is R284 289 per month over 20 years at prime of 10.5% with no deposit.

The findings presented above represent a current snapshot of properties available on the Private Property portal. The house-type complex consists of townhouses, clusters, duplexes and simplexes.

PROPERTY INVESTOR

TAX MATTERS How capital gains tax aﬀects property investors TEXT Patrick Cairns PHOTOGRAPH iStock by Getty Images

apital gains tax was only introduced in South Africa in 2001. Essentially, it is not a separate tax but is rather part of the income tax paid by individuals, trusts and companies. It is also a particularly important consideration for property investors. This is because, while capital gains tax is not considered on the ﬁrst R2 million gain or loss on a primary residence, the sale of any other property will always trigger a capital gains event. In its simplest form, the capital gain is the diﬀerence between what an asset was bought for – its base cost – and how much it is disposed for – the proceeds. If you bought shares in a company for R500 000 and sell them 10 years later for R750 000, the capital gain would be R250 000. With property, however, there are additional amounts that can be added to the initial purchase price to establish the base cost. These include the

costs of acquiring the property, such as transfer duty, VAT and the professional fees paid to any service providers. Any costs incurred in selling the property, such as the agent’s commission, advertising and valuation costs can also be added, as can money paid for any improvements, alterations or renovations. However, maintenance costs, insurance and rates and taxes may not. All property investors need to have records of these expenses as proof. It is therefore important to keep this information on ﬁle along with the contracts of purchase and sale. Once the capital gain has been worked out, there are further calculations to determine how much tax has to be paid. Individuals have an annual capital gains exclusion of R40 000. A percentage of what’s left is then included in your taxable income. This is currently 40% for individuals and special trusts, and 80% for companies and ordinary trusts. This is then taxed at marginal tax rates.

For example, an individual in the highest tax bracket who disposed of an investment property might look at a calculation similar to this: Base cost (including all expenses) Proceeds Capital gain

R600 000 R940 000 R340 000

Less annual exclusion Capital gain for the year

R40 000 R300 000

Amount included in taxable income at 40% inclusion rate Tax rate Capital gains tax payable

R120 000 40% R48 000

If the property was held in a normal trust or by a company, the tax payable would be higher. This is therefore one of the things any investor needs to consider when deciding how to structure their holdings and the best way for them to manage their properties. NEXT ISSUE WHAT EVERY SUCCESSFUL PROPERTY INVESTOR KNOWS

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ADVERTORIAL

HOME

RUN

The Mols are back in their upgraded home and are testing the Saint-Gobain modifications

ince upgrading their family home with Saint-Gobain’s products (and along its principles of living a safer, more comfortable and energy efficient lifestyle), the Mols have seen real benefits on a daily basis, even in the short time they’ve been back.

NOISE

So far, the Mols have experienced a major reduction in white noise, thanks to the insulated walls. Describing it as like walking into a recording studio, outside noise is muted and even the sounds in the room are toned down. Homeowner Michael describes it as calming: they don’t hear the neighbours as much and even son Naethan’s drumming is softened.

TEMPERATURE Another immediate difference is in the internal temperature of the house. The dropped ceiling, proper insulation and downlights have all contributed. The kitchen in particular is vastly improved, so much so that the family spends most of their time there now. Where, prior to the upgrade, the kitchen and upstairs bedrooms had felt cold and unwelcoming, the entire home now enjoys a consistently pleasant temperature, with less difference between indoors and outdoors. This shows that Saint-Gobain’s products limit heat gains and losses and help to create a stable temperature. The humidity inside has also decreased since the upgrade: a comparison shows that it has lowered from 69.8% to 52.9%.

ENERGY Advanced telemetry tools were installed to measure performance (temperature, energy consumption, humidity). As the seasons change, these will be continuously measured – but initial stats indicate that the Mols’ home is performing better despite the warm summer climate.

FINAL VERDICT Even in this short space of time, the Mols say they feel an overall improvement in the comfort of their home – with their favourite aspect being the reduced noise.

GET IN TOUCH Visit upgrademyhome.co.za for further information

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ADVERTORIAL

INITIAL STATS SHOW THAT THE MOLSâ&#x20AC;&#x2122; HOME IS PERFORMING BETTER DESPITE THE WARM SUMMER CLIMATE

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Business Day is one of the publications read most often by SA’s dollar millionaires. Source: South Africa 2016 Wealth Report

WORTH READING Business Day HomeFront is in touch with SA’s property movements, offering accessible insights and advice to home owners, entrepreneurs and investors about issues relevant to selling, renting or living. It is published every second Friday in SA’s most influential and respected daily newspaper. Intelligent, punchy content provides readers across SA with a snapshot of the residential and commercial market, and provides current property development updates. Our experienced financial and property journalists simplify issues about sectional title to listed property performance or investing in commercial real estate. Give us a try.

Page 1 Template BD_Homefront straussv 12:41:18 13/10/16

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA

WWW.BDLIVE.CO.ZA

LH 635

Ennik Estates/Christie’s, the exclusive Christie’s affiliate, combines the prestige of this international luxury brand with outstanding local knowledge. As a boutique agency, Ennik Estates/Christie’s takes pride in offering a bespoke marketing strategy that achieves excellent results.

WESTCLIFF, JOHANNESBURG, GAUTENG, SOUTH AFRICA

•

R21 MILLION

This home will appeal to a refined couple or small family who would like a sophisticated lifestyle in the garden suburb of Westcliff. Traditional features and luxurious finishes are used throughout this classic contemporary home. Private accommodation comprises an upstairs master suite and TV room. A wood-burning fireplace, intricate custom finishes and an attic that could also be a walk-in wardrobe are all included. Vistas of the garden, recently featured at a charity garden show, are also visible from every room in the house. Bedrooms 3 Bathrooms 3.5 Garages 2 Living areas 3 Helen Tomazos +27 (0)83 616 0152 helentomazos@ennikestates.co.za www.ennikestates.co.za web ref: EN01-1467

LH 205

Catering to the discerning luxury market.

BRYANSTON, JOHANNESBURG, GAUTENG, SOUTH AFRICA

â&#x20AC;˘

R29.5 MILLION

This contemporary masterpiece is set on the slopes of Mount Street and features a voluminous entrance, formal and informal living spaces opening onto a covered patio, indigenous gardens and an indoor lap pool. Features also include a gourmet social kitchen with a cold room. In addition, the home boasts a separate pyjama lounge, a study, five luxuriously appointed marble clad bathrooms, a self-contained guest cottage with a lounge, kitchen and private entrance, staffing for two and a dedicated guard house. Bedrooms 4 Bathrooms 4 Garages 4 Living areas 7 Erica Porter +27 (0)82 871 7669 erica@hamiltons.co.za www.hamiltons.co.za web ref: 3137609

LH 636

The RE/MAX Masters team has been prominent in the residential letting and sales field for the past 15 years, including areas such as Sandton, Randburg, Roodepoort and Johannesburg. We take pride in our exceptionally high service delivery.

HURLINGHAM, JOHANNESBURG, GAUTENG, SOUTH AFRICA

â&#x20AC;˘

R13 MILLION

This elegant home features an entrance with curved twin staircases, large opulent receptions with fireplaces, and covered patios with a built-in braai overlooking the pool. Downstairs, the spacious master bedroom features solid wooden flooring, a lounge, dressing room and luxurious en-suite with Jacuzzi. The well-appointed gourmet kitchen includes an eat-in breakfast bar, scullery and laundry. Upstairs, there are three bright bedrooms, all en-suite, and a pyjama lounge leading out onto the open garden terrace. Bedrooms 4 Bathrooms 4.5 Garages 3 Living areas 4 Arlene Henry +27 (0)83 770 5792 ahenry@remax-masters.co.za Ingrid Wilson +27 (0)82 518 5289 ingrid@remax-masters.co.za www.remax-masters.co.za web ref: Bryn-3357

RE Mag - Gatsby Jan.pdf

2017/01/19

8:14 AM

South Africaâ&#x20AC;&#x2122;s Finest Houghton Ridge, Johannesburg

The Gatsby mansion provides spectacular views over the City of Gold.

This magnificent four-level home of 2000sqm was created by the Pellerade Design Group and took more than six years to complete and epitomises a true international

Superhome. Recently featured on Top Billing, it has eight bedrooms en-suite and several lavish living and dining rooms as well as a private nightclub, a spa, a library,

CMY

a gymnasium, boardroom/conference facilities and both indoor and outdoor pools. The Palladian architecture evokes the glamour of the Belle Epoque and the formal terraced gardens are based on the Peterhof Palace. Fittings and fixtures were sourced thoughout the world, the balustrades are solid marble from Turkey, the massive floating front oak doors are from a palace in Buenos Aires. There is so much more to discover. Infused with contemporary finishes; it boasts the latest home automation, security and surveillance technologies and environmentally-efficient features. Contact Rory Oâ&#x20AC;&#x2122;Hagan 083 328 8888 | Jorge Santoro 071 986 8248 | R110 000 000.

WWW.CHASEVERITT.CO.ZA

PROPERTY

INVESTMENT AND DEVELOPMENT

EDITION ONE 2017

OPEN DOOR Residence and citizenship programmes for South Africans looking to invest overseas

50 THE ALLURE OF

54 DIVERSIFYING

Why sectional title properties are increasingly popular with buyers and investors

Retail, warehouses or offices: the commercial property balancing act

SECTIONAL TITLE

INTO COMMERCIAL

56 THE TRUST DEBATE

Are trusts still the best financial option for families? First consider the recent tax implications

58 FAMILY TIES

Amdec CEO James Wilson on working with his father, new partnerships and landmark developments

ABOVE Projects by award-winning architecture company COA (coasite.com) include urban design, hotels and lodges, and retirement estates in countries such as Italy, Lebanon, Mozambique, the UK and the USA. This includes current mixed-use build Umhlanga Arch (umhlangaarch.co.za), pictured here, a favourite because it presents such a challenge. The architectural team play with scale while coordinating the area required for various retail, residential and business tenants

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P R O P E RT Y IN V E ST M E N T P R O G R A M M E S

RESIDENCY

CITIZENSHIP Text Jocelyn Warrington, David A Steynberg Photographs iStock by Getty Images

OPEN DOOR

As globalisation expands, residence and citizenship have become topics of significant interest to South Africa’s increasing number of internationally mobile investors

n exchange for a significant financial contribution or property investment, citizenship-byinvestment programmes provide the world’s elite with something more desirable than any material object – personal security and mobility. ‘Applications for immigration grow monthly,’ says Andrew Rissik, MD of Sable International, specialists in European and Australian citizenship. ‘The declining rand makes it increasingly difficult for South Africans to accumulate sufficient foreign exchange to meet investor-class criteria and is encouraging them to expedite their departure.’ ‘Buying a property abroad is a hedge against future losses in the value of the rand, since your investment becomes an asset you can later dispose of in the stronger currency,’ adds Andrew Taylor, vice chairman of Henley & Partners, residence and citizenship planning experts. Indeed, Stats SA puts the number of South Africans who emigrated from 2000 to 2016 at more than 102 793. And, according to New Wealth Management, which tracks the movement and ownership of high-net-worth individuals, of the 8 000 South African dollar millionaires who left the country in the last 10 years, 36% moved to the UK, 15% to Australia, 11% to the US, 8% to Canada, 5% to Mauritius and 4% to Israel. ‘While the majority of the country’s emigrants with good skills and qualifications go via pointsbased emigration programmes to traditional destinations such as Australia, New Zealand, the US, Canada and the UK, growing numbers of wealthy South Africans are using their cash to acquire second passports in less-familiar parts of the world such as Cyprus, Portugal and the Caribbean,’ says Taylor. In fact, the most affordable citizenship-by-investment programme is currently offered by Dominica, which requires an contribution of just $100,000. ‘In many respects, alternative citizenship has become a strategic resource for wealthy individuals who want to operate transnationally, while, for South Africans in particular, it provides a lifestyle hedge and the ability to secure their futures and those of their children.’ says James Bowling, CEO of Monarch & Co, specialists in international residency- and citizenship-by-investment programmes. Whether for business people seeking ease of travel or concerned parents wanting better opportunities for their children, there’s no denying that a diverse passport portfolio has become one of the most valuable assets there is.

PROPERTY INVESTMENT

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01 UNITED KINGDOM 02 AUSTRALIA (CITIZENSHIP & RESIDENCY)

(RESIDENCY & CITIZENSHIP)

SELLING POINT WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

A weakening pound and rising rental demand has prompted foreign investment in UK real estate at preBrexit levels

If applying for residency via the Tier 1 (Entrepreneur Visa) programme, at least £2 million in a trading UK-registered company (excluding real estate companies) to be held for a minimum of five years, during which time the applicant must be an active director of the company in which the investment is made. The Entrepreneur Visa is granted for three years and four months, and can be extended thereafter if conditions are met. Applicants will have to make the UK their primary home (spending at least 183 days a year in the country and no more than 90 days at one time outside the UK in each year). After five years, provided all qualifying criteria have been adhered to, an application for citizenship through naturalisation can start.

ARE THERE GOOD SCHOOLS? Local government (state) schools are free for all pupils. While independent schools charge fees, they have an excellent reputation for high standards. Almost all pupils go on to prestigious universities such as Cambridge and Oxford. Other well-regarded universities include the Imperial College London and University College London.

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HOW DO I GET FINANCING?

Residency and citizenship-by-investment programmes do not offer financing. The investment amount and fees must be paid upfront and in full.

HOW DOES INCOME TAX WORK? Normal country tax if a tax resident, but can be non-domicile if assets are kept separate prior to settling in the UK. Tax is thereby only paid on income generated from new assets/capital generated from that point on. Note, however, that UK tax rules around non-domicile and trust investments are in constant flux; it is advisable to seek the services of a reputable tax consultant.

DO I LOSE MY CITIZENSHIP WHEN I SELL? No. You may sell your investment and keep your citizenship and passport, provided you hold the investment for the required five years as well as the additional time it takes to acquire citizenship through naturalisation.

USEFUL CONTACTS

gov.uk hamptons.co.uk monarchandco.com sableinternational.com gov.uk/visas-immigration

‘The Entrepreneur Visa is a far easier route to UK citizenship than the Special Skills Visa. However, applicants need to know that they will have to spend at least 50% of the year in the UK to be eligible for a British passport.’ Andrew Rissik, MD, Sable International

PROPERTY INVESTMENT

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SELLING POINT

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

Australia’s AAA-rated economy is forecast to realise average annual GDP growth of 2.9% until at least 2020

For an Investor Visa, at least AUD1.5 million in a state or territory government security, held for four years. This grants the applicant temporary residency, which can be converted to permanent residency once the investment has matured, provided he or she has lived in Australia for two years. The Significant Investor Visa requires a four-year investment of AUD5 million, split in stipulated amounts between startups and small private companies, emerging listed companies and various approved assets, including commercial property. Again, this is a four-year temporary visa but the applicant need only spend 40 days per year in the country to obtain permanent residency when the investment matures. Finally, the Premium Investor Visa can only be obtained via nomination by Austrade (on behalf of the government) and requires a one-year investment of at least AUD15 million in a range of complying options, from bonds or notes and property (excluding residential) to philanthropic concerns. The provisional visa must be held for one year before an application for permanent residency is allowed.

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ARE THERE GOOD SCHOOLS?

The country has a high standard of primary and secondary schooling, with more than 1 000 higher-education institutions. Seven are within the top 100 universities of the world, one of the reasons the country also has the third highest number of international students, behind only the UK and US.

HOW DO I GET FINANCING? Financing can be obtained through any of the country’s major banks.

HOW DOES INCOME TAX WORK? Foreign residents are taxed on income earned from their Australian investments. However, residency status determines the level of tax paid. If you are resident in the country for less than 183 days per year, you are deemed a foreigner and only pay 10% tax on your interest income.

DO I LOSE MY CITIZENSHIP WHEN I SELL? Investments can only be liquidated once the minimum investment requirements are met and permanent residency obtained.

USEFUL CONTACTS

austrade.gov.au australianmigration.co.za border.gov.au

‘The Australian immigration programme is extremely complex, so it’s definitely advisable to use an immigration agent. Make sure yours is registered with the Australian Migration Agents Registration Authority (mara.gov.au).’ Tracey Lawrence, director, Australian Migration Specialists

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P R O P E RT Y IN V E ST M E N T P R O G R A M M E S

03 USA

04 MAURITIUS (RESIDENCY & CITIZENSHIP)

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

SELLING POINT

The US economy is the largest national economy in the world in both nominal value and purchasing power parity

Mauritius’ fiscal benefits are an incentive to investors who make the country their tax residence

As part of the EB-5 Immigrant Investor Program, $500 000 in an EB-5 approved Regional Center commercial enterprise project located in a ‘targeted employment area’. In return, US Citizenship and Immigration Services may grant conditional permanent residence (a Green Card) for two years. Thereafter, if requirements are met, conditions will be removed and the investor can be granted full permanent residence. Only once you have been a permanent resident in the country for at least five years can you file a Form N-400 for naturalisation into the USA. US citizens generally receive priority when petitioning to bring family members permanently to the country.

ARE THERE GOOD SCHOOLS? The US offers high standards of free state schooling to all residents, from preprimary to secondary level. There are also countless top-quality private institutions. The Webometrics Ranking of World Universities includes 103 US colleges in the Top 200, among these Harvard, MIT, Stanford, Princeton and Yale. State universities offer tuition to residents at fees that are significantly lower than those for foreign students.

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(RESIDENCY & CITIZENSHIP)

HOW DO I GET FINANCING?

The EB-5 visa scheme does not offer financing. The full investment amount and all fees must be paid upfront.

HOW DOES INCOME TAX WORK? There is a dual tax treaty between South Africa and the US, which means that individuals who have resided in the USA for less than 182 days during the tax year are regarded as tax non-residents and only pay tax on income earned in the country. Tax rates are progressive and range from 15% to 39.6%. Once a Green Card has been issued and the investor decides to stay in the US, he or she is required to register as a tax resident.

DO I LOSE MY CITIZENSHIP WHEN I SELL? No, investors can sell their EB-5 preferred shares once they have obtained their Green Card and their Green Card conditions have been removed, which generally takes between five and six years.

USEFUL CONTACTS

americaregionalcenter.com henleyglobal.com monarchandco.com uscis.gov

‘Residency acquired through the EB-5 Immigrant Investor Program allows the visa holder to settle in any of USA’s 50 states. Ask us about the exciting EB-5-qualifying investment opportunity we are currently launching in Manhattan.’ James Bowling, CEO, Monarch & Co

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

A minimum of $500 000 into a Property Development Scheme (PDS), the official scheme to replace the Integrated Resort Scheme (IRS) and Real Estate Scheme (RES). However, there remain a number of these latter developments actively offering properties for sale. A residency permit also entitles you to apply for an occupation certificate, which allows you to start a business or to become an employee of a company in Mauritius. After living in the country for five years, the purchaser may apply for a Mauritian passport (this is discretionary).

ARE THERE GOOD SCHOOLS? As a former British colony, Mauritius’ education system is largely based on that of the UK. The north of the island has good private schools, including Northfields International School, the International Preparatory School and Lighthouse. West Coast Private School is also an excellent option. Universities include the Mauritius campus of Middlesex University London, the University of Technology and the Open University of Mauritius (all of which are English medium).

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HOW DO I GET FINANCING?

Access to finance is by application to the relevant banks. Typically, a loan of up to 50% of the property’s value can be offered to foreign residents.

HOW DOES INCOME TAX WORK? Mauritius offers a favourable taxation environment, with key tax benefits including a 15% corporate and individual income-tax rate. This can be as low as 3% after allowing for tax credits through the GBC1 structure (Global Business Company – International Revenues). With the absence of withholding taxes on dividends, interests and royalties through the GBC1 structure, many business people choose to make Mauritius their personal tax residence to maximise the benefits.

DO I LOSE MY CITIZENSHIP WHEN I SELL? Yes, unless you can prove that you are purchasing in another IRS, RES or PDS designated development.

USEFUL CONTACTS govmu.org itsaboutlife.co.za maurinet.com monarchandco.com pamgolding.co.za villasvalriche.com

‘While most of our clients seek residency, some look at Mauritius purely to diversify their investment portfolios. Not only is it a dollar-based investment, but the SADC Property Allowance makes it an easy international option for South Africans.’ James Bowling, CEO, Monarch & Co

PROPERTY INVESTMENT

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05 PORTUGAL

06 CANADA

(RESIDENCY & CITIZENSHIP)

SELLING POINT

Portugal’s Golden Visa is one of the most affordable in the world – WHAT’S THE MINIMUM HOW DO I GET and it takes just eight AMOUNT I NEED TO FINANCING? weeks to obtain INVEST? Banks will lend up to 50% residency There are various ways of the investment sum to to obtain a Golden Visa, foreigners who meet various which grants investors residency qualifying criteria. in Portugal for one year. This can be renewed twice for two-year HOW DOES INCOME TAX WORK? increments as long as you reside in Normal country tax if a tax resident, the country for at least 35 days during on a sliding scale between 0% and a five-year period. Of these options, 35%. Golden Visa holders who do the ¤350 000 real-estate investment not stay in Portugal for more than route is by far the most popular. After 183 consecutive days are not required five years of residency, an application to pay taxes for income generated for citizenship through naturalisation outside the country. Income arising can be made (this is conditional on from rentals, interest or dividends is the applicant being able to speak taxed at 28%. basic Portuguese).

Canada has the strongest fiscal position in the G7 and among the best fiscal prospects in the G20

ARE THERE GOOD SCHOOLS? Yes, international schools include the English and American schools in Estoril. All educational facilities supply students with lunch daily. The country also includes the public research University of Lisbon and the University of Porto, which provide tuition in English and Portuguese.

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DO I LOSE MY CITIZENSHIP WHEN I SELL?

Not if you have held your investment for the required five years.

USEFUL CONTACTS

goldenvisa-portugal.com henleyglobal.com pamgolding.co.za sableinternational.com

‘Cascais, a prosperous former fishing village situated on the western edge of the beautiful Lisbon coastline, is to Portugal what Camps Bay is to Cape Town. It boasts a strong tourist component and some of the best beaches in the world, and it’s half an hour from the city by train. It’s an ideal location for a good property investment.’ Andrew Rissik, MD, Sable International

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

Obtaining citizenship for yourself and your immediate family requires you to be a permanent resident and have lived in Canada for four years out of the six preceding the application. There are two ways to obtain permanent residency through passive investment in the country: the Quebec Immigrant Investor Program and the Federal Immigrant Investor Program. The selection procedure is similar for both. However, for the Quebec Programme requires the investor to first obtain a Certificate of Selection of Quebec before applying for health and security screening at federal level. For both programmes, applicants must have managed or operated a qualified business for at least two of the five years preceding their application, have a net worth exceeding CAD1.6 million and have an interest-free investment of CAD800 000 for a period of five years (to be repaid at the end of the investment period).

ARE THERE GOOD SCHOOLS? The standard of education is high and the sheer assortment of schooling options impressive. State schooling is publicly funded and free to all residents. The curriculum, which is run neither as the UK or US models,

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PROPERTY INVESTMENT

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is not nationalised. As a result, the systems in each region will be largely similar, but not identical. Three Canadian universities – the University of Toronto, the University of British Columbia and McGill University – are ranked in the world’s top 50.

HOW DO I GET FINANCING? Financing is not available for Canada’s Immigrant Investor Programs. The investment amount and fees must be paid upfront and in full.

HOW DOES INCOME TAX WORK? Non-residents are only taxed on their Canadian-sourced income while residents are taxed on their worldwide income. Individuals are deemed tax residents if they spend 183 days or more in the country, or if they have ‘significant personal ties’ (familial, economic or social) to Canada. Provincial tax rates are determined separately, then added to federal rates, and can reach 54%.

DO I LOSE MY CITIZENSHIP WHEN I SELL? Not applicable.

USEFUL CONTACTS

cic.gc.ca henleyglobal.com sothebysrealty.co.za

‘For entrepreneurs, Canadian citizenship can be fasttracked with a Federal Start-up Visa – a world first – which links applicants with local private-sector organisations.’ Andrew Taylor, vice chairman, Henley & Partners

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P R O P E RT Y IN V E ST M E N T P R O G R A M M E S

07 NEW ZEALAND

08 CYPRUS

(RESIDENCY & CITIZENSHIP)

RESIDENCY

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

SELLING POINT

New Zealand has secured a position in the top five of the Prosperity Index’s global wealth ranking since 2009

Cypriot residency is for life while citizenship can passed on by descent, offering a legacy for generations to come

The Investor Visa requires an investment of NZ$1.5 million and has a four-year travel condition (146 days per year must be spent in New Zealand in each of the last three years). The Investor Plus Visa requires an investment of NZ$10 million and has a three-year travel condition (44 days must be spent in the country in each of the second and third years). For both visas, investors can nominate a mix of ‘acceptable investments’, including new residential property development (not for personal use),

A tax concession on overseas investments also applies for the first four years of residency.

DO I LOSE MY RESIDENCY WHEN I SELL? Not if you have met the visa’s stipulated travel conditions.

CITIZENSHIP

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST? To qualify, you must have held a Residency Visa for five years and have spent at least 240 days a year in New Zealand for each of those five years.

ARE THERE GOOD SCHOOLS?

The UN Education Index consistently ranks New Zealand among the world’s best and the country’s eight universities are all on the 2017 World University Ranking. State schooling is free for residents and citizens.

Yes (see left).

HOW DO I GET FINANCING? Not applicable.

HOW DOES INCOME TAX WORK?

HOW DO I GET FINANCING?

Normal country tax on a sliding scale between 10.5% and 33%.

Financing is not available and the investment sum. Fees must be paid upfront and in full.

DO I LOSE MY CITIZENSHIP WHEN I SELL?

HOW DOES INCOME TAX WORK? Non-residents (those who are out of the country for more than 325 days in any 12-month period) only pay tax on income generated in New Zealand.

TIP

(RESIDENCY & CITIZENSHIP)

Not applicable.

USEFUL CONTACTS

immigration.govt.nz laurentlaw.co.nz newzealandnow.govt.nz

‘Investors seeking citizenship should be aware that, even if they spend enough time in New Zealand to meet the residency conditions of either Investor Visa, this will be not sufficient for citizenship.’ Simon Laurent, Laurent Law

RESIDENCY

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

A single, secure property investment of ¤300 000, along with a letter from a Cypriot bank confirming that the applicant has a three-year fixed deposit of ¤30 000. Dependents up to the age of 25 also qualify for residency permits.

ARE THERE GOOD SCHOOLS? Yes, State schooling and higher education are paid by taxes. The European University Cyprus and Frederick and Nicosia universities are English medium. Neapolis University is Greek and English.

HOW DO I GET FINANCING? Financing for a residency visa is available – only two-thirds of the purchase price needs to be paid before the fast-track residency application process can start. All resales need to be in cash.

HOW DOES INCOME TAX WORK? Normal country tax if a tax resident, on a sliding scale between 0% and 35%. There’s no worldwide taxation if not a tax resident.

DO I LOSE MY RESIDENCY WHEN I SELL? No, provided you hold the investment

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for three years and retain a minimum investment of at least ¤300 000.

CITIZENSHIP

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST? An investment of at least ¤2 million for the acquisition or development of real-estate projects (the acquisition of land is not deemed as a qualifying investment). Dependents up to the age of 28 also qualify for citizenship.

ARE THERE GOOD SCHOOLS? Yes (see left).

HOW DO I GET FINANCING? The programme does not offer financing. The investment amount and fees must be paid in full upfront.

HOW DOES INCOME TAX WORK? Same as residency (see left).

DO I LOSE MY CITIZENSHIP WHEN I SELL? No, provided you hold the investment for three years and you retain an investment of at least ¤500 000.

USEFUL CONTACTS cyprusvisa.eu henleyglobal.com monarchandco.com cypriotrealty.com

‘Ensure you purchase property (which can include commercial property) in the right location in Cyprus. The country is split in two, the north belonging to Turkey and the south to Cyprus.’ James Bowling, CEO, Monarch & Co

PROPERTY INVESTMENT

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P ROPERTY INVESTM ENT PRO G R A MMES

10 CARIBBEAN

09 GERMANY

(CITIZENSHIP)

SELLING POINT

Applicants for Germany’s citizenship-by-investment scheme must invest ¤1 million or more into the country’s economy through the development or purchase of a local business. This must result in the creation or maintenance of 10 jobs for German citizens. First, a temporary residence permit, valid for 12 to 18 months, is obtained. A further extension of up to 18 months is granted if the company is progressing. A permanent residency permit is possible after three years if the company is still financially healthy. Applicants must be able to fund their personal expenses and, if over 45, have a sufficient pension or alternative assets. To apply for citizenship, you must have been a permanent resident for at least eight years, be able support your dependents and have an adequate command of German. You will also have to renounce your South African citizenship.

ARE THERE GOOD SCHOOLS? Education standards rate high and more than half of all German students enter higher education. The range of schooling options must be carefully considered, especially once students enter secondary school where there

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are five different school types and choices dictate higher education opportunities. According to the 2016 World University Rankings, LMU Munich (English and German) is the country’s top university.

HOW DO I GET FINANCING? Financing is not available for the citizenship-by-investment programme. The investment amount and fees must be paid upfront and in full.

HOW DOES INCOME TAX WORK?

WHAT IS THE MINIMUM AMOUNT I NEED TO INVEST? There are now five Caribbean countries running citizenship-byinvestment programmes: Antigua and Barbuda, Dominica, Grenada, St Lucia, and St Kitts and Nevis. A Caribbean passport can be acquired through contributions to national development funds or the treasury (ranging from $100 000 to $250 000 for a single applicant, more if dependents are included) or through property acquisition (starting from $200 000).

Those living in Germany for more than six consecutive months are deemed ‘ordinary resident’ and must pay tax on their worldwide income and property. Income tax is progressive and ranges from 14% to 45%.

ARE THERE GOOD SCHOOLS?

DO I LOSE MY CITIZENSHIP WHEN I SELL?

HOW DO I GET FINANCING?

One of the upsides of the citizenshipby-investment programme is that applicants own their investments. Once permanent residency has been obtained and the qualifying conditions for citizenship met, they are free to liquidate them if desired.

USEFUL CONTACTS

citizenlane.ch make-it-in-germany.com pamgolding.co.za

‘There are no restrictions to foreigners purchasing property in Germany – in fact, you can buy in the country even if you are a non-resident and non-EU national.’ Chris Immelman, MD International Division, Pam Golding Properties

There are a number of well-regarded private and public schools in all five countries and the International University for Graduate Studies is based in St Kitts and Nevis.

None of the programmes offer financing options. The investment amount must be paid in full upfront.

‘While citizenship by investment provides conditional freedom of movement within the Caribbean Community (CARICOM), as a CARICOM citizen you also need a skills certificate, which is generally easily obtainable, together with your passport to avail yourself of that freedom of movement.’ Andrew Taylor, vice chairman, Henley & Partners

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HOW DOES INCOME TAX WORK? Those who live in Dominica or Antigua and Barbuda for less than 182 days a year only pay tax on income earned in those countries. Provided you don’t do business in St Kitts and Nevis, you are not liable to pay tax at all.

DO I LOSE MY CITIZENSHIP WHEN I SELL? No, provided the investment is held for the required five-year period.

USEFUL CONTACTS

caricom.org henleyglobal.com monarchandco.com

RESIDENCY

CITIZENSHIP RESIDENCY is the legal right to live, work, travel and study in a country, subject to certain conditions. Typically you wouldn’t give up citizenship in your own country. CITIZENSHIP, on the other hand, confers additional legal privileges in that country, for example, the right to vote. Residency can be revoked, whereas citizenship typically can’t be. Some countries allow dual citizenship; others do not.

DISCLAIMER OWING TO FLUCTUATING EXCHANGE RATES, AMOUNTS ARE PROVIDED IN THE RELEVANT CURRENCY

WHAT’S THE MINIMUM AMOUNT I NEED TO INVEST?

A German passport grants citizenship to the largest economy in Europe and visa-free access to 177 countries

20/01/2017 10:56

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P R I VAT E M

R E S I D E N C E R

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BENEFITS

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PROPERTY INVESTMENT

•

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• Mauritian Residency • Maximum 15% Income & Corporation Tax • No Capital Gains Tax & no Inheritance Tax • No exchange controls • Tax free dividends

• US$ based capital appreciation & rental income • Low mortgage rates • International schools & universities • Safe and secure lifestyle

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Where do you want to live? For Sale

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2 Bedroom House in New Germany R 295 000 House in Durban 4 1Bedroom

R 4 350 000

2 Beds 2 Baths 2 Parkings

P ROPERTY TRENDS

RESIDENTIAL PROPERTY Text Anne Schauffer Photographs Supplied

THE ALLURE OF

SECTIONAL TITLE There are clear reasons why South African sectional title developments are on the rise – and why they are drawing more buyers and investors than any other property type

here is little doubt that the range of sectional title models is proving the answer to many South Africans’ property needs. They speak of a particular lifestyle, one which suits an entry-level flat owner in a compact surburban complex as much as it does a high-profile family in a multimillion-rand freestanding home in a gated country estate. Globally there is a strong trend towards urbanisation and denser living, with Africa experiencing the world’s highest urbanisation rate. It is not just about fitting more people into smaller spaces nearer to the city; it is happening for reasons other than spatial and financial. It is about being part of a likeminded community, proximity to the economic hub, increased resistance to hours spent commuting, reduction of carbon emissions and, in South Africa, strong safety perceptions. More people contributing to a communal pot to fund security in an estate means less individual funding. Sectional title living can be more cost-effective and that appeals to a large sector of the buying public.

SECTIONAL TITLE INVESTMENT

NEED TO KNOW

CAPITAL GROWTH

Prospective buyers into an existing sectional title scheme should be aware of the following: ‘Look at the financials and get copies of the last two to three years’ AGM minutes,’ says Maria Davey, partner at Meumann White Attorneys in Durban. ‘Those will give clues as to whether any special levies are being contemplated or whether there are any other issues in which the body corporate is involved. ‘Familiarise yourself with the management and conduct rules. And importantly, make sure you know exactly what you’re buying – the sectional title unit might be just the home so how do you get use of the parking bay or garage? Is it an exclusive use area (EUA)? Allocated in terms of the rules? Leased from the body corporate? Is the balcony part of the section or is it an EUA? That would be relevant if it leaks into the unit below – if it’s EUA, it’s a body corporate problem but if it’s part of the section, then it will be the owner’s problem.’

Multi-Spectrum Property CEO Riaan Roos cites the four major factors of estate living as security, convenience, lifestyle and value for money. At Buh-Rein Estate in Cape Town, a 51m2 two-bedroom flat bought for R424 900 in 2011 carried a price tag of R729 900 last year. ‘This equates to almost 72% capital growth over the five-year term or just over 14% per annum,’ he says. ‘For rentals, these apartments were initially rented out at R3 200 per month.’ That figure increased to R6 500 last year. ‘That’s a 103% growth in monthly rental over the five-year period or 20.6% per annum.’ The Currie Group is marketing The Winston, a 40-unit luxury apartment complex in Bryanston. ‘Every unit is premium, no entry level. The take-up is a mixture of owner occupiers and investors, many looking to downscale to a lock-up-and-go environment,’ says Brendan Raubenheimer, head of marketing for The Winston.

PROPERTY INVESTMENT

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Over the past five years, investors have comprised 65% of buyers of the sectional title flats at Jackal Creek Golf Estate in Roodepoort. ‘Our primary focus for investment apartments is the one- and two bedrooms, ideal for a lock-up-and-go lifestyle,’ says Shaun Coetzer of Montagu Homes. ‘The combination of freestanding homes and apartments here works in the investor’s favour, as lifestyle is a strong drawcard for prospective tenants. That means the investor is getting strong rentals, which continue to grow year-on-year. Our pool of buyers ranges from first-time homeowners to investors adding to their portfolio to retirees looking for a safer, less risky investment that pays them monthly.’ At Jackal Creek, where buy-to-let are key investors, prepaid meters were installed in all flats to help monitor costs. The newest have heat pumps and central boiler systems with heat tracers to reduce monthly expenditure.

FEBRUARY 2017

20/01/2017 11:01

S P E CIA L R E P O RT

GETTING IT BACK Rawson Developers is focusing on Observatory in Cape Town and bought some high-potential erven with the intention of demolishing the run-down warehouses, making way for two high-quality, high-tech apartment buildings, The Paragon and Madison Place. While The Paragon is sold out, the luxury apartments at Madison Place are filling up quickly. From an investment perspective, Beaumont, its flagship Claremont development, has posted up to 50% growth in purchase prices since first occupation; at the Paragon, the first phase of buyers has already experienced a 30% increase in purchase price. In Observatory, there is the added incentive of the urban development zone (UDZ) tax deduction allowance, says Morgan. David Sedgewick, MD of Horizon Capital Residential, confirms the appeal of a UDZ: ‘Our Observatory development, The Eden, consists of a large number of buy-to-let investors because development falls within the UDZ. This essentially allows investors a tax write-off of 55% of their purchase price spread over 11 years, which makes it a highly attractive investment. ‘In terms of our City Bowl and Atlantic Seaboard apartment block developments – The Elm (Vredehoek) and The Solis (Sea Point) – most of the purchasers buy primarily to live, however, they want the option and flexibility to do short-term lets for periods when they are out of town.’ There are pros and cons to life in a sectional title development but many are easily discovered at the outset: no pets, close proximity to neighbours, restrictions on building alterations because you only own a section. But young families might relish the security and instant friends for children, a communal swimming pool (less maintenance), a golf course or common-use land for walks. Certainly, shared, fixed costs (levies) can be easier to manage. For commuters working elsewhere, it is comforting to know that in a sectional title the family is more secure.

MORE PEOPLE CONTRIBUTING TO A COMMUNAL POT TO FUND SECURITY IN AN ESTATE MEANS LESS INDIVIDUAL FUNDING

BASIC LEGAL ELEMENTS ‘The concept of sectional title describes the separate ownership of units or sections within a complex or development,’ says Stacey Bartlett, director at Phatshoane Henney Attorneys. ‘When you buy into a sectional title complex, you purchase a section or sections together with an undivided share of the common property, known as units. A sectional title unit can refer to anything from a mini subtype house, a semi-detached house, a townhouse, a flat or apartment or a duet house. Ownership of sectional title property involves a number of elements, bearing in mind that the unit consists of a section plus an undivided share in the common property. ‘The first element is the section, exclusively owned by the owner. The second is the common property, owned by all the owners in undivided shares, meaning you become a joint owner of the common property of the sectional title scheme. The third possible element is the right to exclusively use certain parts of the common property, for example a garage, a garden or a storeroom. Even though the owner does not own the exclusive use area, he is the only person who has the right of use.’

PUTTING PRESSURE ON PRICES Four categories of buyers are competing for a piece of Cape Town’s City Bowl and Atlantic Seaboard:

1 2 3 4

Young professionals looking for proximity to work

Retirees downscaling to a secure lock-up-and-go

Upcountry buyers wanting Cape investments

FROM LEFT The roof deck at Hallmark House and Newmark Hotel, Maboneng; Aurum in Bantry Bay, Atlantic Seaboard

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International buyers recognising the value offered relative to offshore locations

20/01/2017 11:01

P ROPERTY TRENDS

COMMERCIAL PROPERTY Text Nicola Jenvey Photographs Supplied

DIVERSIFYING INTO COMMERCIAL Whether retail, warehouses or offices, what do the bigger players watch out for and what level of capital is required?

ommercial property poses a different opportunity for the adventurous spirit seeking a higher-risk return investment to the buy-to-let residential scenario. But the balancing act can be trickier. Commercial properties are any buildings used for business purposes, including retail space, shopping centres, office parks and industrial properties, with attractive investments for individuals or syndicates being commercial offices, small shops and light industrial factories and warehouses. Storage facilities, given the lack of these operations, are also gaining traction for investment purposes.

and touch bricks, proudly boasting that they own that piece of the building, will undoubtedly be hindered by the capital entry levels. Consequently, Anthias says it is more logical to invest directly in the listed property development companies or in the entities that have acquired stakes in unlisted property developers. ‘Investors wanting exposure to commercial and industrial property markets are buying shares in the companies holding the bricks-andmortar investments. The indirect benefit is knowing the growth in property development provides subcontracting opportunities for emerging and smaller companies,’ he says.

MONEY, MONEY, MONEY

INVESTING IN OFFICES

Commercial property is viable but has its hurdles, with finance the most significant, says Smith Tabata Buchanan Boyes partner Stavros Anthias. Commercial bonds are not easily secured and have a 10-year repayment period compared to 20 years for residential bonds. Banks also only lend 70% of the purchase price, forcing investors into a 30% minimum deposit. Anthias warns that anyone committing to these investments must have an agreement safeguarding their deposit if they cannot secure the bond. ‘While it is standard for residential property deposits to be refunded if the buyer cannot secure a bond, this does not apply to commercial acquisitions. Investors risk forfeiting their deposits if they are not careful,’ he says.

What do some of the bigger commercial property companies look for as investments? Abland MD Jurgens Prinsloo says the property development company strives to create sustainable developments, meeting its clients’ requirements both as investors and occupiers, and seeking out new growth opportunities for sustainable long-term value creation via modern commercial office, industry and retail property development. And, when the company announced it would build a 35 000m2 A-grade office park in Parktown, it was the first new such development in the node in the past decade. At R700 million, the price tag would be unrealistic as an individual’s investment. The company planned completion of the first of the four buildings in the Hill on Empire by June 2016, with a gross 6 800m2 subdivisional lettable area. The whole development should come to the market by 2019. When the project was announced, Abland development manager Donald Majola said the company had identified a market gap and was delivering a competitive product in an excellent location. Hill on Empire would be comparable to the A-grade office space associated with Sandton and Rosebank in Johannesburg, but have more affordable occupancy costs and easy public and private transport access.

SUITABLE FOR SYNDICATES? Syndicates are a popular financial option when funding commercial property investment opportunities. The risk is spread across the members rather than a single individual. While the purchase price will dictate the syndicate size, Anthias believes four or five people are ideal for a R5 million property but less so for a R25 million one. However, anyone wanting to walk into their local shopping centre

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P R O P E RT Y T R E N DS

‘INVESTORS WANTING EXPOSURE TO COMMERCIAL AND INDUSTRIAL PROPERTY MARKETS ARE BUYING SHARES IN THE COMPANIES HOLDING THE BRICKS-ANDMORTAR INVESTMENTS’ STAVROS ANTHIAS, PARTNER, SMITH TABATA BUCHANAN BOYES

RETAIL EXPANSION In May 2016, RMB Holdings (RMH) announced it was diversifying its banking interests into commercial property by acquiring a 25.01% stake in Mall of Africa developer Atterbury. According to RMH CEO Herman Bosman, the move was the first step in creating a multibillion-rand property portfolio. The company intends gaining exposure to about R15 billion worth of property in the next few years and may possibly list a separate property fund in the future as RMH plugs the two areas – asset management property developing and investing – in which management believes it was lacking.

GETTING STARTED As with any investment, taking the plunge should only come after significant legwork. Anthias suggests potential investors do their homework before writing out that first cheque.

AIMING FOR A-GRADE Growthpoint CEO Norbert Sasse says the group invests in properties in prime locations that can enhance its top-quality portfolio. That means acquiring investments worth upwards of R100 million and housing blue-chip tenants. Currently more than 75% of the company’s portfolio is A-grade or higher and includes 58 properties worth R28.2 billion. ‘We continually upgrade and redevelop our properties to ensure they continue performing as an essential part of our quality asset base, are efficient and environmentally responsible, and remain suitable for our clients’ requirements,’ he says. According to Redefine Properties CEO Andrew Konig, the group’s diversified local property portfolio for the year ending February 2016 was valued at R54.3 billion and the international real estate investments another R13.5 billion. This portion of the total property assets provides Redefine with geographical diversification into the UK, Germany and Australia. ‘The bottom line is, as with any property investment, position is the key. Understanding the pitfalls – whether you are investing directly or leaving the investment choices to professionals – are essential to capital and wealth growth,’ says Anthias.

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1 3

Read the newspaper advertisements in the commercial property section to establish the going rates for various neighbourhoods.

Watch out for auctions and attend as an observer to increase your knowledge of the market.

2 4

Remember that as with any property acquisition, the key is position, position, position.

Seek out an experienced property broker who can help with available properties and potentially negotiate the deal.

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RESIDENTIAL PROPERTY Text Nicola Jenvey Photographs Supplied

THE TRUST DEBATE

Is buying a home in a trust still the best financial choice for families? Recent tax developments suggest it isn’t necessarily the most cost-effective solution

s the government tightens tax loopholes that effectively benefit wealthier South Africans in their contributions towards the national fiscus, experts are divided on the effects new proposals will have on the efficacy of purchasing residential properties in trusts. While a trust was an excellent vehicle in which to protect minors if both parents die prematurely – or as the means to prevent the next generation from squandering wealth – trusts can no longer be viewed as tax havens, says Lanice Steward, president of the Institute of Estate Agents of South Africa. ‘Previously, they played a huge role in avoiding estate duty and transfer duties on passing property between family members, but the government is tightening up on this. One can expect there will be taxes placed on trusts going forward,’ she says. However, Webber Wentzel director and tax practice specialist Dan Foster believes trusts still play a significant role in keeping properties within families with successive generations benefiting from the assets. For discretionary trusts, there currently remains no transfer duty due on the properties as each generation dies. A discretionary trust is one in which the number of shares each beneficiary holds are not fixed in the trust deed but deemed at the trustees’ discretion.

CAPITAL GAINS CLAMPDOWN The latest salvo in the trusts debate arose after finance minister Pravin Gordhan significantly raised the capital gains tax (CGT) rates during his budget presentation in February 2016. BDO SA audit partner Sumesh Somaroo says the CGT inclusion rate for companies is now 80% (up from 66.675%), while for individuals it is 40% (up from 33.34%) and for trusts 80% (up from 66.67%). Companies have a 28% tax rate and trusts 41%, effectively making the respective CGT rates payable at 22.4% and 32.8%. If the gain is attributed to the donor or vested in a beneficiary, an individual tax rate applies. Properties owned by companies

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IN V E ST M E N T IN T E L L IG E N CE

‘TRUSTS WILL ALWAYS PROVIDE ASSET PROTECTION AND EASE OF SUCCESSION’

DAN FOSTER, WEBBER WENTZEL DIRECTOR & TAX PRACTICE SPECIALIST

or trusts also do not qualify for the R2 million exemption on CGT that applies to individuals who sell their primary residences. Historically the attraction of trusts for property acquisition was the vehicle’s ability to protect the asset, says Foster, as well as the ease of succession it offered future generations. Given that trusts are perpetual, they also do not attract estate duty. Somaroo adds that on death, the primary residence is deemed as sold, triggering CGT and estate duty. By having a house in a trust, beneficiaries save on both these taxes. In addition, for anyone owning a business and signing personal surety, the primary residence held in a trust can be safeguarded from creditors if the business collapses. ‘The Davis Tax Committee, the government-appointed entity currently reviewing the country’s tax legislation, aims to limit the ability of trusts to pass gains on to individuals,’ says Foster. ‘This effectively means that in the future, the 32.8% trust tax rate may apply when properties are sold.’

TRUSTED FUTURE? Steward explains that in light of these proposals, coupled with certain assets now being listed in the estate of the trust’s founder, the question arises regarding whether or not trusts remain a viable option or the appropriate

vehicle for looking after an asset. ‘In addition to the increase in CGT, estate duty cannot be avoided,’ she says. ‘It is proposed that donations or loans to the trust be included in the estate of the founding member, eliminating the ability to avoid paying taxes on assets passed to the trust.’ The loans issue has not yet been legislated, Foster says. But Gordhan’s proposal is for assets acquired by a trust using interest-free loans to be included in the lender’s or donor’s estate. Consequently, the trust will no longer be able to block the estate duty if it acquires assets via interest-free loan accounts from an individual. ‘The interest forgone on the loan will also be treated as a donation and subject to the 20% donations tax while the donor still lives,’ he says. Looking ahead, Foster believes the future of investing in properties via trusts lies with what changes are made to South Africa’s donations tax and estate duty laws. He agrees with Steward that financial decisions should be made in conjunction with tax lawyers and financial advisors. ‘Trusts will always provide asset protection and ease of succession. While the tax advantages have been eroded, they can still be used for estate duty planning, taking into account that interest-free loans will result in deemed donations and add back to the estate,’ he concludes.

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DEVELOPER PROFILE Text Lucinda Jordaan Photographs Supplied

Amdec CEO James Wilson is following in his father’s footsteps, taking giant strides in forging new partnerships and building landmark developments

FAMILY TIES I

t has almost become de rigueur for companies to champion family values and maintain an image of holding fast to traditions. But it is rare for a corporation to make this a major part of its ethos, and even rarer to meet a CEO for whom it is an intrinsic way of life. James Wilson has much to be proud of: as head of national property development company Amdec he is at the forefront of one of the country’s biggest multinational property partnerships. The company has secured a R3 billion agreement with Marriott International, the world’s largest hotel group, to develop five Marriott-branded hotels in Johannesburg and Cape Town within the next two years. While he acknowledges the significance of such a partnership, it is the one he entered into with his father, John, 27 years ago that Wilson singles out as his greatest achievement. ‘I don’t like to look back on life and reflect on what has made an impact on me as I still feel young and look forward to achieving much more but I take a lot of pride in starting a business with my father. While it’s not easy to be in family business, by and large, we worked well together,’ he says.

RENOVATOR’S SON Property development is in his blood, says Wilson, who was born in the UK to a ‘fairly humble renovator of properties who had also previously joined his father as a partner. From an early age I have photos and certain vivid memories of walking around building sites and renovation sites.’ Wilson emigrated to South Africa with his family when he was 16. Despite completing a BCom degree with honours at Rhodes University, then converting to an accountancy degree and qualifying as a chartered accountant, he followed his heart – and it led home. ‘I looked at career opportunities and realised that my passion was for real estate. In 1989, I formed a joint partnership with my father, who was developing single residential houses at the time,’ says the dad of four, whose daily highlight is spending time with his children.

DIVERSITY Today, Amdec is a leading developer of new urban lifestyle precincts with a diverse portfolio that includes the Melrose Arch mixed-use precinct, the Evergreen Lifestyles brand of six retirement villages and XtraSpace self-storage facilities, among other landmark residential and commercial developments. But the company had a relatively humble start, with little capital. ‘Our first office was a converted double garage – there are various wonderful stories about entrepreneurs who started in their fathers’ garages – and we did so with small property acquisitions and constructing single residential dwellings. We were fortunate to manage to grow capital and expand,’ says Wilson

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P R O F IL E

EXPANSION The implementation of the Sectional Titles Act of 1986 proved a catalyst for Amdec’s growth. ‘Prior to that, people did shareblock developments, which were not really popular. Fortunately for us, as we were starting our business and trying to grow, the Sectional Titles Act – although new and unfamiliar to the consumer – was a great opportunity for us to expand our business in that sphere,’ he says. Amdec moved from developing single residential houses to multiunit blocks of flats, then on to commercial property, constructing about 70% of the offices in Steenberg Office Park in Cape Town, where it is headquartered. ‘We sold them on a sectional title basis. That was a great learning experience; moving into a slightly different subsector of the industry, utilising experience and skills we built up in residential to move into commercial,’ says Wilson.

MELROSE Then came Melrose Arch. The 50/50 partnership with Allan Collier and Property Partners in 2005 turned the mixed-use precinct from a bit of a white elephant – ‘only 80 000m2 had been developed and we had in excess of 225 000m2 that still needed to be developed’ – into one of the country’s most profitable real estate assets. Melrose Arch was the first of a range of mixed-use developments the company has in the pipeline, including the projects with Marriott International at the Yacht Club and Harbour Arch in Cape Town. ‘The idea is that this won’t be the only roll-out of another Arch. We intend to use that brand to develop a multitude of mixed-use developments

in other significant centres across Africa. There are a number of African cities that we’ve looked at, but the state of the world economy has made us a bit more realistic about the speed of our expansion.’ It takes a canny business sense to turn a family-owned enterprise built on flipping properties into one of South Africa’s biggest private property owners. Wilson’s sense of value is clearly based on a long-term vision that incorporates more than just the bottom dollar.

PARTNERSHIP ‘Forging relationships is a great reflection of where your business has got to. From a purely business point of view, the partnership with Marriott is fantastic,’ says Wilson. ‘But it’s also a reinforcement of what we do as a company that a hotel group as large and prestigious as Marriott regard us as their main partner in South Africa.’ While the Amdec Marriott partnership is hardly new, stretching back to when the international company bought out the Protea group to become the continent’s leading hotel chain, it is perhaps notable that Wilson emphasises the family similarities between the two companies as a strong link in their connection. ‘What one forgets is that despite the size of Marriott, like us, they also come from a family business. It’s run on family principles and family ethics. Arne [Sorenson, Marriott International CEO] is the first executive who is not part of the family and he was selected because he espouses the same values. Rubbing shoulders with international CEOs like that and seeing how easily they interact with their staff is inspiring for young CEOs like myself. It’s a good way to run business.’

ABOVE AC Hotels by Marriott Cape Town Waterfront will open in 2018

‘FORGING RELATIONSHIPS IS A GREAT REFLECTION OF WHERE YOUR BUSINESS HAS GOT TO’ JAMES WILSON, CEO, AMDEC

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DREAM HOME

I WANT TO INVEST IN…

If there was only one word to describe this Johannesburg residence, it would be palatial. In fact, that was the foundation for architects and interior designers the Pellerade Design Group: to recreate a Palladium-inspired palace. Added to the stately design mix are contemporary elements, creating an interior space of modern art vs classics, period pieces vs new – all with an international flair (chandeliers from France, Italy and Germany, marble balustrades from Turkey). Cecelia Wilmot’s Royal African Collection of bronze sculptures completes the space, along with extensive use of glass to make the most of the views from its Houghton Ridge locale. The Jean Bax de Keating-lanscaped garden, too, follows the palatial aesthetic, with Peterhof Palace in Russia the source of inspiration. Here, terraces maximise the vantage point, fountains and statues creating a garden gallery. The 2 000m2 mansion, dubbed the Gatsby, is on the market through Chas Everitt for R110 million and includes a spa, private nightclub, library, home automation and indoor and outdoor pools.

USEFUL CONTACTS n Chas Everitt chaseveritt.co.za, 083 328 8888 (Rory O’Hagan) n Pellerade Design Group pellerade.com n Elite Executive Services eliteexecutive services.com.au/SouthAfrica n 2Summers blog 2summers.net n Condé Nast Traveler features on Johannesburg cntraveller.com/guides/ africa/south-africa/johannesburg

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TEXT Kirsty Wilkins PHOTOGRAPH Supplied

HO UGHTON

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BUILDING PENALTIES IN SECURITY ESTATES: WAKING UP LATE Typically when buying land in a security estate on which to build a home, the agreement requires the landowner to erect a house within a stipulated period, failing which the homeowners’ association (HOA) becomes entitled to impose a penalty. This is to ensure that the development reaches its true investment value within a certain time frame and to safeguard other owners from having to deal with the risks and implications of continuous building in the estate. The stipulated period generally ranges from one to five years and the obligation to build could be transferable to a subsequent purchaser (who, as successor in title, becomes responsible to adhere to the provision within

the original time period) or the provision may allow for an extension of the time within which to build. Our courts have confirmed that an HOA, in its governing documents and rules, may validly impose such penalties although the amount thereof may not be unreasonable in the circumstances lest it contravenes the Conventional Penalties Act. This does however not mean that such penalties do not reach levels where it is difficult or impossible for the owner to sell with some profit margin. Whether because of soaring building costs or a lackadaisical attitude, owners often do not finalise the

building works timeously. Recently there has been a spate of cases dealing with such owners’ belated confrontation with penalties payable to a HOA resulting from delayed compliance with the association’s building deadlines. The December 2016 judgment in Gafoor v Lakewood Homeowners Association, is one such example. It serves not only as reminder to owners to adhere to the timelines, but also a warning note that once the land is sold, access to HOA records which the seller (now no longer an HOA member) seeks to utilize to query the penalty, is curbed. Therefore, when buying land to build on in a security estate, make sure that you understand or negotiate all of the HOA requirements regarding the building requirement. It is to your advantage to obtain the assistance of your conveyancer in this regard, before binding yourself thereto by your signature. Contact STBB I Smith Tabata Buchanan Boyes on www.stbb.co.za.

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