Business Day HomeFront 03 November 2017

Page 1

HOMEFRONT WESTERN CAPE

AtlanticSeaboard 021 439 7415 / Southern Suburbs 021 673 4200 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 3 NOVEMBER 2017 WWW.BUSINESSLIVE.CO.ZA

MUST READ

On safari to buy a lifestyle home PAGE 2

Retirement estate demand surges PAGE 20

Bishopscourt / R35 million

Ref# KW1339561

Bedrooms 5 / Bathrooms 4 / Garages 4 / Spectacular panoramic views in quiet location. Gracious family villa in immaculate condition with quality finishes throughout, set on 5 230 m² of park-like landscaped garden with borehole and computerised irrigation. The well-proportioned reception rooms and bedrooms are designed to provide abundant accommodation and a luxurious level of comfort, security and privacy. Exclusive Agents Myrna Duveen 082 443 8417 / Christiaan Steytler 082 658 0071

The best bets in Joburg suburbs PAGE 27

Waterfall Country Estate, Johannesburg

Rush to security estates Four foreign hotspots PAGE 32

Buyers are still happy to pay a premium for lifestyle amenities — and peace of mind

Constantia Upper / R19.9 million

Ref# KW1322117

Clifton / R25 million

We know the ‘ins and outs’ of every neighbourhood... #RealPartners

PAGE 10

Ref# AS1293753

Bedrooms 6 / Bathrooms 6 / Garages 4 / This 6-bedroom family home is set on over half an acre of private garden in sought-after pocket of Constantia Upper. All bedrooms are en suite with luxurious finishes and the upstairs balcony and wet deck encompass beautiful northward views. Studio, private flatlet, 4 garages, study and excellent security are key features of this well-appointed home.

Bedrooms 3 / Bathrooms 2.5 / Stylish open-plan home set in a tropical garden with lush oasis surroundings and uninterrupted ocean views. Open-plan kitchen leads to a charming lounge/dining room seamlessly flowing to an elegant entertainment terrace with an inviting low-maintenance garden and pool. Only a short stroll to the beach.

Exclusive Agents: Angie 083 678 7876 / Arie 083 448 0488 / Lauren 083 306 3830

Annette Hepburn 082 658 1116

We’re Real about Real Estate


HOMEFRONT

WILDLIFE ESTATE

Safari specs Gondwana Reserve near Mossel Bay lures tourists for a safari experience and property buyers for manifold returns on their investment WORDS: KIM MAXWELL :: PHOTOS: SUPPLIED AND PG COETZEE

L

ocation, spacious surroundings and an intangible quality are what separate the best from the alsorans in the residential property game. Yet when it comes to premium safari experiences, a similar set of factors are in high demand. Traditionally African game viewing is better during cooler winter periods when animals are less lethargic. A distinguishing feature of Gondwana Reserve is that its location near Mossel Bay results in a temperate coastal climate. Nocturnal animals, in particular, are more active than their northern neighbours. Visiting the reserve in spring meant that colourful fynbos and renosterveld species dotted the landscape in the pinks of sunset as our jeep manoeuvred the rolling reddish folds of earth at the base of the Langeberg range. Our target was a valley of acacias, home to a giraffe herd. On a separate drive in the direction of the

Outeniqua range, we found the dominant male lion in the pride breakfasting on a fresh impala kill, his family watching but going without. At roughly halfway between Cape Town and Port Elizabeth, Gondwana Reserve made a convenient stopover for the German tourists in our safari vehicle who were driving the Garden Route. Enquiring younger minds will find plenty to do — children can join game drives from age six. Our sevenyear-old son ticked off diagrams of the Big Five, waterbuck and secretary birds in his provided Junior Ranger book. Ranger Felix Mumkuli rolled out facts for all ages – tracking a young elephant bull, for instance, we learnt that its trunk is comprised of 40,000 muscles yet has no cartilage or bone. Most visitors go on safari to see the Big Five in wild surrounds, and Gondwana should satisfy that yearning if nature is accommodating (the buffalo herds are fenced off separately though, as part of a long-

term breeding programme). Seeing two, normally nocturnal hippos waddle out of a valley for a morning swim was my personal highlight. The first entered a pool of water sedately; the second plunged in at speed, jaws wide open as it delighted in producing large ripples. Self-driving between Kwena Lodge restaurant (for meals and game drives) to the threebedroom Fynbos Villa 16 felt adventurous as occasional zebra and impala wandered. We had been advised not to linger outside. What a thrill to learn, on checking out, that a lion kill happened at the adjacent villa only three nights previously. AfrAsia Bank and New World Wealth’s September 2017 survey recently ranked Gondwana as SA’s top wildlife estate. I’ve experienced some of Kruger and Madikwe’s best safari locations and didn’t expect Gondwana to rate. But for its convenience to Cape Town and cooler temperatures, it has a place.


HOMEFRONT Gondwana Reserve developer/co-owner Mark Rutherfoord on why a wildlife estate is a special type of property investment Why a game reserve? When people come to SA, they want to go to Cape Town, to do the Winelands and Garden Route, and they want to do a safari. We knew if we were aiming for a similar offering to Kruger, we had to offer an authentic safari experience. It had to be big enough to support a free-roaming Big Five wildlife population. I’ve worked at Ulusaba in Sabi Sands, and at Tswalu Kalahari Reserve. I studied environmental science and wildlife management. Creating a game reserve in the Western Cape was exciting — it was somewhere new with little competition — but scary in that we had to create the idea of safari in this area and build a reserve from scratch.

When did Gondwana Reserve open? I moved to Mossel Bay in October 2005 with my wife and Gondwana co-owner Wendy Rutherfoord. Purchasing a sheep and cattle farm, we came in with the idea of developing Gondwana into the first free-roaming Big Five game reserve in the

Garden Route. It took three years to get environmental and planning rights. We started building the infrastructure in 2008 and opened Kwena Lodge in 2010. The reserve was 7,200ha, and we grew it five years ago through incorporating adjacent land (one through purchase; and two neighbours are in a conservancy agreement). Wildlife was reintroduced after 60km of game fencing was erected. Gondwana is the largest privately owned land within the Cape Floristic Kingdom biodiversity hotspot. There is no malaria threat.

Why residential property? We were looking purely from a tourism perspective, but no model seemed financially sustainable. Putting houses on the estate was a way of capitalising the property and making it a sustainable Big Five reserve. The sale of the properties helped us build the reserve and hospitality section (Kwena Lodge, and later Gondwana Ecocamp and Ulubisi House exclusive villa). This

A Fynbos villa

A three-bedroom villa in Fynbos Camp

“We knew if we were aiming for a similar offering to Kruger, we had to offer an authentic safari experience” Mark Rutherfoord, developer/co-owner, Gondwana Reserve

PRODUCED BY BLACKSTAR PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130

A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand

PUBLICATION

Managing Editor/Copy Editor: Michael van Olst Production: Joanne Le Roux Content Business Manager: Catherine Davis

ADVERTISING SALES Michèle Jones Susan Erwee

michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info

084 246 8105 083 556 9848


HOMEFRONT

“Putting houses on the estate was a way of capitalising the property and making it a sustainable Big Five reserve” Mark Rutherfoord, developer/ co-owner, Gondwana Reserve

tourism aspect is essential for funding long-term reserve sustainability. We also have a community of likeminded home owners — their monthly property levies contribute to the reserve’s running costs into the future. When we created the property layout we ensured a core area of the reserve remained open so the game could traverse freely. In siting the private residences we always asked: would we buy this stand? It ensures that each stand has wonderful views.

How does it work? Gondwana villas are sold to investors as a freehold title. We maintain ownership of the reserve and its animals, game vehicles and so on. The properties have a home owners’ association, and they sit with us at director level to ensure we maintain good governance.

BUY A HOME Private homes are for sale in various Gondwana housing nodes. A 300m2 building footprint on a 1ha exclusive-use stand starts from R1m. A three-bedroom plot and plan home starts from R3.45m. A turnkey modern safari home, including furniture and fittings, starts from R4.25m.

Fynbos Camp Open to roaming animals including the Big Five. The 22 villas have secure perimeter decks and are close together. Designed as a hospitality extension of Kwena Lodge (with 14 double suites, a bar, pool and restaurant).

Sunset Ridge and Mountain Ridge In two separate areas of the reserve. The 15 villas are each surrounded by a deterrent fence that enables freedom of movement. Villas are spaced 1ha apart. Red Rock and Milkwood Valley Two separate fenced areas within Gondwana’s 1,000ha endangered species protected area. Open to diverse game but no predators. The 28 villas in Red Rock and 15 villas in Milkwood are spaced 1ha apart. Freedom of movement for families, mountain biking and hiking.

Our hospitality side manages an established rental pool. We market, sell and manage the villas as family accommodation, with the lodge hosting meals and game drives. If a guest books at Gondwana and stays in Fynbos Villa, it is a privately owned home from a rental pool. Unlike timeshare, there is no time limit on how often a home owner can occupy it. Gondwana openly markets and sells bed nights for an owner’s villa unless they block out certain dates. All rental pool income is distributed on a pro rata basis and every home owner benefits from occupancy levels, regardless of whether their own house is occupied.

Where is the investor appeal? Gondwana is seen as a relatively secure investment because it is an established reserve. We have 96 stands of which 80 have been sold. When you buy into a place like Gondwana, you’re doing it because you’re passionate about the environment. A lot of our local and international home owners are also buying in for the lifestyle.

BOOK A STAY A Kwena Lodge double suite costs about R4,000 per person a night. Families with children are accommodated in equipped villas. Children younger than six stay free. gondwanagr.co.za


WESTERN CAPE AtlanticSeaboard 021 439 7415 / Southern Suburbs 021 673 4200

Clifton / R30.5 million incl. VAT

Ref# AS1300562

Bedrooms 3 / Bathrooms 2 / Parkings 2 / Last unit available in this brand-new exclusive development nearing completion. Expansive open-plan entertainment and living areas with large terrace overlooking the ocean and Twelve Apostles. Private secure parking garage with direct lift access. 24-Hour concierge and comprehensive CCTV coverage. All transfer costs are included in the purchase price.

Annette Hepburn 082 658 1116

Camps Bay / R42.5 million

Ref# BAY1345357

Constantia Upper / R26.9 million

Ref# KW1304185

Bedrooms 5 / Bathrooms 5.5 / Garages 4 / Exquisite high-tech villa designed by a renowned architect Gert Weideman, just below the Twelve Apostles. Breathtaking sea views from living areas and bedrooms. Elevator access to all levels. Wine tasting room, gym, roof terrace and generous staff accommodation. This is a fully automated ‘’smart home’’ which can be operated from anywhere in the world.

Bedrooms 6 / Bathrooms 6 / Garages 2 / A classic family home of international quality in the heart of Constantia. Surrounded by beautiful gardens in a perfect north-facing location, with a rim-flow pool and mountain views.

Barbara Rogers 082 889 0140 / Karin Coetzee 082 887 4311

Exclusive Agents: Angie 083 678 7876 / Arie 083 448 0488 / Lauren 083 306 3830



SEA POINT


CAPE WHALE COAST Arabella: 028 284 9385 • Betty’s Bay: 028 272 9145 • Hermanus: 028 312 1110 Kleinmond: 028 271 3423 • Onrus: 028 316 3390 • Pringle Bay: 028 273 8326

I am Benguela Cove

Benguela Cove / R10.7 million Bedrooms 4 / Bathrooms 4 / Garages 2 Ultra-modern architecturally designed home in the popular, low density Benguela Cove Lagoon and Wine Estate. Enjoy spectacular views of lagoon, vineyards and surrounding mountains. Priced to sell. Ref# ON1342019 Niel van der Westhuizen 082 967 0813

Ref# ON1341360

Ref# HF1339506

Ref# HF1340270

Middel Vlei Nature Reserve / R1.495 million

Hermanus Heights / R7.2 million

Voëlklip / R2.65 million

521m² Stand situated in a security Estate in Meerenbosch. Nature lover’s dream. Panoramic sea, lagoon and mountain views.

Bedrooms 3 / Bathrooms 3 / Garages 2 Escape to seclusion in this private garden setting with views out to the mountain. Relaxed openplan indoor/outdoor living. Beautifully established and well-appointed.

Bedrooms 3 / Bathrooms 2 / Garage 1 Sunny house on corner position with sea and mountain views. 2 Living areas and open-plan kitchen. Lovely entertainment lounge leads out to a patio with braai.

Klaradyn Stemmet 082 826 0969

Rose-Marie Marais 082 877 6160 / Sue Ralph 082 892 8772

Allan Lotter 072 768 9984

Ref# KN1321240

Ref# KN1337734

Ref# SW1339314

Arabella Country Estate / R5.5 million

Kleinmond / R8.75 million

Gordon’s Bay / R3.6 million

Bedrooms 4 / Bathrooms 4 / Garages 2 Secluded home in great condition. This centrally located and very private Arabella home has exquisite finishes, 4 en suite bedrooms, a totally private garden and is beautifully furnished.

Bedrooms 8 / Bathrooms 8 / Garages 3 Versatile double-storey home, well-situated on a double plot. Offers a private 2 bedroom living area upstairs. The rest of the house is fully furnished and consists of 6 bedrooms all en suite, fully-fitted kitchen, living room and dining room.

Bedrooms 3 / Bathrooms 3 / Garages 2 For the discerning buyer. This modern, stylish home with three spacious bedrooms all en-suite offers top quality finishes with so many extras.

Mike Bisset 082 889 5300 / Hugo Basson 083 386 6299

Lise Götz 083 609 7215 / Adri Wernich 071 157 6689

Jacqui Logan 082 894 5805


CAPE WINELANDS Franschhoek: 021 876 2100 • Paarl: 021 871 1480 • Somerset West: 021 851 2633 Stellenbosch: 021 887 1017 • Wellington: 021 873 4557

Val de Vie / R15.5 million Bedrooms 4 / Bathrooms 4 / Garages 3 An opulent yet elegant mansion bordering a nature reserve. From the moment you enter this majestic 745 m2 residence you experience the finest attention to detail, from imported Venetain chandeliers to bespoke highend finishes. Val de Vie is a developing estate offering top class security. Ref# TK1293629 Igna De Villiers 082 884 8492 / Hayley Van der Merwe 082 926 8587 / Jordan Greenhalgh 083 298 1481

Ref# TK1341474

We are Val de Vie

Ref# TK1339214

Ref# WEL1338629

Paarl / R4.89 million

Boschenmeer / R12.8 million

Wellington / R5.59 million

Bedrooms 3 / Bathrooms 3 / Garages 4 Spacious family home situated in the popular and up-market suburb of Paarl, Courtrai. Perfectly positioned to indulge in the picturesque landscape of vineyards and mountains, whilst enjoying the privilege of space and tranquillity.

Bedrooms 4 / Bathrooms 3 / Garages 3 Live without compromise. This one of a kind home is not often found in Boschenmeer. Distinctively designed with entertainment in mind, this property is the perfect combination of indoor/outdoor living.

Bedrooms 4 / Bathrooms 4 / Garages 3 Diemersfontein is a working wine estate with a fully operational wine cellar and is renowned for its award-winning Pinotage. It is only 5 minutes from Wellington and 40 minutes from Cape Town International Airport.

Michelle Hill 083 267 8181 / Elaine Reeder 082 784 1453

Jordan 083 298 1481 / Hayley 082 926 8587 / Igna 082 884 8492

Erika Odendaal 082 412 6964 / Lynette Kannemeyer 082 672 1022

Ref# FWI1338302

Ref# FWI1338413

Ref# SW1337829

Franschhoek / R2.55 million

Franschhoek / R5.995 million

Gordon’s Bay / R3.3 million

Bedrooms 2 / Bathroom 1 / Parking 1 This upstairs apartment has been stylishly and beautifully renovated with quality finishes throughout. Set in a sought-after estate as offering good security as well as beautiful mountain and vineyard views.

Bedrooms 3 / Bathrooms 3 / Garages 2 Wonderful upstairs patios provide the owner with breathtaking views. An easily maintained garden and outside entertainment area complete the property that has the most important ingredient – location.

Bedrooms 3 / Bathrooms 3.5 / Parkings 2 Dual-living in a secure beachfront estate. Potential to reconfigure part of the open area on the ground floor to a 4th en suite bedroom.

Shelly Schoeman 083 301 8833

Jeanine Allen 082 410 6837 / Doug Gurr 072 610 7208

Trish Hartley 082 929 7767


HOMEFRONT PROPERTY TREND

Rush to security estates Buyers are still happy to pay a premium for lifestyle amenities — and peace of mind WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED AND ISTOCK

T

he number one reason most South Africans give for seeking out a property in residential estates is security — although of course, these have a lot more to offer residents than peace of mind. In a country with significant crime levels it’s little wonder that security estates represent an increasing portion of the market value of property sales. According to Lightstone Properties, in 2016 residential properties within estates made up about 15.1% of the total market value while comprising only 5.1% of the total volume of real estate in SA. The Lightstone report says more than 7,000 freehold and sectional title scheme estates comprise 335,000 properties with a value of R800bn.

SECURITY PREMIUM

Sitari Country Estate, Somerset West

The average price of those homes is about three times the national average home price, says Gerhard Kotzé, MD of RealNet estate agency group, which sells properties in many of SA’s

top golf and lifestyle estates. “It is clear that buyers in these developments are happy to pay a premium for the additional security and lifestyle amenities they offer.” Kotzé says the introduction of sectional title units in many of the newer estates means the demand for estate homes is no longer limited to repeat buyers in higher income brackets. It now extends to working singles, young marrieds with small children and active retirees. A quarter of these are first-time buyers.

Gauteng Because security estates are usually developed from the ground up, they tend to extend the residential frontiers of big cities. One such example is Dainfern in Johannesburg’s “New North”. “There are literally billions of rands going into new commercial and residential developments in this region, as well as major upgrades to the local roads and other infrastructure,” says co-owner of the local Chas Everitt International franchise Brian Falconer. “And in the middle of it

all lies the iconic Dainfern Golf Estate, where we have seen a huge appreciation in property values over the past year.” His agency is marketing the two most expensive properties on the estate, at R28m and R30m. Falconer says investors are buying up older Dainfern homes at prices between R5m and R8m before upgrading or modernising them. “Dainfern homes have once again become very hot property,” says Falconer, “and we believe they are likely to become even more sought-after as the pace of development in the New North speeds up.” One of the most highprofile developments in the area is Steyn City, where developers have reportedly already spent about R7bn on infrastructure and facilities. Stand and apartment sales values have already topped R1.5bn. Waterfall Estate, by Attacq, with residential developments by Century Property Developments and Balwin, is another high-profile development in the area. It is between Johannesburg and Pretoria on a 2,200ha tract of land,


HOMEFRONT TOP TIPS FOR ESTATE BUYING MD of RealNet estate agency group Gerhard Kotzé says that buying in an estate is not the same as buying in the suburbs. This is his advice for prospective buyers: Choose an estate that suits your lifestyle and provides the school, sports facilities and security provisions important to you. If you want to watch wildlife from your veranda, your first choice will probably not be a golf estate. On the other hand, don’t discount a clubhouse, restaurant or wellness spa that might add to the enjoyment of the type of estate you choose. Most new estates have teething problems. If that doesn’t put you off buying into one early on, try to get involved in a positive way and help to ensure that the estate will be wellmanaged in the future. Simbithi Eco Estate, Ballito triangulated between Woodmead, Kyalami and Midrand. Developments include Waterfall Country Estate, Waterfall Country Village and Waterfall Equestrian Estate, all with state-of-the-art, fully integrated security offerings. Also under the Century banner is Blue Hills Equestrian Estate in Midrand, which offers secure country-style living close to the city. Investors looking to live closer to the traditional centre of Johannesburg would struggle to find a classic security estate, but could instead look at high-end options such as The Houghton that prioritise

the security of residents. This apartment and hotel development consists of four phases of between 60 and 80 units, ranging from three-bedroom apartments, starting at R7.9m, up to five-bedroom, three-storey mansions going for R84m. A fifth phase incorporates a new hotel with 61 suites. Units are all supported by the development’s service features, which include high-end security systems with fingerprint access and 24-hour camera monitoring from a control room.

The Western Cape Security estates across the Cape Peninsula are among the fastest-growing

Baronetcy Estate, Plattekloof Glen, Cape Town

Zimbali Coastal Resort and Estate, Port Zimbali

Even if you buy into an established estate, check to see that it has a strong home owners’ association, a track record of good management and good financials. The absence of these elements can make a seemingly good investment lose value quickly. Find out what the monthly levy is and what it covers. As an owner you will have to pay your own municipal rates, home owner’s insurance and maintenance costs as well as the levy. Commit to a purchase as soon as possible. Estate property sells at a premium but its value generally increases faster. If you have to settle for a smaller property initially, you will be in the right market sector and able to “buy up” in due course. If you leave it too late you may cut yourself out of the estate market for good.

“Dainfern homes have once again become very hot property” Brian Falconer, Chas Everitt International


HOMEFRONT TOP 10 RESIDENTIAL ESTATES IN SA Val de Vie, Paarl Steyn City, Johannesburg Zimbali, Ballito Fancourt, George Waterfall Equestrian Estate, Waterfall City, Johannesburg Steenberg, Cape Town Mjenjane, Crocodile River Whalerock Ridge, Plettenberg Bay Waterfall Hills Retirement Estate, Johannesburg Fransche Hoek Estate, Franschhoek Source: AfrAsia Bank New World Wealth 2017

Blue Hills Equestrian Estate, Midrand property sectors in the region, with demand at an all-time high. In the Constantiaberg region the average selling price of homes in gated security estates has grown 44% over the past five years, says Greeff Christie’s International Real Estate CEO Mike Greeff. “The investment opportunity is excellent, especially when a unit is purchased off-plan, in which case there is no transfer duty.” Greeff says the launch of Wycombe Place, a gated secure estate in the heart of upper Constantia, is perfectly timed. Developed by the Oakhurst Property Group in conjunction with Latitude Developers, the development is set to be an exclusive enclave of six luxury, sectional-title homes in an estate with one entrance and exit point. Security includes electric fencing, an infrared camera system with full on-site recording and play-back facilities. The system will take full advantage of the latest fibre technology to communicate with home owners directly, using hard-wired connections for uninterrupted security even during power outages. The Northern Suburbs of Cape Town offer a number of secure estates in excellent locations. Johan Jacobs, licensee for Seeff in the Plattekloof and surrounding areas, says that despite the sought-after location, security and facilities these estates offer, prices are still affordable by Cape Town standards. Properties are available in the R2m to R5m range, with top-end homes on offer at the R10m mark.

“The investment opportunity is excellent, especially when a unit is purchased off-plan, in which case there is no transfer duty”

De Plattekloof Lifestyle Estate, which caters for over-50s, has a comprehensive array of security features including 24-hour manned security and armed response. Sitari Country Estate in Somerset West lies under the Hottentots Holland mountains to the east of Cape Town. The development offers luxury and premium apartments, village and country homes,

and a Curro school. The estate has a high-end security system. Both the main and secondary gatehouse have biometric readers, number-plate recognition and 24-hour manned access control.

KwaZulu-Natal KwaZulu-Natal’s Dolphin Coast is enjoying rising interest — and again, it no longer excludes firsttime buyers.

Mike Greeff, CEO, Greeff Christie’s International Real Estate

An advantage of Northern Suburbs neighbourhoods such as Plattekloof and Durbanville is convenient access to the N1 combined with excellent amenities close by, such as Canal Walk, the Blouberg beaches and attractions in the Durbanville and Tygervalley area. Popular developments include Burgundy Estate and Baronetcy Estate in Plattekloof, and Welgedacht Security Estate and Kanonberg Security Estate next to the Tygerberg Nature Reserve. The Clara Anna Fontein estate borders a private game reserve. Homes in the first phase of The Village are under construction.

Wycombe Place, upper Constantia, Cape Town

“Living in an estate does not have to blow the budget and first-time home buyers are well catered for in and around Ballito,” says Pam Golding Properties Ballito area manager Neil de Beer. “Our estates offer land, studio apartments, one-, two-, three- and fourbedroomed apartments and full title homes. Prices range from an entry level of R3.85m to R8m for a four-bedroomed home or

apartment.” Estates in the area include the wellknown Zimbali Coastal Resort, Simbithi Estate, Brettenwood, Dunkirk, Seaward, Umhlali Country Club and Westbrook Beach Club. Wherever you go in SA, security estates offer a secure environment with lifestyle features to match. Growth in these developments is only likely to increase in years to come.



FOCUS ON: SERENGETI ESTATES ADVERTORIAL

Serengeti’s second chapter Rebrand plan to unleash full potential of golf estate WORDS AND PHOTOS: SUPPLIED

I

t’s more than just a makeover. Within a few months, Serengeti Estates near Kempton Park will be completely changed from the development that launched in 2009. Leading the transformation is a new development team; the same, incidentally, which implemented the dramatic turnaround strategy that saw the Eye of Africa Golf and Residential Estate in Johannesburg’s southern suburbs become a highly sought after address and ranked among the top 10 golf estates this year by AfrAsia Bank and New World Wealth. David Nagle, who heads the team, says his plan for Serengeti Estates mimics that followed at Eye of Africa. It hinges on fasttracking infrastructure and introducing new facilities that improve residents’ quality of life and help entrench the estate’s reputation for offering an enviable lifestyle. At the same time, the team will undertake improvements to the Jack Nicklaus signature golf course that is one of Serengeti’s highlights and a drawcard for many


FOCUS ON: SERENGETI ESTATES

“Visit us, and you won’t recognise the hive of activity at the estate” John Hart, property director, Serengeti Estates

purchasers. Having taken the helm just one month ago, the team has already made an impact. In October, they started with a landscaping project that has done much to beautify the South Gate of the estate. Now, they’re planning a bigger venture: the launch of a new apartment development, named The Whistling Thorns, after the nine-hole golf course on which it is situated.

VIEWS The Whistling Thorns comprises 188 apartments in three blocks. The first block offers three-bedroom apartments measuring 139m², enjoying golf course views, while the second is a north-facing building with two- and three-bedroomed units measuring 120m². The third block is slightly more spacious, with 12 apartments spread over two floors. The buildings are spread out over a 5ha site, with plenty of green space between apartment blocks creating a mood of seclusion and enhancing the feel of tranquillity, which is the estate’s hallmark. Construction on the

development will begin in November. The first units will be ready for occupation in the last quarter of 2018.

NEW LIFE The team is particularly excited about The Whistling Thorns apartment site, not only because it shows the developers are living up to their promise of breathing new life into Serengeti Estates, but also because it broadens the estate’s offering and ensures its appeal to a wider range of purchasers. Those who have already made the estate their home, meanwhile, can expect a greater return on their investment. “This is a prime concern for us,” says John Hart, property director. “Serengeti is a beautiful estate with a great location, offering easy access to OR Tambo International Airport and the shops and business hubs of the East Rand. “It is also close to Pretoria, with all that our capital city has to offer. In spite of this, the estate has not lived up to its full potential.”

VALUE The developers’ confidence that the new team can change this is rooted in the impressive growth

in property values at Eye of Africa after their intervention. They maintain that Serengeti home owners can look forward to the same increase in value. The new developers are also planning a more impressive future for the estate’s 18-hole golf course. Featuring bentgrass to ensure it remains green year-round, the course has, in the past, played host to some of the country’s most important tournaments and plans are afoot to host major championships. Next on the team’s list is a complete rebrand of the estate. “Visit us, and you won’t recognise the hive of activity at the estate,” Hart says. “It’s a great time to be part of Serengeti.” Join us for the opening weekend of The Whistling Thorns apartments from Friday, November 3 through to Sunday, November 5 for the best options as well as a limited stock of exclusive new stands launched on the market.

GET IN TOUCH Serengeti Estates 0861 396 396 e-mail: property@serengeti.co.za


HOMEFRONT PRACTICAL FINANCE

A bit more makes a big difference Adding a little extra to your monthly bond payment allows the debt to be settled faster — and saves thousands of rands

SAVINGS TIPS Build equity on a home loan. Equity is the difference between what a property is worth and what is still owed on it. If less is owed on a bond than the potential selling price of a home, that is a positive equity position. As the value of a home increases and as monthly instalments are paid, equity grows. This may be accessed in the future.

WORDS: SUNGULA NKABINDE :: PHOTO: ISTOCK

When shopping for a home loan always compare interest rates and go with the lowest for the amount you intend to borrow. If banks offer similar rates there are sweeteners that can help you save money. Some banks may discount attorney fees. Others will offer a percentage of an approved home loan in cash. Energy-efficient solutions can save on electricity bills and be a shield against tariff increases. A bank can enable existing bonds to finance heat pumps, solar panels, solar geysers and/ or batteries to help reduce electricity bills. Source: Bruno Ching’andu, head of customer strategy, Nedbank Homeloans

T

he dauntingly large debt owed on a new home loan can make it seem pointless to put a bit extra into monthly repayments. Yet the head of special projects at FNB housing finance Dr Simphiwe Madikizela says paying as little as R50 a month more on your bond results in immediate savings on interest. On a R500,000 home loan at a 10.25% interest rate for 20 years, R50 extra will settle a home loan in 19 years and three months, saving more than R26,111.86 in interest. Madikizela says the impact of extra payments can be better understood by knowing the difference

“You should also consider topping up your extra payments with a lump sum, either from your bonus or tax refund” Simphiwe Madikizela, head of special projects, FNB housing finance

between payment of the principal debt and payment of the interest on the principal debt. Madikizela says that for a home loan, the first

payment would typically be made towards the interest on the principal debt. However, any extra payment will lower the principal debt owed. As the principal debt decreases, so does the amount of interest owed. “You should also consider topping up your extra payments with a lump sum, either from your bonus or tax refund,” says Madikizela. “This will significantly reduce your interest over the loan period. “Being aware of the impact of making extra payments will help you manage your bond repayments and ultimately ensure that you pay off your bond as quickly as possible.”

THE IMPACT OF MAKING AN ADDITIONAL MONTHLY PAYMENT ON A R500,000 HOME LOAN AT AN INTEREST RATE OF 10.25% FOR 20 YEARS:

Recurring extra payment Time until loan paid off

Savings on interest

R100

18 years and 8 months

R49,933.77

R200

17 years and 7 months

R91,913.82

R300

16 years and 8 months

R127,859.91

R400

16 years

R159,093.56

R500

15 years and 3 months

R186,545.30

R600

14 years and 6 months

R210,921.07

R700

14 years

R232,744.92

R800

13 years and 5 months

R252,426.89

R900

13 years

R270,280.29

R1,000

12 years and 5 months

R286,571.73

Source: Simphiwe Madikizela, FNB housing finance


On show this Sunday from 2-5pm




HOMEFRONT RETIREMENT

Join the lifestyle queue Demand for units in secure, sustainable retirement estates with excellent healthcare facilities is soaring — and investors have noticed WORDS: MIRIAM MANNAK :: PHOTOS: SUPPLIED & ISTOCK

Zevenwacht Lifestyle Estate, Cape Winelands

P

redictions by Statistics SA show that the number of South Africans above 60 will rise from 4.3-million today to nearly 7-million by 2030. This means that 140,000 retirees will join this age group every year. This on its own makes the South African lifestyle retirement market increasingly attractive, says Evergreen Retirement Holdings CEO Arthur Case, even though not everyone can afford to buy into a retirement village or estate. “Even if 10% to 15% of 7-million retirees can afford it, it will make for an attractive market for organisations like mine,” he says, noting that the Evergreen stable comprises five retirement lifestyle villages in Johannesburg and Cape Town, including Evergreen Lake Michelle. Two others — Evergreen Val de Vie in the Winelands and Evergreen Noordhoek — are under construction, with more in the pipeline.

GROWING DEMAND Devmark Property Group CEO Hein Ehlers agrees. Demand for units of the company’s retirement portfolio, including The Plettenberg Manor in Plettenberg Bay, is outstripping supply. “There is a waiting list for people who want to buy homes in the established villages,” he says. “Some of our retirement villages have shown a capital growth of 40% over three years. This is phenomenal.” Estates in Gauteng such as Waterfall Hills and Waterfall Valley in Midrand are doing well,

“Over the past year we have seen a spike in the number of people between 30 and 35 showing interest in retirement investment” Stefan Botha, director, Rainmaker Marketing

too. Both are projects by Century Property Developments. “All our developments have proven to be solid longterm investments, with the value of individual properties increasing annually and well above the market norm,” says sales manager Vee Hofmeyr. “The resale market has been particularly buoyant.” Shoreline Sibaya on Durban’s North Coast is also a good illustration of SA’s growing appetite for retirement property. The estate reached R250m in sales in the six months after its launch in May 2017. “This makes it the fastest-selling retirement

estate in KwaZulu-Natal,” says Rainmaker marketing director Stefan Botha, whose firm manages the marketing of the estate and other villages such as Mount Edgecombe Retirement Village in Umhlanga.

YOUNGER MARKET While those aged between 50 and 70 form the bulk of SA’s retirement property investors, younger buyers are coming on board. “Over the past year we have seen a spike in the number of people between 30 and 35 showing interest in retirement investment,” Botha says. “Those looking to invest early are able to gain great rental return yields, some in the range of 8% to 10%. They also have the added benefit of living in the retirement estate when the time comes.” What is set to amplify the potential and future growth of SA’s retirement lifestyle sector is that most traditional retirement options do not meet the needs of today’s retirees. Instead of being confined to a typical nursing or old age home, pensioners are now looking for independence, convenience, security and fun. “Retirees desire the same facilities offered by conventional residential gated estates; amenities that will help them feel young and active in contrast to what you would assume to receive in traditional old age homes,” Botha says. He takes Mount Edgecombe as an example of how it is done. Besides 260 pet-friendly units, from apartments to freestanding homes, the estate boasts a myriad recreational facilities, including a country club offering bowls


HOMEFRONT TOP 10 RETIREMENT ESTATES IN SA Constantia Place Evergreen Bergvliet Evergreen Noordhoek Evergreen Val de Vie Mount Edgecombe Retirement Village The Plettenberg Manor San Sereno The Somerset The Tokai Estate Waterfall Hills Mature Lifestyle Estate Source: AfrAsia Bank New World Wealth, September 2017 Shoreline Sibaya, Durban’s North Coast and golf, a swimming pool, walking and jogging paths, and a restaurant.

FACILITIES

The Plettenberg Manor, Plettenberg Bay

“We offer primary and dementia care, to care in the home and stepdown care after surgery” Arthur Case, CEO, Evergreen Retirement Holdings

Celebration Retirement Estate, Fourways, Johannesburg

Zevenwacht Lifestyle Estate in the Cape Winelands offers a similar setup. Besides 54 luxuriously appointed two- and threebedroomed homes and 15 assisted-living apartments, the village offers a clubhouse, library and other facilities including concierge, laundry and domestic services. Celebration Retirement Estate in Fourways, Johannesburg, offers amenities including a restaurant, library, laundry services and an indoor heated swimming pool, as well as salons, fibre to the home and a 2.7ha protected greenbelt for the more adventurous and active retiree. “Most buyers want to ease their lifestyle and are

looking for facilities that offer meals, state-of-theart security and social interaction with those they share their living spaces with,” says Jessica Kolver, sales manager for Stellenberg’s La Récolte Retirement Village in Cape Town’s Northern Suburbs. While coastal regions are flagged as a drawcard for retirees, Evergreen’s Case says future demand for retirement lifestyle estates will not be confined to Cape Town, Durban or Port Elizabeth. “The demand will come from SA’s metros, including Johannesburg, Pretoria and Pietermaritzburg. People want to be close to networks, doctors and hospitals, and they want to go to shopping centres.”

HEALTHCARE Of all amenities and facilities, healthcare tops the list of priorities. Most


HOMEFRONT estates, from La Récolte and Zevenwacht to Shoreline Sibaya and De Plattekloof Lifestyle Estate in Cape Town’s Northern Suburbs, have catered for this need. The latter development has chosen Medwell SA as its care provider. “Services vary from ‘opt-in’ and ‘tailor-made’ options to comprehensive care and a 12-bed frail care centre for patients who require more intensive medical attention,” says Claudius Combrinck, MD of De Plattekloof’s marketing partner Imagine Property Consulting. Combrinck says more buyers want to know about the type of care available at an estate and, particularly, the track record of its healthcare provider. Comprehensive and quality healthcare is also a priority among Evergreen’s

“Climate change has certainly made each and every one of us more aware of the role we are playing in preserving what we generally take for granted” Claudius Combrinck, MD, Imagine Property Consulting

La Récolte Retirement Village, Stellenberg present and prospective residents, says Case. That is why the company’s Broadacres village near Fourways recently opened a 2,000m 2 healthcare centre. “We offer primary and dementia care, to care in the home and stepdown care after surgery. It is what we call continuous care,” says Case. He says this will become standard in all future villages.

GREENER

Mount Edgecombe Retirement Village, KwaZulu-Natal

Evergreen Lake Michelle Noordhoek, Cape Town

Besides an all-in, secure, convenient and comfortable retirement lifestyle and excellent healthcare, sustainability is another concern among retirees, says Rainmaker’s Botha. Retirement living in SA is becoming greener, influenced by increased climate change awareness and water and energy shortages. “Developers are actively

seeking to adapt to the evolving demand of the baby-boomer market, which has a very specific idea of how they view retirement and the lifestyle they can lead,” he says. One of SA’s greenest retirement estates is the Celebration Retirement Estate, the first retirement development in Gauteng registered for an EDGE certification with the Green Building Council of SA. Key drivers include the estate’s usage of solar water heating systems, roof insulation, energysaving insulated floors, energy-saving light bulbs, aerated showerheads and taps, and dual flush toilets.

WATER EFFICIENCY Other developments making green strides include De Plattekloof and The Plettenberg Manor. The latter has embarked on an energy and waterefficiency drive. “Climate change has certainly made each and every one of us more aware of the role we are playing in preserving what we generally take for granted,” Combrinck says. “Buyers are growing more and more sensitive to this.” Case says Evergreen Lifestyle has also jumped on the sustainability bandwagon. That is why all Evergreen’s units are fitted with solar geysers and efficient LED lighting. “In many of our villages we use double glazing,” he says. Harvesting rainwater and the use of boreholes has become common practice. “We also pay attention to the design of our buildings, including the materials we use. It has become an absolute necessity.”


4-Tier Security System

24-Hour Call4Care Services

5 Days Recuperative Care

Patronage Card

Daily Meals

Laundry Services

Housekeeping Services

Medical Assistance



INTRODUCING A LANDLORD’S NEW BEST FRIEND

WE’VE GOT YOUR RENT.

WE’RE SO CONFIDENT IN OUR FREE TENANT SCREENING THAT WE GUARANTEE YOUR MONTHLY RENT.

NO PAPER. NO FUSS.

OUR APPLICATION PROCESS IS EASY, AUTOMATED, AND ONLINE.

AT ONLY 2.5%

SAVE WITH SOUTH AFRICA’S LOWEST RENTAL FEES.

Imagine a rental platform that makes life easy for landlords. From marketing online, finding your dream tenant, facilitating the rental and managing your property – HouseME does it all. Join a community of the happiest landlords in South Africa. VISIT WWW.HOUSE.ME TO SIGN UP TODAY

THE NEW WAY TO RENT

INTRODUCING SIBAYA’S FIRST RETIREMENT ESTATE RETIREMENT LIVING FROM R1.475

R280 Million in sales in 5 months

Shoreline Sibaya is the first secure retirement estate within the much-acclaimed Sibaya Coastal Precinct. Situated less than 10-minutes from Umhlanga, this is KwaZulu-Natal’s premier residential node.

Book your onsite appointment

shorelinesibaya.co.za • 087 095 1658

RAINMAKERMARKETING 08/17

Featuring modern, luxurious single-level 1, 2 and 3-bedroom apartments, this pet-friendly estate offers a selection of engaging facilities, open landscaped areas, exceptional sea views, and an array of care services provided by the onsite MyCare Centre, which will be built during phase one. It’s no wonder that Shoreline Sibaya has become the fastest selling retirement estate in KZN’s history.


It's that feeling that no matter where you go from here, you know, deep down; it doesn't get better. One on Whiteley is THE ONE when it comes to living, shopping, dining, playing and working in the lifestyle capital of Johannesburg, Melrose Arch. With new 1-bedroom units available from R2.2 million, One on Whiteley is the perfect match for the first-time buyer or avid investor. On show: Weekdays 8am-5pm, Saturdays 10am-2pm and Sundays 2pm-5pm. Pam Golding Properties - Melrose Arch, 16 The High Street. For more information: Victoria Russell: C: 074 683 1222 | E: victoria.russell@pamgolding.co.za Francois Strauss: C: 083 675 1211 | E: peet.strauss@pamgolding.co.za Tersia Taljaard: C: 063 695 7571 | E: tersiat@amdec.co.za


HOMEFRONT

The Exchange Lofts, Braamfontein

WISE MONEY

Johannesburg suburbs you should invest in now Stagnation? What stagnation? These areas are on an upward trajectory that looks set to last well into the next decade WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED AND TER HOLLMANN

J

ohannesburg is a spread-out city. Within its expansive boundaries are new suburbs, older suburbs enjoying regeneration, or suburbs that just won’t quit topping the returnon-investment charts. In each of these niches are opportunities ripe for the picking. The trick is to know what trends to follow. Listed are some Johannesburg suburbs with fantastic investment potential: they have grown quickly and look like they will continue to prosper, delivering significant returns well into the next decade.

1. Rosebank When Rosebank was included in the Gautrain route in 2011, infrastructure upgrades and considerable

private and public-sector investment transformed the area. Renprop MD Chris Renecle predicts continued strong demand for residential apartments in the Rosebank precinct for the next five years, despite the depressed economy. He says Rosebank’s commercial zone has expanded by 173,167m 2 , of which 56,505m 2 has been completed in the past 12 months while 116,662m 2 is under construction. This excludes the Standard Bank building, which measures about 67,500m 2 . Further planned phases of Galleria would add at least another 40,000m 2 to the precinct’s commercial space. Renecle says this level of commercial development means a continued influx of people in the foreseeable

future. He pegs this at about 11,500 more people working in the Rosebank precinct by the end of 2019. “This will continue to spur the demand for upmarket executive accommodation as more and more people rely on public transport such as the Gautrain,” Renecle says. People will want to live closer to their place of work for timesaving, economic and environmental reasons. In anticipation of longterm continued demand for executive apartments in Rosebank, Renprop has launched three blocks in the area over the past four years. These include The Vantage, The Tyrwhitt and The Median. Between them they will bring more than 500 residential units to market by 2018.

Redefine Properties has made significant investments in Rosebank, including the 150-unit Park Central residential development, which is under construction.

2. Modderfontein Principal of Seeff Edenvale and Bedfordview David Ingle says Modderfontein, around the planned Gautrain station, is set to become one of the hottest investment properties in Gauteng over the next decade. “This area will present opportunities in the residential space with cluster homes, sectional title apartments and highrise apartments eventually on offer as well.” In addition, commercial, retail and office development possibilities will open. With its unrivalled


HOMEFRONT

Modderfontein Reserve wildlife park, Modderfontein

“The evolution of the Fourways area over the past 10 years has been nothing short of staggering” Rupert Finnemore, Gauteng regional head, Pam Golding Properties

Steyn City, Fourways

Cedar Lofts, Fourways

location in the heart of Gauteng, Ingle believes Modderfontein will be one of the top five investment destinations in the province. Buyers looking for their first property should explore Lakeside, a new area under development north of Greenstone and south of Linbro Park, or Thorn Hill Estate. Balwin Properties has developed Westlake Eco-Estate, close to major highways for an easy commute in and out, providing modern urban living in a natural environment with abundant greenery. The WiFi-ready apartments include ecofriendly appliances and prepaid gas, electricity and water meters. As this is a new development, there

are no transfer costs for the first-time buyer.

3. Fourways Fourways is now labelled as the fastest-developing commercial and residential hub in northern Sandton. The current median prices, according to a recent Lightstone Property report, are R2.3m for freehold properties and R1.57m for sectional title. Average selling prices in the three months to October 2017 were R2.5m in estates, R2.184m for freehold properties and R1.515m for sectional title units. Median prices for this year compared with those of five years ago show a value growth in the region of 35% for freehold property. “The evolution of the

Fourways area over the past 10 years has been nothing short of staggering,” says Pam Golding Properties Gauteng regional head Rupert Finnemore. “Given the plans property development giants such as the Accelerate Property Fund have for the region, there is now little doubt that we are seeing the area evolve into a mini-city in the mould of the Sandton city centre,” says Finnemore. The group plans to spend about R30m on the refurbishment of the existing Fourways Mall, he says, and a further R270m on the road infrastructure around the mall. “Such a commitment is an indication of just how much confidence developers have in the region.” He says the development of massive luxury estates such as Steyn City represent a considerable investment in the local economy. “In addition, a Gautrain station has been planned for Fourways, which, based on the experience of Sandton and Rosebank, is only likely to further stimulate the area.” One such investment opportunity in Fourways is Summercon’s Cedar Lofts, on Willow Road, just off Witkoppen Road, on four hectares of natural wetland. The development has 425 studio, one- and two-bedroom apartments and penthouses. Homes come standard with free appliances, fibreto-home internet, quality eco-friendly fittings and 24-hour accesscontrolled security.

4. Braamfontein Lightstone says the average price for a sectional title unit in


HOMEFRONT Braamfontein in 2007 was R365,000 compared with R480,000 today. Although the price escalation is only 23%, gentrification of the area is an ongoing success. Braamfontein is fast becoming a hotspot where penthouses of up to R4m are selling to creatives and young professionals. “There’s no denying that Braamfontein is on the up,” says The Exchange Development owner David Nijland. “It has never lost its foothold as a commercial suburb, but in recent years it has become the vibrant heart of Johannesburg.” He says it has unique selling points: it offers all the lifestyle benefits of the inner-city revival, and its central position near main travel routes, including the M1 highway, makes it an easy departure point for any destination in the city. The nearby Gautrain station ferries residents to Rosebank and Sandton quickly and conveniently. Seeff licensee in the Johannesburg CBD Byron Cornish says the massive drive for tech companies and innovation hubs to move to the CBD (and especially Braamfontein) is accompanied by the aesthetic improvement of the area and a stronger emphasis on security. While Braamfontein is still mostly a student area because of its proximity to Wits, UJ and other educational institutions, there is greater demand

from young professionals who want to live closer to where they work.

5. Melrose One of Johannesburg’s “best kept secrets” is the exclusive residential suburb of Melrose, midway between SA’s financial capital of Sandton and rapidly growing Rosebank. “The suburb remains idyllic and free from the hustle and bustle of the city,” says Pam Golding Properties Hyde Park office manager Richard Smith. “Melrose is minutes from Sandton and Rosebank, as well as the mixed-use Melrose Arch development, with excellent facilities on offer at these centres.” The suburb has therefore remained popular and residential properties of all kinds are in demand, says Smith. Pam Golding Properties Gold Club agent Kimberly Dods says the latest area report research released by Lightstone Property indicates that 56% of homeowners in Melrose have retained ownership of their properties for eight years or more. “Both traditional freehold homes and sectional title properties come to market relatively infrequently in this small suburb and wellpriced properties tend to be snapped up.” While Melrose typically has large private homes, the Melrose Arch development has a number of apartment purchases available. The Amdec Group is developing One on Whiteley, targeted at

Park Central, Rosebank, under construction

Melrose Arch Precinct, Melrose

“There’s no denying that Braamfontein is on the up” David Nijland, owner, The Exchange Development

working professionals, first-time buyers, corporate long-stay tenants and property investors. The developer promises investors at One on Whiteley excellent rental yields and capital growth.

6. Bryanston Bryanston remains an aspirational area and Finnemore says many dream of owning a home in the suburb. “Properties continue to hold their values well and represent a solid investment.” Though it is considered to be an upmarket suburb, Bryanston offers a wide range of property options — freehold, cluster homes and more affordable sectional titles. “It’s a

mature and sophisticated market with homes offered from between R1.5m for a sectional title home through to R40m or more,” Finnemore says. Bryanston is centrally situated between Fourways and Sandton and is an easy commute to work for many executives in surrounding areas. Finnemore says there has been “astonishing development of the area in recent years including residential, commercial and retail spaces” and he says this indicates the “high levels of confidence that developers of all kinds have in the region” with various amenities including offices, quality retail and

The Tyrwhitt, Rosebank, to be completed during 2018

entertainment outlets, schools and hospitals close at hand. One such development is Morgan Place, by Zotos. Sandton City is just up the road. It is minutes from the N1 and N3, making for an easy commute into the city. It is also close to a selection of schools, convenient shopping centres, and entertainment and leisure facilities. Another investment opportunity is Plantation Place, in the heart of Bryanston, on the corner of Plantation and Mandeville roads. A duplex home can be found for less than R1.9m, positioned within minutes of schools, shops and business centres.


PHOTOGRAPHS Alma Haser, supplied

Visit estatemagazine.com for forwardthinking property investment advice; architecture, design and decor trends; and luxury travel, food and wine inspiration. Home to your favourite REAL ESTATE life magazine content.

Follow us for your daily dose of curated design, decor and wealth investment news



HOMEFRONT INTERNATIONAL

Find your foreign bolt hole There are risks and rewards to buying an investment property abroad WORDS: JOCELYN WARRINGTON :: PHOTOS: SUPPLIED

S

avvy investors know there are more reasons to covet that Mediterranean beachfront villa than white sands and palm trees swaying in the sea breeze. And for those wishing to diversify their portfolios with a foothold on the global property ladder, the option of gaining an alternative residency, or even another passport, adds to the appeal. For countries such as Portugal, Cyprus and Malta, offshore investment programmes are a means of driving economic growth and attracting wealthy individuals to their crystalline shores. And South Africans have wasted no time diving in. “We are experiencing a rising demand for international residency and citizenship options from clients wanting to firm up their future planning objectives, be it simply from a lifestyle point of view or

as a rand hedge in times of economic uncertainty,” says managing partner of Henley & Partners SA Nigel Barnes. The global investmentmigration firm recently partnered with Pam Golding Properties to provide an end-to-end service for buyers seeking international property assets with a view to acquiring dual residence or citizenship.

EXIT STRATEGY Sable International MD of forex and international projects Andrew Rissik echoes Barnes. He says the acquisition of property is by far the most popular route taken by South Africans seeking an exit strategy. “We predominantly service clients looking to invest in Portugal, where one can obtain resident status via three investment routes,” he says. “Of these, 95% choose the real estate option.” For a five-year €500,000 property investment,

Portugal grants residency to foreigners through its Golden Residence Permit programme. “The country has seen an injection of €1.56bn in new residential investment since the inception of the scheme in 2012,” says MD of Pam Golding Properties international and projects division Chris Immelman. “Lisbon, in particular, has experienced a surge in property development activity,” he says, noting that, despite growth, the Portuguese capital still offers good value by international standards. “Mainstream values stand at €31,200/m2, and prime values at €35,000/m2, a third and a 10th the price of European competitors.” East of Portugal, the EU’s smallest country is undergoing a similar boom, largely due to its foreign investment programme. “Property in Malta has been on the upswing for the past three years. In 2016

“We predominantly service clients looking to invest in Portugal, where one can obtain resident status via three investment routes” Andrew Rissik, Sable International MD, forex and international projects

prices rose by 7.24%,” says Seeff’s Lance Cohen, who himself bought on the island.

TAXES Malta’s Individual Investor Programme has also helped to boost the rental market as applicants normally rent for their first year while their applications are processed, says Cohen. There are no property or council taxes in Malta, or any other costs normally associated with owning property. “First-time buyers are exempt from stamp duty and the country imposes no inheritance taxes, so the property side of the citizenship application is very safe and straightforward.” While not part of the Schengen area, the citizenship-by-investment (CBI) programme in Cyprus is the best, says James Bowling, CEO of Monarch & Co, another South African firm that specialises in facilitating international


HOMEFRONT

residence, property and investment. “It is quick (only three months to fully fledged citizenship), the peripheral costs are relatively low, and although the €2m investment requirement is high it is not a sunken cost or donation and it need only be held for three years. “Of greatest appeal is that Cyprus is part of the EU,” he says, “so you get full access to any other EU member nation for the purposes of education, lifestyle, business and healthcare,” says Bowling.

DEVELOPERS Like Rissik, Bowling has found the property investment route to be the most popular with South African clients. “This is mainly due to the rental income and capital growth prospects (4% to 5%) Cyprus offers.” It would appear South African developers too have pegged the country as a good investment option. Atterbury recently acquired

the largest shopping mall in Cyprus. But it is not just to Europe that local investors are looking for properties with fringe benefits. Real estate in Grenada has been significantly buoyed by the Caribbean country’s recently revitalised CBI programme.

SPICE ISLE Last year, property transactions on the socalled “Spice Isle” surpassed $50m, and, at a growth of 23%, set a new high. Foreign buyers accounted for 20% of the total sales, the average value of their purchases amounting to just on $225,000, nearly three times the overall market value. What really sets Grenada’s programme apart, says Warren Newfield, ambassador-at-large for trade and investment in Grenada, is that it is the only country with an active CBI programme that allows applicants to live in and operate a business in the US through the US E-2 Investor

Visa. Newfield says the property purchasing option (at least $350,000 in government-approved real estate) is proving more attractive than its cheaper donation alternative. “You may pay more but you get freehold title of a luxury property that you can sell after three years. Providing the property holds its value, and there are good reasons it should, your citizenship could cost you nothing and even make a return.” Of course, buying property as part of a residency or CBI scheme is not without risks. “There is always the possibility that the programme closes and demand tapers off, with the result that resale prices drop,” Bowling says. But, if the success of these programmes is anything to go by, it seems investors are more than willing to hedge their bets.

“Of greatest appeal is the fact that Cyprus is part of the EU” James Bowling, CEO Monarch & Co

EXPAT HOTSPOTS PORTUGAL Why: Residence grants access to the Schengen area (and counts towards citizenship eligibility after six years). How: A property investment of at least €500,000 (€350,000 if the property is older than 30 years or in an urban regeneration area).

CYPRUS Why: Capital growth of 4% to 5%; full EU membership; citizenship granted within 180 days. How: A three-year investment of at least €2m for the purchase or construction of property, with a residential property of €500,000 to be kept for five years.

MALTA Why: Property appreciation of 6% to 7% a year; full EU membership. How: The purchase of a residential property with a minimum value of €350,000, to be held for five years; a nonrefundable contribution of €650,000 to the National Development and Social Fund.

GRENADA Why: Visa-free access to 124 countries around the world, including the UK, the Schengen area and China; eligibility to apply for a US nonimmigrant visa. How: Acquisition of government-approved real estate for a minimum of $350,000, to be held for at least three years.




CORNUBIA INDUSTRIAL BUSINESS ESTATE

LAST DEVELOPMENT OPPORTUNITY NOW SELLING Just released by Tongaat Hulett Developments, this is the final opportunity to create a lasting legacy in the catalytic development of Cornubia, KwaZuluNatal. This prime corner site offers a locational advantage with busy main road exposure and lends itself to a range of development possibilities.

UNLIMITED POTENTIAL • 3.5529 hectares of bulk land in prime location Cornubia Industrial Business Estate • Possible development platform of 16 477 m2 • Site to be serviced prior to construction • Prime location: corner Chris Hani and Syringa Roads with access off Syringa Road • Level, corner stand with road access leading from the MR79 (Old North Coast Road) • Locational advantage with busy main road exposure • Endless possibility as unzoned opportunity • Access to captive audience, labour-rich area and in close proximity to the amenities in the Cornubia Town Centre • Surrounded by active, integrated business and residential communities BALLITO

• Supported by world-class infrastructure, facilities and leading brands in business

R102

• Extensive and accessible transport network with Cornubia a key GO!Durban Integrated Rapid Public Transport Network corridor

KING SHAKA INTERNATIONAL AIRPORT

CORNUBIA

M27

P577

KWAZULU-NATAL

• Catalytic development – adopted as a National Priority Project

M41

N2

GATEWAY THEATRE OF SIBAYA SHOPPING

EMDLOTI

UMHLANGA

STRATEGIC LOCATION: CONNECTING PEOPLE M4

R102 Situated in a prime catchment zone between PINETOWN Mt Edgecombe, uMhlanga and the surrounding N2

INDIAN

communities of Phoenix, Blackburn and Waterloo, Cornubia is considered a destination OCEAN in its own right. Located along the GO!Durban IRPTN route and designed to accommodate multi-modal transport N3

types from motorised to non-motorised and pedestrianisation, this mixed-use, mixed-income and fully integrated development affords strategically important investment opportunities given DURBAN its accessibility, vision and scope. CORNUBIA INDUSTRIAL BUSINESS ESTATE: VISIONARY AND BOLD Located on the North-Western side of Cornubia, this zone is intended to provide, preserve and use land or buildings to enable the creation of a contemporary Industrial Business Estate, which can accommodate a wide range of uses including warehousing, assembly, service and light industrial, distribution, logistics, showrooms, offices and retail set within a landscaped environment.

To register your interest, submit a proposal or make a viewing appointment, contact: Soo Meyer +27 31 560 1900 / +27 83 310 2206 Soo.Meyer@Tongaat.com

YOUR PROPERTY DEVELOPMENT PARTNER

For more on Cornubia www.cornubia.co.za I More about Tongaat Hulett Developments at www.thdev.co.za 51293 / BDH / 2


HOMEFRONT PROPERTY NEWS

Sibaya precinct protects natural assets

A

conservation trust has been formed to ensure that the natural heritage in the Sibaya Coastal Precinct development north of Durban is protected. On completion, the Tongaat Hulett development will comprise a few thousand homes, schools and tertiary institutions, retirement developments and corporate, retail and hospitality offerings. The precinct, stretching between the Ohlanga and eMdloti river estuaries between the N2 highway and the coast north of Umhlanga, incorporates seven nodes and spans

more than 1,000ha of beach, forest, river and hilltop landscape. Up to 60% of the development consists of 308ha of protected coastal dune forest. The forest, wetlands and beaches host a variety of flora, birdlife and animals that will fall under the custodianship of the Sibaya Coastal Precinct Conservation Trust. The development will establish 75km of hiking, running and cycling trails with an opportunity to construct a series of boardwalks and trails, affording beach access to 6.5km of coastline.

Much of the pristine Hawaan forest and a series of other smaller forests fall within the precinct’s borders. “This forms the only significant remaining coastal dune forest outside of the iSimangaliso Wetland Park. “It is a vital regional asset and will be maintained, protected and preserved along with the pristine beaches, wetlands and other rehabilitated open spaces by the trust, which is currently being registered,” says Tongaat Hulett developments executive Dayalan Chetty.

Capricorn rises in business park rankings

C

apricorn Business Park near Muizenberg has become a sought-after decentralised business hub. Cape Town’s traffic congestion has helped the multi-use business park transform into coveted industrial space in the Southern Suburbs with about 100 tenants, comprised mostly of light industrial users and some office space. Modelled on the successful Westlake Business Park, the Capricorn development was hit by the 2008 downturn that led to

Pearl Valley Hotel opens its doors

T

he luxury Pearl Valley Hotel by Mantis opened in the Winelands in October. Set in the picturesque PaarlFranschhoek Valley, the hotel forms part of the award-winning Val de Vie Estate, internationally recognised for its polo facilities, world-class amenities and acclaimed Jack Nicklaus Signature Golf Course at Pearl Valley. “The linkage between Val de Vie and Pearl Valley and the development of the land

has a far-reaching effect on the community and the economic growth of the Paarl-Franschhoek Valley. The hospitality industry has the ability to beat poverty and offer people crucial jobs,” said Western Cape Premier Helen Zille when officially opening the hotel. The hotel has 38 rooms of which 23 are onebedroom suites, one is a wheelchair-friendly onebedroom suite and seven are two-bedroom suites.

The golf course has a fully operational restaurant and bar at its clubhouse where hotel guests are welcome. The suites are 100m from the clubhouse. Pearl Valley Hotel is developed, managed and marketed by The Mantis Collection, a family-run stable of award-winning hostelries founded by Adrian Gardiner in 2000. “I consider this to be one the of the best hotels on any golf course — and I’ve seen a lot,” says Gardiner.

several liquidations and low tenancy rates. This began to turn around in 2014 when the average land price was R660m 2, compared with R1,222m 2 in 2017. Says Ralph Lax of Ikon Property Group: “Asking rental rates for existing buildings are between R58/m 2 and 65/m². For new-build premises it ranges from R70/m 2 to R75/m².” There are about 20 vacancies in the park for small light industrial units ranging between 150m 2 and 500m 2. Water desalinisation firm NuWater has its head

offices in the park. Says NuWater chief business development officer NJ Bouwer: “As a company location, Capricorn Business Park offers easy commuting access from main highways and dedicated taxis to and from Muizenberg and Steenberg stations. “Centralised access for staff was a major factor influencing our decision to set up in Capricorn Park. When we arrived it was only 60% occupied — now it has a 95% occupancy rate with only a few development sites still available.”

Fibre solution for communal DStv

D

Stv customers who live in an estate, complex or apartment block and have a fibre optic network installed can now receive a signal from a single shared satellite dish to their decoders, using the fibre network. Fibre optic distribution makes use of the latest technology and can be a solution for existing and new communal DStv systems. The system uses the shared satellite dish and distributes the signal into individual homes. This does not impact on the

data download speeds of the fibre network. The system is compatible with Explora and single-view HD

decoders. Explora subscribers will be able to use DStv’s Catch Up Plus and ShowMax services.


HOMEFRONT PROPERTY NEWS

Cape Town’s new urban architecture

R

ecently unveiled as a R10bn mixeduse development that should transform Cape Town’s Foreshore, Harbour Arch will embrace the live, work, play principles of new urban design, says its developer The Amdec Group. Modelled on Johannesburg’s Melrose Arch, Harbour Arch is designed for sociability, safety and accessibility. Amdec Property Developments head Nicholas Stopforth says new urban architecture has become a global phenomenon where people live, work and relax in a safe, accessible, communityfocused environment. On a 5.8ha site at the confluence of the N1 and N2, Harbour Arch is a phased development comprised of six towers linked by landscaped public spaces running the length of the precinct. “It is geared to allow for pedestrian traffic at all hours of day and night,”

says The Amdec Group’s CEO James Wilson. It will offer residents accommodation with other lifestyle elements in the same location “such as shops, gyms, restaurants and cocktail bars, with a huge emphasis on security”. “Easily accessible by public and private transport, the development will include green landscaped public spaces, cosmopolitan streetscapes, open-air squares, pedestrian-friendly walkways and carefully articulated indoor/outdoor spaces,” says Wilson.

GATEWAY Positioned as a new gateway to the CBD, Harbour Arch will be valued at about R10bn on completion in a projected five years. Work on the first phase will begin in Q2 2019 and is due for completion in 2020. Wilson says the completed scheme will incorporate residential apartments as well as lifestyle and convenience retail, boutique office space and two Marriot hotels.

The initial phase will comprise No 1 Harbour Arch, including 432 apartments selling from R1.7m to R7m, and commercial space. A choice of studio, onebedroom, two-bedroom and three-bedroom corner apartments are available. About R500m of sales have already been concluded. Fibre internet, waste recycling, rainwater harvesting, water-saving facilities and LED lighting will be provided. There will be extensive parking facilities. The developers say a key feature will be the eighth-floor “Central Park” — a landscaped interlinked podium level open to the public and running the length of the precinct, tenanted by restaurants, coffee shops, gyms, convenience retail and lifestyle outlets. Residents will have access to a rooftop garden on the 24th floor and the use of a pool, exercise area and terrace on the 17th floor.

“It is geared to allow for pedestrian traffic at all hours of day and night” James Wilson, CEO, The Amdec Group


PRETORIA EAST

. . . D R N U A ! O T Y E S M D A L O I H U B BUY M A AND DRE Stand: R589 000 up to R650 000 Building: R1 225 000

Stand: R589 000 up to R650 000 Building: From R1 150 000

FAR = 120% of stand size Stand: R589 000 up to R650 000 Building: From R1 100 000 WERNER EKSTEEN

RE/MAX Jowic - Team Werner Eksteen

082 411 3089

082 577 4531 (Office) werner@wernereksteen.com


LOVE WHERE

YOU LIVE

Live the five-star life you deserve in one of our three bedroom, en-suite apartments, starting from only R7.9m Invest in what has proven to be one of the best lifestyles in gauteng; The Houghton Limited hotel suites starting from R4.4m

Hear the tranquility of nature, breathe in the openness, feel the secureness, scan the golf course views stretching to Verwoerd Tower in Pretoria and on the doorstep of your luxury home, experience a five-star hotel, spa and gym. This can be your lifestyle, in the heart of Johannesburg.

OSBORN RD

M1

HOUGHTON GOLF CLUB

2ND A VE

Come and have a look at our luxury apartment 12029, available daily for viewings WARREN BECKER 082 302 3004 | warren@thehoughton.com ALAN BECKER 082 718 8100 | alan@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12029


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.