HOMEFRONT 13 OCTOBER 2016 WWW .BDLIVE.CO.ZA WWW.BDLIVE.CO.ZA 7 APRIL 2017
MUST READ
Island style in Linden PAGE 2
Building issues: where to get help PAGE 4
Compare costs before buying PAGE 12
Sasol Place - North Atrium
Boom town
Sandton is keeping its place as the richest square mile in
Capital gains and property owners Africa, thanks to ongoing construction and investment in PAGE 12
transport systems
PAGE 8
HOMEFRONT LIFESTYLE
Easy breezy A Caribbean eatery in Joburg is all about a laid-back, island-inspired vibe. And it serves up a happy night out WORDS: JULIA FREEMANTLE :: PHOTOS: ANNA-BELLE DURRANT
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he Joburg dining public is generally enthusiastic and open-minded about new experiences. Good news then that the choice of cool places has expanded with the opening in October of Brian Lara Rum Eatery in Linden. But if you call to make a booking, best you do it three weeks in advance. Partners Gert Schoonraad, Stefan Rossouw and Marcel Cronje did not expect this kind of reception to their latest food venture. Despite being only 25, Cronje has been part of the leisure landscape since joining Schoonraad and Rossouw at their popular Braamfontein watering hole Great Dane in March 2012. While he may seem young to be a veteran restaurateur, Cronje has been exposed to the industry in one way or another his whole life — his father’s friends owned restaurants where he and his brother worked during holidays, and he knew all
along that food was what he wanted to do, studying hospitality management after he matriculated.
INSPIRATION Together with friends and partners Schoonraad and Rossouw, the trio has quite a restaurant pedigree. This passion project is their latest. Its starting point was actually the beverage offering — something around which Schoonraad wanted to build the restaurant concept. “Rum culture exists elsewhere in the world, but South Africans don’t know much about it — I think most see it as something to add Coke or a mixer to, rather than appreciating the drink itself. I wanted to change that — create an appreciation for it. I think it’s the next It drink,” he says. With rum as the inspiration, the team set about creating a space in which it could thrive. “Our references for the menu and the space were Miami and the Caribbean, with a 1980s-kitsch twist. We did a lot of research — we went to both places
“Our references for the menu and the space were Miami and the Caribbean, with a 1980s-kitsch twist” Marcel Cronje, partner, Brian Lara Rum Eatery
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actually — to learn about the food, get a feel for the décor and design,” says Cronje This has translated into an immersive, authentic experience. Think beach bar casual with sunshinestriped umbrellas, potted palms and watersports paraphernalia on the walls. The (very punchy) piña coladas even come served in a pineapple garnished with party parasols — little touches that make you feel like you are on holiday.
NOSTALGIA The team trawled a lot of junk and retro shops to create the charming, tropical nostalgia of the street-front restaurant. Brian Lara Rum Eatery is on Fourth Avenue, Linden, a popular street known for its quirky décor stores and burgeoning café culture. It is the heart of Linden, one of Johannesburg’s character-filled older suburbs, and one that has had a recent resurgence as a trendy and cosmopolitan lifestyle destination. It also offers great property investment potential. But Cronje is not about to disclose any of their décor sources. And when he says a lot of shops he means it — about 200 all over Johannesburg, and even one or two in Durban. It is not just knick-knacks — there are salvaged PRODUCED BY TIMES MEDIA PROPERTY PUBLISHING Unit G4, Old Castle Brewery, 6 Beach Road, Woodstock, 7925 021 447 7130
windowpanes and full bar counters, old boats mounted on the ceiling, even a set of skis lined up on the bamboo wall panelling. The partners sourced and built everything themselves. But why used décor? Apart from the retro references they were drawing on, Cronje and his team felt that vintage furnishings and accessories would give more of an inviting feel — a theory they had proved with Great Dane. “We wanted people to come in and say ‘oh, my gran used to have a lamp like that in her house’, look around, appreciate the details and the quirkiness,” he says. This combination of nostalgia and exoticism is clearly a winning recipe, and is totally Instagram-worthy.
FOOD But a successful restaurant has to offer more than just a sexy setting; it also has to deliver on food. Brian Lara definitely does. Its small but varied Caribbean-inspired menu is simple but hearty, with a major focus on freshness and flavour. “We didn’t want to put too many items on the menu, but still have something for everyone. We also keep the menu so small because a lot of the ingredients we use are seasonal, so we can change
A EDITORIAL TEAM Editor: Kim Maxwell Creative Director: Mark Peddle Designer: Samantha Durand
“Think beach bar casual with sunshinestriped umbrellas, potted palms and watersports paraphernalia on the walls”
something as soon as it doesn’t become available anymore,” says Cronje. Think seafood curry, jerk chicken, fish cakes and ribs, with homemade sauces and refreshingly different sides that include coleslaw, melon and feta salad, and creamed leeks. The cocktail list, as you might have expected, is rum heavy (strawberry daiquiri, Cuba libre, dark and stormy, mojito), and poured with a generous hand. If you order shots, they come in the cutest upside-down pineapple glasses — worth doing it just for the novelty. And that is something the trio does well: novelty. But they also have the substance to back it up so that their venues are not flavour of the month and then fade into obscurity. “We’ve always focused on great food, great drinks, great service and a great vibe,” says Cronje. And Brian Lara’s popularity shows no sign of waning. It is still buzzing long after its initial opening, maybe because it combines all the elements of the partners’ formula. Or maybe because it offers an opportunity for escapism in the city, a chance to pull up a tropical print barstool, enjoy a fruity drink to the sounds of laid-back reggae and pretend you are on an island somewhere.
PUBLICATION
Copy Editor: Lorraine Kearney Content Business Manager: Catherine Davis Production: Joanne Le Roux
ADVERTISING SALES Michèle Jones Susan Erwee
michele.jones@thecreativegroup.info susan.erwee@thecreativegroup.info
084 246 8105 083 556 9848
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CONSTRUCTION
Beat those building blues Building rather than buying? Here’s how to stick to regulations — and who to call when things fall apart WORDS: LUCINDA JORDAAN :: PHOTOS: ISTOCK
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here are numerous advantages to building your own home, not least being that the end result meets your specific wants and needs. But building is often fraught with frustrations, and few homes or developments are completed successfully without some hiccup in the form of hidden costs or unscheduled delays. Then there is the ever-present spectre of noncompliant builders and contractors who leave aspiring home owners having to deal with a disaster instead of occupying their dream space. What many do not know is that help is at hand, in the form of the National Home Builders Registration Council (NHBRC). An agency of the Department of Human Settlements, the NHBRC regulates the home-building industry and provides protection for home owners. It offers services such as the enrolment of new homes, home builder registration, home building inspections, builder training, and geotechnical and materials engineering.
The NHBRC also resolves disputes arising from building irregularities. “In the 2015-16 financial year, the agency received 331 complaints, of which 299 were resolved,” says Tshepo Nkosi, manager of corporate communication and stakeholder relations. In the same period, 246 home builders were suspended for offences ranging from failure to rectify major structural defects to failure to rectify workmanship-related defects, failure to enrol homes and code of conductrelated matters. “The most common disputes arise from a breakdown in relationships between the home owner and the builder, the home owner not realising that additions will lead to an escalation of costs, and using an unregistered builder,” says NHBRC in-house architect Dominique Geszler.
LEGAL Contracting a builder registered with the NHBRC is a legal requirement. “According to the Housing Consumers Protection Measures Act it is a criminal offence for any person to
build a home without being registered with the NHBRC,” says Nkosi. The penalty for not doing so is a fine of up to R25,000 per contravention, or imprisonment for a period not exceeding one year.
WARRANTY Homes should be registered with the NHBRC within 15 days before construction begins, by the builder. Compliance gives the home owner access to the agency’s warranty fund, which kicks in when disputes are not successfully resolved and your home is in need of repair or reconstruction. To mitigate structural risk, the NHBRC carries out four inspections during the build phase, says structural engineer Craig Makapela. “Inspections are conducted at the four main stages of activity: during the sub-structure (excavations and foundations); superstructure (floor to ceiling height); practical completion (roof and finishes); and storm water management.” Final inspections take place prior to occupation, and this is when any outstanding details are reviewed. “It’s important to note
that NHBRC inspectors concentrate on structural aspects of construction and not contractual finishes such as carpeting choices and paint colours,” says Makapela. The NHBRC warranty will not cover: Maintenance items; Fence or precast fencing; Temporary structure; Swimming pool; Tennis court; Lift; Air conditioning systems; Household appliances; Stables; Workshops; and Alterations or additions.
OCCUPATION “The most common issues that arise in the first three months of occupation are related to maintenance,” says Geszler, who advises that home owners never accept a completed house that does not meet their specifications. “It is worthwhile taking a systematic approach to your inspection. Bring along a checklist and share it with your builder as you move from room to room. That way, you can both check off items together.” Notable checks include: All services (electricity and
water) are connected and are in working condition; The boundaries are correctly and clearly marked; The site has been cleared of construction debris; and All contractual work and finishes are correct — this includes details such as sanitaryware, whether doors and windows open and close properly, that any extras you have ordered have been provided and that you have the keys to all locks and that they work. “If any of these are not as they should be, put it in writing to the builder — don’t rely on a response to oral complaints or comments,” says Geszler.
“The most common issues that arise in the first three months of occupation are related to maintenance” Dominique Geszler, inhouse architect, NHBRC
YOUR RIGHTS Not all building defects show up immediately and, to this end, it is important to know that you are not always liable for repair costs. According to the NHBRC, home owners can: Within three months, instruct a builder to rectify noncompliance with or deviation from the terms, plans and specifications of your mutual building agreement; Within 12 months, instruct a builder to repair roof leaks attributable to workmanship, design or materials; and Within five years, instruct a builder to rectify major structural defects identified in the home that have been caused by noncompliance with technical building standards. If a builder is unable or unwilling to rectify reported defects, the NHBRC can act as a mediator and institute a conciliation process. If this fails, its board may approve that the NHBRC rectify the defects using the warranty fund.
WESTERN CAPE Southern Suburbs 021 673 4200Atlantic / Seaboard 021 439 7415
Bishopscourt / R37.5 million
Ref# KW1305562
Bedrooms 4 / Bathrooms 5 / Garages 6 / Romantic thatch residence in the heart of Bishopscourt. Gracious, warm and romantic, this immaculate home of generous proportions and great style offers full family accommodation, elegant entertainers' reception rooms, private outside entertainment patio with pool and north/south tennis court plus a separate self-contained guest cottage or spacious work from home office. Set on park-like grounds with mature trees and borehole irrigation, this special family home is a rare find indeed and is ready and waiting for you and yours. Myrna Duveen 082 443 8417 / Christiaan Steytler 082 658 0071
Constantia Upper / R15.5 million
Ref# KW1311727
Bantry Bay / R65 million
Ref# AS1265975
Bedrooms 4 / Bathrooms 4 / Garages 4 / Beautifully tucked away in a quiet cul-de-sac with a rural ambiance this home is a gem. It has been meticulously renovated and decorated to a unique quality of class and style. The voluminous entertainment areas flow to the large tropical verandah area and sun room which has the ambience of the lush garden being incorporated into the home.
Bedrooms 9 / Bathrooms 9 / Garages 3 / Situated in prime De Wet Road, this fully furnished and equipped 5-star Guesthouse is ideally suited as a super-spacious home or a successful business. 4/5 bedrooms suites with private terraces. Glamorous penthouse suite opens onto wraparound terrace. Spacious 2-bedroom apartment leading onto deck. Studio apartment in garden setting.
Arie KadĂŠ 083 448 0488 / Angie Bloom 083 678 7876 / Lauren Clark 083 306 3830
Janice Toay 082 770 1510 / Jackie Rosenberg 083 414 6600
FOCUS ON: THE BLYDE IN RIVERWALK ESTATE
Crystal Lagoons at Citystars Sharm El Sheikh, Egypt
ADVERTORIAL
Balwin Properties brings the beach to Pretoria The Blyde in Riverwalk Estate will make resort living a reality, where water sports and lagoon strolls will be part of your day WORDS AND PHOTOS: SUPPLIED
B Crystal Lagoons at Diamante Cabo San Lucas, Mexico
alwin Properties has recently partnered with Crystal Lagoons for the construction and operation of SA’s first Crystal Lagoon and the first Crystal Lagoon in sub-Saharan Africa. Balwin Properties’ new residential development, The Blyde in Riverwalk Estate, located in Pretoria East, Gauteng will showcase Crystal Lagoons’ unique technology, which is patented in 190 countries.
It has revolutionised the global real estate market by bringing idyllic beach paradises to new locations, where swimming, kayaking, paddle boarding and sailing can be enjoyed. The Crystal Lagoon at The Blyde in Riverwalk Estate joins more than 600 Crystal Lagoons projects — in different stages of development and negotiation worldwide — in more than 60 countries. Says Balwin Properties CEO Steve Brookes: “We
FOCUS ON: THE BLYDE IN RIVERWALK ESTATE
are very excited about our partnership with Crystal Lagoons and foresee this as the first of many lagoons still to come in SA combined with the Balwin brand.” Says Brookes: “Balwin developments appeal to couples investing in their first home, retired people
“By bringing the beach to Pretoria we are taking apartment living to the next level by making resort lifestyle living a reality” Steve Brookes, CEO, Balwin Properties
looking for safe lock-up and go apartments, young families who can let their children be children, and to investors who are attracted by the return on investment that the developments offer. “By bringing the beach to Pretoria we are taking apartment living to the
next level by making resort lifestyle living a reality.
LIFESTYLE CENTRE “This development will also have the signature lifestyle centre that has become synonymous with the Balwin brand, including a fully equipped gym, squash court,
restaurant, concierge, laundromat, cinema room and a function room, as well as state of the art security. The continuous promenade around the lagoon is perfect for sunset strolls and it will connect the different amenities around the lagoon,” says Brookes.
The Blyde in Riverwalk Estate will consist of three-bedroom, twobathroom; two-bedroom, two-bathroom; and onebedroom, one-bathroom apartments and will have top of the range finishes, including a fridge, washing machine, tumble dryer and dishwasher.
WATER EFFICIENT A Crystal Lagoon can be filled with fresh, brackish or even salt water and uses 2% of the energy of standard pool filtration technologies, and 100 times less additives. The sustainability of these water amenities makes them very attractive in the South African market. A typical Crystal Lagoons uses 30 times less water than a standard golf course, and in many cases rainwater is all that is needed to replenish the water, thanks in part to the patented antievaporation film, which restricts the amount of water lost via evaporation.
GET IN TOUCH The Blyde in Riverwalk Estate Melissa du Plessis Tel: 084 788 1020 e-mail: michelle@balwin.co.za balwin.co.za
HOMEFRONT
Sasol Place
Old Mutual Emerging Market Office
URBAN DEVELOPMENT
lobally, people are increasingly moving back to the city, which, in the 21st century, must respond to a raft of new challenges, from severe traffic congestion to changing economic conditions, income disparities and mass migration, as well as resource depletion and climate change. Resolving the commuter crisis, reducing traffic congestion and minimising car dependence has been top of mind for Gauteng’s city planners for some time now. Sandton, with about 10,000 businesses and head offices as well as the JSE and one of the biggest convention centres on the continent, is the country’s commercial, financial and business gateway. It also has the busiest Gautrain station, currently servicing almost 60,000 daily commuters. Testimony, too, to the runaway success of the 80km mass rapid transit railway system is the reduction in travel time it has afforded its many users in 2016; this is estimated to have been a saving of 3.5-million work days. “In a time of increasing complexity, our cities need to evolve to the point where they are able to balance prosperity and wellbeing with efficiency and equality in ways that continually
G Boom town Sandton is keeping its place as the richest square mile in Africa, thanks to ongoing construction and investment in transport systems WORDS: JOCELYN WARRINGTON AND LORRAINE KEARNEY :: PHOTOS: RUBEN SMIT/SASOL AND SUPPLIED
Discovery headquarters
restore their social and natural capital,” says Pierre Swanepoel of StudioMAS Architecture and Urban Design. He says many of these qualities are already being rolled out in SA’s major cities, but that there is still “plenty of work to do”. “By developing them toward equality, resilience, adaptability and wellbeing, our cities can become the healthiest, greenest and richest — in both cultural and economic terms — places to live.”
CHALLENGES Sandton, Africa’s richest square mile, is attempting to meet Joburg’s population growth, migration and housing density challenges as well as reduce traffic congestion and car dependence, while continuing to lead the way as SA’s financial and business capital with its office developments. Infrastructure upgrades and the development of modern office blocks, hotels and mixed-use spaces is ongoing, and the suburb is considered the financial and economic hub of the continent. As home to more than 20 buildings certified by the Green Building Council SA (GBCSA), it is also the continent’s epicentre of sustainable construction. In line with this, ecomobility forms a crucial part of Sandton’s future as a major hub and projects
HOMEFRONT
CASE STUDY: DISCOVERY GLOBAL HQ, SANDTON Discovery’s new 110,000m2 global headquarters, on the corner of Rivonia Road and Katherine Street, is the largest singlephased commercial office development in Africa. When complete — occupation is scheduled for the end of 2017 — it will house all 8,000 of the financial services group’s Sandton employees, who currently work in four different buildings in the Sandton CBD.
Discovery headquarters such as the Gautrain and the Rea Vaya Bus Rapid Transit system cater significantly to the cause. The City of Johannesburg has also invested R180m in massive improvements to the area’s roads and pavements, with the aim of making them more pedestrian and cycle friendly.
“Eco-mobility forms a crucial part of Sandton’s future as a major hub”
DEVELOPMENT The area is seeing a great deal of development, says Dr Andrew Golding, Pam Golding Properties CEO. “The impressive Discovery and Old Mutual buildings are under construction, while the commissioning
SANDTON OFFICES According to Sandton Central Management District, nearly half of all the office development taking place in SA right now is happening in Sandton. Sandton Central is at the heart of it. The South African Property Owners Association office vacancy survey for Q4 2016 found that 48% of new offices being built were going up in Sandton. The closest contender to this across the country was below 9%.
of the 11-storey, R2bn Sasol headquarters building, with its fivestar Green Star rating, commenced recently. “These initiatives speak to the considerable confidence that investors of various kinds have in the area,” he says. At 135 West Street, Richland Properties’ new 218-room, three-plus star Signature Lux Hotel will open next month. A short distance away, at 140 West Street, Zenprop is developing a 27,000m 2 office property in two linked towers — a 10-storey north tower and a 14-storey south tower. It is due for completion in October.
MIXED-USE Investec and Cri-Eagle are developing the 100,000m 2 The Central at 96 Rivonia Road. The mixed-use property will offer office, retail, hotel and residential space. The first development on The
Central site is a 20,000m 2 state-of-the-art office building, comprising 14 floors. It is expected to be complete before the end of the year. Also on Rivonia Road, at 129, the old Village Walk is being redeveloped by Eris Property Group into a mixed-use precinct. It comprises a 13-storey office tower and an 18-storey office tower, with a combined floor area of about 62,000m 2 . Below the two office towers will sit two levels of retail space of about 15,000m 2 and a seven-level parking basement. The project is set for completion in early 2019. On the corner of Rivonia Road and West Street, across from the Sandton Gautrain Station, the Old Mutual Emerging Market Office, a 120,000m 2 multistorey mixed-use office precinct, is being developed by Old Mutual. Above the Sandton Gautrain Station, Kgoro Central, a 200,000m 2 mixed-use art precinct is being developed around a public square. It is being rolled out for final completion in 2024, says developer Regiments Real Estate. Work on the first phase of two levels of retail, three levels of parking and 304 flats begins in June and is scheduled to finish by the end of 2018. By 2021, this will be joined by a hotel with serviced flats, two
more retail levels, offices and a high-end residential building, The Jewel.
RESIDENTIAL Sandton Central is now home to more than 300,000 residents. “We’re seeing a growing demand for apartment properties enabling a ‘live, work and play’ lifestyle
for those wanting to take advantage of the café culture and commercial opportunities offered in the greater Sandton area,” says Rupert Finnemore, Pam Golding Properties’ regional head of Gauteng. The Capital on the Park is one of the latest residential developments in Sandton Central. It will
The innovative design pivots on three linked office towers, each with a ground-level lobby, eight office floors and rooftop sporting facilities. Nine basements will provide parking for 6,000 cars. Says Rudolph Pienaar, office division director at Growthpoint Properties: “Discovery’s is a decidedly flat corporate culture and the design enhances this abiding communal spirit by way of large open floor plates that wrap around expansive atrium spaces, creating visual continuity between all the levels.” Growthpoint developed and jointly owns the building with Zenprop Property Holdings. It is the former’s largest development project. Among its striking architectural elements is a swirling double-glazed glass facade, essential for both natural lighting and thermal heat control. Reflective blinds on all the facades will also contribute to daylight harvesting, while greyand rainwater systems will minimise the use of potable water. “These features, and many more, will make the building one of the most efficient and environmentally sustainable in Sandton,” says Zenprop CEO James Tannenberger, who says the project is on target to achieve a five-star GBCSA green rating.
Village Walk
HOMEFRONT “According to Sandton Central Management District, nearly half of all the office development taking place in SA right now is happening in Sandton”
CASE STUDY: SASOL PLACE, SANDTON Designed by Paragon Architects to emulate an S shape, Sasol’s eyecatching 67,000m2 global headquarters is a new landmark on the Sandton skyline. Home to 2,500 staff members who were previously located in 17 different offices across Johannesburg, the building was designed to provide a consolidated and costeffective headquarters and to foster a single high-performance corporate culture, says Fay Hoosain, Sasol’s senior vice-president of strategic projects. Sasol Place - The Main Lobby
have 240 one- and twobedroomed flats, as well as penthouse suites, that will be available for occupation from July this year. Says Golding: “While there was an easing in the local Sandton residential property market in 2015, particularly at the higher end of the market,
the region remains an important centre of business and commerce, and residential property within the Sandton city centre itself, as well as surrounding suburbs such as Morningside and Sandhurst, remains at a premium.” Units in high-rise
executive apartment blocks such as the Michelangelo and Sandhurst towers are priced exclusively for the premium market. However, Finnemore says there remains a strong demand for well-placed homes offering good value between R1.7m and R3m. “A studio apartment
in Morningside can be purchased for about R1.2m, while a top-end luxury penthouse offering every modern convenience may fetch R25m or more.” A new executive studio flat can be secured at a development such as The Capital on The Park from R1.899m, he says.
With floor plates surrounding two large internal atriums and connected to a central circulation core by a number of bridges, the design allows businesses and functions to operate in relative privacy while remaining integrated in a single office complex. “The wide
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array of facilities, such as a 300-seater restaurant, pastry shop, convenience store, fitness and wellness centres, conference facilities and landscaped garden, all provide great spaces for our staff to enjoy and also to meet with customers,” says Hoosain. Green features include an energy-efficient heating, ventilation and air conditioning system, rainwater harvesting, occupancy-sensor LED lighting and automated blinds that track the sun. And, at 4,000m2, the rooftop garden is one of the largest in the country and has been landscaped to encompass four separate indigenous biomes aimed at attracting a variety of local birdlife. “With 90% of the full project spend flowing back into the local economy, we achieved a five-star green rating from the GBCSA — a significant accomplishment for a building of this size.”
TWO ICONIC TOWERS RISING 53 STOREYS WITH STUNNING CITY & RIVER VIEWS I N T H E C E N T R E O F L O N D O N ’ S N E W F I N A N C I A L D I S T R I C T- C A N A RY W H A R F P R I VAT E B A L C O N Y G A R D E N S R A N G I N G F R O M 1 0 9 S Q F T – 4 0 1 S Q F T M E M B E R S H I P T O T H E E XC L U S I V E WA R D I A N C L U B’ S P R I VAT E F I R S T C L A S S FA C I L I T I E S
J O I N U S F O R A L O N D O N R E S I D E N T I A L M A R K E T U P DAT E A N D E XC L U S I V E A C C E S S T O O N E O F L O N D O N ’ S F I N E S T N E W R E S I D E N T I A L D E V E L O P M E N T S – WA R D I A N . A P A N E L O F L O N D O N P R O P E R T Y E X P E R T S W I L L P R O V I D E A N U P - T O - D AT E M A R K E T O V E R V I E W, I N C L U D I N G S O M E O F T H E M O S T I M P O RTA N T FA C T O R S I N F L U E N C I N G L O N D O N ’ S H O U S I N G M A R K E T P R I C E S F R O M £ 7 5 6,0 0 0 AT T E N D A N C E I S S T R I C T LY BY R S V P I N F O @ S M U T S A N DT YA L O R .C O M +27 (0) 11 083 6366 9 M AY 2 0 1 7 THE OYSTER BOX UMHLANGA ROCKS, DURBAN
1 0 M AY 2 0 1 7 O N E & O N LY V & A WAT E R F R O N T, C A P E T O W N
1 2 M AY 2 0 1 7 SUMMER PLACE SANDTON JOHANNESBURG
Whilst every care has been taken in preparing these particulars, the agent and the respective landlords/vendors give no warranty, express or implied, as to the completeness or accuracy of the information contained herein. These particulars are subject to errors, omissions, change of price/rental or other conditions, withdrawal without notice, and any special listing conditions imposed by our principals. The agent will not be liable for negligence, or for any direct or indirect consequential losses or damages arising from the use of this information. You should satisfy yourself about the completeness or accuracy of any information or materials. The information contained herein does not form part of an offer or contract “*Prices and details correct at the time of going to press. Readers are advised to make their own enquiries to verify such information.
HOMEFRONT FINANCE
Taxing business Selling property, whether it is an investment or your home, carries capital gains tax. This is what you should know about it WORDS: PATRICK CAIRNS :: PHOTOS: ISTOCK BY GETTY IMAGES
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apital gains tax was introduced in SA 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 R2m 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 buy shares in a company for R500,000 and
sell them 10 years later for R750,000, the capital gain is R250,000.
PROPERTY 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 professional fees paid to 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
“The capital gain is the difference between what an asset was bought for and how much it is disposed for”
percentage of what is 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.
CALCULATIONS For example, an individual in the highest tax bracket who disposed of an investment property might look at a calculation similar to this:
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
Base cost (including all expenses) R600,000 Proceeds R940,000 Capital gain R340,000 Less annual exclusion R40,000 Capital gain for the year R300,000 Amount included in taxable income at 40% inclusion rate R120,000 Tax rate 41% Capital gains tax payable R49,200 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.
PROPERTY
Top 10 most expensive per square metre
Cost calculations Add price per square metre to your reckonings if you are considering investing in property WORDS: BRIDGET MCNULTY
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rice per square metre is an unbiased, numbers-based perspective on the value of property, and is one of many aspects to be taken into account when you are deciding where to buy. Property portal Private Property has compiled all the data from 2016 to find out exactly what the property landscape looks like in SA. Says Private Property CEO Simon Bray: “As SA’s leading property portal, we are in the unique position of being able to analyse data for the whole country and provide useful insights for those who are interested in property.”
PRICIEST Perhaps unsurprisingly, the Atlantic Seaboard in Cape Town comes in as the most expensive property, at R43,750/m 2 , with a median size of 111m 2 . The Cape Town City Bowl is next, but R12,000 cheaper at R31,588/m 2 , and a median size of 91m 2 . This is the second smallest median size after Stellenbosch, the sixth most expensive at R19,111/ m 2 and 66m 2 . Cape Town owns the top three spots, with the southern suburbs coming in after the City Bowl, R9,000 cheaper at R22,303 but notably bigger at 129m 2 . This makes sense seeing as the area is known for its
family homes. KwaZulu-Natal follows, with Umhlanga’s 144m 2 median homes costing R20,673/m 2 . Of the 10 most expensive areas, six are in the Western Cape, three in KwaZulu-Natal (Umhlanga, Ballito and Umdloti to Westbrook — all North Coast) and one in Gauteng: Sandton and Bryanston (North) at R16,923/m 2 . The largest properties in the most expensive catergory are found in the Cape Peninsula, in False Bay, at 159m 2 , but at R15,200 their price per square metre seems a bargain. It is less than half the City Bowl and almost a third of the Atlantic Seaboard.
CHEAPEST If it is size you are looking for, you cannot do better than Middelburg in Mpumalanga, where the price per square metre is R6,378 and the median size of properties is 233m 2. That is significantly bigger than any other properties on the most affordable list, except for Krugersdorp in Gauteng, which is R1,500 more expensive per square metre at R7,658, but has properties of 220m 2. Mpumalanga also takes the second cheapest slot, with Witbank coming in at R6,622/m 2 and properties of 182m 2. It is followed by Northern Pretoria priced at R7,136/m 2 . No Western Cape or KwaZulu-Natal suburbs make this list.
Area
Median size
Atlantic Seaboard
111
Median R/m2 43,750
Cape Town City Bowl
91
31,588
Southern suburbs
129
22,303
Umhlanga
144
20,673
Milnerton
112
19,417
Stellenbosch
66
19,111
Sandton and Bryanston (North) 145
16,923
Umdloti to Westbrook
138
16,742
Peninsula (False Bay)
159
15,200
Ballito
238
14,748
Top 10 cheapest per square metre Area
Median size
Median R/m2
Middelburg
233
6,378
Witbank
182
6,622
Northern Pretoria (Far North)
157
7,136
Moot
130
7,279
Port Elizabeth
136
7,369
Kempton Park
180
7,478
Jeffreys Bay to Tsitsikamma
190
7,492
Johannesburg CBD and Bruma
71
7,568
Rustenburg
133
7,628
Krugersdorp
220
7,658
Source: Private Property
A R A B E L L AC O U N T RY E S TAT E .C O. Z A
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HOMEFRONT PROPERTY NEWS
New addition to Atlantic Seaboard
T
he just-launched Signatura Group’s The Cosmopolitan adds to the residential offerings on Cape Town’s Atlantic Seaboard. On the cusp between Sea Point and Bantry Bay, the nine-storey building has three penthouses and 35 flats on the top six floors, ranging from 42m² bachelor units to the largest 187m² penthouse. Prices start at R2.5m. Parking is on the lower floors, with a
ground floor retail section. Signatura is collaborating with Fabian Architects and Make Studios on The Cosmopolitan. Their architecture and interior design creates inward space around a light well, plus outward space to the city and the sun, says Fabian Architects and Make Studio partner Andries Samuel. “The building is designed in a classic,
but contemporary style. This is in keeping with the generally Art Deco and Modern flavours of the buildings of the neighbourhood, but also suits the complex expression needed for an urban site,” says Samuel. The penthouses have access to private roof terraces via a showcase stairway. Lines of plant boxes will accentuate the façade and greenery will soften the roof edges.
Slight uptick in foreign buyers
T
he FNB Estate Agent Survey for Q1 2017 pointed to a slightly higher estimate of foreigner buying of homes in SA, compared to the previous quarter. From 4.45% of total home buying in Q4 2016, the estimated percentage of home buyers believed to be foreigners in the Q1 2017 Estate Agent Survey rose slightly to 4.89% of total home buyers. It was also marginally higher than the 4.67% estimate in Q1 2016. Using a four-quarter
moving average for smoothing purposes, the estimated percentage of foreign home buyers for the four quarters up to Q1 2017 was 5.23%, a slight increase from 5.18% for the four quarters up to the end of 2016, but up from 4.75% for the four quarters up to Q1 2016. The aggregated response to the survey showed a mild bias towards more foreigner home buying, even though a rand strengthening through 2016 to early 2017 has made
South African homes more expensive to foreigners in their own currency terms. In rand terms, average house price inflation by February 2017 was 0.8% year on year. However, in foreign currency terms, the FNB House Price Index increased by 24.3% year on year in euro terms, by 19.3% in dollar terms and by 36.5% in pound terms (the Brexit impact) year on year in February. This means property in SA has become notably more costly for many foreign buyers.
Foreign home buyers as a percentage of total buyers 8 7
7.16 7.00 6
6.04
6 5
%
4.89
4
4
3 2
Four-quarter moving average
2 1 2005
2007
2009
2011
Estimated foreign home buyers (buying homes in SA) expressed as a percentage of total South African buyers
2013
2015
2017
Source: FNB Property Barometer
Atterbury completes A multimillion-dollar Ghanaian mall
tterbury’s $95m Kumasi City Mall in Kumasi, Ghana, opens on April 20. It is the fourth retail development in the country by the property developer and investor. Accra Mall, Westhills Mall and Achimota Mall are all in Accra. The 18,500m 2 mall has
potential for a 10,000m 2 expansion. Almost fully let, anchor tenants are Shoprite and Game. Its retail mix includes food, convenience, banking, services, fashion, electronics and a cinema, club and children’s games for entertainment, with a long list of local retail names.
The design is a joint venture between South African architect practice Boogertman + Partners and Ghanaian practice MultiCAD. It is inspired by an African tree, which branches out to create a roof canopy, and incorporates steel, concrete and wood.
Top buyers head to St Francis Bay
T
he top end of the residential market is proving strong in the St Francis Bay area, including Cape St Francis, according to Pam Golding Properties area principal Richard Arderne. There have been six sales of more than R10m since the start of 2015 compared with two prior to that period. Of the six, Pam Golding Properties sold three, one of which was for R21m. Two of the eight sales were private. Recent sales by Pam Golding Properties include
two beachfront homes sold for R11.5m and R9.4m. Says Arderne: “Many of these properties are ideally situated on the canals, mainly in Mayotte Circle, Marina Island and Sunset Avenue. “As they offer exceptional scenic views and instant access to a host of leisure activities, the canals remain the most popular area, particularly as no further canals will ever be built, further enhancing the exclusivity of these homes.” Arderne says most of
these waterfront homes are priced from R5m up to R25m. Holiday rental demand in peak seasons is also high: some daily rates achieved range from more than R10,000 to R15,000 a day. According to Deeds Office statistics, total market sales for St Francis Bay and Cape St Francis from March 2016 to February 2017 was about R350m. Pam Golding Properties sold property worth R156m, about 45% of the total sales.
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