HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 15 JUNE 2018 WWW.BUSINESSLIVE.CO.ZA
MUST READ
Threatened species art with star appeal PAGE 2
When is life rights a good fit? PAGE 4
Rental investment: remove the risk PAGE 14
Seniority = satisfaction
Taking on SA’s urban issues
The face of retirement living has changed — younger, fitter residents are snapping up homes in mature lifestyle estates
PAGE 8
PAGE 16
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HOMEFRONT DESIGN
Loud and clear South African artist Porky Hefer was asked to mastermind Endangered, a unique art initiative about threatened global species. It opened in Switzerland this week WORDS: HILARY PRENDINI TOFFOLI PHOTOS: ANTONIA STEYN FOR SOUTHERN GUILD
E
ach year, the global forum Design Miami/ Basel takes place alongside ArtBasel fair in Switzerland. This year, from June 14-17, it is where South African creative whizz Porky Hefer launched a small, but universally meaningful collection of large, soft seating-pod sculptures. The unusual exhibition, commissioned by Schiff Fine Art Advisory and Southern Guild, benefits the Leonardo DiCaprio Foundation. Hefer’s playful threedimensional works are acclaimed both locally and internationally. Witty and imaginative, they invite people to climb on or into them, whether they are man-sized weaver nests or sly leather crocodiles with gaping mouths. The latest international project by this gifted former advertising world creative is on a somewhat more loaded stretch of turf. “I have never met Leonardo DiCaprio,” Hefer said at Cape Town’s press preview of his show, before it headed for
Europe. “Art adviser Lisa Schiff saw my animals at Design Miami and decided they were right for what the Leonardo DiCaprio Foundation (LDF) is doing.”
ENDANGERED The foundation supports projects that promote the wellbeing of all earth’s inhabitants, including its vulnerable wildlife. Which is why it commissioned Hefer to create five large-scale designs of endangered animals, using only eco-friendly materials, and working with communities to encourage respect for handicraft skills in the face of mass production. The choice was not difficult. So many species face destruction. “Small animals cannot easily relocate when habitats diminish, which is why I chose the pygmy threetoed sloth,” Hefer says. “Whales and sharks are being killed every day by plastic trash. Polar bears
“Art adviser Lisa Schiff saw my animals at Design Miami and decided they were right for what the Leonardo DiCaprio Foundation is doing” Porky Hefer
HOMEFRONT
“Porky’s brief was that the animals should appear cuddly, but not like toys. More graphic than realistic” Ronel Jordaan
face the loss of their sea-ice habitat and orangutans are being hunted into extinction.” Hefer created the five pod designs with assistance from three groups of Cape Town-based craft collectives. A charming giant orangutan is the star. It
was made from hand-felted and brushed merino wool yarns by felt fundi Ronel Jordaan and her team. They used a variety of pink, brown and orange eco-friendly dyes, and then stitched row after row on to hemp fabric. For the huge hands and face, Jordaan employed the signature felt she uses for her rock cushions.
POLAR BEAR Jordaan also made the life-size polar bear that lies comfortably on its back with its head on a pillow. “Porky’s brief was that the animals should appear cuddly, but not like toys. More graphic than realistic,” Jordaan says. “And they had to be big.” In fact both of hers turned out so cuddly that at the
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A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand
press preview Hefer could not resist lying down in their laps and wrapping their arms around him. “The challenge was to create patterns large enough to fit the brief,” Jordaan says, “and then to find industrial machines big enough to sew them together. We outsourced some of the sewing to an amazing company named MClothing. Without their help we would not have made the deadline. Then we had to find seamstresses committed to stitching row after row for weeks.”
GREAT WHITE SHARK Heartworks helped produce a great white shark with a cavernous pink mouth full of simulated lethal debris. Each piece of junk was made of cotton fabric and embroidered with a local household name. “We appliquéd 450 pieces in shades of dusty pink on to metres of cotton fabric,” says Heartworks’ Margaret Woermann, who worked with seven of her 30-strong group of homebased embroiderers and seamstresses, headed by the diligent Ntsapokazi Somagaca. Hefer provided the welded metal frame. Woodstock upholsterers DAG made the base and cut the pattern. “We found images of plastic pollution on our phones,” says Woermann. “A dead seabird with its stomach cut open to reveal the catastrophic reality of ingesting plastic. Midnight
lights were burnt to finish the work. We were the long busy fingers, the tentacles extending from the very creative Porky Hefer, as we tried to stitch the threads to the tune of his fast-thinking brain.” After Hefer suggested the team give the shark a local persona so that it wouldn’t scare children, they made one of its ragged teeth gold, and embroidered Cape Flats gangster tattoos on its pale grey cotton skin.
BLUE WHALE The age-old techniques of rug hooking and knotting were used to create the blue whale. Mielie’s Adri Schutz and her workers from Khayelitsha and Imizamo Yethu have a crafts collective whose colourful designs Hefer has known and admired for years. They covered the whale in blue mosaic patterns from recycled T-shirt yarn, and for the baleen that filters the giant mammal’s ocean titbits they made a curtain of clear beads. Mielie also made a sloth that hangs by its long, curved claws from a branch. Thanks to teardrop fur around its eyes, it looks heartbroken. No wonder. There are 100 pygmy threetoed sloths left in the world. The Endangered collection is for sale in a limited edition of three per animal, via Southern Guild in the V&A Waterfront’s Silo District, with 25% of sales proceeds supporting LDF’s wildlife conservation programmes.
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HOMEFRONT LEGAL
The right choice? Most retirees find themselves choosing between purchasing a sectional title unit and buying a life right in a retirement village. BBM Law director Marina Constas explains life rights PHOTOS: SHUTTERSTOCK
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hile buying a life right is a wellestablished and widely practised model for retirement estates around the world, many people do not fully understand the concept. It may not be ideal for every retiree. Buying a sectional title unit in a retirement village is no different to investing in a property in any other sectional title complex. The Sectional Titles Schemes Management Act 8 of 2011 applies and the fact that it is strictly a retirement village reflects in the management rules of the complex. The complex rules will specify a buyer’s minimum age and the facilities and services offered. The life rights concept is quite different. On signing an agreement with the developer or established scheme, a life rights buyer commits to paying a specified sum that gives them the right to live in the unit for the remainder of their lifetime or until they leave the village. This sum will usually be more affordable than buying a similar sectional title unit. So what should smart buyers consider?
Departure When the life rights buyer dies or leaves the retirement village, the Section 21 company or trust running the development may retain a percentage of the original life rights contribution or the new sale price, whichever is greater. For example, if this takes place within 12 months, the occupant or their estate may receive 80% of the original payment. After 12 months they may receive 70% and after 24 months, 50%. The reasonable cost of fixing up the interior of the unit will also be deducted from the payment to the occupant or their estate.
The law In terms of the legislation governing life rights schemes, they do not fall under the Sectional Titles Schemes Management
Act, but under the Housing Development Schemes for Retired Persons Act 65 of 1988, which protects elderly people buying into villages and is scrupulous about what must be included. It deals with what must be reflected in the offer to purchase; so, for example, the offer must, in terms of the act, specify exactly what is to be built within the scheme. The developer cannot promise to build a clubhouse or a frail care facility and then fail to do so.
Cheaper option Life rights schemes have their place. A person may not be in a financial position to buy a sectional title unit and pay the rates and taxes as well as the levies. A life rights contract would be a cheaper option upfront and would only require the payment of a set monthly fee as a levy. Life rights is the first choice of many retirees because it guarantees them a safe place in which to live until they die or decide to leave.
Before signing Life rights buyers should ensure that they fully understand the contract and what amount or percentage of their initial outlay they will receive back on the sale of their unit, or what amount their estate will receive on their death. They should be aware that some amounts may be held back to repair and refurbish the unit for the next owner.
Levies Life rights developers are compelled to specify the estimated levies for a period of two years in advance, so that retirees know what they will pay for facilities after entering into a life rights contract. It must also go on record that
the prospective occupant knows their rights and is aware of what they could recover if the contract ends.
Investment If a retiree has the funds to purchase a sectional title unit, I would recommend that they should go this route, as the property will generally appreciate. They are investing in a future asset, after all. If money is tight and the retiree is not set on leaving an inheritance, then life rights may be the way to go. Whether purchasing a sectional title unit or a life right in a retirement village, however, I advise every retiree to obtain the advice of an attorney before signing any agreement.
OMBUD SERVICE All retirement villages fall under the Community Schemes Ombud Service (CSOS) Act, whether sectional title, life rights or both. The latest practice directive from the office of the ombud should be of interest to those either living in frail care or mid care in the village, or those who receive a Sassa grant. These people no longer have to pay the monthly CSOS levy. Any disputes within these villages may now be mediated or adjudicated by the ombud service.
HOMEFRONT
Constantia Place, Constantia
Waterfall Valley, Midrand
PROPERTY TREND
Seniority = satisfaction The face of retirement living has changed — younger, fitter residents are snapping up homes in mature lifestyle estates WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED
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s general health improves, supported by medical advances, people are living much longer and also working longer to ensure they have the finances to cover the years ahead of them. This has caused a shift in demand from the traditional old-age home to mature lifestyle estates that accommodate seniors with more youthful needs — sports facilities, WiFi and business lounges are increasingly popular amenities residents require. “The notion of the traditional old-age home is falling away as lifestyle developments rise in popularity,” says Dr Michael Zipp, CEO of Cape Peninsula Organisation for the Aged (CPOA). “As a result, the industry has seen a surge in the number of these types of developments, offering a wealth of options from multigenerational estates to retirement estates across the country.”
LIFE STAGE Evergreen Lifestyle CEO Arthur Case says many people choose to extend their working lives — sometimes out of necessity due to poor retirement planning, and sometimes because they are simply in good health
and see no reason to slow down. Whatever the motive, at some point past 65 people are now choosing to go into true retirement, or to downsize for a more manageable lifestyle. Their focus is on matching their lifestyle to their personal life stage with flexible options.
PLANNING “We live in a rapidly changing world with many challenges, including shifts in family structures, health and vitality, technology, work and security, so it is absolutely essential that we plan for retirement,” says Case. “It is for these reasons that retirement lifestyle developers focus more intensely on meeting the needs and constraints of today’s working retirees.” He says many residents at Evergreen Lifestyle villages work well into their 70s and want to be fully functional, fit and productive. Their priorities are security, health, wealth and remaining socially significant. It is possible to downsize in stages within a retirement village that provides work-from-home solutions, technology in the home, access to gyms and heated swimming pools, and full maintenance and security teams. But then, as the realities
of ageing come to light, these villages also provide personalised home-based primary healthcare and equipped care centres with 24-hour nursing, frail and dementia care. Zipp says people opt to move to retirement facilities earlier for a variety of reasons including convenience, security or the desire to downsize. “This has led to an interesting shift in the needs and expectations of modern retirees, as well as an increase in the demand
for retirement housing that can accommodate these needs.” Almost all CPOA’s apartment complexes and estates promote an independent lifestyle with amenities such as gardens, communal lounges, dining areas, libraries, internet access and laundry facilities, while some provide a gym, conference room, swimming pool, coffee shop, croquet or bowling lawn and hairdressing facilities. Its flagship development is
The Somerset Lifestyle & Retirement Village, Somerset West
Constantia Place, owned by CPOA for almost 30 years.
ESTABLISHED The popular and established Cape Dutch-style estate in Constantia offers accommodation to retirees from the age of 55 and up on a life rights basis, with 61 individual cottages for fully independent retirees, 10 assisted-living apartments, and a 27-room aroundthe-clock care centre. Each cottage includes its own private garden, and both cottages and
apartments are equipped with telephone, internet and satellite TV infrastructure. The Somerset Lifestyle & Retirement Village in Somerset West appeals to over-50s who wish to retire to a tranquil and secure setting. Public relations officer Elzaan Meyer says the estate meets all practical and lifestyle needs, with professional healthcare and advanced security. It is close to shopping malls, hospitals, golf courses and a variety of sport and outdoor facilities. Residents
HOMEFRONT
The Plettenberg Manor in Keurboomstrand, Garden Route
Oasis Luxury Retirement Resort, Century City can choose between luxury life rights apartments and freestanding freehold homes. St John’s Village in the KwaZulu-Natal Midlands also offers a choice of lifestyle options for families and retirees. It has freestanding homes with sectional title ownership for over-55s, priced from R1.895m, with two beds and two baths.
LINKED ESTATES There has been significant interest in mature lifestyle estates that form part of broader residential estates. Often the amenities of the broader estate are shared, while mature residents enjoy the convenience of similar-aged neighbours and proximity to retirement-specific services. Rabie Property Group director John Chapman says Oasis Luxury Retirement Resort in Cape Town’s Century City has been a runaway success — all 375 apartments in the six high-rise blocks were sold eight months before the final block was completed. Much of the success is because Oasis falls within the Century City mixed-use development, which gives residents access to a wide range of amenities, says Chapman. Various lifestyle facilities are run alongside activities ranging from outings to wine farms to water aerobics, theatre and walks in the landscaped gardens.
other than a communal lounge and dining room. “We are planning three new retirement resorts or villages — one at Century City within the mixeduse redevelopment of the Ratanga site, and one each at two mixed-use developments in the greater Cape Town area — Clara Anna Fontein in Durbanville and Burgundy Estate.” Situated on the slopes of Tygerberg Hills, De Plattekloof Lifestyle Estate offers comprehensive options for over-50s in 106 assisted living suites, 100 luxury apartments and 57 homes. On-site amenities include a restaurant, bar, coffee shop, library, salon and clubhouse. Residents also have opportunities for leisurely strolls thanks to access to Tygerberg Nature Reserve and Plattekloof Duck Pond nearby. Healthcare at De Plattekloof includes 24-hour nursing, a clinic and care tailored to each resident’s needs. The assisted living suites offer comprehensive care while
VILLAGE Val de Vie near Paarl is in itself an awardwinning estate, and its Evergreen Lifestyle village has intentionally been incorporated into the main estate. “Retirement villages cater for different retirement life stages, and that is why our retirement village is a part of the main estate,” says Val de Vie marketing director Ryk Neethling. The estate encourages an active lifestyle for mature residents. They have free access to the golf course, three gyms and three swimming pools and may participate in any services offered to other estate residents. They also have facilities including bowling greens, a library, activity room, movie theatre and reading halls. “The interaction between older and younger people is very important — it has a positive impact on older people to be surrounded
by family,” says Neethling. “In turn, it is also positive for younger people. This is the root of our integrated philosophy.” The mature lifestyle estate’s first residents take occupation in January 2019, Neethling’s parents among them. Devmark Property Group CEO Hein Ehlers says that residential units in retirement villages have proven to be some of the best property investments as demand always surpasses supply. “This market has its own set of rules and doesn’t necessarily follow the trends of the general residential market.”
WAITING LIST There is normally a waiting list of people who want to buy into established villages. Ehlers says it is important for buyers to do their homework. “You need to ensure that the developer has a track record in developing retirement villages, that the development is in a prime area and that it is developed in terms of the
“The interaction between older and younger people is very important — it has a positive impact on older people to be surrounded by family” Ryk Neethling, marketing director, Val de Vie
Retired Persons Act.” Devmark Property Group is responsible for successful retirement villages such as Clé du Cap, Legato, Heritage Manor, Onrus Manor, La Vie Est Belle, Villa Cortona and more recently Helderberg Manor and The Plettenberg Manor.
RETURNS Similarly Waterfall Valley, the second phase of the popular Waterfall Hills in Midrand, has enjoyed significant returns on investment. Century Property Developments head of operations, sales and marketing Jessica Hofmeyr says a home selling for R2.7m three years ago was recently sold in the mature lifestyle estate for R7.6m. The estate offers 244 large stands and a variety of designs for luxury freestanding houses comprised of one to three bedrooms. Specifically tailored to the mature market, Waterfall Valley shares existing facilities with phase one of Waterfall Hills
TOP 10 RETIREMENT ESTATES IN SA 1 Constantia Place 2 Evergreen Bergvliet 3 Evergreen Noordhoek 4 Evergreen Val de Vie 5 Mount Edgecombe Retirement Village
HOTEL EXTRAS The estate also has a care centre with hotel-style assisted-living apartments, frail care and a specialised dementia unit and physical rehabilitation services. “There is a real demand for quality retirement resorts that offer great lifestyle facilities,” says Chapman. “They are not like old-age homes of old, which offered very little in terms of facilities
managed home care enables residents to enjoy the comfort of their own homes.
6 Plettenberg Manor 7 San Sereno, Bryanston 8 Somerset Lifestyle & Retirement Village 9 Tokai Estate 10 Waterfall Hills Mature Lifestyle Estate Source: AfrAsia Bank/ New World Wealth 2017
Evergreen Muizenberg
HOMEFRONT The development offers a choice of one-, two- and three-bedroom apartments. In addition, Evergreen Lifestyle recently purchased land from Tongaat Hulett for a retirement development in Umhlanga Ridgeside. Lazuli Lifestyle and Retirement Estate is also attracting attention on the North Coast. Neighbouring Zimbali Coastal Resort on the Dolphin Coast, with views of the ocean, wetlands, coastal forest and a golf course, the retirement estate offers 23 two-bed, two-bath and three-bed, three-bath residences priced between R2.995m and R3.995m.
“Whether you choose a house or an apartment, retirement villages can be the key to a smooth transition”
The secure, sectional title development for over-50s is near Johannesburg’s Modderfontein Nature Reserve and Modderfontein Golf Club. “Heritage Estate offers residents convenience coupled with peace of mind in an attractive, landscaped environment,” says Nelson Ferreira, Pam Golding Properties area principal for Johannesburg East. The estate comprises The Firs and The Oaks, with 126 sectional title units.
Arthur Case, CEO, Evergreen Lifestyle
DEMAND
EXPANSION Heritage Mature Lifestyle Estate in Modderfontein, Johannesburg change by converting land to its most appropriate use to maximise the value this generates. “Creating Retire KZN has helped achieve this goal by positioning KwaZulu-Natal as a retirement destination, building a solid community and facilitating new retirement opportunities with our development partners across a range of retirement models.” Retire KZN helped
facilitate two retirement developments on the KwaZulu-Natal North Coast: Mount Edgecombe Retirement Village, followed by Shoreline Sibaya. Shoreline Sibaya is the first retirement opportunity within the premier Sibaya Coastal Precinct. With sales of more than R365m since its launch and 65% of the first phase sold, it is the province’s fastestselling retirement estate.
is continuous demand. For this reason, many are expanding. At Evergreen Broadacres at the border of Dainfern to the north of Johannesburg, 24 new apartments have been launched for sale, while 108 are planned. Heritage Mature Lifestyle Estate also caters for this increasing demand with a range of accommodation options.
EMBRACE LUXURY COASTAL RETIREMENT ON KZN’S NORTH COAST RETIREMENT LIVING FROM
R1.490 MILLION
Situated less than 10-minutes from the popular Umhlanga area, Shoreline Sibaya provides luxurious single-level 1, 2 and 3-bedroom apartments. This pet-friendly estate boasts a selection of engaging facilities, beautifully landscaped areas, exceptional sea views, and an array of care services provided by the onsite Care Centre, which is being built in the phase 1 construction. It’s no wonder that Shoreline Sibaya has become the fastest selling retirement estate in KZN’s history!
70% SOLD OPEN PLAN LIVING The depictions herein are for illustration purposes only and are subject to change without prior notice.
shorelinesibaya.co.za | info@shorelinesibaya.co.za | 087 095 1658
RAINMAKERMARKETING 06/18
and offers access to the broader Waterfall Estate. There is an increased focus on KwaZuluNatal as a retirement destination. Retire KZN, an initiative by Tongaat Hulett Developments, has helped inject about R1bn in retirement investments into the province. Commercial head Chris du Toit says Tongaat Hulett wants to play a significant role in developmental
Renishaw Hills is an eco-estate within the Mpambanyoni Conservation Development near Scottburgh on the KwaZulu-Natal South Coast. It comprises several interconnected residential and commercial villages. Again marketed to active over-50s, there are 350 standalone homes from R2.3m, or 170 apartments from R1m overlooking a village square. One guarantee of mature lifestyle estates
In Evergreen Muizenberg, just eight units remain and no further apartments will be built. Evergreen Noordhoek, however, is under construction. On completion it will have 150 homes, a lifestyle centre and an apartment block. “Losing a family home can be a difficult experience,” says Case. The retiree is leaving behind a home filled with memories over many years and the cutting back can be distressing. “Whether you choose a house or an apartment, retirement villages can be the key to a smooth transition.”
HOMEFRONT
LETTING
How to foolproof your investment rental Correctly managed, buy-to-let properties can be good investments. But do be savvy about what to buy, where, and who your tenants are WORDS: HELEN GRANGE :: PHOTOS: SUPPLIED AND SHUTTERSTOCK
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inding a second property to let ensures a return on your investment and can improve your collateral and credit rating. Yet a recent study showed that higher-income earners do default on their rent. What practical steps can you take to secure a lettable property and good tenant, as well as a consistent rental, lower maintenance and a minimum of landlord hassles? The 2017 Rental Index by PayProp, a platform processing rental payments for property management agencies, shows that tenants paying R10,000 or more a month are under financial pressure, as are their counterparts in the lower rental brackets. This is because although
they’re relatively highincome earners, the rental proportion of that income increases disproportionately as they climb up the earnings ladder.
DEBT “Our assumption is that people who earn more can afford higher rents, but this doesn’t always seem to be the case,” says PayProp data and analytics head Johette Smuts. “When we looked at the change in debt-toincome ratios from Q4 2016 to Q4 2017, we saw that these ratios increased for tenants who pay more than R10,000 rent. “This means that tenants in this bracket are essentially living beyond their means while trying to keep up with the proverbial Joneses,” says Smuts.
TENANT SNAPSHOT The most expensive rental bracket (more than R15,000) has the lowest percentage of arrears relative to rent.
The lowest rental bracket (R1,000-R2,500) has the highest percentage of arrears relative to rent and the lowest percentage of tenants in good standing. Most tenants pay between R5,000 and R7,500 a month. The average tenant in arrears is almost one full month behind with rent. Source: PayProp Rental Index Q1 2018
This highlights the importance of affordability checks, even for tenants with a high income and good credit scores. “Tough economic times and stagnant income levels are putting tenants in all rental brackets under pressure,” she says.
RENTAL BRACKETS Specialist evictions attorney Greg Vermaak confirms evictions span all rental brackets. “In the uppermiddle income group, where rentals are, say, R15,000 and upwards, you do get people who’ve bitten off more than they can chew financially. Many are entrepreneurs without a steady salary, or they may be credit impaired, which is why they are renters and not homeowners.” Rental agents agree there
are defaulters across all rent ranges. The PayProp Rental Index Q1 2018 shows that one in four tenants do not pay their rent in full every month. “As a general rule a relatively small percentage of tenants default,” says Dexter Leite, Pam Golding Properties rental manager for the Cape region. “In challenging economic times this default percentage potentially increases, but we haven’t noticed this trend in any one rent bracket.” In north-west and Greg west Johannesburg (the Chas wider Roodepoort and Sandton areas), Letting People has found that the less-than-R10,000 rental bracket is the most unstable. “Tenants paying about R5,000 or thereabouts have the least disposable income,” says
"O be ho se co us to ho th is
HOMEFRONT Letting People’s principal Jacques Erasmus. “On the other hand, people with high incomes, say above R60,000, have more wiggle room. So at the high-end of our rentals, above R25,000, it is more stable.” Thus the vetting process is critical in fool-proofing yourself as a landlord, whatever bracket you’re in. “The problem arises in cases when people rent privately and don’t do sufficient checks. The biggest source of our business is landlords who have been burnt,” says Erasmus.
Rental need to know
• Location is key: “To start, you should try to buy property close to where you live. This will allow you to check on it periodically and easily show the property to
prospective tenants,” says Chas Everitt Property Rentals CEO Greg Harris.
• N ew or pre-owned:
Be aware that newly built homes are about 30% more expensive than comparable pre-owned homes, making a pre-owned property attractive as an investment. “On the other hand, newly built or off-plan homes come complete with structural and other guarantees, and offer lower maintenance costs. Many new homes now have green features that will generate long-term savings on utility costs,” says Chas Everitt International CEO Berry Everitt.
• P rice bracket: Rental
investors with more than one property in the
low to middle bracket — such as townhouses and apartments — are better protected as their risk is split, says Just Property Invest sales manager Pieter Piek. “If you have a house with a rental income of R30,000 that defaults, your problem is a lot bigger than if you had three smaller properties with a potential rental income of R10,000 each and one stands empty.”
• D etermine the target
market: “One- to threebedroom homes in security complexes are usually easier to let than large homes because the demand is higher,” says Harris. “However, you should work with your managing agent to research who the prospective tenants are in your area, the
DO YOUR HOMEWORK Applicant tenants need to provide their ID, tax number, their employer contacts and the name and contact number of their previous or present landlord. An employer can confirm the applicant has a solid monthly income. Call the landlord for a referral. Be aware that if the tenant’s history is not good, the present landlord may stretch the truth a little to get rid of them. The ID and tax number is important to ensure
that should you end up in a bad-debt situation, you have the necessary personal information (documents) to hand over the tenant to a professional debtcollecting organisation. Most importantly, use a credit bureau to do a credit and affordability check. Insist on a deposit equivalent to a month’s rent to cover any expenses for repairs to the property or in the event of the tenant not paying the last month’s rent.
types of properties they want and what features of your home you should highlight.”
Average debt-to-income ratios for different rental brackets for Q4 2017 50%
• M arket conditions: Before putting a property on the rental market, make sure you pitch the rent based on current conditions, says Leite. “Overpricing delays a successful let and potential returns, so be guided by your rental area.”
40% 30% 20% R1,000 R2,500 Source: PayProp
"One- to threebedroom homes in security complexes are usually easier to let than large homes, because the demand is higher" Greg Harris, CEO, Chas Everitt Property Rentals
R2,500 R5,000
R5,000 R7,500 2016 Q4
R7,500 R10,000 2017 Q4
R10,000 R15,000
R15,000
• S hort-term rentals:
A good solution is to short-term let it through platforms such as Airbnb or Booking.com. IP Global head of Africa George Radford says
figures indicate you could earn up to 5% net yields with short-term rentals compared with the 2% or 3% yields for longterm rentals in the same markets. “Although shortterm rentals require more active management, the returns are worth it.” That said, some areas are more popular than others. Coastal holiday spots, for instance, are not suited to short-term rentals all year round. “In some cases, the best returns may be made by mixing long-term and short-term rentals,” says Coastal Property Group operations director Paul French.
HOMEFRONT SAPOA CONVENTION
Urban mission
The South African Property Owners Association is changing the face of our cities. As the voice of the commercial and industrial property industry, CEO Neil Gopal tackles some simmering issues PHOTOS: SUPPLIED & SHUTTERSTOCK
What does Sapoa do? We actively and responsibly represent, protect and advance our members’ commercial and industrial property interests in SA’s main centres. We encourage members to share their expertise through active participation. As the authoritative voice of the commercial and industrial property industry, we foster key relationships with government legislative structures and maintain a nonpolitical bias. Sapoa holds a qualifying small enterprise BBBEE verification certificate and is a level one contributor.
What about your to-do list? Sapoa’s goals are clear cut. We aim to be a nationally accepted, internationally recognised property
association. Importantly, we continue to encourage the concept of private property ownership and development. But Sapoa is inclusive: we urge the formerly disadvantaged to become involved as owners, developers, managers and employees in the property industry.
What were some recent pressing issues? 1. Municipal rates hikes. The industrial property sector wants to contribute in a positive way towards the efficient functioning of municipalities. Rates and taxes are necessary to fund municipal service delivery and outputs, but these must be levied in a just and equitable way by accurately determining
the value of properties. Sapoa is committed to ensuring that rates are levied from a correct base and not overcharged.
2. Water-wise building. We encourage members to be water wise and implement saving measures where necessary. Our commitment to the environment is further fostered by our support for environmental sensitivity and sustainability. Sapoa established the Green Building Council SA 10 years ago to ensure that these matters are on top of the agenda.
3. Reshaping Durban. We are working with the City of eThekwini to investigate improving the CBD and to support initiatives for city improvement districts.
4. Land expropriation. Sapoa supports a land expropriation process where the rights of present and future landowners are balanced with the need to ensure stability and economic growth. There is no doubt that SA needs to urgently reverse the racial inequalities in land ownership that result from its colonial past. But we need more clarity and debate on factors responsible for the slow pace of land reform and we welcome engagement with the Constitutional Review Committee on these matters. We understand that the country cannot afford to protect private property with such zeal that it entrenches privilege and poverty and creates further inequality.
The Sapoa Annual Convention and Property Exhibition is from June 19-21 in Durban. Land expropriation is one of the key themes under discussion.
How are you helping shape the property industry? The Sapoa Bursary Fund supported 27 students last year; 10 graduated and eight have already secured employment
opportunities. We have worked closely with the University of Johannesburg to develop the public sector property programme, and also created a part-time property management course with them.
Neil Gopal
YOUR PROPERTY DEVELOPMENT PARTNER
HOMEFRONT
Join us for our Gauteng Projects
Cocktail Evening Pam Golding Properties, Gauteng Projects will be hosting a special property investment cocktail evening to showcase our developments. We have something for everyone: 1 bed investment units; guaranteed rental returns; an income generating aparthotel; plus some developments offering flexible payment plans. So, come along and enjoy the evening with us over cocktails and appetisers and maybe take advantage of some of the offers to be discussed. The event will be held at our Melrose Arch office, 16 The High Street on 20 June 2018 at 5pm - 7pm. RSPV to: gautengprojects@pamgolding.co.za or 011 684 2995
ONE97 priced from R1.44m
Blair Atholl stands from R1.565m
Park Central priced from R2m
Sandton Skye priced from R1.5m
Spectrum Hotel priced from R930 000* * Contact Peet Strauss for more info.
One on Whiteley priced from R2.1m
Capital on the Park priced from R2.15m
Victoria Russell 074 683 1222 • victoria.russell@pamgolding.co.za Ken Woollcott 083 410 6053 • ken.woollcott@pamgolding.co.za Office: 011 684 2995 • pamgolding.co.za
THE LUXURY YOU WANT THE LIFE YOU DESERVE
S E E F O R Y O U R S E L F W H AT A T R U E L U X U R Y L I F E S T Y L E I S A L L A B O U T G R E AT H O M E F R O M H O M E C U I S I N E | A C H O I C E O F P O O L S | S PA A N D W E L L N E S S C E N T R E | M A G N I F I C E N T V I E W S | B O U T I Q U E G Y M | L U X U RY L I V I N G
Experience the tranquillity of nature; breathe fresh air; marvel at the vistas across the golf course; and enjoy having a five-star hotel, spa and gym on your doorstep – all in a secure environment. This can be your lifestyle, in the heart of Johannesburg.
• LUXURY APARTMENTS FROM 3-BEDROOM EN SUITE STARTING AT R7.9M • HOTEL INVESTMENT OPPORTUNITY SUITES STARTING AT R4.4M
OSBORN RD
M1
HOUGHTON GOLF CLUB
2ND A VE
Come and have a look at our luxury apartment 12733, available daily for viewings WARREN BECKER 082 302 3004 | warren@thehoughton.com ASHLEIGH SMITH 073 220 7357 | ashleigh@thehoughton.com Houghton on 12th, 53 Second Ave, Houghton | Show apartment 12733