Business Day HomeFront 27 July 2018 by The Creative Group

HOMEFRONT 13 OCTOBER 2016 WWW.BDLIVE.CO.ZA 27 JULY 2018 WWW.BUSINESSLIVE.CO.ZA

MUST READ

Tailored interiors of Reyjeane Haroun PAGE 2

Beating the Cape rental odds PAGE 10

How to grow your property portfolio PAGE 12

School rules

Banks approve more home loans PAGE 14

When families are looking for a property to buy, proximity to schools is one of the biggest drawcards PAGE 6

HOMEFRONT INTERIOR DESIGN

Balance in abundance Reyjeane Haroun’s innate sense of style and outgoing nature make her a catalyst for two exciting creative projects WORDS: JULIA FREEMANTLE :: PHOTOS: KARL ROGERS, CHRISTINE LE ROUX

ith a multifaceted approach to design and development, interior designer and actress Reyjeane Haroun’s studio Maison Reyjeané (one of three companies she has started) takes a case-bycase and tailored approach to projects. Specialising in luxury interiors for a range of clients — from offices and embassies to private residences, her design philosophy is a strictly no-limits approach. “I would describe my style as abundant. No matter what the budget is, a good designer can find ways to give any space this feeling, whatever the restrictions. Everyone deserves to live beautifully and fully,” she says. Maison Reyjeané is more than merely an interior design company, though. Immersed as she is in the property development world — residential and commercial developer Golden Rock Properties is her primary client — her creative nature and innate ability to network make her a natural at bringing people together and making things happen.

THE ARGYLE Such was the case with The Argyle, Cape Town’s hot new event venue and lifestyle nexus that opened in June. Haroun is the creative force in this project, spearheaded by developer and collectable car enthusiast Graham Webb. Located in a beautiful old synagogue in Woodstock, The Argyle is the result of a concept Haroun conceptualised: to create a glamorous event space within reach of the city centre. This involved a renovation and revamp by Maison Reyjeané, bringing together a group of likeminded creative thinkers. The property is divided into sections — The Gallery, The Secret Courtyard, The Back Courtyard, The Atelier and The Chandelier Room. You can hire the entire venue or choose a space for a smaller, more intimate gathering. An ideal venue for a city wedding, event launches or

HOMEFRONT

“Good design needs to leave an impression and effect on you, and this means well thought-out detail” Reyjeane Haroun, Maison Reyjeané

corporate team events with a personal feel, the building’s history and architecture give it charm, while the spaces themselves offer enough neutrality to present a blank canvas for guests to envision their own event setting.

ARTISTS The building will still be operational without a function on the go, with artists Ana Kuni and Linnea Frank in residence, regular public events and a pop-up restaurant in the pipeline. Launching next will be an artisan market, which will take place once a month on a Saturday in The Secret Courtyard area. “Because Cape Town is a melting pot of international

cultures we’re planning to theme each market day. In September we’ll have a French theme with vendors selling artisanal French products — cheeses, bread, wine — and artists painting in the courtyard as you’d find in Montmartre in Paris, and live music,” says Haroun. The monthly themes will be announced on social media in advance.

CORPORATE DESIGN Haroun’s design endeavours are multifold and vary dramatically from project to project. Recently, and in stark contrast to the leisure focus of The Argyle, she created an immersive office environment for a corporate client. Cued by the daily

PRODUCED BY BLACKSTAR PROPERTY PUBLISHING 1st Floor, Block H, Sable Square, Cnr Bosmansdam and Ratanga roads, Milnerton, Cape Town 021 447 7130

habits and needs of the team, who often work long and unconventional hours, she aimed for a space that would feel like a home. Located in Cape Town, The HeadQuarters is home to two international trading entities that work in conjunction: HK Enterprises specialises in commodity trading from the Middle East, Europe, China, the US and SA in the agricultural and food product sectors; Barak Fund Management has a portfolio of six funds, providing fund management solutions to a range of global investors and financing to an extensive list of counterparts throughout Africa. “The directors who work here are often in the office late, or over weekends. It was important that it felt comfortable and would be somewhere they’d be happy to spend a lot of time in — as in a beautiful home or an exclusive boutique hotel,” says Haroun. This informed all aspects of the design process — from the initial spec to furniture selection and the final styling and finishing touches.

LAYERED The final product is a luxe and layered space with a balance of textures and international designer furniture that calls to mind a perfectly appointed lived-in study rather than a corporate space. Applying a sophisticated and atypical approach to the palette, Haroun has managed to create an aesthetic that falls between gentleman’s lounge and professional workspace — hitting all the right notes for a result that is masculine and powerful, but not oppressive. Haroun’s signature urban sleekness was a good fit for a reboot of a professional environment and gives it just the right level of slickness, but her high-end look lends itself equally to residential projects. This is no doubt down to her deftness with detail, which gives an accomplished but hospitable result. “Good design needs to leave an impression and effect on you, and this means well thought-out detail,” says Haroun. “I am obsessive about detail … from the scent to the textures, to the feeling you get and the energy of a space. It all needs to be complementary and leave you with an impression; it must evoke something in you.”

A EDITORIAL TEAM Editor: Kim Maxwell Designer: Samantha Durand

The HeadQuarters

PUBLICATION ADVERTISING SALES

Managing Editor/Copy Editor: Michael van Olst Production: Joanne le Roux

Michèle Jones Susan Erwee

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

084 246 8105 083 556 9848

HOMEFRONT

Parkwood, Johannesburg, marketed by Tyson Properties for R4.8m

PROPERTY TREND

School rules When families are looking for a property to buy, proximity to schools is one of the biggest drawcards WORDS: GEORGINA GUEDES :: PHOTOS: SUPPLIED

re homes in suburbs close to quality government and private schools more likely to sell faster and fetch better prices? “One of the most important factors parents of schoolgoing children have to consider before buying property is its proximity to popular educational institutions offering balances in terms of academics, sport and culture,” says Seeff Northern Division regional manager Duane Butler. To help buyers make better decisions, PropertyFox commissioned research into SA’s school feeder zones and catchment area policies.

Parktown North, Johannesburg, marketed by Tyson Properties for R4.9m

The Property Fox School Feeder Zones 2018 Guide points out that living in a school feeder catchment area is not a guarantee of admission, but rather a contributing criterion. Adrian Goslett, regional director and CEO of RE/MAX Southern Africa, says that many buyers with young families choose a suburb purely based on the schooling district they want to be in — and will refuse to look at properties outside these areas.

1. Traditional school suburbs Butler says in some areas properties close to top schools are priced up to 40% higher than in neighbouring suburbs. “The main reason is the stiff competition for places in their highly rated schools, most of which have been forced to impose strict rules about accepting applications only from pupils who live in their immediate catchment areas,” says Chas Everitt International CEO Berry Everitt. “If one examines the suburban buying patterns related to schools, properties within walking distance of the school are ‘ideal’ and generally attract a premium price. Thereafter, as the radius of travelling distance extends from the focal point of the school, homes prices decline.” Goslett says buying property in one of the catchment areas of a reputable schooling district

will always make for a sound investment.

LEASING Lee Ellis, Tyson Properties director for KwaZulu-Natal, says investors will also buy property in a school or university suburb because the location means the homes will be easy to let. “Demand for these soughtafter homes yields a much higher rental income. The rental periods are often longer as the schoolgoing children’s parents are likely to live in these homes until the children finish their schooling.” Ellis says advantages of living close to a school are that parents save time and money commuting, homes near reputable schools have good access to extra amenities and — for investors — higher appreciation rates.

JOHANNESBURG Traditionally, the most sought-after schools in Johannesburg surround “The Parks” or, more broadly, Johannesburg’s northern suburbs. “The northern suburbs of Johannesburg hold prime examples of desirable schooling districts,” says Frikkie van Eeden, owner of RE/MAX Advantage in Rosebank. “Blessed with a number of good schools, families and investors are flocking to these suburbs.” Top private schools include St Mary’s School for girls in Waverley, Roedean School (SA) for girls in Houghton, St John’s College

(for boys) in Houghton and co-ed schools St Stithians in Randburg and Crawford College Sandton. Van Eeden says Upper Houghton and Houghton Estate have a booming highend rental and sales market, partly because of their proximity to the commercial hubs of Johannesburg, but also because of surrounding schools such as King Edward VII School and St John’s College. Parkview and Greenside are also popular. Afrikaans schools include Jan Cilliers primary and Helpmekaar. “We have had a much steadier market in all these suburbs, despite the fact that the Johannesburg property market has been a little flat in recent times,” says Van Eeden.

CENTRAL AND SOUTH Johannesburg Central and South are not without their share of school suburbs. Seeff Bedfordview and Edenvale MD David Ingle says the area has many top schools including the Holy Rosary School, St Benedicts College, St Andrews School for Girls, SAHETI, Jeppe High School for Girls and Jeppe High School for Boys. He says that property values close to these schools are significantly higher than in other suburbs. “In Elma Park, where Holy Rosary is situated, prices are sometimes up to 30% to 40% higher than in the adjacent Edenvale Avenues. St Andrews is in the leafy suburb of Senderwood

HOMEFRONT where prices are 15% to 20% higher than across the road in the St Andrews suburb. “St Benedicts is in the heart of Bedfordview, comfortably offering the highest prices for a property area in comparison to the rest of the North Eastern Suburbs,” Van Eeden says.

PRETORIA Seeff Centurion MD Steve van Wyk says properties in the vicinity of private schools and good government schools in Pretoria also achieve better prices. “Midstream Estate, Cornwall Hill, Irene Farm Villages, Irene, Southdowns Estate, Blue Valley Golf Estate and Centurion Golf Estate achieve better prices due to the private schools in Midstream, Cornwall Hill, Southdowns and so on.”

Lynnwood Glen, Pretoria, near St Alban’s College

“Buying property in one of the catchment areas of a reputable schooling district will always make for a sound investment” Adrian Goslett, CEO, RE/MAX Southern Africa

CAPE TOWN Competition for the city’s good private and public schools in Cape Town is fierce, especially with semigration causing evergreater demand. “Many

parents sign their children on to school waiting lists years in advance, so it stands to reason that the next step is to move as close as possible,” says RE/MAX Living sales associate David Spence. “Properties near good schools often hold their value in a challenging market and tend to sell faster if the market stalls, simply because there will always be parents willing to pay a premium for their children.” Seeff Property Group chairman Samuel Seeff says that the closer to a top school, the more in demand and expensive a property tends to be. “Buyers will pay premiums of 20% to 40% for a location close to a topranked school.”

SOUTHERN SUBURBS In or near Rondebosch, for example, there are no less than 18 top schools, including Bishops, Rondebosch Boys High School, SACS, Rustenburg Girls High School, Sans Souci Girls High School and Westerford High School. Also nearby are Herschel Girls School in Claremont, Springfield Convent in Wynberg, Constantia Waldorf School and Reddam House Constantia. “In Rondebosch, close to top schools such as Bishops, expect to pay R8m to R12m and in Newlands, from R5m to R15m,” says James Lewis, MD for Seeff Southern Suburbs, Hout Bay and Llandudno.

WINELANDS

Claremont, Cape Town, marketed by Pam Golding Properties for R4.95m

The Boland towns of Paarl and Stellenbosch also boast top-end schools, which regularly make the 100% matric pass rate list — including Paarl Boys High School, Paarl Girls High, Paarl Gimnasium, La Rochelle Girls High School and Hoër Landbouskool Boland and, in Stellenbosch, Rhenish Girls High School

and Paul Roos Gimnasium. Seeff Boland and the Winelands MD Pierre Germishuys says that in Stellenbosch, buyers can expect to pay between R2.8m and R5.8m on average, to as much as R8m to R14m for homes close to an exclusive school. In Paarl, expect to pay an average of about R1.8m to R2.8m, or R6m for a top location.

DURBAN The “Upper Highway” area of Durban is a school-rich location, one of the reasons Michele Wilson, director of Seeff Hillcrest, Kloof and Waterfall, credits with the consistent sales performance in the area. “The range of schooling is extensive with top-class private schools on the one end of the spectrum, but the quality of schools administered by boards of governors is exceptional because of the high level of involvement of parents in these schools.” Wilson says estate agents are increasingly asked about catchment areas for schools. Shane Pearson, manager of RE/MAX Address in Hillcrest, says clients are drawn to the area by top private schools such as Kearsney College, St Mary’s DSG, Thomas More College, Curro and Highbury Preparatory School. Ellis says that if Tyson Properties has a residential listing in Westville or Cowies Hill that is within walking distance of a good school, it will usually sell promptly.

2. New estate, new school While suburbs around established schools continue to be in high demand, estates — usually positioned on the outskirts of major metros — are also booming. No schools usually exist in these newly developed tracts of

PARENTS’ GUIDE TO FEEDER ZONES Many parents grapple with whether to buy property in a suburb that may secure a spot near a good school. To help buyers make better decisions, PropertyFox commissioned the PropertyFox School Feeder Zones Guide, which offers research into SA’s school feeder zones and catchment area policies. The guide is aimed at property buyers in the market for a house in the R1.5m and above level who want to buy near their school of choice. PropertyFox also researched average house prices in some

top school suburbs in the country. Some private schools were also included from a property location perspective. The research focused on the admission policies of 65 top public high schools according to academic success at matriculation level. The results: Six schools specified their preferred suburbs (9%); Six specified their preferred primary feeder schools (9%); Twenty-nine gave

preference to pupils close to the school (44%); Twenty-five had no explicit feeder zones (38%). PropertyFox CEO Crispin Inglis says it is hard for parents to get to grips with where to buy property to have the best chance of being accepted into a specific school. Catchment area information is difficult to find, so the aim was to give parents some direction for their property search, or how to find a school near their home. Source: PropertyFox with independent education researcher Kerry Petrie. Priced from R10.75m, Kildare Place in Newlands, Cape Town, is under construction

HOMEFRONT land, so a growing trend is for estate developers to turn to new private school groups to provide educational institutions for residents. “The urban design team at Century Property Developments always takes into consideration the needs of the target market that will live on a new development,” says Century sales executive Jessica Hofmeyr. “One of the key considerations when people inquire about our developments is the proximity to private schools.”

ACCESSIBILITY Seeff says schools such as those in the Curro network — in progress or planned — in areas within a twohour drive of Cape Town such as Langebaan and Hermanus, make quality education more accessible. More are planned for the Northern Suburbs, further boosting the desirability of Cape Town for families. Seeff Blouberg licensee Clinton Martle says the Table View-Parklands-Blouberg area is also renowned for excellent schools with about 20 in the area, including the latest, the Curro Academy Sandown in Parklands North. “There are a number of top performers when it comes to the annual matric pass rate including schools such as Parklands College, CBC St John’s Parklands and Elkanah House School,” he says. Buyers can expect to pay about R1.8m to R2.8m for a spot close to a top school.

Reddam House, Helderfontein Estate, Johannesburg will cater for primary and high school needs — totalling 2,000 pupils each — and will be pitched at the middle-income market. Co-ed Reddam House Umhlanga on the outskirts of Umhlanga Ridge caters for pupils up to Grade 12.

BEST SCHOOLS

POPULAR In KwaZulu-Natal, the North Coast property belt is developing at a relentless rate, along with plans to deliver quality schools to meet the educational needs of these suburbs. “The establishment of quality schools and universities will have a significant effect on the strength of these property markets in the long run,” says Gareth Bailey, Pam Golding Properties area principal for Durban Coastal.

DEMAND Tongaat Hulett Developments (THD), aware of the demand, has subsequently engaged with educational institution providers. As part of its strategy to provide complete living environments with an inclusive growth focus, THD has identified two sites for two new schools. ADvTECH Group will open a new facility in the 1,000ha Sibaya Coastal Precinct, which could serve about 10,000 residential units. A similar facility operated by the Curro brand will open in Cornubia in Umhlanga. Both facilities

Curro Private School, Century City, Cape Town

In the Western Cape, Val de Vie is capitalising on excellent schools in the Paarl area. “Val de Vie is a primary residence estate, meaning the majority of our residents live here permanently,” says Val de Vie group marketing director Ryk Neethling. “We are blessed to have some of the best schools in the country within 20 minutes of us.” He says at least half the residents are families with schoolgoing children, and Val de Vie has engaged with private school companies to help them acquire land close to the estate. Sitari Country Estate in Somerset West has

“We are blessed to have some of the best schools in the country within 20 minutes of us” Ryk Neethling, group marketing director, Val de Vie

Umhlanga Ridge, Durban

Curro Sitari adjacent to the estate as well as Reddam House Somerset to serve the estimated 65% of residents with schoolgoing children, from crèche level to high school. “It has been a major drawcard as buyers are typically families wanting to live in a security lifestyle estate close to good schools and shopping centres,” says Claudius Combrinck, executive director of Sitari Country Estate.

PARTNERSHIPS Hofmeyr says residents are willing to pay more for “community culture” where children can cycle or walk to school. Century has intentionally brought this into their upmarket lifestyle estates, including Waterfall Estate, Blue Hills Country and Equestrian Estate, the Hills Game Reserve Estate and Helderfontein Estate, through partnerships with educational institutions

including Curro, Reddam House and Reddford House. They repeated the recipe at their affordable rental developments, such as the introduction of SPARK Carlswald school at Carlswald Luxury Apartments in Midrand. Craft Homes is selling their final phase of Stonefields homes in Broadacres, Fourways. Families are attracted to the suburb’s midpoint location between Johannesburg and Pretoria. Crawford College Lonehill is a private high school close by.

EDUGRATE Another factor is the trend of people containing their lifestyles close to where they live. This is becoming so prevalent that the term “edugrate” has been coined: to relocate to an area close to your preferred school. RealNet MD Gerhard Kotzé says homes within walking distance of schools perceived to offer quality education are expected to command an increased premium over the next few months. “This will be evident both in central suburbs wellsupplied with good schools, convenience shopping facilities and sports and recreation venues, and in decentralised estates that have their own schools or are close to a sought-after private or state school.” He says it is not only upmarket areas such as Houghton, Parkhurst, Waterkloof, Constantia and Durban North, that are home to private schools, that will benefit from this trend. “Examples of such suburbs are Greenside, Emmarentia and Victory Park in Johannesburg; Wynberg, Pinelands and Blouberg in Cape Town; Hatfield and Garsfontein in Pretoria; and Musgrave, Westridge and Glenwood in Durban.”

HOMEFRONT

BAROMETER

Rental tide turns Is the Cape boom starting to show cracks? Knowing how to lure good tenants is a way to beat the trend WORDS: STAFF WRITER :: PHOTO: ANTON SCHOLTZ

surge in sectional title development, pennywise tenant behaviour and continuing economic and political uncertainty are challenging Cape Town landlords, who face unlet properties for the first time in years. “What’s the bottom line? An oversupply of sectional title rental apartments in Cape Town, pushing demand — and prices — down,” says Knight Frank letting manager Gail Cawood.

AFFECTED She singles out the Southern Suburbs, Atlantic Seaboard and Hout Bay as most affected, with rental drops of as much as 30% in some cases. Areas such as Observatory and Claremont have seen a surge of multiple sectional

title developments, says Cawood, broadening the scope for tenants and offering opportunities to scale down to less expensive apartments. “One year ago we were offering a two-bedroom apartment in the southern suburbs for R15,000 a month. Today this has come down to R12,000. The price of larger townhouses, above the R30,000 a month mark a year ago, has dropped to about R25,000.” Grant Rea, residential sales and letting specialist at the Cape RE/MAX Living office, reports similar trends. “We noticed a significant shift from about October 2017 as landlords faced vacancies for the first time in years. Previously, the demand ensured each property found a great tenant,” he says. Landlords used to an average gross yield of about 6% a year are now

staring down the barrel of 4.5% to 5.5% yields. This is no reason to panic, says Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa. While the shift is an inevitable realignment after unprecedented growth, Cape Town is a resilient market. Rea suggests the following reasons for the change:

• New developments: As many as 35 developments are nearing completion, and most units go into the rental market. This problem will persist for about two years.

•

A irbnb

craze wanes:

The number of Airbnb units available to let in the City Bowl and Atlantic Seaboard went beyond 10,000 in 2017. Many returned to letting long-term

again, flooding the rental market.

• Semigration

slowdown: Reports of an impending drought disaster in Cape Town led to a more cautious attitude among those planning a permanent move to the Mother City.

• Inflated rentals: Most

rental agencies require tenants to earn three times the rental amount and request at least two months’ rent as deposit. Combined with low income growth, many tenants have opted to rent in more affordable areas.

Investors can take steps to make sure they let their properties. “Everything rents at the right price because everyone needs a home,” says Rea. “There is no question landlords will find tenants provided that the rental is competitive.”

“There is no question landlords will find tenants provided that the rental is competitive” Grant Rea, RE/MAX

HOW TO BEAT THE ODDS AND SECURE A TENANT Be realistic when setting a rental. Consider the price of similar properties in your area and if yours is more expensive, know why. Be specific in marketing material and consider what an apartment or location has gained — bus route, corner deli, fibre or security — since it was last advertised. Entice tenants by including extras such as Wi-Fi, utilities and cleaning services. Expose properties to a wider audience, including video marketing and

publishing on social media platforms. Know the Consumer Protection Act, section 14, which applies to fixedterm leases. Tenants have the right to cancel their lease, giving 20 working days’ written notice. This is provided all the rent due, up to the date of the lease cancellation, has been paid, as well as a reasonable penalty. Consider a concession when the rental agreement is up for renewal. It often pays to keep a good, safe, secure and paying tenant happy.

w 0 o n 00 g n 519 i l l Se R1 m o r f

Phase one SOLD OUT !!!

NEW DEVELOPMENT!! Tweespruit Estate - Stellenbosch!! Tweespruit offers a choice between 2 bedroom and 3 bedroom house plans AREA CALCULATIONS

AREA CALCULATIONS

GROUND FLOOR

60m2

GROUND FLOOR

93 m2

GROUND FLOOR

110 m2

GROUND FLOOR

109m2

GROUND FLOOR

Ground Floor Area

38 m2

Ground Floor Area

71 m2

Ground Floor Area

85 m2

Ground Floor Area

71 m2

Ground Floor Area

Garage Area

18 m2

Garage Area

19 m2

Garage Area

18 m2

Garage Area

19 m2

Garage Area

Covered Stoeps

19m2

Covered Stoeps

Covered Stoep

4 m2

FIRST FLOOR

43 m2

TOTAL AREA

103 m2

Covered Stoep

TOTAL AREA

3 m2

Covered Stoep

93 m2

TOTAL AREA

7 m2

110 m2

TOTAL AREA

109 m2

TOTAL AREA

UNIT TYPE 2

UNIT TYPE 3

UNIT TYPE 4

UNIT TYPE 5

UNIT TYPE 6

Artist’s impression only. All plans, elevations and areas are subject to final adjustments by architect and municipal/building regulations. For full disclaimer please see pg. 14

121 m2 85 m2 19 m2 17 m2

121 m2

- Tweespruit is a new up-market security village situated in the Stellenbosch winelands, consisting of 71 Free Standing 2 and 3 bedroom homes. - Each house has two bathrooms, a lock-up garage and beautiful modern internal ﬁnishings. The village also features state of the art security. • Quick access to Stellenbosch University and other business districts (eg. Cape Town CBD, Northern Suburbs and Boland). • Panoramic views of Simonsberg and Helderberg Mountains. • Tweespruit offers residents a secure environment with 24hour manned security and 2.1m high perimeter walls with electric fencing. • Each house has its own fully enclosed private lawned garden with a meranti side gate. • All houses have direct access to landscaped

•

• • • •

communal open spaces. Every house comes standard with a single automated garage with ample space for a second vehicle to park at the front. Aluminium windows frames ensures low maintenance cost. 5 ﬂoor plans to choose from – all include 2 bathrooms. Granite tops in kitchen and built-in cupboards in bedrooms. High tenant demand and capital growth area.

Levies: +- R1482 per month • Different types available with prices. PLEASE NOTE THIS IS NOT THE ONLY PRICE - PRICE DIFFER • SIZE AND HOUSE DIFFER AS WELL Well secured excellent for student accomodation / use as rental to generate extra rental income.

Loraine Louws 076 143 4981 • loraine@nspropertysolutions.co.za www.nspropertysolutions.co.za

HOMEFRONT SMART MONEY

Grow and multiply You can make your investment work smartly by remortgaging cleverly or growing your property portfolio by using only one bond. Here is how WORDS: MIRIAM MANNAK :: PHOTOS: SHUTTERSTOCK

esidential property is regarded as the Holy Grail of investment. But how can buyers make their purchase work for them financially to make the most of their investment? Some creative solutions about how to buy into the property market:

Clever bond financing: Investors can eventually buy two low- to medium-cost properties with one bond while keeping repayments low and paying off the mortgage quicker, says Just Property Invest sales manager Pieter Piek. He says a R1m flexi/ access bond typically involves repayments of about R9,800 a month for 20 years. However,

a paying tenant in your property can change this. If their rental income covers the bond repayments, you could increase your payments by R5,000. “The bond will be paid off in less than half the time,” says Piek. Because flexi/access bonds allow you to withdraw money, you could take out the excess after five years to buy a second property at R500,000 without a new bond. Piek says this unit should achieve a rental income of R4,500, to be put towards your original bond. “This means you now have two properties paying off one bond and you still have 15 years left in which to pay it off.”

Save, save, save: Deposit bonuses, 13th cheques, tax rebates and

other windfalls into your bond. “This allows you to pay back more than just your monthly repayment rate,” says Mike Greeff, CEO of Greeff Christie’s International Real Estate in SA. “The increased payment paired with any potential cash injections could cut your bond period by up to five years.” Defaulting on payments negatively impacts on your credit score and opens the door to added interest and potential charges on returned debits, Greeff warns.

Remortgage, don’t sell: While it may seem attractive to sell a home that

is appreciating fast, capital gains tax payments on the profit need to be considered. Remortgaging your home, or using your property’s higher value to obtain a larger mortgage, may be a better alternative. “This is called releasing equity,” says IP Global head George Radford. “This lump sum can be used to diversify a portfolio or invest in new properties in different markets to

mitigate risk — each with their own mortgage.” Buyers wanting to better understand the reinvestment cycle should seek expert advice, Radford warns. BLOK MD Jacques van Embden recommends shopping around when choosing bonds or deciding to remortgage. He says a reputable bond originator will apply to multiple banks to ensure the best deal at no extra cost to

HOMEFRONT

“The low- to mid-end market has a higher demand for rentals than the upper-end market” Marike Beyers, senior property investment consultant, Just Property Invest

ASK YOURSELF THESE INVESTMENT QUESTIONS BEFORE SIGNING Buying property to let requires an investor’s mind-set free of emotion. The perfect investment location is an area with high rental demand and may not be your own preferred location. The low- to mid-end market has a higher demand for rentals than the upper end. Entry-level residential properties almost always appreciate in value faster.

the buyer.

Buy from a developer: Purchasing an off-plan unit from a developer can also save money: Van Embden says there will be no renovation costs once the buyer has moved in. “This often means that your new home’s value has appreciated by the time it is ready for occupation.” Greeff notes that buying property directly from a developer means no transfer duties. “This is a key factor that wins many over to purchasing off-

plan, which also means the first payment is due only on completion of the unit.” This also applies to buying land from a developer, says Jessica Hofmeyr, Century Property Developments head of operations, sales and marketing. “Then build a ‘spec home’ with the required needs in the area. One could then sell it at a reasonable price. I would not recommend anything above R5m.”

Beware of bargains: A bargain

may become a rip-off due to unforeseen renovation bills, which can impact on bond repayments. Piek’s advice is to buy newer units. “You might pay a little more but you’re getting new geysers and know that the plumbing and wiring have been done recently.” The issue of maintenance costs especially applies to holiday homes that are bought to let. “Holiday homes particularly attract such costs to maintain their competitive edge,” says Praven Subbramoney, CEO of Private Bank Lending at FNB.

Set up an emergency fund for unexpected costs not covered by insurance. When purchasing to let, calculate the potential yield of the property (the annual rental income minus expenses, divided by the price of the property) and compare it to the yield of other rental properties in the area. Do a comparative marketing analysis of the area. Make sure your rental income covers your monthly repayments and that you can afford potential shortfalls. Find an experienced management agent to find the right property, an approved tenant, manage rent collections and take on maintenance issues. Be aware of all legal aspects and capital tax implications. Source: Marike Beyers, senior property investment consultant at Just Property Invest

HOMEFRONT PROPERTY NEWS

Home loan approvals buoy housing market

Botha agrees. He says banks are going out of their way to approve home loans. “BetterBond has been able to secure approvals for more than 80% of applications submitted in the past 12 months, compared with 76% in the previous 12 months.” Bank approvals for ooba have risen by 2.7% year on year. The bond originator’s approval ratio is 75.8% for Q2 2018 compared with 73.1% for Q2 2017. In addition, Botha says the number of loans granted for 100% of the

roperty statistics for Q2 2018 released by home loan originator ooba indicate that banks are positive about the home loan lending environment despite continuing negative real growth in average property prices nationally. “Home loan applications are down year on year. However, approval rates on these applications are up, illustrating a healthy appetite from banks to lend money,” says ooba CEO Rhys Dyer. BetterBond CEO Rudi Q2 April-June 2017

Q2 April-June 2018

R1,200,044

R1,220,522

property purchase price has increased by 8% in the past 12 months. Most of these go to borrowers earning less than R15,000 a month who are buying “affordable” homes. Another positive for the market: ooba statistics show average bank interest rates are 15 basis points lower year on year. “Improved access to home loan finance will increase the pool of potential property buyers. This is also positive for people struggling to sell their properties,” says Dyer.

Q2 April-June 2017

Q2 April-June 2018

R899,674

R939,936

1,200 +1.7%

Apartments shrinking in downtown Cape Town

partments sold in central Cape Town are getting smaller, in sync with a global demand for compact urban microliving. The Cape Town Central City Improvement District (CCID) reported this recent development at their annual business breakfast in July. CCID communications manager Carina Koblitz says new units sold in the CCID, which make up the lion’s share of all units transferred, are dropping significantly in size. “In 2013, the average size of units transferred was about 82m². By 2016, this had dropped to 71m² and the latest indicators are for units of about 60m².”

In the residential sector, 228 units were transferred to owners to a total value of R568m in 2017. “For the first six months of 2018, we have seen 153 units transferred to a value of R357m.” Koblitz reports a drop in the average sales price from R2.769m at the end of 2017 to R2.331m in June 2018. Average monthly rentals have shown a decline. “In December 2017, the average for a studio was R12,186 — it is now R11,286. A onebedroom averaged R14,747 in December 2017 and now averages R13,792.” Pam Golding Properties senior research and market analyst Sandra Gordon says while the Cape Town central city is

not the largest city-centre housing market in SA, it still commands the highest prices by a large margin. “The popularity is evident in the rapid growth in new residential units in recent decades — from just 762 apartments 20 years ago to a current total of 4,215 units. It is estimated that within the next two years a further six developments and refurbishments will raise that total to at least 4,902 units.” In the commercial sector, the CCID reports a slight (1%) increase in office vacancies in Cape Town’s CBD, up from 9.9% at the end of December 2017 to 10.9% at the end of the first quarter of 2018.

Rent-to-buy affordable housing near Durban

ffordable housing in a 350-unit rent-to-buy project in Bridge City, in the greater Umhlanga area, is set to go on the market towards the end of 2019. The 356 apartments, selling from R529,000, are all two-bedroom, onebathroom units. Property developer Calgro M3, financed by the Chartwell Group, will undertake construction of the 2ha residential development in the north-west corner of Bridge City. Building is set to begin in the middle of this year, with

occupation expected about 15 months later. Bridge City is a 56ha mixed-use precinct Tongaat Hulett is developing in partnership with the City of eThekwini near Phoenix and KwaMashu. Chartwell Group executive director Matthew Verbaan says the rent-toown financing option is designed for aspirant home owners unable to afford full loan repayments. “We offer a three-year period in which to achieve ownership status by exercising an option to buy

at the end of that period,” Verbaan says. “The purchase price is fixed upfront and all rentals paid in the three-year rental period are considered payment towards the eventual purchase price.” Home buyers may also choose a 20-year instalment sale. The housing development will be close to the 48,000m2 Bridge City shopping centre. It will also offer access to a major transport node that includes an underground railway station and bus rapid transport terminus.

+4.5%

1,000

Approved bond

R777,010 (86.4%)

R824,558 +6.1%

(87.7%)

800 Approved bond

Approved bond

R985,773

R1,050,154

(82.1%)

+6.5%

(86.0%)

600

400

Deposit

R214,271

R170,368

(17.9.%)

-21.8%

200

(14.0%)

Deposit

R122,664

R115,378

(13.6%)

-9.6%

(12.3%)

Average overall purchase price

Average purchase price for first-time buyers

Bushveld living for the 50-plus

he Negester Klein Kariba lifestyle estate offers residents aged 50 and above a bushveld lifestyle in the Waterberg biosphere. The region offers golf courses and nature reserves, good shopping and a private hospital. The secure estate borders the AKTV Klein-Kariba holiday resort, close to Bela-Bela and an hour’s drive from Pretoria. Offering contemporary Lowveld farm architecture on an 83ha

estate, Negester Klein Kariba has open space, four walking trails and wildlife such as impala, nyala and many bird species. The estate has a modern healthcare centre with four frailcare units. Home care is offered as a standard option. Almost 195 of the 395 full-title and sectionaltitle properties have been sold and 271 plots have been fully serviced. Full-title plots of 250m2 to 728m2 start at R454,500. House sizes range from

about 104m² to 250m². The plot price includes approved building plans, architectural fees and transfer fees. The 77m2 sectional title duets with a veranda, carport and standard finishes start at R902,900. They are conveniently located near the medical care centre and proposed clubhouse that will incorporate a multipurpose hall, library, hair salon and lounge with bar. Facilities include tennis courts, a swimming pool and a putt-putt course.

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 F I N E D I N I N G | 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

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