Neighbourhood 3 OCTOBER 2020
PROPERTY & LIFESTYLE
Don't sell, retrofit Innovative organisations such as TUHF and Totalstay are finding new purposes for inner-city buildings, page 2
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PROPERTY
3 OCTOBER 2020
Repurposing a new future for property Developers, property owners and service providers are initiating new functions for buildings in a time when flexibility is key to securing a positive outlook for property investment WORDS: DEBBIE LOOTS • IMAGES: SUPPLIED
I
n the face of economic hardship and political insecurity, deciding not to sell your property when everyone else is jumping ship, is a difficult decision. Yet it’s wise to wait and consider new initiatives, says Paragon Lending Solutions CEO Gary Palmer. “As the effects of a stagnant economy drag on, many are trying to minimise their exposure. And while this may be good in theory, more people are trying to reduce their debt by selling homes and investment properties, sometimes at bargain prices,” he says. “This isn’t ideal for the client in the long run.” Quick sell Industry findings, too, paint a bleak picture. A recent survey by Sanlam Employee Benefits found 16% of retirement fund members requested access to their savings because of reduced or lost income. The Experian Consumer Default Index, which measures rolling default behaviour, shows composite levels are at their highest in five years. The spike in first-time defaults in secured lending products was one of the major reasons for these results, with the home loans index increasing from 1.68% to 2.32% from April 2019 to April 2020, credit cards and personal loans from 6.56% to 7.47%, and 8.61% to 10.19% respectively. “We’re seeing some very high net-worth individuals snapping up properties,” says Palmer. “Property brokers and bankers are now laser focussed on these individuals and big deals are coming through. However, it’s often at the expense of distressed
buyers who are victims of this pandemic economy.” He advises against selling fast. Rather adopt a new strategy, capitalise on the incredibly low interest rate and reimagine investment properties, such as turning a commercial building into a shared space offering, creating storage or student accommodation, or converting B-grade office space into affordable residential apartments. “If clients have a solid business plan, we’d rather see the property improved and our clients sweat their assets,” says Palmer. “Worstcase scenario: if a client wants to consolidate their debt, they should talk to a financial partner to help them see the opportunity and the risk. It would be foolish to lose your asset now, only to struggle to get back into the market when rates go up.” Member benefits On 1 November, the developer BlackBrick is launching a new residential concept in Sandton in the converted former offices of SAB and AB InBev. Comprising 208 apartments and a hotel component, it offers tenants a community and a hotel-type lifestyle, as well as a world-first residential club membership. Buyers and tenants of BlackBrick apartments automatically become club members, gaining access to facilities such as a café, work spaces and boardrooms, a boxing gym, a rooftop boma, a dining lounge, a cinema room, a library and a meditation garden. The vision of BlackBrick founder Moritz Wellensiek is to offer members flexible accommodation, work and lifestyle options.
Mason Developments, a Cape Town-based developer of high-end luxury apartment blocks, contracted Totalstay to repurpose available units in The Glengariff in Sea Point for serviced letting This includes future access to “a network of residential clubs that allow for fluid, facilitated movement between properties in various cities on a shortor long-term basis”. Wellensiek says BlackBrick is a strong investment opportunity because it’s a low entry point into Sandton, offering investors good rental value and returns. Other member benefits include on-site staff to cater to residents’ needs, a mobile app and access to BlackBrick’s Accelerator in Residence (Air) programme, where experts provide guidance in fields such as the arts; business and entrepreneurship; science and innovation; design and architecture; and technology. Air will also connect members with local and global funding opportunities.
A global study by market data analytics company STR and AirDNA, a provider of vacation rental data and analytics, shows an uptick in short-term accommodation rentals, which nearly match pre-lockdown levels. In the short-term accommodation category, consisting of apartments with two or more bedrooms, including serviced units in the aparthotels sector, revenue per available room (RevPAR) was down only 4.5% from the same time last year. In the hotel category, which includes studios and one-bedroom apartments, RevPAR has decreased much more, by 64.8% from last year. “We’ve never received as many enquiries as we’re getting now from developers and private investors wanting to know how they can re-equip their unsold residential properties for aparthotel running,” says Rael Phillips, co-owner and director of aparthotel operator Totalstay. Annual global hotel occupancy before the pandemic exceeded 66% for a record 58 consecutive months, whereas the US short-term rental peak-season occupancy rate grew at 2.3% annually, reaching a record high of 58.6% in 2019 from 52.6% in 2015. However, as indicated by the study, the pandemic and its subsequent travel ban seriously affected the hotel industry, mainly because of the drastic cuts in business and group travel.
BlackBrick, a new residential offering in a converted office building in Sandton
These findings confirm that the short-term rentals industry has had success, having just wrapped up half a decade of nearly 300% total revenue growth before
the pandemic, as travellers sought more affordable and special experiences. Although performance plummeted during the global lockdown, the fall wasn’t as severe as that of hotels. “Aparthotels have shown decade-long growth because they offer far better value for money than conventional hotel accommodation,” says Phillips. He ascribes this category’s steady growth to benefits such as greater living space, more amenities, better locations, and a now enhanced social distancing and sanitisation offering. These may also indicate why property developers and investors see the aparthotel market as presenting them with a sustainable return on their spend. Asset management Phillips says an experienced centralised aparthotel management infrastructure is an important aspect to ensure yield for investors. “When choosing an operator, investors shouldn’t overlook crucial aspects like a solid, wellrun infrastructure that provides access to the best knowledge and resources; the ability to hire, train and retain excellent staff; the backing of an established, reputable aparthotel operator brand; and a flexible pricing model,” he says. As the STR and AirDNA study suggests, short-term rentals offer full-service amenities that allow for longer-term stays that became more popular as families looked for spaces to which to retreat. The average length of stay increased by 58% during the crisis.
3 OCTOBER 2020
ADVICE
3
There are three ways, if you will Take care when you leave an immovable asset to a family member in your will – it could easily turn out to be a costly burden rather than a blessing WORDS: HELÉNE MEISSENHEIMER IMAGES: SUPPLIED
There are more ways than one to bequeath your property to your beneficiaries. Attorney Eduan Milner explains the pros and cons of three popular options.
Leave it in your will
The most common method is to bequeath your immovable property to one or more beneficiaries in your will. This has several advantages: 1. You can make the bequest subject to certain conditions, like directing the person who receives the property to make a payment to another beneficiary, or that somebody else should have a limited right over the property (e.g. usufruct). 2. Your beneficiaries don’t pay transfer duty on any immovable property that you leave them whereas, depending on the value of the property, transfer duty could apply if you transfer the property to another while you’re still alive. There are, however, a couple of disadvantages: 1. The property will form part of your estate and will attract estate duty at a rate of 20% if the net value of your estate exceeds R3,5m. 2. The conveyancing costs will have to be paid from the estate. If there isn’t sufficient cash in the estate, the beneficiaries will have to make up the shortfall, or the executor will have to sell assets to raise the cash. The conveyancing costs are calculated on the value of the property disclosed in the liquidation and distribution account and are the same as with any other property transfer, except for
the transfer duty exemption mentioned above. 3. The ownership transfer can only be registered after the estate has been finalised and this could take a year or more, depending on the complexity of the estate.
Direct to sell it
Sometimes the executor is directed to sell some or all of the immovable property in the estate and then distribute the proceeds among the beneficiaries as stipulated in the will.
This method works well where it’s either impractical for your heirs to take ownership of the property, or where ownership could cause animosity, or hardship for the beneficiary. Advantages are: 1. The executor can sell the property as soon as possible and doesn’t have to wait for the estate to be finalised before transferring the property. The Master has to give consent in terms of section 42(2) of the Administration of Estates Act and before granting it, the Master will require the consent of the beneficiaries. After transfer is registered, the proceeds will be deposited into the estate account. 2. Liquidating the assets in the estate provides cash to the estate, thereby lessening the risk that beneficiaries will have to contribute to any shortfall. 3. The property buyer – and not the estate – pays the conveyancing costs. However, there are also disadvantages: 1. The proceeds of the sale form part of your estate and will attract estate duty if your net estate exceeds R3,5m. 2. Although the transfer of ownership can be registered as soon as possible, the beneficiaries can only receive their share once the estate has been finalised. 3. The property market may be in a down turn, which means a lower price will have to be accepted, but if the property
is transferred to a beneficiary, he or she can sell it when the property market improves.
Put it in a trust
You could also sell or donate your property to a trust (inter vivos trust), which have the following advantages: 1. You’re taking the asset out of your estate, thereby reducing the risk of attracting estate duty. 2. You’re protecting the asset against any creditors’ claims or attachments as it isn’t your asset anymore. 3. The property can remain in the name of the trust, depending on the objects and purpose of the trust. There are, however, a couple of things to consider: 1. Conveyancing costs will be paid on the transfer of the property – this will include transfer duty calculated on the value of the property as disclosed in the agreement. 2. Sars will require two estate agents’ valuations and use this value to determine either transfer duty (if it’s a sale) or donations tax (if it’s a donation). 3. Be very careful in drafting the agreement relating to the transfer of the property as it could have substantial tax implications. 4. There are costs involved with creating a trust and with the running of it. 5. There will be capital gains tax implications should the trust decide to sell the property.
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YES - Insist on our SALES OFFICE for selling: 100% COMMITMENT and over 36 years of expertise! trust
service
integrity
IT MAY NOT BE EASY TODAY…..
To begin over. To apologize. To admit error. To take advice. To be unselfish. To face a sneer. To be charitable. To keep on trying. To be considerate. To avoid mistakes. To find grace for fighting circumstances. To endure success. To profit by mistakes. To forgive and forget. To think and then act. To subdue an unruly temper. To pay your dues. To maintain quite a high standard against all odds. Or to see the stars. To shoulder a deserved blame. Challenging words, hey! Do go over it again. Slowly… Well to see the stars, or to recognize a silver lining, in faith you need to look up to find it. Be blessed. Op 1 Oktober is die lente alreeds ‘n maand met ons. Fyn en Silwer Woorde sê: “Koop al die blomme wat jy kan bekostig vir iemand wat nou verjaar.” Of koop blomme vir iemand in moeilike tye, of wie se naam in jou gees leef opkom.” ‘n Bossie blomme soos freesias, papawers of wat-ook-al in jou tuin lentemooi blom, sal sommer altyd iemand verras! Dus, los liewer daardie duur present: gee blomme of selfs net een mooi blom. Jy sal nooit kan raai wat jou besoek sal beteken nie, en dit sal langer onthou word as reukwater of sokkies. Ruth Stafford Peale stem saam en sê: “Find a need and fill it!” “Verjaar jy self? Bederf jou dan met ‘n blomruiker.” Of kies iets wat jy lankal wou hê!
36 JAAR IN EIENDOM!
Ons vier vanjaar sowaar al 36 jaar in eiendom, Ek sien in my gedagtes die yslike bos koraalkleur rose met langgggg stamme wat ons vir elke kliënt gee - met waardering vir jou ondersteuning. Party huise het ons al 5 keer verkoop! “Thank you. Thank you! Thank you!!” And may you personally enjoy the presence of Father God everyday to come. Amen! En baie seën vir jou!
R2.8m: HOT-HOT ON MARKET; CALL NOW TO VIEW!
BRAND NEW RELEASE
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P.O.A: PRESTIGIOUS! POISE!! POSITION!!!
R4.3m: INCOME GENERATING OPPORTUNITY!
HOT NEW RELEASE
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5
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TOP LISTING!
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1+
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Amazing property in old area is really for the entertainer. Boasts various workable settings for your furniture, and also some built-in braais. Those lead to fabulous-size garden. Anèl 076 143 0508
Refurbished with detail, this fabulous apartment boasts the finest finishes, and great sea views. The colour scheme and interior is reminiscent of current trend for a chic, stylish look. Move in before summer! Mariette 082 801 2801
R2.58m: SPLENDID OR SUBLIME SAYS 5-STAR!
R1.28m: WELL- PRICED; WAITING JUST FOR YOU!
9+Airbnb
8+1
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Dazzling - just the perfect opportunity you’ve waited for! Smartly and uniquely gutted home boasts stunning kitchen. Rental contracts are in place, a work-from-home option! Mariette 082 801 2801
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1ST ST@ @MLS Rentals & Sales - 041 041 583 3456 Beyond Excellence!
Voortref lik Voorwaar!
LEASING in SUMMERSTRAND Do call us to assist you in leasing your property!
ON SHOW ALL WEEK
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URGENT SALE
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Gorgeous, majestic residence boasts multiple living areas, in and outside braai facilities, and pool room for perfect family life. Impressive main bedroom has massive m.e.s. Green garden shows off a borehole. Mariette 082 801 2801
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Stylish ‘estate living’ is a cosy family home flanked by some similar homes in this pretty popular development. Happy neighbours stay put, being pleased with investment. Anèl 076 143 0508
R7 450 - Two bedroom flat in Somerson Retirement Village. Single garage. R10 500 - Absolute magnificent 2 bedroom apartment on the beach. R18 000 - Outstanding 5-bedr 5-living room residence. Looking for a trustworthy office to manage your property? Please contact Mariette on 041 583 3456 (w) or 082 801 2801, or firstrentals@mweb.co.za
KEY HOUSING PROPERTY DEVELOPERS
Built by one of PE’s leading developers
Selling Price R1 550 000 – R2 000 000
VIEW BY APPOINTMENT
Stunning Upmarket handcrafted face brick units available in this Sectional Title Townhouse Development. Several options available at present – choice of Plots and finishes. Stylish 3 Bedroom, 2 Bathroom homes all have Granite Tops fitted to Kitchen and Scullery. All have large Open Plan living areas and Double Garages. Notting Hill boasts High-speed Fibre connectivity.
View Website: www.keyhousing.co.za
Claire Keogh -083 655 4699 / Larry Keogh - 082 448 9386
PROP 24 – 106175977
Articles appearing in the legal Eagle Column are sponsored by writer Kaplan Blumberg & the following Legal firms:
Tel: 041 363 6044
CHILD MAINTENANCE All parents - whether married or not, living together, separated, divorced and parents of adopted children - are required to support their children financially. Known as the “duty to support”, all parents have the responsibility to ensure that their children have access to necessities such as accommodation, clothing, health care and schooling.
A parent’s obligation to maintain a child is calculated by determining the reasonable cost associated with the care of a child and then apportioning that amount between the two parents, pro rata according to their means. There is no fixed amount of maintenance that must be paid in respect of a child of a certain age and each matter is calculated by taking into account the individual facts relevant to that matter. For assistance with the preparation and completion of the necessary documents to bring an application for a maintenance order, contact our Family Department on 041 363 6044 or info@kaplans.co.za.
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Neighbourhood
yourneighbourhood.co.za | 3 OCTOBER 2020
SWARTKOPS
STEPHEN & TALIETHA 082 400 9510 082 442 6931
Tel/Fax 041 583 4583 e-mail: th@thprop.co.za ALGOA PARK
ALGOA PARK FREESTANDING FAMILY HOME
STEPHEN 082 400 9510
ALGOA PARK
ALGOA PARK GREAT STARTER. This home offers
R
FOR THE YOUNG FAMILY This facebrick home offers 2 bedrooms with build in cupboards, lounge, kitchen and bathroom, carport all on spacious enclosed erf. R630 000
This home offers 2 spacious bedrooms with build in cupboards, neat tiled floors,modern bathroom, living area with open plan fitted kitchen opening onto spacious courtyard all in secure complex with secure parking. R550 000 STEPHEN 082 400 9510
STEPHEN 082 400 9510
UC ED
ALGOA PARK ALGOA HOF
This neat home offers 3 spacious bedrooms with build in cupboards, lounge, dining room, family room, 1.5 bathrooms, fitted kitchen, laundry, double garage and carport all on enclosed erf. R899 000
ED
3 bedrooms, lounge,
ALGOA PARK CASH ONLY / GREAT
ED
C DU
RE
kitchen, bathroom all on enclosed yard with
STARTER
This home offers
This home offers
2 bedrooms, lounge,
3 bedrooms, living area,
kitchen, bathroom, lock-up
ALGOA PARK SPACIOUS FAMILY HOME
This unit offers 3 bedrooms (bic), lounge, beautiful fitted kitchen, bathroom and toilet. R299 000 STEPHEN 082 400 9510
NORTH END
D BY SOL HEN STEP
FIRST TIME BUYER. This home offers 2 bedrooms, lounge, kitchen, bathroom, secure parking all on enclosed erf. R330 000 STEPHEN 082 400 9510
FREESTANDING FAMILY HOME. This home offers 3 bedrooms, 3 living areas, bathroom, fitted kitchen, laundry, garage PLUS one bedroom flatlet all on corner erf. R839 000 STEPHEN 082 400 9510
NORTH END OWN YOUR OWN BLOCK OF FLATS / STUDENTS. 1 x 7 Bedroom flat with kitchen, lounge, bathroom and courtyard. 1 x 3 Bedroom flat with lounge, kitchen, bathroom and courtyard. 1 x 2 Bedrooms flat with lounge, kitchen and bathroom and yard with secure parking. R1 299 000 STEPHEN 082 400 9510
This home offers kitchen, bathroom, secure parking for 2 vehicles R549 000 STEPHEN 082 400 9510
SIDWELL
CENTRAL IDEAL FOR BUSINESSES. This property consist of large warehouse with office, kitchen, toilet, single garage with outside storeroom on enclosed erf. R699 000 STEPHEN 082 400 9510
KWADWESI
FOR THE INVESTOR / STUDENTS This beautiful home offers 2 bedrooms, lounge with fireplace, kitchen, bathroom and secure parking all in the heart of Central. R620 000 STEPHEN 082 400 9510
NEW BRIGHTON FOR THE YOUNG FAMILY This neat freestanding home offers 3 bedrooms with build in cupboards, bathroom with separate toilet, lounge and fitted kitchen, caport all on enclosed erf. R569 000 STEPHEN 082 400 9510
FAMILY HOME. This home offers 3 bedrooms, 2 bathrooms (1 mes), lounge, dining room, kitchen, double garage. R650 000 STEPHEN 082 400 9510
SYDENHAM
SECURE FAMILY HOME This home offers 3 bedrooms, open plan lounge to dining room, kitchen, bathroom, carport, flatlet with toilet and a storage. Enclosed boundary wall. Close to amenities. R420 000 STEPHEN 082 400 9510
BLUEWATER BAY IDEAL FAMILY HOME Come and view this neat home, it offers 3 bedrooms with built in cupboards, lounge, kitchen, bathroom and laundry. Beautiful private garden to enjoy, secure parking with carport. Close to schools and public transport. R699 000 STEPHEN 082 400 9510
BEAUTIFUL FAMILY HOME. 3 Bedroom home, lounge open plan to dining room, beautiful kitchen with bic. 1 bathroom, no garage. It has a spacious yard that can accommodate 5 cars and its close to amenities. R380 000 STEPHEN 082 400 9510
YOUNG PARK This home offers 3 bedrooms with build in cupboards, 2 bathrooms with one main en suite, lounge, dining room. All open plan with spacious fitted kitchen, double tandem garage of which the front is converted into an indoor entertainment area with a build in braai. House has wooden floors. Front door leads onto swimming pool area and garden. R999 000 STEPHEN 082 400 9510
D BY SOL HEN STEP
3 bedrooms, lounge,
COVER YOUR BOND This property offers 2 houses on one erf with a flatlet and single garage. Both houses have 2 bedrooms, lounge, kitchen and bathroom and enclosed stoep. Secure parking for 6 vehicles. R949 000 STEPHEN 082 400 9510
IDEAL FOR A FAMILY
ALGOA PARK
STUDENTS.
STEPHEN 082 400 9510
DESPATCH
ALGOA PARK
FAMILY HOME /
CALLING ALL INVESTORS. This property offers lounge, kitchen, 1.5 bathrooms, 6 bedrooms, storeroom, secure parking for 2 – 3 vehicles. The house can easily be converted back into 2 x 2 bedroom houses with a one bedroom flatlet for excellent rental income. R699 000
MOTHERWELL
R369 000 STEPHEN 082 400 9510
AANDBLOM.
This neat home offers 3 bedrooms with build in cupboards, lounge, beautiful fitted kitchen, bathroom with separate toilet and shower, garage with enclosed tandem carport, servant quarters plus neat one bedroom flatlet with lounge, kitchen and bathroom. All this on large enclosed erf. R980 000 STEPHEN 082 400 9510
KWADWESI
enclosed erf.
STEPHEN 082 400 9510
STEPHEN 082 400 9510
SIDWELL
garage all on neat
R220 000 CASH ONLY
R350 000
NORTH END
GREAT STARTER.
kitchen and bathroom.
sliding gate.
ALGOA PARK
FOR THE YOUNG FAMILY. This spacious unit offers 2 large bedrooms (bic), beautiful bathroom, lounge, dining room, fitted kitchen, guest toilet and garage. R499 000 STEPHEN 082 400 9510
TWO HOUSES ONE ERF. 2 Houses and flatlet. 2 Houses each offer 3 beds, 2 bath (1mes), lounge, dining room, kitchen, D/garage. Flatlet offers 2 beds, lounge, kitchen, bathroom and D/carport. R1 999 999 STEPHEN 082 400 9510
SUMMERSTRAND IDEAL FAMILY HOME This freestanding home offers 3 bedrooms with build in cupboards, lounge, dining room and family room, large kitchen, bathroom and carport all on spacious erf. R699 000 STEPHEN 082 400 9510
SPACIOUS AND STUNNING This home in the heart of old Summerstrand offers 4 bedrooms (bic), 2 bathrooms (1mes), formal lounge, family room flowing into diningroom and farm size modern fitted kitchen, study, pool with entertainment area with build-in braai, laundry, servant quarters with bathroom, double garage, PLUS spacious flatlet with kitchenette and bathroom. R2 699 000 STEPHEN 082 400 9510