Neighbourhood 5 DECEMBER 2020
PROPERTY & LIFESTYLE
Changing
times
We look at how 2020’s key trends are shaping the future of property, page 2
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PROPERTY
5 DECEMBER 2020
The impact of 2020
The Mzuri development in Somerset West
Buy or rent? Sectional title or freestanding? Sell or auction? Unforeseen events in 2020 saw buyers and sellers reconsidering their property needs, with surprising results WORDS: DEBBIE LOOTS PHOTOS: SUPPLIED
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outh Africa’s property industry lived a nightmare as 2020 unfolded to reveal a pandemic, an economy suddenly on life support, and subsequent plummeting house prices.
developers with advanced digital platforms sold homes online that buyers never set foot in, and industry practitioners had to adjust to unexpected new buyer expectations.
Negotiating the devastating consequences of various lockdown stages, the industry was quick to suggest solutions to government, but it took months before operations started up again and estate agents were allowed to show properties to prospective buyers.
But, what are 2020’s key trends and how are they shaping the property market going forward?
Lockdown was a volatile time: property statistics painted a different picture every quarter,
Space to live and work
The global Work-From-Home Experience Survey of 3,000 employees saw 73% of South African respondents report they’re working from home successfully (68% globally). Another recent Gallup poll indicated that nearly 60% of US workers want to
continue working remotely, with most never wanting to return to the office. Back in April 2020, statistics by the UK’s Office for National Statistics showed that 49.2% of employees were working from home because of Covid-19. But, as early as March of the same year, Lloyds research reported that working from home is so popular in the UK that it had become a key consideration for those looking to buy or sell property. Estate agencies in London also reported “a rush for properties since the real estate market opened back up, particularly
for more spacious homes with outdoor space”. South Africa is likely to follow this trend, says Clifford Oosthuizen, managing director, of Westbrook, a 182ha secure lifestyle estate in Port Elizabeth. “The rise in remote working has led to more buyers seeking homes with an extra bedroom to turn into a home office,” he says. Betterbond CEO Carl Coetzee agrees, saying affordability has improved by 30%, following five consecutive repo rate cuts since January this year, seeing the average purchase price for almost
River Dale in Westbrook Lifestyle Estate, Port Elizabeth
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PROPERTY
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A street view of the Mzuri development in Somerset West all homebuyers up by 4% year on year in October. “This trend supports the renewed popularity of larger homes near safe, outdoor recreational amenities, and well-maintained open public spaces within secure, residential estates,” says Oosthuizen.
Bigger is better
One of the reasons for the post-lockdown resilience is the demand from young and first-time buyers – with the latter, according to ooba, currently comprising 52.4% of home purchases for the year to September. While this would usually signal demand for sectional title homes, an interesting trend appears to be emerging, says Andrew Golding, chief executive of the Pam Golding Property group. “It’s becoming evident that freehold house price inflation has stabilised and is beginning to strengthen marginally, while price growth for sectional title homes continues to slow. For the year to date (January to October 2020), freehold house price inflation has averaged 2.6%, while sectional title inflation has averaged just 1.8%.
“This suggests that demand now is stronger for freehold homes than sectional title homes – in a reversal of a long-term shift towards sectional title homes. However, this demand is probably felt less in the more expensive suburbs and more in affordable areas on the periphery of metros.” Golding also says that some developers are converting onebedroom apartments to twobedroom units. For instance, at the Mzuri residential development in Somerset West, developers have reworked the 132 one- and twobedroom apartment offering to 84 two-bedroom houses that are petfriendly and have small enclosed gardens, priced from R1,595m.
Lockdown’s legacy
Steve Brookes, chief executive of Balwin Properties, South Africa’s largest sectional title developer, says remote working has seen a dramatic change in the work environment and how homebuyers evaluate prospective properties. “Where it used to be the kitchen and bathroom that influenced the final purchase decision, these days fibre connectivity, leisure amenities and a greener footprint are top of the list,” he says. According to Brookes, the legacy of lockdown will drive demand for
SIX ON N in Sea Point by Blok urban developers
integrated communities for years to come. People will also be more considerate in terms of spending, saving on transport, car insurance and – importantly – have more time on their hands not being stuck in traffic. He says this integrated community concept will spill over into the upmarket central business districts of Cape Town, Sandton, Waterfall, Rosebank and Fourways, as office space is converted into apartments and new, affordable high-rises are developed. “By ‘developing up’, shopping centre landlords are aiming to secure their target market through adding rooftop apartments and possible healthcare or educational facilities to their malls,” he says. Collaboration in the private sector and with government, especially to address the GAP market – those who earn too much to get a free house from the government and earn too little to get a bank bond – will further stimulate demand.
Small is also big
Jacques van Embden, MD of urban property development firm Blok, says instead of relying on guesswork, they conducted a survey to find out where and how people want to live before starting
their Sea Point project SIX ON N. A total of 1,470 people took part – 55% from the Western Cape, 29% from Gauteng and 12% from KwaZulu-Natal – constituting a largely millennial audience. “Gen Y-ers make up 27% of the South African population, translating into a buying power of around 14 million people,” says Van Embden. Of those surveyed, only 20% owned the property where they lived; 26% rented with friends or a partner; while the largest group (35%) still lived at home with their parents or caregiver. This is of particular interest, says van Embden, when you consider that the vast majority of respondents who lived at home were between the ages of 26 and 36, while 13% were over the age of 40.
Online auctions
Motivated by the Covid-19 lockdown, buying property via online auction has become increasingly mainstream, says BidX1 South Africa CEO MC du Toit. “As the mature players in this space, we’re seeing a huge increase in demand for a more modern, flexible approach to property sales. Buyers are now comfortable bidding online in a secure and transparent environment, and they prefer the privacy afforded by digital sales. "Coupled with this, you cannot beat the convenience factor: you can bid on any device, from anywhere in the world, and complete the full transaction online.”
“This may be a result of the economic landscape,” he says. “And financial pressure faced by today’s consumer who simply cannot afford to live independently.”
According to du Toit, it’s of great value to sellers if the property firm they choose has technology and data at the heart of its model. “Activity on BidX1’s platform is increasing exponentially, with bids to the value of some R100m during October alone.
The survey revealed the size of the property to be of least importance, with location cited as the most critical and price the second most important consideration.
“South African properties are also attracting attention from international buyers on our global database, such as the UK, US, Canada and Cyprus,” he says.
A Plattekloof home auctioned on BidX1
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INTERIOR DESIGN
5 DECEMBER 2020
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canvas Light, bright and comfortable, this quaint cottage in Greyton got a fuss-free Scandinavian makeover by interior designer Hendré Bloem WORDS: SARAH MARJORIBANKS • PHOTOS: STEFAN CALITZ
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fter purchasing a small cottage on a quiet, leafy street in the Overberg village of Greyton, a young Cape Town couple began the hunt for an interior designer to give it a new lease on life. They wanted a clean interior, punctuated with quirky, bespoke details, and a layout that used every inch of the cottage. And after seeing his previous work at the Greyton Lodge, the couple knew they’d found the right man for the job with Hendré Bloem.
Greyton know-how
It wasn’t just that his aesthetic suited their vision for the cottage. This interior designer is well versed in Greyton renovations, including the best spots to buy
building supplies, the top local contractors, and how to get plans signed off – a process that isn’t as straightforward as in other regions. “The house may not have heritage status, but we still had to get the go-ahead from the Greyton Aesthetics Advisory Committee,” says Hendré. Greyton founder Herbert Vigne’s design guidelines direct that houses had to look like a simpler version of the Cape Dutch home, and the cottage encompassed that typical look – small gables, front door flanked by two symmetrical windows, and an outside staircase leading to the attic. Hendré kept the external changes to a minimum – the outside staircase moved inside, the attic
became two loft bedrooms and an en-suite bathroom, and the single garage was converted into a guest cottage.
It’s what’s inside
The inside of the cottage has been transformed completely. “We opened up living spaces and turned a dark room off the kitchen into an airy stoep with views across the wooded garden and mountains,” says Hendré. The brief was for clean Scandinavian lines, locally designed furniture and fittings, and a white and grey palette. Practical and warm oak-feel vinyl flooring was used throughout, with the bulk of the interior painted and tiled in white – from the walls and tiles to the living spaces and kitchen.
Carefully selected items bring pops of colour and interest to the calm, neutral interior, including artworks that the couple had brought back from their time in London, bright green armchairs flanking a warm oak table, and James Mudge’s custom-made ash hanging shelves in the kitchen – even the raw steel staircase designed by Hendré at the entrance draws the eye.
Beautiful rooms
The converted garage is Hendré’s favourite spot in the home. “In place of the roller door, we used cottage-paned French windows, allowing in lots of light and amazing views. I then thought, why stop here? So we knocked
down another wall, and more light and garden views streamed in. It worked beautifully.” The upstairs bathroom boasts a skylight and vintage-style bath, with exposed copper pipes and metro tiles completing the retro look. The master bedroom is kept clean and simple, while the kids bedroom in the attic showcases clean, functional shelving and single raw pine beds tucked under the eaves. Downstairs, the indigenous garden and views of the Sonderend Mountains are best admired from the back stoep, where one can sit under the retractable awning and enjoy the peaceful village atmosphere.
5 DECEMBER 2020
ADVICE
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Peace and quiet Have you had enough of noisy neighbours? We look at ways to resolve the problem without going the costly, legal route WORDS: HELÉNE MEISSENHEIMER • PHOTOS: SHUTTERSTOCK
between disturbing noise and noise nuisance,” says Milner. Disturbing noise is defined as having a scientifically measurable level such as a late-night party where the music is so loud that the lyrics are audible to neighbours past midnight. Noise nuisance is defined as any noise that disturbs or impairs the convenience or peace of a person, like the incessant barking of a neighbour’s dog.
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certain level of noise is an inescapable part of urban and suburban life. Residents accept they will be subjected to noise sources of various levels regularly, including traffic, taxis, construction work and, quite often, their neighbours. “In recent years the level of noise has been exacerbated by the ongoing densification in cities, especially in the suburbs where new residential properties are being built and commercial centres expanded to meet growing demand,” says Yael Geffen, CEO, Lew Geffen Sotheby’s International Realty. “Not only are the sounds of construction becoming commonplace, but properties are getting smaller with more people living together in closer proximity in apartment blocks and gated
communities. It intensifies the level of peripheral sound that we have to endure on a daily basis. “However, there’s a point where noise can reach an unacceptable level and, while there’s little we can do about the constant thrum of traffic, we do have recourse when noise becomes unnecessarily intrusive and impacts on our right to enjoy the ordinary comfort and convenience of our homes,” she says.
Different kinds of noise
According to Eduan Milner of Eduan Milner Attorneys, Notaries and Conveyancers, people are more sensitive and aware of the negative impact of noise that exceeds specified levels. Municipal bylaws and environment legislation include provisions for dealing with noise regulation contravention. “South African law differentiates
Both are illegal in terms of the Environment Conservation Act but, while the first is usually effectively handled with a call to the police, the latter is not always as simple. “To show that a noise nuisance exists, a reasonable person must find a certain noise intolerable or seriously affecting the enjoyment of his property and it may come down to a court applying a test of objective reasonableness,” says Milner.
Laying a complaint
In residential areas, the enforcement is done by the local authority. There are various penalties, provided it is shown that the noise exceeds acceptable levels. In most cases the “guilty party” will be asked to stop making the noise and if they fail to do so, further steps can be taken such as fines issued by the authorities or an action brought to court by the complainant. However, Milner says that careful consideration should be taken before you make a decision to take a noise complaint to court.
“Complainants must ensure they have all their ducks in a row as payment for the costs usually depends on the outcome with the courts ordering the unsuccessful party to settle the costs,” he says.
value peace and tranquillity, then buying a home in vibrant suburbs like Cape Town’s De Waterkant or the heart of Rosebank in Johannesburg is probably not a good idea,” says Geffen.
Do research before you buy
It’s also wise to look into an area’s subdivision and development laws and to find out about future plans for development in that suburb – especially if living next to a building site for a year would drive you crazy.
Geffen adds that people should also be aware of any new zoning regulations which may have been passed, especially if they’re considering buying residential property in a mixed-use area. “It’s always best to know beforehand what’s permitted in an area where you’re looking to purchase property and to decide whether or not your needs and lifestyle could be impacted,” she says. Do your research. “If you like to be asleep by nine every night and
Alternatively, you can just contact a local estate agent who will be able to enlighten you about the general tone of an area and what noise levels can be expected – which will probably be the easier and quicker route to take.
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PROPERTY NEWS
5 DECEMBER 2020
Precinct gives cricket ground new life Newlands Cricket Ground (NCG) Precinct is a new multimillion rand development underway on Cape Town’s Six Gun Grill Newlands cricket ground, aiming to make cricket a financially sustainable sport, all year round. Western Province Cricket Association (WPCA) in partnership with Sanlam will see around R800m invested in the new NCG Precinct being built on the old tennis courts area. Sanlam will own 51% of the investment, with WPCA 37% and Cricket South Africa (CSA) the remaining 12%. The mixed-use precinct will target business professionals
and significant educational occupants ensuring a creative environment that balances work and play. Varsity College and Cape Peninsula University of Technology (CPUT) will be occupying nearly 50% of the new NCG precinct, which will also include shops and restaurants. The NCG will remain a working cricket ground where the sport will continue to take centre stage. “For many years it became apparent that surviving on the revenue generated by match days was no longer an option and we needed to find a solution that would make a positive impact,” says WPCA interim CEO Tennyson Botes.
“The ground is currently only used for an average of 35 days per year, but this new development will see the NCG precinct used all year round.” Kugandrie Govender, Cricket South Africa’s acting CEO, says the ground has a long and rich history which was built up over the past 132 years. “The new development will protect that heritage for the future,” he says. “One of the features of the precinct is a pop-up cricket museum, which will capture and preserve the contribution that Newlands has made to the sport of cricket.” A cricket auditorium will also be part of the development.
Sandton development rakes in record sales South Africa’s largest sectional title developer, Balwin Properties, recently launched the lifestyle apartment development Wedgewood Sandton. It broke a residential sales record in Sandton by selling 550 units in one day, valued at R750m. The launch day at the show office saw buyers purchasing units online on their various devices, making for a mostly digital and Covid-19 conscious process. “We’re very proud to create opportunities for first-time homeowners and investors to own a property in a prime location,” says Brookes. “Seventy percent of the units are available for under R1,2m, which is unheard of in the heart of the richest square mile
Study shows retirees keep working A study on retirement trends from Voya Financial shows that 59% of baby boomers expect to keep working into retirement. For Generation X, it’s 60% and for millennials, 49%. Overall, 54% of all workers are likely to retain their jobs, or remain in some form of employment, during their retirement years. According to the Kelly Global Workforce Index, older workers are the most entrepreneurial of all age groups, and 35% of baby boomers receive income from independent or freelance work. Whether retirees continue to work in a traditional work environment, or decide it's high time to start their own businesses, their hardwon knowledge, people skills, and life and leadership experience, serve them well, as does a good balance between confidence and wisdom. Elderly people also tend to have established networks and contacts, which can be useful, and access to funds from investments, retirement packages or inheritances that can serve as seed money for new ventures.
The percentage of businesses started by people over 55 is rising rapidly and believed to be two to three times more likely to succeed than those founded by individuals under the age of 30. This trend of older people launching businesses is even more prominent in less developed countries, possibly because there are fewer resources available to support an ageing population. In South Africa, there are various services offered by residents of Evergreen Lifestyle’s retirement communities across the country, including upholstery, law, remedial teaching, medicine, irrigation, writing and baking. Says managing director of Evergreen Lifestyle Villages Garry Reed, “Our estates are designed to encourage interaction, so we support working residents wherever possible – whether by advertising their products and services or assisting with admin. Our advanced technological facilities – which include fibre to the home and free Wi-Fi within our clubhouses – also make staying connected with customers and clients easier.”
in Africa. We’re excited to disrupt the market and pave the way for the next generation.” Rainmaker marketing director Stefan Botha says, based on the ongoing demand, sell-out of the 1,348 apartments is anticipated within the coming months, which will see the building completed in March 2023. Wedgewood Sandton offers studio, one- and two-bedroom lifestyle apartments from R850,000. Buyers only require a R10,000 deposit and all bond and transfer costs are included in the purchase price. Some facilities include an outdoor cinema, business pods, rooftop entertainment areas, a coffee shop and a football field.
Porto lures investors to Portugal Porto in Portugal recently rated first among the top 25 best small cities in the world to relocate to in Monocle magazine’s inaugural Small Cities Index, and it’s the latest hotspot of choice for South Africans entering Portugal’s Golden Visa Programme. Says Chris Immelman, who heads up Pam Golding International, “Portugal is among the top three in the 2020 Global Peace Index, and with English widely spoken, great weather, an affordable cost of living and healthcare, excellent education facilities and no wealth or inheritance tax or tax on overseas pensions, is increasingly popular among South Africans seeking residency by investment or easy access to EU countries. “With interest and uptake ongoing through the Covid-19 lockdown, most of our investors are looking
to acquire a Golden Visa to afford them and their immediate families visa-free access to EU countries in all 26 countries in the Schengen zone to study, work or live – with some seeking to relocate or retire permanently to Portugal. “Over the past three-and-ahalf years we’ve assisted 380 families to enter the Golden Visa Programme, which offers residency via investment in property, with an entry level of only €350,000 (±R6,4m). A number of early investors have already been granted citizenship.” Immelman says it’s not surprising that Porto is stealing the limelight as a highly desirable location for investment, tourism or to live. “As we’ve seen in South Africa, many people are reassessing their lifestyle and accommodation
requirements, and some are finding that with work-from-home gaining preference, they’re able to live and work from anywhere in the world. “Factors taken into account in the Small Cities Index include quality of life, room to breathe, welcoming culture, career and business opportunities and access to nature. Porto has all these qualities in spades and more, including a vibey, cosmopolitan feel and sense of community.” Situated within the historical areas of the city, the latest Golden-Visa approved investment opportunity in Porto is the Lapa Porto Hotel, which operates under Marriott’s Renaissance brand. With investment available at €350,000 per investor, which includes full EU residency and seven days free stay in the hotel per year, there are 163 rooms, a convention centre capable of hosting 1,000 pax, a restaurant and rooftop swimming pool. The hotel is expected to commence operating in Q1 in 2023. The developers are also offering a nett return of 3% to all investors from the time that the hotel will be in operation. Furthermore, they are offering a compulsory buy‑back to all investors, which means that they will repurchase each investor’s share at the original purchase price of €350,000 at the end of the Golden Visa programme.
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Humewood R2 590 000 Summerstrand R1 550 000 Pointers: Marine Drive, Admiralty Way, Strandfontein, Gomery to 25 Summerwood Crescent, Summerwood Park
Re/Max Bay Sally Watkins Properties
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CENTRAL – R520 000
CENTRAL – R695 000
CENTRAL – R1 095 000
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HUMEWOOD – R895 000
YOU JUST FOUND IT!!! Enjoy the lovely views from this large stunning modern fully renovated apartment. Not a cent to be spent on this apartment which offers: Open plan kitchen on to lounge/dining area. Large bedrooms with stunning bathroom. Enclosed balcony, secure parking bay. All this is in a very well managed building with excellent security. Maruska Psotka 082 716 6454
REDUCED Large unit close to everything, offers 2 beds, lounge/dining, fitted kitchen, enclosed balcony and lock up garage. This 100 square meter unit is a fantastic investment. Call me for more information!! Maruska Psotka 082 716 6454
SPEND A LITTLE GAIN A LOT. This property offers a flatlet with an income of R3 500 per month, a secure parking bay with off-street parking, and spacious rooms. Upstairs 3 bedrooms, 2 full bathrooms, and study. Downstairs very charming lounge, dining room, spacious kitchen with granite tops, and door leading onto the lovely enclosed yard with swimming pool. Lovely private garden. Maruska Psotka 082 716 6454
NEW RELEASE - SOLE MANDATE! Mint condition, charming and spacious 2 bedroom apartment in a very secure and well maintained block. Fitted kitchen, bathroom with separate toilet. Enclosed balcony and secure under cover parking bay. This is a beachfront apartment close to all amenities. Maruska Psotka 082 716 6454
GOOD INCOME EARNER! Neat apartment on top floor in secure block with lovely seaviews. Has access control. Walking distance to all amenities. Offers 2 large bedrooms, large and sunny living areas with enclosed balcony. Unit is 89m² and has secure parking bay. Maruska Psotka 082 716 6454
HUMEWOOD – R1 200 000
HUMEWOOD – R1 550 000
HUMEWOOD – R1 720 000
HUMEWOOD – R2 590 000
SHERWOOD – R1 100 000
WALKING DISTANCE TO THE BEACH. Enjoy the tranquility of this attractive 2 bedroom apartment close to all amenities. Features include 2 bathrooms, large living areas with sliding doors onto balcony. Fitted kitchen and undercover parking bay. This apartment is situated in very well run block with good security all around. Maruska Psotka 082 716 6454
WELL PRICED, HIGHLY RECOMMENDED. Townhouse duplex offers upstairs 3 large bedrooms, 2 bathrooms, balcony with very lovely sea views. Downstairs - open plan living areas with sliding doors onto the garden. Well fitted kitchen, guest loo. Lock up garage, parking bay. Communal pool with good security all around. Maruska Psotka 082 716 6454
THIS IS A GREAT WELL MANAGED COMPLEX Spacious beach front apartment offers 3 bedrooms, 1 and a half bathroom. Open plan large living areas with stunning uninterrupted sea views Secure parking bay, laundry facility and CCTV cameras. Maruska Psotka 082 716 6454
ON SHOW SUN 3-5PM THE IDEAL HOME FOR LARGE FAMILY AND THE ENTERTAINER. 4 Spacious bedrooms, 3 bathrooms (1 en-suite). Large living area with study. The entertainment area has a braai, lovely garden and pool. Also offers an extra large flatlet. X2 Double garages, laundry and staff accommodation. A home you will never want to leave. . .Welcome Home. Maruska Psotka 082 716 6454
LIVE IN OR RENT, IT’S ALL UP TO YOU Situated close to all amenities. This 3 bedroom, 2 bathrooms, brick veneer home features a spacious lounge, open plan kitchen, and all bedrooms have built-in-cupboards. Very large private garden. Double garage, leading onto the unit. Call me for a private viewing. Maruska Psotka 082 716 6454
SUMMERSTRAND – R1 550 000
ON SHOW SUN 3-5PM
Immaculately maintained freehold townhouse in a well-managed complex
Beautiful face brick townhouse. Sit back and relax, from a maintenance perspective, not a thing needs to be done. This amazing property offers: Three large bedrooms/2 bathrooms. Open plan kitchen/dining room opening out onto to a covered entertainment area. Comfortable lounge which also has direct access to the entertainment area. Spacious double garage on remote. Separate double gate entrance to the backyard which can easily accommodate a caravan and boat. Large scullery, plumbed for a dishwasher and washing machine. Plenty of cupboard space. Excellent investment. The beautiful gardens are nurtured by an automatic sprinkler system. There is an alarm system. Secure. Close to shopping, schools and university etc. No levies, this is a freehold property, only a minimal contribution to the Home Owners Association. Pointers: Marine Drive, Admiralty Way, Strandfontein, Gomery to 25 Summerwood Crescent, Summerwood Park. Contact Sally 083 232 4162 or Alan 076 645 1708 for any information.
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ARE VIDEO WILLS VALID IN SOUTH AFRICA? There is no precedent on the validity of video wills in South Africa. In order for a will to be valid and accepted by the Master of the High Court in this country, it has to comply with the requirements as set out in section 2 of the Wills Act 7 of 1953 including, but not limited to, the requirement that it must be duly signed by the testator as well as by two or more competent witnesses present at the same time.
In some international jurisdictions (such as New South Wales, Australia, and in some states in the United States of America) the issue of video wills has come before their courts and some rulings have held that in certain situations and provided specific requirements are met, video wills may be accepted as a valid last will of a deceased person. It therefore appears that international jurisdictions are gradually adapting, their courts navigating the interaction between law and technology. The importance of having a written and validly executed will remains paramount in South Africa. Contact our Estates Department on 041 363 6044 or info@kaplans.co.za for assistance to draft your Will.