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| Wraps Off Unusual Atlantic Seaboard Property Development |
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The Orchards, a new development in Sea Point, bordering both Fresnaye and Bantry Bay, may well offer the best investment and lifestyle opportunity for people wishing to take advantage of current low property prices in order to gain a foot-hold in this most desirable of locations.
The Orchards – so named because nearly half of the property will be devoted to the planting of citrus trees – is situated on the last piece of available land in the area large enough for a residential development of this nature.
It will comprise a combination of apartments, townhouses and penthouses, together with a variety of upmarket communal features, all within a walled setting that offers high-tech security. As such it will appeal equally to those seeking a carefree luxury lifestyle as it will to non-Capetonians looking for an investment opportunity in one of the country’s most sought-after areas.
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| The Mirage set to become a Reality as Building Work starts |
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The credit crunch of the past few years has put the brakes on many property developments in South Africa and around the world - but not on The Mirage, a 17-storey mixed-use project in Cape Town’s upmarket De Waterkant area, where the developers have just broken ground to begin construction.
“Located in a prime position, this development will boast a three-storey boutique hotel as well as 54 luxury apartments over five floors, nine duplexes and a floor of penthouses, all with sweeping mountain, city and harbour views. And more than 40 units have already been sold for a total of R190m,” says Joris Kröner, founder of property marketing agency estata.
“There will also be two storeys of retail space for galleries, bookstores, cafés, gift shops and fashion outlets and two storeys of parking above ground as well as four and a half levels of basement parking, to complete a building of ultra-modern design that promises to become a Cape Town landmark.”
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| Want Money? Invest in South African Property Funds |
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South African investors who invested in property funds over the past three to five years invested well and are now smiling all the way to the bank.
South African investors who invested in property funds over the past three to five years invested well and are now smiling all the way to the bank.
This is according to the latest report by the Property Loan Stock Association of South Africa (PLSA), the representative umbrella body of the property loan stock sector comprised of voluntary members.
The report indicates that according to Morningstar, all five of the top-performing unit trusts in South Africa over five years are property funds and four of the five top-performing unit trusts over three years are also property funds.
| Property Loan Stock Association of South Africa, 25-10-2011 |
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| Buying Property for Investment |
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There are various kinds of property investment. Your home is an investment in that it provides you with rent-free accommodation. It may also yield a return in terms of increased value (a capital gain), although that gain may be difficult to realise unless you trade down or move to another region or country where property is cheaper.
A property investment should be considered over the medium to long term, i.e. a minimum of five and preferably 10 to 15 years. Bear in mind that property isn’t always ‘as safe as houses’ and investments can be risky in the short to medium term. You must also take into account income tax, if a property is let, and property taxes.
Capital gains tax is charged at normal income tax rates in South Africa, and you may be liable for tax on any profit made if the property isn’t your main residence. You also need to recoup purchase costs of 10 to 12 percent when you sell.
When buying to let, you must ensure that the rent will cover the mortgage (if applicable), running costs and void periods (when the property isn’t let). Bear in mind that rental rates and letting seasons vary with the region and town, and an area with high rents and occupancy rates today may not be so fruitful in the future.
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| De Goede Hoop Estate - A Slice of Paradise |
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Renowned artist Wilma Cruise and her husband John have found their slice of paradise tucked away at the foot of the steep slopes of Chapman’s Peak, a walk away from the beach.
Their five-hectare farmstead, De Wildehoek, on De Goede Hoop Estate, is surrounded by fynbos and towering pine trees. It is ideal for Cruise’s three horses – the apple of her eye Cara Minze, Gregor and Rio Grand, her prize-winning stallion. Cruise was born and bred in Johannesburg and never thought the day would come when she would live in “Slaapstad”. “This morning we saw the first whales while walking along Kommetjie Beach. They were about 100 metres away. We’re so blessed.”
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| Real Estate Developments South Africa Retain Value Well |
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Estate living has grown in popularity around the world and South Africa is no exception.
In line with these international trends, a multitude of residential estates and other property developments have been created across South Africa in order to fulfill homeowner’s lifestyle requirements and their need to be close to a range of amenities and facilities.
Joris Kröner, MD of estata, points to the United States, where 56% of respondents in National Association of Realtors’ Community Preference Survey indicated that they favour walkable, mixed-use neighbourhoods over neighbourhoods that require more driving between home, work and recreation.
“Walkable communities are defined as those where shops, restaurants and local businesses are within walking distance from homes,” explains Kröner, who adds that according to the survey, 77% of respondents said they would look for neighbourhoods with abundant sidewalks and other pedestrian-friendly features when considering a home purchase. A further 50% indicated that they would like to see improvements to existing public transportation rather than initiatives to build new roads and developments.
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| Mjejane Game Reserve and its Agreement with the Kruger National Park |
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The 4,000 hectare Mjejane Game Reserve eco-tourism development borders the Kruger National Park along 10 km of the Crocodile River.
The 23rd of June 2009 marked a historic occasion in the development of Mjejane Game Reserve and its agreement with the Kruger National Park. In its support for Mjejane Game Reserve, the Kruger National Park started re-stocking Mjejane Game Reserve by delivering giraffe, zebra and wildebeest which, on their own, delayed crossing the Crocodile River into Mjejane Game Reserve. Later, white rhino and more zebra will follow and possible impala in order to create a sustainable tourism experience. These species will attract more predators onto Mjejane Game Reserve and so offer visitors a meaningful game experience, as up until now, the dominant large species on Mjejane Game Reserve were elephant and buffalo. The Mjejane Game Reserve started with a land claim that awarded to the Mjejane Community, situated a few kilometers east of Hectorspruit, and could be hailed as a workable model for land reform processes in the country.
| Mjejane Game Reserve Press Release, 23-06-2011 |
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| Property Developers Size up Africa |
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Economic growth in Africa projected to surpass 7% this year, South African businesses are eyeing up the opportunities this presents.
Amongst those are property developers, who stand to benefit significantly from economic expansion on the vast continent and therefore need to have a thorough understanding of the different local conditions that present themselves in African countries.
At 30.3 million square kilometres, Africa is large enough to fit China, the US, Western Europe, India and Argentina. It has the fastest growing population in the world, estimated to reach one billion in the next six years, and sub-Saharan Africa is also one of the most rapidly urbanising regions in the world with a fast growing middle class. According to a recent Mastercard Worldwide Insights Report, it now has 52 cities with more than one million people, which is more than double the number in 1990.
| South African Property Owners Association (SAPOA), 17-06-2011 |
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| Country Contemporary - The Reeds at Balgowan |
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When taking a road less travelled in the Midlands, there can’t be a soul who doesn’t play with the idea of, ‘I could live here’.
The mantle of calm descends as slowly and soothingly as an intravenous drip, and gradually, the quiet, the landscape and the sheer simplicity of life become your desire.
Of course, this doesn’t preclude extreme comfort, luxury and privilege. ‘Simplicity’ is more a reference to pure, uncomplicated pursuits, such as fishing, birdwatching, hiking and just watching and feeling the slow, unmistakable change of the seasons.
Donovan Neale-May owns this, the first home in The Reeds at Balgowan estate. He’s also the accidental developer. ‘A friend of mine put in an offer for the land to an old Midlands farming family who’d owned large tracts here since the days of the Voortrekkers. He asked me to finance the project, and when I visited the area, I was captivated by its setting and the potential it had to combine eco-living with an active outdoor lifestyle.’
The Balgowan area is redolent with history, even to the point of old wagon trails on the property. His purchase of the site’s adjoining land ensured a combination of indigenous and commercial forest, so the natural privacy of The Reeds is perfect for those who value serenity and space in an exquisite setting.
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| Outlook for Property Prices |
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House price growth in various segments has continued to slow down after adjusting for consumer price inflation but house prices may increase marginally during the coming year according to figures contained in Absa’s Quarterly Housing Review.
Senior property strategist for the bank, Jacques du Toit says that this can be attributed to various factors including high levels of household debt in relation to income, no further interest rate cuts, the state of consumer credit records and the impact that this has on banks’ lending criteria.
He says that the in the affordable housing market (house sizes of between 40m2 and 79m2) and priced at R480k or less, the real drop in prices was 3,9% although in nominal terms prices were just 0,3% lower year-on-year (y/y).
In the small houses category (80m2 to 140m2) the fourth quarter of last year showed nominal growth of 9,3% and real growth of 5,6% y/y.
For medium-sized houses from 141m2 to 220m2 the nominal price growth was 3,3% but the real growth was 3,4% lower than the previous year. For large houses (221m2 to 400m2) the nominal growth was 2,4% y/y but prices dropped by 1,1% in real terms.
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