Private sector investment is set to lead the property transformation in Soweto

Private sector investment is set to lead the property transformation in Soweto

Launching at the end of June 2022, Orlando Towers Estates is not only primely located near the renowned Orlando Towers, but also boasts top-tier lifestyle facilities including; biometric access, a football pitch, kids’ play areas, braai pods, clubhouse facility, fibre network, resident parking bays and gas utilities.

The project is part of an investment drive aimed at converting the area surrounding the Orlando Dam and the Orlando Towers into a sought-after growth node. It will produce over 2800 quality 2 and 3-bedrooms apartments in four secure estates over the next five years, priced from just R670,575 for a 2-bedroom apartment.

The estate is located less than 4km from Maponya Mall, 2km from Chris Hani Baragwanath Hospital, the University of Johannesburg, and with Bara Mall right across the street from the development.

“The mission of this development is to empower the community with property assets that will appreciate in value due to the prime location,” says Derek Steyn and Louis Barnard, leading the development team. “Furthermore, it will serve as a stimulus for the local community and represents a major investment into middle-income bonded housing for the area. We are committed to supporting SMME’s from the local business community, in particular, the youth- and women-owned businesses when it comes to material sourcing and general labour.”

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“This is the spirit behind the vision for Orlando Towers Estates, to build quality affordable lifestyle apartments for the average South African. Through this development, we will be empowering buyers with long-term wealth creation and with a saleable asset.”

Raubex is leading the construction of this prime development and has over 30 years of experience as one of South Africa’s leading infrastructure development and construction materials supply groups.

“There is no doubt that a well-priced, well-located property investment, coupled with key amenities in the heart of a community like Soweto, will be in high demand”, says Tim Akinnusi, CEO of MortgageMarket.co.za, the exclusive home loan origination partner for the Orlando Towers Estates.

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All South African Banks have committed to providing home loans with up to 100% loan-to-value (LTV) for first-time home buyers. The government subsidy programme (FLISP) will also be available to assist buyers with additional funding. To reserve an apartment, potential homeowners are encouraged to visit www.orlandotowers.org

“As President Cyril Ramaphosa has said, property development will play a huge role in South Africa’s economic recovery. As the country moves towards a post-Covid-19 era, property and construction will be a key driver to uplifting the South African economy and building communities by providing affordable, modern and good quality housing.” adds Norman Ntabane, the Executive Director at Raubex.

Orlando Towers Estates supports this mission by being close to economic hubs and providing parking for residents to afford the flexibility of using private and public transport. Studies have shown that seven out of ten residents in Soweto use public transport to get to and from work; with taxis taking close to a quarter of consumers’ net spending on public transport. Therefore, proximity to consumers’ workplace(s) is a major pull factor for first-time home buyers.

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Upgrading your kitchen and bathroom on a tight budget

Upgrading your kitchen and bathroom on a tight budget

It is no wonder that kitchens and bathrooms sell homes when you consider that these tend to be some of the most expensive rooms to update. For those who do not have a generous budget to undertake an expensive remodel, there are a few inexpensive ways to make the kitchen and bathroom more appealing…

RE/MAX of Southern Africa shares three tips on how to upgrade kitchens and bathrooms without breaking the bank:

  1. Upgrade the handles & faucets

One quick and easy way to make a room feel more modern or to add character is to upgrade the cabinet handles. A variety of loose handles of all shapes, colours, and styles can be found at local hardware stores and can cost less than R15 each. Although these tend to be a little pricier to replace, a rusty or outdated tap can also make the whole room feel like it needs an upgrade.

“You could get away with spending around R1,000 – R3,000 to replace the faucet, which can create a whole new look and feel to the room.”

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  1. Paint the walls and / or cupboards

Replacing kitchen cupboards or the bathroom cabinet can be costly. For a more affordable solution, purchase a high-grip primer and a high-quality paint designed for cabinets. A fresh coat of paint on the walls can also work wonders at updating the space – just make sure that the paint is moisture resistant.

“Depending on the size of the room and how much you have to paint, you could spend around R1,000 or more on paint and related supplies.”

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  1. Upgrade the lighting

An outdated light fitting and inadequate lighting can make the room feel dark and dated. Replacing the light fixture is a simple and affordable way to brighten up the space. LED light strips underneath the overhead kitchen cupboards is also an easy way to modernise the room.

“For a quirky and affordable fitting, try shopping around at thrift stores or outdoor markets.”

Those who do decide to undertake a more expensive upgrade are advised to involve a real estate professional for some free advice. “Speak to a real estate professional to help you decide what features buyers are looking for in your area. An agent can also provide a guideline of recent selling prices in the area to help you avoid overcapitalising on the remodel.

As local experts, they might also be able to advise you on reputable local contractors that you can use to help you upgrade these spaces,” concludes Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

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New inclusionary housing development launched in Diep River, Cape Town

New inclusionary housing development launched in Diep River, Cape Town

Tutili Place has been launched in Diep River. This is one of the first inclusionary housing developments located in the high-demand Southern Suburbs/Constantiaberg area of Cape Town. The development is supported by Ndifuna Ukwazi, an activist organisation which promotes land justice and access to well-located land and affordable housing.

James Lewis, managing director for Seeff Southern Suburbs says Tutili Place is an innovative mixed-use development with 71 apartments of which 83% (59) are inclusionary units. It is the brainchild of leading developer IT71 and marketed by Seeff Southern Suburbs together with Linomatha Properties.

The development offers a choice of studio and one-bedroomed apartments, all with modern interiors and some with balconies. There are also parking bays for residents and visitors, all in a secure complex. Added to this, is a range of on-site amenities such as a grocery store, restaurant, laundromat, Internet Café, Hair and Nail Salon. There is also a green garden space and drying yard.

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The suburb of Diep River is a small hidden gem bordered by Plumstead, Heathfield and The Vines. Chad Belcher, an intern agent with Seeff says Tutili Place offers excellent proximity to the Diep River Station and amenities in the suburb as well as Main Road, access to schools and the beaches of False Bay.

He says further that apartment living in the area is in great demand and aside from own-use buyers, Tutili Place is also a great choice for investors. Seeff expects that it will be in demand for rental units and could rent out at around R6,000 to R7,500.

READ MORE: How long is an offer to purchase valid?

The lock-up-and-go lifestyle is in high demand which makes the units ideal for first-time buyers and professionals, but also for buyers looking to downscale to the convenience of secure living with minimal maintenance since the exterior and grounds would be managed by the Body Corporate.

The development is selling off-plan and is bank approved with mortgage loans available, adds Mr Belcher. The development is exceptionally well priced, ranging from just R694,000 for a studio unit and R830,000 for a one-bedroomed apartment.

This includes VAT and there are no transfer duty payable which is a huge benefit for buyers and investors. The levies are also low at between R500 to just over R900 depending on the unit purchased.

Mr Belcher says further that Diep River is an excellent investment and Lightstone shows that property continues to appreciate in value. Almost a third of recent buyers are under 35-years with a further 48% under 49-years of age.

The local property market enjoyed one of the most robust phases over the last year with total transfers well ahead of the pre-pandemic period and close to that of the last mini-boom in 2015/6. This affirms the area as a good investment, and we expect high demand for the apartments, he concludes

READ MORE: A complete guide to the costs of buying property in SA

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What kind of home can you rent for R10,000 in 2022?

What kind of home can you rent for R10,000 in 2022?

The rental market in South Africa has been steadily climbing and is more competitive than ever. The average rent in South Africa reached R7906 in the final quarter of 2021 – but what kind of dwelling can you get in the R7000-R10,000 price range?

“There are very few homes available in cities priced under R10,000 but they do exist,” says Barrie Swart, Head of Gumtree Property. “If you are a good tenant with a solid history, don’t be afraid of negotiating. If you are a remote worker, you should also look into so-called Zoom towns around major cities with good internet connectivity as rents are generally cheaper and less competitive.” 

Here’s what R10,000 will rent in different cities in 2022, per Gumtree stats:

Gauteng, Bryanston, Two Bed Cottage

With R10,000 you can rent a fully furnished modern cottage with a separate entrance and free wifi, electricity and water. You can also bring a small pet along with you. It’s privately rented by the owner.

Gauteng, Pretoria, 3-Bedroom Cottage

Your rands stretch slightly further in Pretoria where you can rent a three bedroom cottage with a scullery, TV room, loft, boma and tool shed, partially furnished. This cottage is based in Grootfontein Country Estate, so a little further from the hustle and bustle. Again, it’s rented by the owner.

READ MORE: Tips for buy-to-let success amid property rental boom

KwaZulu Natal, Pinetown, 3 Bedroom House with Pool

For R10,000 a month, you can secure a large three bedroom house with a swimming pool, prepaid electricity and large garden without rent escalation directly from the owner. There might be a bit of maintenance involved to keep the garden in tip-top shape, but good tenants will be rewarded for their efforts with low rents.

Western Cape, Vredehoek, Bachelor Flat

We know that Cape Town is pricey, so there aren’t many properties available for less than R10,000. However, you can rent a gorgeous studio apartment with furniture just five minutes from town for R8000. There are tennis courts and a swimming pool available for communal use, and a secure parking bay. Wifi can be added.

Limpopo, Bela-Bela, Three Bedroom House 

If you are looking for farm living, you can rent a massive three bedroom house on a working farm just outside Bela-Bela in Limpopo for R9000 a month. There’s a big garden, two bathrooms, an open plan kitchen and large dining room for the family.

READ MORE: Be the nosy tenant – before you sign the lease

Western Cape, Sea Point, shared accomodation

If you don’t mind housemates, you can rent a fully furnished second bedroom in an apartment in Sea Point, with a shared bathroom and stunning ocean views at R8500 per month. You can’t beat the location, as you are located within walking distance of the MyCiti bus stop.

Gqeberha, Port Elizabeth, Three Bedroom House 

The Eastern Cape is one of the most affordable (and beautiful!) places to live. For R8500, you can rent a newly built home with some maintenance included. The home is located in the quiet neighbourhood of Parsons ridge. There are three bedrooms.

According to Barrie Swart, the most affordable homes can be found in the Northern Cape, Mpumalanga and Limpopo. There are currently 16,000 flats for rent on the site priced below R10,000 and another 7,000 priced above R10,000.

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When can you evict a family member?

When can you evict a family member?

Can you evict a family member ?

There is nothing in the law to stop you. However, there are moral issues and relationship dynamics to think about…not just with the family member who is the tenant but with other family members who may take sides. Families come in all shapes and sizes with varying degrees of affection or antagonism. The tenant who is a family member could be an adult child who hasn’t left home yet or a distant cousin who is occupying a property through some long-forgotten verbal agreement. It is not an attorney’s place to advise you on the rights and wrongs of evicting a family member. However, there is a legal process that must be followed, whoever the tenant is.

Circumstances may arise in any tenancy agreement where the person in charge of the property needs to cancel the lease or start the eviction process. Let’s look at how that process might differ for the eviction of a family member, if at all.

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Just ask

It may seem obvious but the first thing to do is to ask the person to leave. After all, family members should be able to talk to one another, however close or distant the blood tie. If you have an amicable relationship, why introduce a legal process that is bound to cause tension? Have a chat. But if that doesn’t work, or if the relationship with the family member is already strained, what should you do?

Does the family member have a lease

Is there a lease? This is a very important question. If the family member holds a standard tenancy agreement, the process is the same as it would be for any other tenant. The first step is to cancel the lease. If there are no grounds for cancellation, i.e., rent is paid on time and the property is well maintained, you must wait for the expiry of the lease and give the tenant notice to quit on the basis that you do not intend to renew the lease. You must adhere to relevant statutory notice periods. Only if the tenant then refuses to vacate the property can you initiate the eviction process to secure the eviction of a family member.

READ MORE: How long is an offer to purchase valid?

Adult children 

What happens when a 30-year-old son or daughter still lives at home and Mom and Dad want to reclaim their privacy? The parents have been very generous in allowing their adult offspring to remain in the family home, with or without paying rent, long after most have moved out. They have now outstayed their welcome. Hopefully the situation can be resolved by a friendly but firm and frank conversation. If a reasonable request to move out falls on deaf ears, the parents will have no choice but to initiate formal proceedings. Although it is very unlikely a family in this situation will have a written lease, the acceptance of rent or a contribution toward household expenses is considered a verbal lease. The process described above then applies. Mom and Dad must affect a lease cancellation and cannot just deposit belongings in the street and change the locks (let’s hope loving parents would not do that anyhow!).

An executive decision 

It often happens that a property owner passes away and a family member resides in the home. Where the family member is a spouse the inheritance will be dealt with through the will or the laws of intestacy (in the absence of a will). In the case of a family member other than the spouse, both the lease and the will may have an impact on the final outcome. An adult child from a previous marriage or elderly sibling of the deceased owner (for example) may have a lease granting tenancy in perpetuity, or the will may stipulate that the property cannot be sold until after the tenant’s death. These documents must be consulted before considering eviction.

However, provided there are no provisions of this nature, the law gives the executor the power to dispose of the estate in accordance with the wishes of the deceased.

If there is a tenant in situ, and the executor elects to sell the property, the tenant has no extraordinary rights. Due process must be followed and the tenant cannot be summarily removed from the property, but the executor has the right to cancel the lease and begin the eviction process if the tenant does not cooperate.

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Case study

In the case of Meyer NO v Sifile, which came before the Western Cape High Court in 2011, the court ruled that the purpose of the PIE Act extends to executors, who have the right of eviction of a family member. The court noted, “The estate of a deceased person is an aggregate of assets and liabilities and a totality of the rights, obligations and the powers of dealing therewith, vests in the executor.”

When the family member is an abuser 

Perhaps you share your home with a family member who abuses you. Domestic abuse can take the form of physical, mental or emotional abuse. You do not have to be married to the abuser to lay a claim of domestic abuse.

If you suffer abuse at home, you can obtain a protection order in terms of the Domestic Violence Act 116 of 1998. This prohibits the abuser from entering the shared home. This should protect you from further abuse and is much swifter than eviction, which may not be relevant if the abuser is not your tenant. However, if the abuser is your tenant and you can prove that imminent harm will be caused by them, you may be able to secure an Urgent Eviction.

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How interest rates affect your property portfolio

How interest rates affect your property portfolio

Interest rates have a major impact on your property investment portfolio and were recently at 50-year lows as you can see below. This creates a tremendous opportunity for investors but should also be considered a chance to prepare. What goes up must come down and what comes down, must eventually go up again.

 

  Here’s how interest rates affect your property investment:

It is thus critical to build up reserves when interest rates are low and not spread yourself too thin. You can even refinance your properties and keep that capital in your access bonds as reserves.

 Most economists expect interest rates to rise as the global economies are trying to get inflation under control. It is important that you are prepared for it.

 So, then the question remains, should you fix your interest rates during this time? Remember, when you fix your interest rate, it is at a higher rate than the current variable interest rate, so if interest rates don’t increase, you end up paying much more. It is also good to remember that you are competing against some clever banking analysts…

 The benefits of a fixed interest rate are certainty and protection against interest rate hikes. It’s like getting insured against future interest rate increases. But it comes at a price (and sometimes a hefty one). So, ask yourself if it is worth the price.

Source: Jaco Grobbelaar, Managing Director Prosperity Enterprises 

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