Pam Golding Properties Group Newsletter
PGP logoDate: August 2012

Residential Property News

Schools, accessibility drives Paradyskloof sales

Stellenbosch suburb has it all

 

What makes for a sound property investment?

Experienced real estate professionals share their knowledge and advice

Busy summer for South Peninsula agents

Pam Golding Properties sets new record price in Glencairn

 

Coastal residential market picking up

Increased interest in coastal and leisure property

View our selection of properties from throughout Southern Africa. Click on the region below.

Bigbay - R3,5 million

Brand new gem in elite security estate

The house is located in a highly sought after security estate, faces North West (sunny all year and no South Easter), is within walking distance to the beach and shopping mall. It has views of Table Mountain, Table Bay and Robben Island, from the 2 balconies on the first floor - the one has a built in fire place and the other leads of the main bedroom.

Hjalmar Larsen
Click here to email
M: +27 (0) 82 940 8034

Tanya Kriel
Click here to email
M: +27 (0) 82 413 9824

Bantry Bay - R8,75 million

Architecturally-designed penthouse

Perfectly created and designed penthouse with wrap around balcony, boasting panoramic views, nestled in one of the city's neighbourhood of choice. The entire apartment has been customised with the finest architectural details and finishes. The space has east and northern light is serene and quiet.





Sea Point Office
Click here to email
T: +27 (0) 21 439 7415

Bishopscourt - R22 million

Embraced by majestic mountain views

Lovingly designed with easy living and entertaining in mind, this characterful family home boasts uninterrupted vistas over the Constantia valley towards False Bay and offers the very best indoor / outdoor lifestyle.



Myrna Duveen
Click here to email
M: +27 (0) 82 443 8417

Christiaan Steytler
Click here to email
M: +27 (0) 82 658 0071

Magaliessig - R4,5 million

Dream home in sought after estate

This elegant home is truly one of the most spectacular homes in Magaliessig. Boasting 3 double bedrooms all with full en suite designer bathrooms this magnificent property is sure to impress. The glamorous caesarstone kitchen leads out to a smart dining room with rotisserie, ideal for entertaining in the coming winter months. The inviting lounge and dining room all lead out to an open family room and covered patio with a built in braai. The beautiful landscaped garden and sparkling pool are sure to make you forget that you are still in the city. Double automated garages and staff accommodation perfect this incredible and unique home.

Alistair Dempster
Click here to email
M: +27 (0) 83 603 4063

Nikki Dempster
Click here to email
M: +27 (0) 79 692 1092

Northcliff - R8,5 million

Whispers of a Bygone Era

Rustling age-old trees rise up from terraced gardens to a sun filled, airy home with stack back doors opening the living areas out onto a green vista and sparkling pool. A treasure trove of versatile areas are plenty abound in this property with a gorgeous 2 bed cottage, staff facilities privately located behind the home, a gym and spa bath with direct access from the main suite, 6 berth garage, inside and outside storerooms, office with access directly from the garage, entertainment room including a gas indoor braai and pizza oven, dining room and formal lounge with original parquet floors, family room and more.





Melinda Odendaal
Click here to email
M: +27 (0) 83 399 4113


Parktown North - R12 million

A modern farm style home

Newly renovated and professionally designed by renowned designer Stephen Rich. North-facing aspects overlooking manicured garden. State-of-the-art open-plan living with gourmet kitchen opening to covered patio make this an entertainer's dream. 3 Spacious bedrooms; 3 en suite bathrooms; TV/family room; separate study. Self contained second dwelling includes open plan living room, kitchen and en suite bedroom. Ideal for extended family. 3 Garages, off street parking, excellent security including CCTV, guest/staff accommodation.



Shirley Finnemore
Click here to email
M: +27 (0) 82 881 4818

Byron Thomas
Click here to email
M: +27 (0) 72 324 3916

Zevendal - R3,95 million

Zevendal residential estate

A spacious family house on a 4003m² plot in popular Zevendal Security Estate with stunning views. This house offers your real wooden floors, 3 bathrooms, 5 bedrooms or a study, 4 garages, open plan modern kitchen with scullery, living area with a huge fire place. The estate forms part of the Zevenwacht Wine Estate. It is next to the Stellenbosch Wine Route with easy access to Cape Town International, Stellenbosch or Cape Town surrounding areas.

Marina Crouzer
Click here to email
M: +27 (0) 73 228 2687

De Wijnlanden - R5,46 million

Undeniably one of the most prestigious homes in Stellenbosch

This home offers a beautiful blend of style, ambience and quality. Gourmet kitchen, 4 bedrooms with stunning mountain views, 3 garages and an undercover patio that flows unto a sparkly pool.




Phoebe van Reenen
Click here to email
M: +27 (0) 82 331 8827

Hemel-en-Aarde - R15 million

Masterpiece with glorious view

This mansion situated on 5511m² in a 24 hour manned exclusive coastal estate will appeal to those discerning buyers who demand something especially unique. With 4 bedrooms, 4 bathrooms, and 5 reception rooms, fitted with only the best finishes this house falls into a category of its own. A library, studio, 2 pools and landscaped gardens add to the beauty of this special house.

Annali Durr
Click here to email
M: +27 (0) 82 323 65524

Jeffreys Bay - R3,995 million

Modern, inspired, leisure

This is a property that really has it all. Comfort, space, excellent finishes, own pool with a jacuzzi, spectacular sea views and security. On top of that, walking distance to the beach. Close to Shopping centres, 10 min drive to Fountains mall. 5 min drive to Jeffreys Bay Primary school, CBD and main beach.

Daleen Butler
Click here to email
M: +27 (0) 84 556 2420

Jaco Bothma
Click here to email
M: +27 (0) 79 135 9470

Sedgefield - R4,4 million

Sedgefield waterfront property

Quiet, serene and surrounded by nature with awesome unobstructed views. Walk to the bottom of the garden for a swim, throw in a fishing line or step into your dinghy. 2.9ha stand with over 100 indigenous trees, conveniently situated between The Island and town but feels miles from anywhere. Exclusive, light-filled, Zen design house with magnificent wood features throughout.


Walter Bakker
Click here to email
M: +27 (0) 83 457 7823

St Francis Bay - R12,9 million

African splendour on the canals

Majestic and intriguing, this large canal home boasts seven en-suite bedrooms all decorated with flair and creativity. This position on the canals is probably the premier position on the entire canal system, with a wide frontage onto a large expanse of water, providing for privacy and recreational opportunities. A sunny north-facing position, and one of the largest plots. Living areas are sophisticated yet comfortable, with private bar-room and separate study.

Lois Fox
Click here to email
M: +27 (0) 82 371 9183

Kloof - R4,95 million

Make this your haven

It's the perfect place to unwind and ideally positioned near St Mary's school. Delightful open plan living and superb kitchen. An entertainer's delight with stunning distant views from Umhlanga and Amanzimtoti. Big enough land to build another home. Brand new on the market don't delay phone Alwina straight away.




Alwina Muggeridge
Click here to email
M: +27 (0) 83 263 2669

Zimbali - R10 million

For lifestyle to cherish and family to love

Stunningly designed, newly built and beautifully appointed this home is an architect's master stroke in marrying the Resort's Balinese inspired classical style with the crisp, clear and more minimalistic lines as is found and much adored in Zimbali's emerging concept of the modern contemporary architecture.

Marcelle Conradie
Click here to email
M: +27 (0) 71 302 3010

Sascha Bausch
Click here to email
M: +27 (0) 76 451 0879

Ballito - R15,95 million

Exceptional family orientated lifestyle

Some of the finest of materials and finishes have been selected for this extraordinary property with its truly monumental dimensions. Set on a double stand, located just a step from the main beach, boasting exquisite, double volume, bulkhead ceilings with lighting that is unmistakably luxurious and aesthetically engaging, sumptuous bedrooms and expansive living spaces with multiple garaging and beautiful ocean views make this a must view for those who want it all.

Anton van der Merwe
Click here to email
M: +27 (0) 72 606 0781

Rynfield - R3,6 million

Live in luxury

Add love and laughter and this home is complete. With superior finishes and attention to fine detail, this double-storey property is for the discerning investor who does not compromise on quality. Situated at an excellent address in Rynfield opposite St Dunstans School, the property offers three impressive reception rooms, a study, four bedrooms with solid teak floors and four en-suite bathrooms.

Bev White
Click here to email
M: +27 (0) 82 330 0168

Middelburg - R9,23 million

Four en-suite bedroom mansion in Aerorand

A rare opportunity to own this unique home in Aerorand. This mansion is 1042m² set on 1803m² of manicured gardens. A home fit for a king. This 4 en-suite bedroom house with a sprawling balcony, with own lift, underfloor heating, 6 air conditioners, 6 garages, generator and water filtration system is immaculate in style and design.


Nellie Pretoruis
Click here to email
M: +27 (0) 82 828 2636

Serengeti Estate - R9,25 million

Panoramic perfection

Prepare to be enthralled by this stately home. This magnificent mansion is idyllically positioned to impeccably embrace its verdant surrounds. Designed by Hugo van der Walt of StudioTech to exhibit a combination of contemporary beauty that is complimented by magnificent glass displays, to take advantage of the breath taking panoramic views of both the Jack Nicklaus Signature Golf Course and the stunning natural wetlands of Serengeti.

Audrey van Niekerk
Click here to email
M: +27 (0) 72 527 6438

Klein Windhoek - NAD13,85 million

For the ambassador - Namibia

Modern and very spacious home. Offers 5 bedrooms, all with full en-suite. 3 Spacious living areas, entertainment room with direct access to patio with breathtaking views over Windhoek. Modern kitchen with separate scullery. Laundry room, outside toilet and bathroom for your guests using the swimming pool. Gym area overlooking the pool.

Suzaan Hennig
Click here to email
M: +264 (0) 81 790 1588

Swakopmund - NAD16 million

Opulent oceanfront living - Namibia

In a league of its own, this exceptional property offers everything the discerning investor could dream off. Fully automated family home with the beach right at your doorstep. It includes 4 en-suite bedrooms, a designer kitchen, a bar, braai, gym, office and a roof terrace.


Barbara Gibson
Click here to email
M: +264 (0) 816 562619

Kileleshwa - KSH35 million

Beautiful 5 bedroom townhouse - Kenya

A lovely townhouse situated in a secure compound with 3 similar houses along the serene area of Old Kileleshwa. Laid out on 3 levels, the house has 5 bedrooms with a master ensuite. The main house has parquet floors and adequate storage space. Also included is a spacious service area and domestic servants quarter.

Gloria Adero Barasa
Click here to email
M: +254 (0) 700 507482

North Riding - R5,450 / month

Rental - Gauteng

One bedroomed apartment : golf estate

This one bedroomed apartment offers you; open plan lounge, dining room, kitchen with granite tops. One bathroom. Carport. Lovely grounds, walks, pool in complex. Clubhouse, gym, tennis court and 24 Hours excellent security.

Janet Ings
Click here to email
M: +27 (0) 82 897 0144

Tokai - R80,000 / month

Rental  - Western Cape

Steenberg Golf Estate- Fully furnished and Equipped

Enjoy security and privacy on this prestigious estate. Sumptuous proportions and luxurious finishes throughout, makes this a wonderful home for family and friends. 3 Bedrooms and separate guest cottage, garden with beautiful views and heated swimming pool, gracious entertainment rooms leading to a large patio. Wine cellar plus 2 golf memberships.

Michele Ormrod
Click here to email
M: +27 (0) 83 691 6444

 

Pearl Valley Golf Estate - R28,000 / month

Rental  - B&O

Security, views and position create an unbeatable combination

North east facing home offering loads of room for entertaining as well as relaxation with ample living spaces flowing onto covered patio, braai and garden. Pearl Valley Golf Estate offers one of the best golf experiences in South Africa and is set to become one of the top residential golf estates in South Africa.

Helena Fourie
Click here to email
M: +27 (0) 72 199 5989

Anneke Jacobs
Click here to email
M: +27 (0) 84 228 0414

Beacon Bay - R25,000 / month

Rental  - Eastern Cape

Exquisite river views

This stunning home overlooks the Nahoon River from several vantage points in the home. The kitchen is spacious , modern and a chefs delight. The lounge leads out onto covered deck area which has a braai and overlooks the garden and pool area. The home flows from area to area with many hidden surprises to delight the prospective tenant.

Felicity de Lange
Click here to email
M: +27 (0) 76 496 9441

Umgeni Park - R28,500 / month

Rental  - KZN

Modern mansion with amazing views

This spacious multi-storey home has unparalleled views of the river, golf course, sea, city and stadium. There is easy access to main arterial roads and the home is central to the CBD and the Umhlanga Business District. There is a double garage at road level and additional off street parking.

Joy Chiang
Click here to email
M: +27 (0) 83 256 5993

Sandie Piek
Click here to email
M: +27 (0) 82 380 7307

Nelspruit - R49,500 / month

Rental - Central

Unable to settle for anything in half measures?

Then this is the life you deserve to live! Situated on 1800 hectares of wildlife conservancy, home to giraffe, kudu, wildebeest, zebra and much more. Excellent security gives residents peace of mind to enjoy game viewing roads, walking trails and bird walks to the full. Eclectic finishes enhance the symphony of style and elegance throughout.

Kirsten Stiegler
Click here to email
M: +27 (0) 81 777 0495

Westlands - KSH200,000 / month

Rental  - Africa

Le Grand Property! - Kenya

Fit for a King! 5000 sq. ft of pure luxury and class. Grand entry, magnificent huge fitted kitchen, massive bedrooms with grand bathrooms. If you are tired of the ordinary, then this property is for you. Located in a very secure compound, next to IOM and in a very secure complex of only 8 units with a back up generator, pool, and a huge entertainment area, fit to hold a wedding!

Shaif Sharif
Click here to email
M: +254 (0) 707 181206

Home Loans

Schools, accessibility drives Paradyskloof sales


Paradyskloof property

The suburb of Paradyskloof lies 3km from the centre of Stellenbosch, and is highly sought-after by home-owners in search of a secure, family-oriented lifestyle. The community consists mainly of family homes on good-sized plots, many of them with lovely mountain views.  Prices range from R2.5 million to R8.5 million. Pam Golding Properties (PGP) reports that its accessible location and selection of high quality schools are among the key factors driving sales.

PGP’s area manager for Stellenbosch, Louise Varga, says the suburb was only developed in the 1980’s, which means that most homes are still in excellent condition. It lies just off the R44 highway, providing easy access to the N2, Somerset West and the Techno Park business hub. Major employers including Parmalat and Medi-Clinic have their offices in the area. Yet the setting is one of suburban tranquillity, with the suburb surrounded by the foothills of the Stellenbosch mountains, leafy vineyards and several smallholdings. It is also particularly well-protected from the prevailing winds.

“Paradyskloof has its own convenience shopping with a Woolworths Food outlet, as well as two popular restaurants,” adds PGP agent Lizette Botha. “Nearby shopping centres include Die Boord centre and Stellenbosch Square, while the new Eikestad Mall is also very accessible, as are the Stellenbosch Medi-Clinic and the university. A new Superspar will be opening in Paradyskloof soon, which will only add to the convenience of living in this area. Golfers can walk to the Stellenbosch Golf Course, while the course at De Zalze is also nearby. There is also a wonderful network of mountain paths which can be enjoyed by cyclists, joggers and hikers alike.”

Schools are a major draw-card, and parents in the area have a range of options to choose from in both English and Afrikaans medium, pre-primary, primary and high schools. Within a 3km radius lie three of the top 20 schools in the Western Cape, based on the 2013 matric results - Rhenish Girls’ High, Paul Roos Gymnasium and Bloemhof High. A cycle path along the R44 means children can ride to school in safety, while the suburb’s central green belt has a playground for younger children as well as ample space for teens to play touch-rugby or soccer.

Within the suburb, one of the most highly-rated addresses is Vallee Lustre, an exclusive security complex consisting of just 14 properties. All of the erven except two have been fully developed, with work commencing on one of the final homes in March 2014. The development has a gated entrance and perimeter electric fencing, and is surrounded by farmland and vineyards, ensuring a peaceful atmosphere.

PGP has the exclusive mandate to market one of these upmarket homes at R8.5 million. The home occupies an erf of around 1000sqm, and offers around 500sqm of living space, including four bedrooms, three of them en suite, and four spacious reception areas.  There is excellent flow from the entertainment areas onto an enclosed patio with built-in braai and retractable glass doors, overlooking the swimming pool and immaculate garden.

“This warm family home blends English country charm with European style,” says Botha. “Its top-quality finishes include American walnut floors, Hansgrohe appliances, cherry-wood cabinets in the study and a modern kitchen finished with granite counter-tops and whitewashed maple cupboards. Other features include a wine cellar with capacity for 400 bottles, wooden sash windows with shutters, and two Morso fireplaces. The use of natural materials and stone-cladding ensure a timeless, wholesome appeal, and creates a warm family home.”

To view this home, or for more information on property for sale in Paradyskloof, contact PGP agent Lizette Botha on +27 (0) 84 440 1057, +27 (0) 21 887 1017 or lizette.botha@pamgolding.co.za.

Busy summer for South Peninsula agents


Simon's Town property

The peak summer season has once again proved to be a busy one for estate agents selling residential property in Cape Town’s South Peninsula. The area includes popular seaside towns such as Muizenberg, Kalk Bay, Simon’s Town, Fish Hoek and Noordhoek, as well as smaller villages like Scarborough and Kommetjie. All are known for their laid-back coastal lifestyle, with many properties enjoying sea and mountain views. Pam Golding Properties (PGP) reports that its South Peninsula agents sold over R17 million’s worth of property in December 2013 alone, while agent Esther le Roux set a new record price of R3.98 million in the town of Glencairn/Cairnside, topping the previous record of R3.7 million, set in June 2013.

PGP’s South Peninsula area manager Sandi Gildenhuys says the area is sought after by a wide variety of buyers, for differing reasons. “Some are drawn to the sprawling smallholdings of Noordhoek where they can keep horses or set up their own artist’s studios,” she says, “while retirees in particular love the tranquillity, flat layout and easy beachfront access of Fish Hoek. Young families find good value for money in Capri and Faerie Knowe, close to excellent schools, while for international buyers, the top-end luxury homes in many of these towns are an ideal purchase for holiday or part-time residential use. In general the South Peninsula also attracts the “green” crowd – those who want to live closer to nature, in a healthier environment with a wealth of outdoor activities to be enjoyed. All of these towns are accessible in under an hour’s drive from Cape Town, yet feel like they are a world away from the big city.”

There are ample opportunities for buyers to purchase homes under R3 million in the South Peninsula, although Gildenhuys reports that stock levels in the lower price brackets (sub-R2 million) are low at present due to high demand. Activity is also picking up in the upper price brackets, after a long period of relatively muted sales - PGP recorded two sales over R7 million in December 2013, and has seen an overall increase in buyer activity in this range, particularly from international purchasers.

Buyers have included a mix of Capetonians moving into the South Peninsula, retirees, upcountry buyers relocating their families from Gauteng or buying for holiday use, and some international clients. Gildenhuys notes a particular increase in demand for secure living in gated estates.

For more information on property for sale in the South Peninsula, contact PGP’s area manager Sandi Gildenhuys on +27 (0) 83 409 3137, +27 (0) 21 782 6440 or sandi.gildenhuys@pamgolding.co.za.

What makes for a sound property investment?


Elphinstone in Kenilworth

In good times and bad, investment in real estate has proven difficult to beat on almost any measure.   While world stock markets have had a good run, the fickle nature of excessively high price : earnings ratios has brought a nervousness which for many is difficult to live with.  Equally, gold has been erratic in its performance.

Elwyn Schenk, Pam Golding Properties area principal in uMhlanga and eMdloti explains further: “Without detracting from the need for a balanced portfolio by geography and asset class, long term investors in quality real estate have been well rewarded. Returns on residential property have two elements, a capital growth portion which over the years has comfortably outstripped inflation and, for investors rather than owner occupiers, a rental component which is also normally inflation proof.   More recently, capital growth nationally has been around seven percent per annum while rental yields vary from five percent to nine percent per annum - a combined return of 12 percent to 16 percent. In prime areas such as the golden triangles of Cape Town, North Durban and Sandton in Johannesburg, these numbers have been appreciably better.”

But, asks Pam Golding Properties, what really contributes to the intrinsic value of a property, assuring the owner of future good returns when they wish to sell the property, or rent it out for a sound monthly income?

The astute investor market continues to retain an appetite for residential property, particularly the buy-to-let investor. Their purchase decisions are carefully considered on the basis of price, location, features and importantly, yield potential. Multiple housing projects under sectional title can result in investors achieving extremely sound returns, driven by those who understand the ultimate value of buying into a preferred housing solution well-run schemes with excellent communal facilities and the potential to rent out apartments easily due to their broad appeal. This makes good sense as new developments in well established areas are attracting like-minded people on the basis of lifestyle and convenience regarding access to major routes, the workplace, good schools, amenities, and shopping and leisure facilities.

It is logical that location plays a major role in the buying decision, particularly from an investment perspective. Given that the smallest, average property in a sought after area is likely to increase in value at the same rate as the other properties demonstrates the fact that location and price appreciation go hand in hand.
What adds value to a property?

Laurie Wener, MD for Pam Golding Properties in the Western Cape’s Cape Town metropolitan area says the criteria for adding value to a property varies from suburb to suburb. In family-oriented suburbs that consist predominantly of family homes, proximity to good schools, shopping centres and public transport and/or arterial roads are important, for example, Rondebosch in Cape Town’s Southern Suburbs. “Conversely, in more rural type settings, it is an advantage to be out of sight and sound of arterial roads and away from the hustle and bustle of retail centres. The value in living on the famous Western Cape Atlantic coastline is defined by proximity to the sea or elevated views of the mountains and sea and, of course, modern architecture.

“Generally speaking, the adage still applies - it is better to have a shack in a good position than a palace in a poor one. Also, security and sufficient covered or at least secure parking is important everywhere. Investment properties are popular in established areas where rental demands for apartments are high. Rental returns are highest at the lower end of the market - percentage wise, decreasing with increasing property value. If you are growing a portfolio of properties then having more, smaller properties versus fewer, larger properties spreads the risks and will increase the rate of rental return, although not necessarily capital growth. Bear in mind that young working or professional singles and couples and those at the other end of the spectrum who are scaling down often opt for easy, low maintenance, secure city living for the ambiance and style as much as the convenience and security.

“As an investor it’s important to do one’s homework and decide what you want. If your requirement is for low risk tenancies then aim for an established area such as Claremont or Sea Point and properties which appeal to a mature, more affluent market,” says Wener.

Speaking of high net worth investors, Basil Moraitis says those looking for pure capital growth and who are unconcerned about generating a yield on the property until they dispose of the asset, tend to look for trophy properties which offer special attributes and are distinguishable from the general residential property market. “Along the sought after Atlantic Seaboard these special and unique features include: guaranteed panoramic sea views, protection from prevailing winds, privacy from neighbours, direct beach access and rarity value. The actual dwelling house is often a secondary consideration as this can always be changed – and may even be a brand new house which the buyer elects to extensively alter - it’s the position which is paramount. The pure investment buyer, while wanting to include some of the attributes set out above, is more concerned with monthly property yields as well.”

What about the layout?


What of the configuration of a home, is there a ‘formula’ for how many bedrooms, bathrooms and the like? Again it depends on the area’s specific demographic. Commenting on the Cape Town metropolitan area Wener says family home areas should have three to four bedrooms with at least two bathrooms, while a level garden with swimming pool certainly adds value. “However, most apartments in Sea Point have only two bedrooms - with a new trend among buyers demanding three bedrooms. If all bedrooms are en suite - which is usually not the case in older blocks - this will add value. Undercover parking at one bay per bedroom also adds value as well as views, appealing outlook, good maintenance, attractive gardens, modern bathrooms and kitchens. Newer areas such as Constantia and super luxury areas such as Bishopscourt, Bantry Bay and Clifton demand modern architecture with good flow, excellent indoor-outdoor entertainment facilities, at least three reception rooms, top security and irrigation, and electronically controlled access. Homes with energy saving features are definitely attracting increasing interest and becoming more and more important. Bear in mind that apart from location, style and functionality determine the initial attraction evoking the emotional response of any buyer or tenant, so quality and finishes will only be of any value if the response is positive. In today’s market purchasers are looking for good buys and value for money and may be more inclined to compromise on their dream for a better value offering,” says Wener.

Flow is important


Depending on affordability, many buyers today prefer a modern, low maintenance home with an open-plan layout with an emphasis on the flow of living and entertainment areas from inside to outdoors. Carol Reynolds, Pam Golding Properties area principal in Durban, Durban North and La Lucia says it’s important to bear in mind that it is easy to improve the cosmetics of a home - the difficulty lies in trying to reconfigure a badly designed property with poor flow. “Generally, bedrooms should cluster together either upstairs or in one wing of the house, with a spare bedroom being located away from the core bedroom wing for privacy. The kitchen should be open-plan and flow onto the lounge and dining areas, which should then lead onto the verandah and pool and garden. If the house is double-storey, the bedrooms should be upstairs, instead of being on different levels, and ‘upside-down’ houses where the bedrooms are downstairs and living areas upstairs, are always more difficult to sell. Another factor to bear in mind is that if you are selling a home in a high price bracket, there is a buyer expectation that such a home should have excellent finishes and be in immaculate condition, so finishes become critical in the higher echelon and less critical at the under R3 million level. Special features can add value to a home, but generally, having a home with no negatives will outsell a home with a few negatives and some special features. For example, a home with an exceptional view but a very steep driveway will be more difficult to sell than a home on a level garden with less spectacular views.”

Reynolds adds: “One of the most critical factors to consider when choosing a location is to look at the price ceiling for an area. The best investment will be one where the difference between the purchase price of the property is well below the ceiling for that area, so that over-capitalising will not become a concern, and there is plenty of room for improvement and growth.”

Consider the big picture:


Annien Borg, MD for Pam Golding Properties in the Boland & Overberg regions advises buyers to consider growth in property values in the area over the last five years - are you seeing other houses being upgraded in the area, what are the short and long term development plans for the area, such as new access roads, growth in industries around the area that might create job opportunities, thereby adding to the demand for properties in the area, and then establish what the rental returns would be if you had to rent out the property.

Right price is key


It is very important to acquire the right property at the right price in the right address, according to Jonathan Davies, Pam Golding Properties joint area manager in Hyde Park, Johannesburg. “First consider the type of property that involves lower maintenance, such as a cluster home or a sectional title development. The right price is very important as every cent spent over the market price will need to be recovered over time and this can eat into a potentially rewarding investment. Avoid an emotional purchase and look at the facts and return. Remember, although a property may look discounted and may offer a good deal if it is in the wrong location it may never be as rewarding financially and it may also be more difficult to find a tenant. Also consider good security and good access to public transport and highways.

“If you are looking to build up a property portfolio, start small and avoid having too much debt. If you ‘own’ several properties but they are all heavily bonded and interest rates commence on an upward trend, you may over time be compelled to offload. Never rush to acquire property, consider your own financial position and future growth and once you have established yourself with a few rental opportunities and they are more secure then look for others. Plan for the worst-case scenario and have a contingency plan available. Also remember that your rental income is taxable and it is wiser to have a high bond on a rental property as the bond interest can be written off against income. Any excess liquidity can be moved to other investments or the bond on the home in which you live. Be prepared to make the right decisions and you will then reap the rewards over time,” he says.

Dexter Leite, Pam Golding Properties rentals manager in the Western Cape says budget is a high level determining factor as to which areas, suburbs and property type you invest in. “It’s also important to consider spreading your risk, for example if you have R5 million to invest in property, do you put it into one, two or maybe three properties in three different areas?” He also emphasizes the importance of buying at the right price, besides timing, location and all the other relevant factors. “If you pay too much when you enter the market you ‘pay’ more later, when you sell.”

What rental return can you expect?


Leite says in the Cape Town metropolitan areas rental return generally is around five to eight percent percent gross of the property’s value. “For example, a R1.9 million purchase could provide an approximate R132 000 gross annual rental return (R11 000 per month), and so the return does not generally vary hugely on a particular purchase price – although, there are of course exceptions to the rule. The return does, however, reduce on the more expensive or exclusive properties ie it could be below five percent, but the capital gain on these properties is usually inverse. The rental escalation will probably be around six to eight percent so over time, depending on current market conditions, as the rental increases and ultimately one aims for a reasonable capital gain on the sale of the property. As a simple example, if you pay R1.9 million for a property and sell it a few years later for R2.28 million, seemingly you have made a 20 percent profit. However, all costs associated with such a purchase since its acquisition up to the date of sale need to be taken into account. And if the property was acquired specifically as a buy to let investment, then the rental income needs to be offset against all expenses, reflecting the actual return one makes. Given the current acute shortage of rental properties available which is widespread in Cape Town areas such as Southern Suburbs, City Bowl, the Atlantic Seaboard, Southern Peninsula and Northern Suburbs, it makes very good sense to consider investing in the buy to let market - with the pent-up demand keeping pressure on increasing returns.”

Adds Leite: “Ultimately you pay for what you get, provided you are a discerning buyer, so a well positioned, constructed and well presented home with a good layout and quality (modern) finishes will command a realistic price or rental.”

For further information contact Pam Golding Properties on +27 (0) 21 710 1700 or email headoffice@pamgolding.co.za.

Coastal residential market picking up


Witsand river view

Negatively impacted by the recession, the coastal residential property market, in particular the leisure market, has battled to regain momentum in the prevailing challenging economic trading conditions. This summer however, and in particular during the past holiday season, interest and activity in the coastal residential market has picked up among holiday and retirement buyers, reports Pam Golding Properties.

In KwaZulu-Natal, Carol Reynolds, Pam Golding Properties area principal in Durban, Durban North and La Lucia says the Durban beachfront, which attracts both holiday and investment buyers, has seen an increase in enquiries since the middle of 2013.

“The Durban beachfront is popular as it offers entry level investment opportunities from as low as R300 000. The buy-to-let proposition is therefore very attractive to investors because return on investment is higher than most areas, given the initial acquisition cost. At this level, there are no transfer duties. In addition, the Point area is gaining momentum with two and three bedroom apartments the most sought after, with prices ranging from R1.5 million upwards.

“In Durban North and La Lucia we are also seeing relocations from Johannesburg, with many families choosing to settle at the coast, with the major breadwinner commuting to Johannesburg every week for work. The lifestyle offering and climate in Durban are extremely appealing, particularly for young families raising children. Often it is simply a matter of lifestyle choice and families wanting to live in a less fast-paced metropolitan area. Although many of our buyers are from Gauteng, our market is still largely driven by locals wishing to upscale or downscale within the area. Durban and Durban North offer convenience and proximity to amenities and arguably among the best schools in the country. As a result, the market is relatively stable with constant demand.   On the whole, there is a sense of optimism in the market and we are sitting with demand outstripping supply.”

Reynolds says easy access to the beach and facilities is also key and one of the factors that keeps demand high in the Durban, Durban North and La Lucia nodes, plus there are a number of beautiful homes with direct beach access. Frontline homes on the beach are particularly popular with out-of-town buyers because of the novelty factor and lifestyle offering, while still offering sound value for money. 

On the KwaZulu-Natal South Coast in the Margate area, Pam Golding Properties’ (PGP) Margate office says while traditionally enquiries increase over the holiday season, there has been a major shift in trends regarding enquiries - from sectional title to full title properties. Enquiries have also been in the upper end of the market from investors with higher equity; in other words not requiring large bonds, says Dina Porteous, PGP’s area principal. “Generally they are Gauteng and KZN buyers seeking a home away from home which ultimately is a long term investment. There is also the added benefit of being able to enjoy the South Coast’s attractive Blue Flag beaches which are less crowded than some other popular coastal destinations. This coastline is renowned for offering value for money property and there has been a noticeable trend in upcountry families’ relocating to the area for better quality family life, with direct flights between OR Tambo International Airport and Margate Airport fuelling this trend. Beachfront homes range between R4.5 million and R20 million in price,” she says.


Beachfront property

In Port Edward, the local PGP office reports that enquiries and actual sales have definitely picked up in recent months. This coastal town is also experiencing a change in demographics, where erstwhile holiday homes are becoming residences for new buyer groups. Says Cathy Molyneaux, PGP’s area principal: “We are finding that the Trafalgar area is popular among upcountry visitors from Gauteng, Limpopo and Mpumalanga as well as Eastern Cape buyers. With security markedly improved due to satellite police stations having been set up along with strong neighbourhood watches, husbands can work away from the area while children attend good schools. The lower south coast is very competitively priced compared with other coastal areas and offers in most cases better weather and beaches in more tranquil surroundings.“

In Port Elizabeth in the Eastern Cape PGP’s area principal Ian Olivier says interest in coastal property definitely increased this summer, particularly homes with a sea view and generally priced up to around R2 million. “You can even buy a front line home for under R3 million. We recently sold a two bedroom home, built in the 1950s, for R1.7 million which the new owner then demolished in order to build a beautiful modern home - a frontline property in Seaview.  Buyers comprise mainly local buyers seeking primary homes, as well as those from upcountry and Western Cape relocating on business or for a better lifestyle, and investors seeking a home to retire to in the future. Increasingly, we are seeing overseas buyers (from Germany, United States and even the Philippines) looking for leisure property.

“With upmarket shopping malls, attractive, warm swimming beaches, good schools and our own airport, Port Elizabeth offers a healthy family lifestyle away from hectic city life, with areas such as Summerstrand particularly sought after and with a shortage of stock in the R2.5 million price range.
It’s also an ideal stop for international visitors flying in to access our Eastern Cape game reserves and tour the scenic Garden Route. Positive factors of relevance to the property and leisure markets are that Kings Beach has just been upgraded with ponds, playgrounds and pools, while the University has expanded the Business School at the 2nd Avenue Campus, with plans for further expansions within the area,” says Olivier.

Also in the Eastern Cape, during the recent high summer season, Pam Golding Properties Kenton on Sea says the area experienced a definite increase in enquiries and activity with locations most in demand being Kenton and Cannon Rocks. “January 2014 was our best month since May 2012, and this was followed by another month of good sales in February,” says Michael Wilmot, area principal for PGP. 

“Most importantly, the demand is for well-priced properties offering sound value for money, and there is renewed interest in holiday properties, particularly in Kenton on Sea and Cannon Rocks. In Cannon Rocks and Boknes there is a demand for front row properties under R3 million, as well as for inexpensive, vacant land under R200 000, the latter from cash buyers. Purchasers are mainly from Gauteng, the Western and Eastern Cape, and Free State, from those seeking holiday properties and with some looking to acquire retirement properties. Our proximity to the Grahamstown schools and the university is an added attraction among out of town parents seeking a lock up and go property or holiday house. Coupled with the Sunshine Coast’s natural assets, including attractive beaches, navigable rivers and bush experience, the security and lifestyle attractions are just some of the draw-cards for home buyers. Interestingly, in Cannon Rocks we have noted an increase in overseas visitors out of season, specifically Swiss and French kite surfing enthusiasts,” he adds.

Pam Golding Properties St Francis Bay, which includes Cape St Francis, reports its best summer season in years and has in fact doubled its turnover over the past 12 months (to February 2014). The combination of building activity after the devastating canal fire in November 2012, idyllic weather over this most recent peak season, and extensive marketing resulted in a number of sales all over the greater St Francis Bay area. “These ranged from a 20ha smallholding 10km upstream on the banks of the Kromme River, as well as a few plots on St Francis Links, and numerous houses and plots on the canals, leading all the way to Cape St Francis, where we experienced particularly strong demand,” says Richard Arderne, Pam Golding Properties area principal.

“We also sold two smallholdings about five kilometres out of town up the Kromme River. The purchasers were a mixture of locals, and Port Elizabeth and Johannesburg buyers. Nevertheless, sellers still outnumber buyers and according to FNB, prices for coastal resorts are still about 30 percent below their 2007 peak in real terms. However, St Francis Bay has almost certainly outperformed this national average.”

Situated on the Garden Route, the Mossel Bay office of PGP saw a huge increase in enquiries in the six months culminating in the recent festive season with a revival in the market for vacant stands, and with enquiries exceeding previous summer season. Keith Murray, Pam Golding Properties area principal says this resulted in 25 successfully concluded sales – indicating a marked improvement in the movement of property. “Purchasers are mainly acquiring leisure homes or properties for future retirement on the coast, with the majority from Gauteng and some from Cape Town and the central provinces. However, the rand value has been low, bearing in mind that most of these were plots which sold from R250 000 to R1 million and houses and apartments which sold between R550 000 and R1.3 million.

“Our biggest demand has been in Pinnacle Point Beach & Golf Resort, which has gained market confidence with very affordable prices for investors, while in Mossel Bay in general low-priced homes are still very much in demand with a few enquiries in the upper end of the market from R3 million to R12 million. Interestingly we have had enquiries regarding Pinnacle Point from a number of international buyers, for properties priced from R350 000 for vacant land to a beautiful cliff-front house at R14 million, as well as lodges and villas priced between R750 000 and R1.8 million,” says Murray.

In the scenic Western Cape coastal towns of Witsand and Stilbaai, along the area known as the Blombos coast, Pam Golding Properties has been seeing heightened interest among upcountry buyers, including Gauteng and Limpopo - particularly those who have visited the area as a holiday destination and wish to settle in a safe haven and enjoy a slower paced lifestyle, says Jennifer Seggie, Pam Golding Properties area principal. “There is also interest from Capetonians, especially in seafront properties as the area is much closer than other Garden Route destinations and our prices are very competitive.  PGP is currently marketing a number of riverfront and seafront properties zoned agricultural, ranging in size from 30-450ha and priced from R3.5 million to R14 million. Two of these are currently under offer. We are also noting an increase in the expatriates choosing to return to South Africa for their golden years, with the addition to our village of an acute hospital and a day clinic definitely adding appeal, as well as the weaker rand. 

“In terms of holiday homes the highest demand is for properties as close to the water as possible, although in Stilbaai these homes tend to be the older houses, needing work and often on smaller plots. Those looking to relocate tend to go for value for money, choosing the established suburbs and settling for distant blue views. Buyers opt for a variety of leisure homes, with the highest demand from approximately R1 million to about R1.3 million. Frontline homes are popular but the premium price paid and the high maintenance costs put them out of the average buyer’s budget,” she says. PGP is currently marketing a number of riverfront and seafront properties zoned agricultural, ranging in size from 30-450ha and priced from R3.5 million to R12 million.

For further information contact Pam Golding Properties KwaZulu-Natal region on +27 (0) 31 207 5584 or Eastern Cape/Garden Route on +27 (0) 46 6361039 or email kzn@pamgolding.co.za or easterncape@pamgolding.co.za.


 

AR
Monterey, 12-14 Klaassens Road, Bishopscourt, Cape Town, 7708, South Africa