How to buy a home in an estate

The popularity of estates and other gated developments has grown enormously in the past 20 years, and it is estimated that there are now about 6500 closed golf, wildlife, wine, equestrian and lifestyle communities in SA, containing approximately 350 000 homes.

“And the average price of those homes is about three times the national average home price, so it is clear that buyers in these developments are happy to pay a premium for the additional security and lifestyle amenities they offer,” says Gerhard Kotzé, MD of the RealNet estate agency group, which sells homes in many of SA’s top golf and lifestyle estates.
“What is more, with the introduction of sectional title units in many of the newer estates, the demand for estate homes is definitely not limited any more to repeat buyers in the higher income brackets. In fact, buyers these days include many working singles, young marrieds with small children and active retirees – and an estimated 25% of them are first-time buyers.”
However, he says, buying in an estate is definitely not the same as buying a home in the suburbs, and the following advice should prove useful if you are about to embark on a search for one of these premium-priced properties:
*Be sure to choose an estate that speaks to your lifestyle, or one to which you aspire, and provides the school, sports facilities and security provisions that are important to you. If you want to watch wildlife from your veranda, for example, your first choice will probably not be a golf estate. On the other hand, don’t discount a clubhouse, restaurant or wellness spa that might add to your enjoyment of whichever estate you choose. 
*If you can, pick an established, organised and operational estate. Most very new estates have teething problems and it is good if you can avoid these. If you can’t, try to get involved in a positive way and help to ensure that the estate will be well-managed going forward.
*Even if you are buying into a well-established estate, check to see that it has a strong Home Owners’ Association (HOA), a track record of good management and good financials. The absence of these can make a seemingly good investment lose value in a very short amount of time.
*Check the rules of the estate carefully to make sure you will be able to live by them, even if you don’t love all of them. Estates can only run well if everyone is on the same page.
*Find out what the monthly levy is and what it covers. Remember that you will have to pay your own municipal rates, homeowner’s insurance and maintenance costs as well as the levy.
*Commit to a purchase as soon as possible. Estate property sells at a premium but its value generally also increases faster, so even if you have to settle for a smaller property initially, you will be in the right market sector and able to “buy up” within this sector in due course. If you leave it too late you may cut yourself out of the estate market for good.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us